Staked Cronos ETF Filing Boosts CRO Token Value
The American asset management firm, Canary Capital, has submitted a Form S-1 registration statement to the Securities and Exchange Commission (SEC) to establish the first of its kind staked Cronos (CRO) Exchange-Traded Fund (ETF). This announcement has triggered a positive response within the cryptocurrency community, resulting in a 2.94% surge in CRO's price, now trading at $0.1002, marking a rise from its intraday low of $0.0903. The trading volume of CRO has experienced a substantial increase of over 129% within the last 24 hours, reaching $51.39 million.
The proposed fund, named Canary Staked CRO ETF, will provide investors with direct exposure to the price of CRO while earning extra CRO through staking. The trust holding the CRO tokens will be based in Delaware, with Foris DAX Trust Company, operating under the name Crypto.com Custody Trust Company, responsible for asset storage. The staking operations will be managed through validators.
Before moving or withdrawing the staked CRO, it must go through a 28-day unbonding period. A unified annual fee will apply, although the exact percentage has yet to be disclosed. The ETF's trading symbol remains unavailable.
In a press release, Eric Anziani, president and COO of Crypto.com, commented that ETFs have proved instrumental in broadening crypto investor participation and further integrating digital and traditional finance capabilities. He expressed his enthusiasm for this significant step in providing U.S. investors opportunities to engage with CRO through an ETF with Canary Capital.
This filing follows a series of partnerships between Canary Capital and Crypto.com, most recently announced on May 19 when both companies agreed to establish Canary CRO Trust, a private vehicle for accredited U.S. investors to gain exposure to CRO. If approved, this ETF will be the first staked Cronos ETF in the U.S. Additionally, Canary Capital is working on other staking-based crypto funds, including ETFs for TRON (TRX) and Sei Network (SEI).
It should be noted that, in a statement released on May 29, the SEC clarified that most staking activities on proof-of-stake blockchains do not fall under securities laws. The agency cited that staking rewards are compensation for providing network services rather than returns from investment contracts.
Investors stand to gain direct exposure to the price of Cronos (CRO) through the proposed Canary Staked CRO ETF, a technology-driven investment vehicle that also allows earnings from staking CRO tokens. The increasing popularity and acceptance of Exchange-Traded Funds (ETFs) in the finance industry, such as the Canary Staked CRO ETF, is a testament to the role they play in broadening crypto investor participation and integrating digital and traditional finance capabilities.
