TLDR
- Canary Capital files amendments for its XRP and Solana ETFs with a 0.50% fee.
- SEC approval of Canary’s crypto ETFs was delayed due to the ongoing U.S. shutdown.
- Canary Capital’s Solana ETF will not take a cut of staking rewards.
- Several firms await SEC approval for crypto ETFs tracking DOGE, LTC, and more.
Canary Capital has moved a step closer to receiving approval from the U.S. Securities and Exchange Commission (SEC) for its proposed exchange-traded funds (ETFs) tracking XRP and Solana (SOL). The company filed updates to its registration statements, disclosing a 0.50% fee for both products. This move comes amid a backdrop of ongoing challenges in the approval process, including the effects of the U.S. government shutdown.
Canary Capital’s Filing Updates for XRP and SOL ETFs
Canary Capital submitted amendments to the registration statements for its proposed Canary XRP ETF and Canary Marinade SOL ETF. These updates were filed on Friday, revealing a 0.50% fee for both funds. The fee marks a reduction compared to the previously set 0.95% sponsor fee for the firm’s HBAR and Litecoin ETFs. The revised fee structure reflects Canary Capital’s ongoing efforts to make its crypto ETFs more competitive in the market.
As part of its filing, Canary disclosed that the Solana ETF would not include a cut of the staking rewards, an important distinction compared to other crypto ETFs. Eric Balchunas, a senior ETF analyst at Bloomberg, pointed out that while Bitwise’s Solana Staking ETF charges a 0.20% fee, Canary’s Solana ETF would not take any of the staking rewards. This decision highlights a key difference in the approach between the two funds.
Impact of the U.S. Government Shutdown on ETF Approvals
The approval timeline for various crypto ETFs, including those from Canary Capital, has been affected by the U.S. government shutdown. While the SEC has not provided definitive dates for approvals, it is widely expected that the agency may batch single-product crypto ETFs together once the government reopens. As the 19b-4 approval deadlines for ETFs tracking assets like Solana and Litecoin have passed, it remains unclear when or how the SEC will proceed with these applications.
One industry source indicated that the SEC could expedite the approval process once the shutdown ends, possibly processing multiple applications at once. The agency has already made strides in clarifying listing standards for digital assets and approving specific ETF structures. However, the government shutdown has complicated the timing of these approvals.
The Future of Crypto ETFs Under SEC Review
Despite the delays caused by the government shutdown, the approval process for crypto ETFs continues to advance. Several firms are awaiting SEC approval for ETFs that would track various digital assets, including Dogecoin (DOGE) and Litecoin (LTC). These filings have been part of a broader effort to gain clarity on the regulatory framework for digital assets and ETFs in the U.S.
The SEC has been working towards providing clearer guidelines for digital asset ETFs, particularly those that track spot prices for cryptocurrencies like XRP, SOL, and others. The approval of these funds could pave the way for broader acceptance of crypto ETFs in the U.S. market. However, until the government reopens, progress may be slow.
Canary Capital’s Position in the Crypto ETF Market
Canary Capital’s efforts to introduce its XRP and SOL ETFs into the market reflect the growing interest in crypto-based financial products. With the firm offering a lower fee structure and not taking a cut of staking rewards, it aims to differentiate itself from competitors like Bitwise. As the SEC continues its review of these filings, Canary Capital is positioning itself to take advantage of any upcoming approval windows.
With several firms vying for SEC approval, the future of crypto ETFs is uncertain but remains a focal point for investors and regulators alike. The government shutdown may delay decisions, but Canary Capital’s updated filings indicate the company is poised for progress once the process resumes.
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