Canary Capital Files Cronos (CRO) ETF Filing With SEC

About Cronos ETF Profile

The emergence of cryptocurrency exchange-traded funds (ETFs) has marked a turning point in the integration of digital assets into the traditional financial system. After Bitcoin and Ethereum spot ETFs were approved in 2024 – with BlackRock’s iShares Bitcoin Trust ETF attracting billions of dollars – altcoins like Solana, Dogecoin, and now CRO are taking center stage.

Canary Capital's S-1 filing for the Canary Staked CRO ETF is not only a milestone for CRO, but also reflects the growing trend of integrating DeFi (decentralized finance) mechanisms like staking into traditional investment products.

Although Crypto.com did not directly apply, they played an important role by providing staking infrastructure and custody services to the fund. This represents a strategic partnership between Canary Capital and Crypto.com, leveraging Crypto.com’s reputation and technology to boost CRO’s value in the international market.

Details about Canary Staked CRO ETF

The Canary Staked CRO ETF is a unique ETF that combines tracking the market price of CRO with generating additional income from staking. Here are the key details quoted or inferred from the S-1 filing and related information:

• Investment Objective : The fund aims to reflect the price performance of CRO, minus operating expenses (such as management fees), while using a portion of the assets for staking on the Cronos Proof-of-Stake (PoS) network, a Layer-1 blockchain developed by Crypto.com.

• Staking Mechanism : CRO is staked on Cronos Chain to earn staking rewards, with an unbonding period of 28 days, during which CRO cannot be transferred or withdrawn. Staking rewards are reinvested or distributed to investors, depending on the fund structure.

• Asset Custody : The fund's CRO is stored by Foris DAX Trust Company , operating under the name Crypto.com Custody Trust Company , a US-licensed entity with an insurance fund of up to $750 million, ensuring asset safety.

• Net Asset Value (NAV) Calculation : NAV is calculated daily based on the average price of CRO from multiple major exchanges (such as Binance, Coinbase, and Crypto.com Exchange) to avoid price manipulation.

• Management Fees : The S-1 filing does not disclose exact fee rates, but crypto ETFs typically charge annual fees of 0.2% to 1%, which can be adjusted based on fund performance.

• Trading Market : If approved, the ETF is expected to list on major stock exchanges such as NYSE Arca or Nasdaq, allowing trading like regular stocks.

The S-1 filing was dated May 30, 2025, after Canary Capital registered a trust entity in the state of Delaware – a popular location for ETFs due to its favorable regulatory environment.

Current status of the application

As of June 12, 2025 , the SEC has not made a final decision on Canary Capital’s S-1 filing. The ETF review process typically takes three to six months, with key stages including:

• Initial Approval : The SEC reviews the completeness of the filing (usually within 30 days).

• Comment period : SEC sends comments or requests additional documentation (may take 60-90 days).

• Approve or reject : Final decision, usually published after comments are resolved.

The filing is still in its early stages, and no specific timeline has been announced by the SEC. Users can track progress on the SEC's EDGAR system ( www.sec.gov/edgar ) by searching for "Canary Staked CRO ETF" or "Canary Capital."

Market and regulatory context

The CRO ETF filing comes amid a boom in institutional investment products in the cryptocurrency market. After the approval of Bitcoin spot ETFs (like the iShares Bitcoin Trust) and Ethereum spot ETFs (like the Grayscale Ethereum Trust) in 2024, the SEC has loosened some regulations, especially for staking funds.

In April 2025, the SEC confirmed that PoS staking is not considered a securities transaction, paving the way for ETFs like the Canary Staked CRO ETF. However, the SEC still maintains strict requirements on:

• Liquidity: CRO needs to have a large enough trading volume (currently around 16-20 million USD/day) to ensure fair trading.

• Investor protection : Custody and anti-market manipulation mechanisms must be demonstrated.

• Transparency : Crypto.com needs to address governance concerns, such as the token reissuance controversy.

Challenges and risks

The SEC remains cautious about altcoins, especially staking funds, due to concerns about price volatility and investor protection. Approval can be delayed or denied if standards are not met.

CRO has a history of high volatility (down 90% from peak), which could scare off conservative investors, affecting SEC approval.

Other ETFs like Solana ETF or Dogecoin ETF are also under consideration, creating competitive pressure for CRO.

Conclusion and evaluation

Canary Capital’s S-1 filing for the Canary Staked CRO ETF is a major step forward, not just for CRO, but for the entire Crypto.com ecosystem. If approved, the fund could boost CRO’s price, increase liquidity, and put Crypto.com on the global financial map. However, with regulatory and governance challenges, the outcome remains up to the SEC to decide.

Once again we give our opinion on potential projects in the crypto market. This is not investment advice, consider your portfolio. Disclaimer: The views expressed in this article are solely those of the author and do not represent the platform in any way. This article is not intended to be a guide to making investment decisions.

Compiled and analyzed by HCCVenture

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