Canary Capital Bets Big on Cronos—Files First-Ever ETF as SEC Staking Rules Crumble

Wall Street’s latest crypto gambit just went live—Canary Capital throws down the gauntlet with a landmark Cronos ETF filing. Timing’s no accident: this drops as the SEC’s staking crackdown shows cracks in its armor.

Why it matters: The ETF arms race just entered Layer 1 territory. While Bitcoin and Ethereum funds hogged the spotlight, Canary’s move signals institutional appetite for altcoin exposure—regulatory minefield be damned.

The fine print: No ticker or expense ratio yet, but insiders whisper this could be the Trojan horse that brings retail investors into Cronos’ DeFi ecosystem. Just don’t ask about the 37-page risk disclosure section.

Bottom line: When Wall Street smells blood in the water—or in this case, regulatory uncertainty—they don’t send flowers. They file paperwork. (And probably short the SEC’s credibility while they’re at it.)

TLDR

• Canary Capital has filed an S-1 with the SEC to launch a staked Cronos ETF.
• The Cronos ETF will track the spot price of CRO and include staking rewards.
• Crypto.com Custody Trust Company will serve as the custodian for the fund’s assets.
• The staked CRO will be locked for 28 days during the mandatory unbonding period.
• The SEC recently clarified that most staking activities do not violate securities laws.

Canary Capital has filed an S-1 registration statement for its proposed Cronos ETF with the SEC. The fund aims to offer exposure to the spot price of Cronos (CRO) while generating staking rewards. This filing follows the recent registration of a Delaware trust and signals active movement toward crypto-linked ETF offerings.

Cronos ETF to Combine Spot Exposure and Staking Rewards

The proposed Cronos ETF will track the spot price of Cronos and earn staking yields through trusted infrastructure providers. All CRO assets held by the trust will be custodied by Foris DAX Trust Company, operating as Crypto.com Custody Trust Company. The staked CRO will be subject to a 28-day unbonding period during which it remains locked and inaccessible.

Canary Capital has not disclosed the unified annual management fee for the Cronos ETF. The fund’s ticker symbol also remains undisclosed pending final regulatory approval. However, the firm plans to list it on a national securities exchange once approved.

If approved by the SEC, this WOULD be the first spot Cronos ETF in the United States. The product targets retail and institutional participants and forms part of Crypto.com’s broader 2025 platform expansion strategy, which includes new token offerings and the development of a native stablecoin.

New ETF to Support Broader Digital Asset Integration

Canary Capital aims to expand access to crypto through regulated investment vehicles such as the Cronos ETF. Combining staking mechanisms with ETF structures may improve capital efficiency and yield generation. This approach could increase exposure to proof-of-stake tokens in traditional finance channels.

The SEC’s ongoing openness toward staking could support timely approval of the Cronos ETF and similar products. While details about the ETF’s performance benchmarks remain limited, the integration of staking indicates a hybrid yield strategy. As a result, the ETF may offer returns beyond spot price appreciation.

Crypto.com’s President, Eric Anziani, said the development represents a strong step toward enabling broader market access to CRO. He emphasized the growing alignment between digital assets and conventional financial products. Crypto.com also supports Canary Capital’s fund with custody and staking infrastructure.

Additional Staking-Enabled ETFs Planned by Canary Capital

Canary Capital is also pursuing registration of other staking-based funds beyond the Cronos ETF. These include the Staked TRX ETF and the Staked SEI ETF, each designed to track respective token prices with staking rewards. The firm’s expanded ETF lineup reflects a focus on combining token exposure and on-chain income strategies.

These ETFs will follow a similar model, using regulated custodians and verified node operators to secure staked assets. As stated in SEC filings, each asset will undergo a defined lock-up period as part of the staking process. No tickers or fee structures have been announced for these additional funds.

The SEC clarified that most staking activities do not meet the definition of securities offerings under current laws. This statement could positively influence the approval timeline for Canary’s ETFs, including the Cronos ETF.