- Cronos Staking ETF to track spot CRO price and generate staking yields
- Canary Capital plans more ETFs with staking-based income models
- SEC easing on staking could speed up ETF approval process
Canary Capital has officially filed an S-1 registration with the SEC for its proposed Cronos ETF. The fund seeks to offer spot price exposure of Cronos (CRO) and add staking rewards. This marks a new step toward regulated digital asset investment as the SEC relaxes policies on staking.
Cronos Staking ETF Structure
The Cronos Staking ETF will track the spot price of CRO and earn staking yields through selected infrastructure providers The assets will be held by Foris DAX Trust Company, which operates as Crypto.com Custody Trust Company. The staked CRO will be locked and cannot be withdrawn in the first 28 days.
Canary Capital has not disclosed the ETF’s management fee or the proposed ticker symbol. When approved, the Cronos Staking ETF will be listed for trading on a national exchange. If it is approved, the Cronos ETF will be the first ETF in the United States to offer spot-based CRO.
The fund hopes to attract both retail and institutional investors through the combination of traditional finance and blockchain-based yield opportunities. The Cronos ETF is part of Crypto.com’s 2025 growth efforts which involves token development and stablecoin innovation.
Impact of Staking in the Approval of ETFs
The platform relies on trusted validators to keep staking secure and the yield accurate within a regulated environment. The Cronos Staking ETF offers a new approach which merges proof-of-stake earnings with the ability to track assets. This approach matches the growing demand for staking by large investors and asset managers.
The increased staking interest by regulators could speed up the approval process of ETFs. The SEC recently clarified that most staking does not constitute securities issuance under current law. This ensures Canary’s plans for ETFs that use staking are viable.
Canary Capital Continues to Pursue Staking in ETFs
Canary Capital has filed for additional ETFs such as the Staked TRX ETF and the Staked SEI ETF. These products will follow a similar format, combining price tracking and staking rewards through regulated custodians and node operators. A lock-up period will be set for every fund to help maintain control of the assets and ensure the yield is maintained.
Crypto.com will handle the custody and staking for the Cronos ETF. Company leaders believe the ETF will help more people access CRO and related services. The initiative is part of a rising trend that combines traditional finance and blockchain technology.