Canary Capital, a notable ETF issuer, has announced the launch of a fund focused on U.S.-based crypto projects. This fund will include tokens like Uniswap, Solana, and Chainlink.
Description of Canary Capital's ETF
On August 22, 2023, Canary Capital filed an S-1 registration with the U.S. Securities and Exchange Commission for the "American-Made Crypto ETF." The fund will focus on projects that have significant ties to the U.S. market, including those developed, mined, or operated primarily in the United States.
Risks and Features of the Fund
The filing notes that the fund is high-risk. This is because altcoins in the index have lower liquidity than major crypto assets. Additionally, there is regulatory uncertainty concerning altcoins in the U.S. Moreover, a focus solely on U.S. ETFs may limit diversification.
Benefits for American Altcoins
Canary Capital argues that U.S.-based altcoins are more likely to succeed due to recent pro-crypto shifts among U.S. regulators and legislators. Projects with strong ties to the U.S. are likely to engage with regulators, reducing their potential legal issues.
The launch of the ETF by Canary Capital highlights the increasing attention on American crypto assets and the influence of politics on the investment landscape.
