Canary Capital has submitted its filing to the U.S Securities and Exchange Commission for an ETF based on Axelar’s digital currency AXL. This marks the first time any firm has requested an investment fund focused on Axelar, demonstrating growing interest in new types of digital currencies.
Pioneering Institutional Access
The filing, submitted on March 5, outlines that the ETF’s NAV will be calculated based on AXL's price. While the move signals growing institutional interest in Web3 interoperability solutions, critical details, such as the ETF’s listing exchange, ticker symbol, and custodian, are still private. This ETF builds on Canary Capital’s earlier efforts to bring Axelar to institutional investors. On February 19, the firm launched the Canary AXL Trust, its first structured AXL offering. Steven McClurg, CEO of Canary Capitals, stated that with Axelar driving some of the most advanced interoperability solutions in Web3, they see a significant opportunity in AXL for institutional investors.
Market Reaction and Broader Trends
The announcement had an immediate market impact. AXL’s price surged 14.3% to $0.44, while trading volume soared by 206% to $43.2 million. Canary Capital’s filing is part of a broader wave of cryptocurrency ETF applications in the US. Since Donald Trump took office, the SEC has seen a surge in filings—with over 45 crypto ETF applications currently pending approval. While Bitcoin (BTC) and Ethereum (ETH) ETFs have dominated the space, the scope has expanded to include unconventional assets like meme coins.
Challenges Ahead
Despite the growing interest, significant hurdles remain for non-BTC/ETH ETFs. According to Kaiko Research, many altcoins face issues like shallow liquidity, making them susceptible to price manipulation and volatility. Additionally, most trading activity for these assets occurs on offshore platforms, raising concerns about transparency and regulatory oversight.
For now, AXL joins a growing list of crypto ETF filings. Whether it succeeds and paves the way for similar offerings remains to be seen.
