The air around Washington D.C. often feels thick with anticipation, especially when crypto assets are on the table. This past week, a subtle shift occurred, a quiet rustle in the regulatory papers that suggests some long-awaited approvals might be inching closer. Canary Capital, a name you might remember from earlier ETF filings, just made a notable play.
- Canary Capital has updated its registration statements for XRP and Solana (SOL) ETFs, signaling a push for SEC approval. These filings represent the sixth amendment for some of these proposals, indicating extensive regulatory engagement.
- The firm has proposed a 0.50% fee for both the XRP and SOL ETFs, a reduction from previous proposals, reflecting a competitive market landscape and competitor fee structures.
- The Solana ETF will have a 0.50% expense ratio but will not include a share of Solana staking rewards, potentially appealing to investors seeking direct benefits from staking.
They updated their registration statements for both an XRP exchange-traded fund and a Solana (SOL) ETF. This isn’t just routine paperwork. It signals a firm pushing hard for the U.S. Securities and Exchange Commission, or SEC, to give its final blessing.
Think of it like a chess match. Each filing, each amendment, is a calculated move. Canary Capital filed these changes on Friday, specifically for its Canary Marinade SOL ETF and its Canary XRP ETF. These are the sixth amendments for some of these filings, which tells you how much back-and-forth has already happened.
A Closer Look at the Filings and Fees
One of the most interesting details in these updated filings is the proposed fee structure. Canary Capital disclosed a 0.50% fee for both the XRP and SOL ETFs. This is a significant drop from their earlier proposals for HBAR and Litecoin ETFs, where they had set a 0.95% sponsor fee.
Why the change? Well, the crypto ETF market is shaping up to be quite competitive. We’ve seen other players set aggressive fees. For instance, Bitwise recently announced a 0.20% fee for its Solana staking ETF. That’s a pretty low bar, isn’t it?
Eric Balchunas, a Bloomberg Senior ETF analyst, pointed out this fee detail on X. He also highlighted another important aspect of Canary’s Solana ETF. It comes with a 0.50% expense ratio, but it doesn’t include a cut of the Solana staking rewards.
Staking, for those new to the term, is like earning interest on your crypto. You lock up your tokens to support the network, and in return, you get more tokens. The fact that Canary’s ETF won’t take a slice of those rewards could be a selling point for some investors.
This move by Canary Capital shows they’re paying close attention to what the market expects. They’re also watching what their competitors are doing. It’s a clear signal that they want to be competitive if and when these funds go live.
The Regulatory Maze and Recent Shifts
Many firms are currently waiting for the SEC to approve their proposed crypto ETFs. These include funds tracking various digital assets, like DOGE and Litecoin (LTC). These applications have been piling up over the past year, partly due to a perceived shift in the regulatory winds.
There’s a sense that the administration has become friendlier toward digital assets. President Donald Trump, for example, tapped Paul Atkins, a regulator known for his crypto-friendly views, to lead the SEC. Since then, the agency has taken steps to provide more clarity for digital assets.
One of the biggest developments has been the approval of new listing standards for certain ETFs. These standards lay out specific requirements for how shares can be listed on exchanges. This might sound like technical jargon, but it’s a big deal.
The approval of these standards means that dozens of crypto ETF applications could potentially go live much faster. They might not need to go through the lengthy 19b-4 process, which has been a major bottleneck. This could significantly reduce the time it takes for these funds to start trading.
It’s like getting a fast-pass at an amusement park. Suddenly, the long wait times shrink, and things move much quicker. This change alone has given many in the crypto space a reason to feel optimistic.
What Happens After the Shutdown?
However, the path to approval hasn’t been entirely smooth. The U.S. government shutdown last week threw a wrench into the works. Deadlines tied to the 19b-4 process for several crypto ETFs, including those tracking SOL and LTC, simply came and went during the shutdown.
This has left many wondering what happens next. How will the SEC proceed with these crypto ETF proposals once the government reopens? It’s a question that hangs in the air, creating a bit of uncertainty.
One source familiar with the situation suggested that the agency might decide to batch single-product crypto ETFs together. This could happen this month and continue into November. It’s a way to clear the backlog, perhaps, and get things moving again.
For now, the focus has shifted to the registration statements themselves. Unlike the 19b-4 process, these statements don’t have strict, imposed timelines. This means the SEC has a bit more flexibility in how it handles them.
So, while the shutdown caused a pause, the underlying momentum for crypto ETFs seems to be building. Canary Capital’s latest filings are just another sign of that. We’ll be watching closely to see if these quiet moves lead to a louder announcement from the SEC.
