Canary Capital Files For Cronos (CRO) ETF With US SEC, Price Recap

The Canary Capital investment firm just filed a Cronos ETF, putting CRO in the list of altcoins that could potentially have a spot ETF. The filing marked the first ETF application pertaining to the CRO cryptocurrency.

News of the Cronos ETF fling came about 2 weeks after the Crypto.com exchange announced a partnership with Canary Capital. The two collaborated in order to create the first CRO ETF aimed at providing U.S investors with exposure to the cryptocurrency and the Cronos ecosystem.

Source: X

The fast-tracked filing highlighted the pace at which the collaborative effort has been moving. Canary Capital CEO Steven McClurg described the move as an effort aimed at enhancing institutional grade access to the crypto market. An acknowledgement of the ETF’s efforts to tap into institutional liquidity.

Why the Cronos ETF Goes Beyond Regular ETF approach

According to the Canary Capital filing, the CRO ETF will use investor funds to acquire CRO in order to track the spot price. This means investors will have spot exposure to the cryptocurrency.

However, the approach goes beyond just holding the cryptocurrency. It will be a staked ETF which means Canary Capital will stake the CRO coins in an effort to generate more returns.

In other words, Canary Capital’s approach aimed at providing investors with the opportunity to tap into long term growth opportunities through Crypto.com. The latter uses CRO as a utility coin within its exchange ecosystem and fee payments is among its key utilities.

It is also worth noting that that the CRO ETF filing followed not long after CRO rebranded from Crypto.com coin to Cronos. The development also underscored Crypto.com’s effort to push the blockchain further into the mainstream, especially in line with the growing acceptance of cryptocurrencies in the U.S.

CRO Price Recap: Market Responds CRO ETF News

CRO price action enjoyed some bullish momentum which pushed it up by over 8% from its bottom price on Friday to its $0.096 press time. This suggested that the market was confident in the potential for the new ETF to receive approval.

CRO price action/ source: TradingView

The cryptocurrency has been struggling to find a bullish footing since the second week of May after previously achieving a premium from its current monthly low. The latest development also allowed CRO’s RSI to bounce back after previously dipping below its 50% level.

A sign of renewed bullish confidence associated with the new Cronos ETF filing. CRO’s press time price tag was only up about 41% from its lowest YRD levels observed in late February.

However, it was still heavily discounted by about 58% from its December top and about 89% from its historic peak.

The market’s reaction suggested that the recent Cronos ETF filing may have reignited demand for the cryptocurrency. Its heavily discounted price may contribute to a favorable sentiment. In addition, the prospects of incoming institutional liquidity further added to CRO’s attractiveness.

CRO now joins the growing list of top cryptocurrencies that have pending spot ETFs. Some of the other cryptocurrencies included Cardano, Litecoin, Solana, XRP and Dogecoin.

Will the CRO ETF filing receive approval any time soon? Some of the previous ETF filings have been pending for months. CRO may not be exempt from the wait. However, the U.S regulators have been rapidly changing their tune on crypto matters lately.

This plays into the possibility that we could see expedited decisions on ETF filings sometimes soon. However, it is worth noting that the filing was recent and the SEC was yet to issue any response or guidance on timing.