Canary Capital is on the verge of securing approval from the U.S. Securities and Exchange Commission (SEC) for its proposed exchange-traded funds (ETFs) tracking XRP and Solana (SOL). The company’s recent filing updates signal a pivotal moment as regulatory sentiment shifts in favor of cryptocurrency assets.
Canary Updates XRP and Solana ETF Filings
Recently, Canary Capital submitted amendments for its Canary Marinade SOL ETF, which incorporates staking, and its Canary XRP ETF. Both documents revealed a significant reduction in management fees to 0.50%, down from the previously anticipated 0.95% for the company’s HBAR and Litecoin ETFs.
Eric Balchunas, a senior ETF analyst at Bloomberg, emphasized the significance of these filings, noting that Canary’s “amendment #6” submission for its Solana ETF, with a fee ratio of 0.50% and no reduction in staking rewards, suggests it is nearing approval. This reference to “amendment #6” typically indicates that the filing process has advanced to its final stages.
The fee adjustment comes amidst heightened competition among asset managers in the burgeoning cryptocurrency ETF market. Earlier this week, Bitwise revealed a substantially lower fee of 0.20% for its Solana staking ETF, thereby raising the stakes for other issuers to keep costs competitive as they await regulatory authorization.
Regulatory Progress Under New Administration
Canary’s filings coincide with a crucial juncture for the cryptocurrency industry. Over the past year, several companies have submitted ETF applications for tracking digital assets like Dogecoin (DOGE) and Litecoin (LTC), encouraged by what market participants describe as a more favorable regulatory landscape for cryptocurrencies.
This shift follows the appointment of Paul Atkins, a well-known advocate for innovation in digital assets, as SEC chair under President Donald Trump. Under Atkins’ leadership, the agency has moved to provide clearer guidelines for the listing and trading of cryptocurrency-based investment products.
Significant developments include the approval of new listing standards that outline the criteria for listing certain cryptocurrency ETFs on U.S. exchanges. This regulatory update may enable dozens of pending cryptocurrency ETF applications to launch without requiring individual approval under the SEC’s 19b-4 process, a procedural bottleneck that has historically delayed product launches.
This change could considerably shorten the timeline for market entry for ETFs like Canary’s XRP and Solana funds.
Awaiting SEC Action Amid Government Shutdown
Despite recent regulatory advancements, uncertainty remains regarding the pace at which the SEC can proceed, particularly following the recent U.S. government shutdown. Several ETF deadlines related to the 19b-4 process have already lapsed, including those for the Solana and Litecoin products.
According to sources cited by The Block, the SEC may consider batch approvals for single-product cryptocurrency ETFs in October and November, once the government resumes normal operations.
The focus now shifts to registration statements, which, unlike 19b-4 filings, do not have strict deadlines attached. Canary Capital’s latest updates suggest it is well-positioned among the upcoming wave of ETF issuers.
If approved, its products could join a rapidly expanding range of cryptocurrency ETFs gradually gaining regulatory acceptance in U.S. financial markets.
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