U.S.-based asset management firm Canary Capital has filed a Form S-1 registration statement with the Securities and Exchange Commission (SEC) for what could become the first staked Cronos (CRO) exchange-traded fund (ETF) in the country.

Investors in this proposed Canary Staked CRO ETF can both track the price of CRO and earn additional CRO by staking their tokens on the Cronos blockchain.

If these plans are approved, it will result in the very first ETF in the United States for crypto assets that have been staked, carried out inside a regulated investment vehicle.

CRO Price Surges Following ETF News

The market reacted quickly when the filing was announced in the news. CRO rose by 2.94% from the day’s lowest price ($0.0903) to where it is today ($0.1002). The news about Huobi’s staking event spurred a rush in trading, as the one-day volume was over 129% greater and rose to $51.39 million.

According to the official press release, the ETF will rely on a trust that is based in Delaware. All crypto assets will be safeguarded by the Foris DAX Trust Company, trading as Crypto.com Custody Trust Company, to comply with custody rules.

Canary Capital Files for First Staked CRO ETF

Staking will only be carried out by reliable validators and tokens staked with CRO cannot be withdrawn or reallocated before a 28-day unbonding period. Even though Canary Capital will bill a single annual fee, so far, they have not revealed the fee rate or the ETF’s trading symbol.

SEC Clarifies Rules Around Staking Rewards

Canary Capital and Crypto.com recently built a stronger alliance which is why this ETF proposal is being released now. In December, the two firms created the Canary CRO Trust, a vehicle that allows U.S. accredited investors to gain access to CRO holdings.

Eric Anziani, President and COO of Crypto.com, praised the move, stating:

“ETFs have been an effective means for broadening investor participation in crypto and further integrating digital and traditional finance capabilities. We’re thrilled to see this important step being taken toward enabling U.S. investors to engage with CRO through a regulated ETF.”

Apart from CRO, Canary Capital is creating more ETFs that use staking, including for TRON (TRX) and Sei Network (SEI), pointing to a bigger move towards staking-powered products for regulated investors.

This filing was made just after the SEC clarified on May 29 that most staking does not come under U.S. securities rules. According to the SEC, rewards from staking are seen as compensation to users who are involved in crypto networks, not investments.

Canary Capital Files for First Staked CRO ETF

If the Canary Staked CRO ETF gets approval, it could become an example for others of how decentralized finance can work together with traditional investing in the U.S.