Asset manager Canary Capital is seeking regulatory nod to launch the first Axelar exchange-traded fund (ETF) after recently launching a trust.
The native token of Axelar, a prominent interoperability blockchain, has become the latest altcoin to gain institutional traction. Particularly, Canary Capital has shown interest in the project and its expanding utility in the crypto space.
The Crypto Basic reported that Canary launched an Axelar Trust last month, providing a new means of gaining exposure to AXL, the project’s native token. Yesterday, the asset manager filed an S-1 form with the US Securities and Exchange Commission (SEC) to debut an Axelar ETF.
Axelar ETF Joins Waiting List
The March 5 application seeks the approval of the securities watchdog to launch a spot Axelar ETF that tracks the performance of AXL. The institution-grade investment tool would provide alternative exposure to Axelar, coining its net asset value (NAV) in reference to the token.
Axelar is a decentralized network widely known for its outstanding cross-bridging proficiencies. The project offers interoperability solutions to over 80 chains in the blockchain industry, including XRP Ledger, Hedera, Solana, and Stellar.
Last year, the network collaborated with Ripple to act as a bridging mechanism between the XRP Ledger and the XRPL Ethereum Virtual Machine (EVM) sidechain. Axelar is also working closely with the payment giant to expand the interoperability of its newly launched Ripple-USD (RLUSD).
Meanwhile, Canary did not specify the exchange that would list and trade the Canary Axelar ETF or mention its cash and crypto custodians. Notably, this is the first step in the process, suggesting there is still room for amendments.
AXL Surges 13% Following Filing
The Thursday announcement contributed to an impressive outing for AXL yesterday. The asset rallied over 13% following the filing, reaching an intraday high of $0.4688.
However, the asset has retraced slightly to trade at $0.4420 at the time of writing. Following the price outburst, its market cap also crossed $400 million, moving to the 131st spot in the crypto rankings.
Meanwhile, the filing correlated with Axelar’s announcement of appointing former Coinbase chief legal officer Brain Brooks to its newly formed Institutional Advisory Board.
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