Canary Capital Plans to Launch Axelar ETF

Canary Capital, the digital asset-focused investment firm founded by former Valkyrie Funds co-founder Steven McClurg, is planning to launch an exchange-traded fund (ETF) tracking the price of Axelar (AXL).

The firm submitted an S-1 filing with the Securities and Exchange Commission (SEC) on Wednesday, marking the kickoff for launching such a fund. The hedge fund has previously filed for multiple other ETFs, some of which have already been acknowledged by the Commission and are awaiting approval.

> “Axelar has one of the best dev teams in blockchain. Most viable protocols work with them on chain interoperability,” said Steven McClurg, Chief Executive Officer at Canary Capital. “There is no question that AXL will be a top 20 token by market capitalization as the market discovers them. This is why we took the risk.”

AXL is the native token of the Axelar Network, a cross-chain protocol enabling decentralized, secure cross-chain transactions. Unlike many interoperability solutions that rely on a small set of validators, Axelar operates on a proof-of-stake consensus model, allowing anyone to participate in its network. Sergey Gorbunov, co-founder of Axelar, shared his insights during an interview with CoinDesk.

The protocol has been integrated by major players like J.P. Morgan’s Kinexys platform, Microsoft’s Azure marketplace, Uniswap, and MetaMask. It has also announced the appointment of former Coinbase chief legal officer and Acting Comptroller of the Currency Brian Brooks to its newly formed Institutional Advisory Board.

> “Brian comes with a pretty deep understanding of how to actually ensure blockchain adoption by traditional finance,” said Gorbunov. “He understands the pain points asset issuers face and believes that decentralized interoperability is crucial to avoid these issues in the process.”

Gorbunov believes stablecoins and tokenization are poised to become major trends for institutions in crypto, propelled by regulatory advancements and efficiency gains. The anticipated stablecoin bill could facilitate more financial institutions in issuing and integrating stablecoins, with firms like PayPal, BlackRock, and Robinhood already investigating their use for reducing settlement costs.

AXL is currently trading at $0.36, with a market cap of $340 million, according to CoinDesk data. The token reached an all-time high of $2.69 in March 2024 but has since declined.

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