tl;dr
Canary Capital is making waves in the crypto ETF arena with a bold move that could reshape how memecoins enter traditional markets. On August 26, the firm filed the first S-1 registration statement with the SEC for a “Canary Trump Coin ETF,” marking a departure from the approaches taken by rivals. T...
Canary Capital is making waves in the crypto ETF arena with a bold move that could reshape how memecoins enter traditional markets. On August 26, the firm filed the first S-1 registration statement with the SEC for a “Canary Trump Coin ETF,” marking a departure from the approaches taken by rivals. This filing signals a shift in strategy, as Canary opted for the S-1 form under the 1933 Securities Act—a structure typically used for traditional ETFs—rather than the N-1A form employed by competitors like Tuttle Capital and Rex Osprey, which are pursuing mutual fund models.
The choice of S-1 is no small detail. This registration pathway allows ETFs to directly track the spot prices of underlying assets, such as the TRUMP memecoin, without the layered structure of mutual funds. It’s a move that positions Canary’s product as a more conventional ETF, aligning it with the mechanics of traditional securities while navigating the regulatory maze. Meanwhile, Rex Osprey’s earlier N-1A filings in January and Tuttle Capital’s leveraged memecoin funds—featuring tokens like TRUMP and MELANIA—highlight the competitive landscape. Tuttle even revised its applications in July, aiming for a July 16 launch, though delays are common in SEC processes.
Canary’s timing appears calculated. The firm incorporated the “Canary Trump Coin ETF” entity in Delaware on August 13, a step that often precedes SEC filings and underscores institutional commitment. Delaware’s corporate law framework is a go-to for many startups, offering flexibility and credibility—a signal that Canary is serious about this venture.
But the TRUMP ETF is just one piece of Canary’s broader puzzle. On August 25, the firm submitted plans for a “Canary American-Made Crypto ETF,” targeting digital assets with strong U.S. ties. This fund would track the Made-in-America Blockchain Index, focusing on cryptocurrencies developed domestically, tokens minted in the U.S., and networks with U.S.-based operations. CoinGecko estimates that U.S.-origin crypto assets alone hold a market value exceeding $520 billion, encompassing major players like XRP, Solana, and Cardano.
What sets the American-Made ETF apart is its dual focus: not only does it aim to mirror the growth of American crypto projects but also to generate income through network validation processes like staking and transaction verification. This approach could appeal to investors seeking both exposure to U.S. innovation and passive returns.
The TRUMP ETF, meanwhile, is a gamble on memecoins—a sector often dismissed as speculative but now under the spotlight due to its growing influence. Whether it succeeds will depend on the SEC’s approval and market appetite for a product that bridges the gap between internet culture and institutional finance.
As the crypto ETF race heats up, Canary’s moves highlight a broader trend: traditional markets are slowly but surely opening their doors to digital assets, even those with a cheeky twist. The question now is, will investors follow?