Canary Capital Plans to Launch Axelar ETF
Canary Capital, a digital asset-focused investment firm established by former Valkyrie Funds co-founder Steven McClurg, is gearing up to launch an exchange-traded fund (ETF) that will track the price of Axelar (AXL). The firm has recently submitted an S-1 filing with the Securities and Exchange Commission (SEC), marking the initiation of the formal process to introduce this innovative fund. In addition to this filing, Canary Capital has previously submitted paperwork for several other ETFs, some of which have already been acknowledged by the Commission and are currently awaiting approval.
Steven McClurg, the Chief Executive Officer at Canary Capital, expressed confidence in Axelar’s potential, stating, “Axelar has one of the best development teams in blockchain. Most viable protocols collaborate with them on chain interoperability. There is no question that AXL will emerge as a top 20 token by market capitalization as the market begins to recognize their value. This is precisely why we decided to take this risk.”
AXL serves as the native token of the Axelar Network, a cutting-edge cross-chain protocol designed to connect various blockchains, thereby facilitating decentralized and secure cross-chain transactions. Unlike many interoperability solutions that depend on a limited number of validators, Axelar employs a proof-of-stake consensus model, which allows anyone to participate in its network. This was highlighted by Sergey Gorbunov, co-founder of Axelar, in a recent interview with CoinDesk.
The protocol has already gained traction, having been integrated into notable platforms such as J.P. Morgan’s Kinexys, Microsoft’s Azure marketplace, as well as Uniswap and MetaMask. Furthermore, Axelar recently announced the addition of former Coinbase chief legal officer and Acting Comptroller of the Currency Brian Brooks to its newly established Institutional Advisory Board. Gorbunov remarked, “Brian brings a profound understanding of how to ensure that blockchain is seamlessly adopted by traditional finance. He is well aware of the challenges that asset issuers face and believes that decentralized interoperability is crucial to avoid those issues in the integration process.”
Gorbunov also emphasized that stablecoins and tokenization are set to become the next significant trends in the cryptocurrency space for institutions, driven largely by evolving regulatory frameworks and efficiency improvements. He noted that a stablecoin bill anticipated in the upcoming months could pave the way for more financial institutions to issue and adopt stablecoins, with companies like PayPal, BlackRock, and Robinhood already investigating their application for settlement purposes to drive down costs.
Currently, AXL is trading at $0.36, boasting a market capitalization of $340 million, according to data from CoinDesk. The token reached an all-time high of $2.69 in March 2024, although it has experienced a decline since that peak.
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