Canary Capital has filed an S-1 registration with the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) tracking the Axelar (AXL) token, causing the price of AXL to surge by more than 15%. The price increase pushed AXL to around $0.44, reflecting the growing institutional interest in blockchain interoperability solutions.
The filing for the “Canary AXL ETF” marks the first proposal for an ETF specifically designed to track the Axelar token. The announcement of this move led to a swift surge in AXL’s value, outpacing many other cryptocurrencies on the same day. The increase in AXL’s price underscores the market’s excitement surrounding Axelar’s technology and the potential for more institutional investment in blockchain solutions.
Axelar is a cross-chain protocol designed to enable seamless communication between different blockchain networks, such as Ethereum, Arbitrum, and Optimism. The platform has received significant backing from major industry players, including Binance, Coinbase, J.P. Morgan, Microsoft, Uniswap, and MetaMask, which has helped it achieve over $1 billion in total value locked (TVL) as of November 2024.
The filing comes on the heels of Canary Capital’s recent activity in the ETF space, including proposals for other altcoin ETFs such as those tracking Solana, XRP, and Litecoin. Canary’s Litecoin ETF was recently listed on the DTCC platform, adding to the anticipation surrounding upcoming approvals for blockchain-related ETFs. With analysts predicting a 90% chance of a spot Litecoin ETF approval in 2025, the market is eager for more ETF-related developments in the crypto space.
Axelar’s expansion is further bolstered by the appointment of Brian Brooks, the former Chief Legal Officer of Coinbase and Acting U.S. Comptroller of the Currency, to the company’s Institutional Advisory Board. His expertise in regulatory frameworks and financial markets is expected to help Axelar gain greater institutional adoption as blockchain interoperability becomes increasingly vital in bridging traditional finance (TradFi) and Web3.
Sergey Gorbunov, Axelar’s co-founder, expressed optimism about the company’s growth, stating, “With more regulatory clarity in the U.S., institutional adoption is well underway, and interoperability is the key gateway between TradFi and Web3.”
As part of the broader trend of increasing altcoin ETF filings, Canary Capital’s move is a significant step forward for the crypto market, highlighting growing institutional interest in decentralized finance (DeFi) and blockchain solutions.
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