Key Takeaways
- Canary Capital submitted amended S-1 filings for its XRP and SOL ETF applications to the SEC.
- The firm slashed the sponsor fee for the ETFs to 0.50% instead of the previous 0.95%.
- The Solana Staking ETF rewards would be paid in full to investors, unlike other competitors like Bitwise.
Canary Capital has taken a step toward the possible approval of the crypto ETFs by the United States Securities and Exchange Commission (SEC), submitting revised registration statements of its XRP and Solana products. On Friday, the firm filed both the Canary XRP ETF and the Canary Marinade SOL ETF and reduced sponsor fees, also changing its strategy as regulatory scrutiny continues in a tightly constrained government operation.
Canary Capital Reduces Fees for Solana, XRP ETFs
The new filings by the asset manager show that the cost ratio of both funds is lowered to 0.50% instead of the past 0.95% fee corresponding to its former crypto ETFs, such as the HBAR and Litecoin. The transformation will place Canary Capital in a better standing as it tries to respond to the changing expectations of the regulators and investors.
The XRP ETF amendment submitted by the company did not suggest significant structural changes but the focus was on better cost-efficiency and transparency. The relocation is a strategic recalibration to keep up with the SEC at the moment of investor protection and transparent fee systems. Canary is one of the only issuers that actively develops applications related to XRP, a digital asset that commonly become a topic of regulatory controversies in the United States.
In the most recent filing, it is noted that the company remains actively involved with the SEC as the change of leadership at the agency keeps dominating schedules of approval. Although no timeframe was stipulated within which a decision is to be made, the renewed registration will indicate the willingness of Canary to revise its offerings according to any new guidelines that may be proposed when the regulatory processes are reinstated.
Solana ETF Adds Staking Rewards with No Deductions
Canary Capital also filed its sixth revision of the Canary Marinade SOL ETF along with the XRP amendment. With the new filing, the product will consist of staking rewards, paid in full to investors, and the same 0.50% sponsor fee.
Competition with Bitwise’s SOL ETF
According to Bloomberg senior ETF analyst Eric Balchunas, X got updated, and Canary added Amendment No. 6 that puts the expense ratio at 0.50%but does not reduce the Solana staking rewards, which distinguishes the product among others. The move puts Canary in direct competition with Bitwise, which already offers a 0.20% fee on its Solana fund but reserves some of the staking yield.
Although it used staking, Canary did not revise the fundamental structure of the ETF, indicating its desire to get a quick clearance in the changing SEC regulations. The amendments emphasize the attempts made by Canary to achieve a balance between returns to investors and the efficiency in complying with the key requirements, which will enable the firm to act in a timely manner when the reviews are resumed.
The amended filings are delayed as the current government shutdown in the United States delays the SEC examination procedure. Market participants expect that, once normal operations are restored, the agency might accept a number of outstanding applications of crypto ETFs at once, which would play in favor of Canary Capital.
