Canary Capital Seeks Regulatory Nod to Launch the First Axelar Exchange-Traded Fund (ETF)

The native token of Axelar, a prominent interoperability blockchain, has become the latest altcoin to gain institutional traction.

Asset manager Canary Capital is applying for regulatory approval to launch the first Axelar exchange-traded fund (ETF) after recently unveiling a trust.

The native token of prominent interoperability blockchain Axelar has become the latest altcoin to gain institutional interest. A few months ago, the asset manager began showing interest in the project and its expanding utility in the crypto space.

As such, Canary launched an Axelar Trust last month, offering a new way to gain exposure to AXL. Now, the asset manager has filed an S-1 form with the US Securities and Exchange Commission (SEC) to debut an Axelar ETF.

Axelar ETF Joins Waiting List

The March 5 application seeks the approval of the securities watchdog to launch a spot Axelar ETF that will track the performance of AXL. The institution-grade investment tool will offer another means of exposure to Axelar, and the applicant will coin its net asset value (NAV) in reference to the token.

Axelar is a decentralized network best known for its advanced cross-bridging capabilities. The project offers interoperability solutions to over 80 chains in the blockchain industry, including XRP Ledger, Hedera, Solana, and Stellar.

Last year, the network partnered with Ripple to act as a bridging mechanism between the XRP Ledger and the XRPL Ethereum Virtual Machine (EVM) sidechain. Axelar is also working closely with the payment giant to expand the interoperability of its newly launched Ripple-USD (RLUSD).

Meanwhile, Canary did not specify the exchange that would list and trade the Canary Axelar ETF or mention its cash and crypto custodians. Notably, this is the first step in the process, suggesting there is still scope for amendments.

AXL Surges 13% Following Filing

The Thursday announcement contributed to an impressive outing for AXL yesterday. The asset surged over 13% following the filing, hitting an intraday high of $0.4688.

However, the asset has retraced slightly to trade at $0.4420 at the time of writing. Following the price outburst, its market cap has also crossed $400 million, moving to the 131st spot in the crypto rankings.

The filing comes as Axelar announced the appointment of former Coinbase chief legal officer Brain Brooks to its newly formed Institutional Advisory Board.