Canary Capital, a prominent investment firm specializing in digital assets and co-founded by Steven McClurg, a former leader at Valkyrie Funds, has initiated plans to launch an exchange-traded fund (ETF) dedicated to tracking the price of Axelar (AXL). This strategic move aims to capitalize on the growing interest in cross-chain protocols and decentralized finance.
Official Filing with the SEC
On Wednesday, Canary Capital took the first step towards this ambitious project by submitting an S-1 filing to the Securities and Exchange Commission (SEC). This filing is a crucial part of the regulatory process necessary for launching an ETF. The firm has a history of filing for multiple ETFs, with several of these applications already acknowledged by the SEC and awaiting final approval.
Why Axelar? Insights from the CEO
Steven McClurg, the Chief Executive Officer of Canary Capital, expressed confidence in the potential of Axelar, stating, “Axelar has one of the best development teams in blockchain. Most viable protocols work with them on chain interoperability.” He believes that AXL is destined to become a top 20 token by market capitalization as more investors discover its value, underscoring the firm’s willingness to take calculated risks in this venture.
Understanding Axelar and Its Significance
AXL is the native token of the Axelar Network, a pioneering cross-chain protocol that facilitates seamless and secure transactions between different blockchain networks. Unlike many interoperability solutions that depend on a limited pool of validators, Axelar utilizes a proof-of-stake consensus model, which opens participation to anyone wishing to engage with the network. Sergey Gorbunov, co-founder of Axelar, highlighted this democratized approach during a recent interview with CoinDesk.
Strategic Partnerships and Leadership Enhancements
Axelar has made significant strides in the industry, with integrations into major platforms such as J.P. Morgan’s Kinexys platform, Microsoft’s Azure marketplace, Uniswap, and MetaMask. Recently, the protocol bolstered its leadership team by appointing Brian Brooks, the former chief legal officer of Coinbase and Acting Comptroller of the Currency, to its newly established Institutional Advisory Board.
“Brian comes with a pretty deep understanding of how to ensure blockchain is adopted by traditional finance,” Gorbunov noted. He emphasized Brooks’ comprehension of the challenges faced by asset issuers and the importance of decentralized interoperability in mitigating these issues.
Future Trends in Crypto: Stablecoins and Tokenization
According to Gorbunov, the future of cryptocurrency is leaning towards stablecoins and tokenization, which are anticipated to become significant trends among institutional investors. He pointed out that forthcoming regulatory developments, including a stablecoin bill expected in the coming months, could pave the way for more financial institutions to issue and adopt stablecoins. Companies such as PayPal, BlackRock, and Robinhood are already exploring the use of stablecoins for cost-effective settlement solutions.
Market Performance of AXL
Currently, AXL trades at approximately $0.36, boasting a market capitalization of around $340 million, as reported by CoinDesk. The token experienced a peak value of $2.69 in March 2024 but has seen a decline since that time, illustrating the volatility often associated with the cryptocurrency market.
Final Thoughts
As Canary Capital moves forward with its ETF plans, the spotlight on Axelar and its innovative cross-chain solutions continues to grow. With a strong leadership team and strategic partnerships in place, the future looks promising for AXL and its role in the evolving landscape of digital finance.
Disclaimer: Portions of this article were generated with the assistance of AI tools and have been reviewed by our editorial team to ensure accuracy and compliance with our standards. For more information, please refer to our full AI Policy.
