Canary Capital Files U.S.-Made Crypto ETF Amid Speculation of Altcoin Season
Canary Capital, a digital asset fund manager, submitted a proposal for an American-made crypto ETF to the U.S. Securities and Exchange Commission (SEC) on August 25. This ETF is designed to track a portfolio of U.S.-originated cryptocurrencies, with most of the token supply and protocol operations based in the United States [1]. The firm also filed for two additional ETFs: one related to the Trump coin and another linked to the Staked Injective protocol [1]. While there is no fixed approval timeline, these filings indicate Canary Capital’s strategy to attract U.S.-based investors to crypto assets [1].
The proposed American-made crypto ETF has sparked speculation about a potential “altcoin season,” a period when altcoins outperform Bitcoin and experience significant price gains. Historical data from Bitcoin and Ethereum ETFs show substantial inflows—$53.99 billion for Bitcoin and $12.90 billion for Ethereum—leading to price appreciation [1]. If this trend repeats with Canary’s ETF, it could drive increased demand for altcoins included in the index, such as XRP, Cardano (ADA), Solana (SOL), and Stellar (XLM) [1].
The market capitalization of U.S.-made cryptocurrencies stood at over $518.99 billion as of August 26, with a 24-hour trade volume exceeding $53.12 billion [1]. This suggests growing institutional and retail interest in the sector. However, the market capitalization of made-in-USA cryptos fell nearly 5% in the past 24 hours, indicating some volatility [1].
An altcoin season typically begins when 75% of the top 50 cryptocurrencies by market capitalization consistently outperform Bitcoin for 90 days. Key indicators include a plateau or decline in Bitcoin’s market dominance, rising altcoin market capitalization, and increased institutional demand [1]. The altcoin market capitalization currently stands at $1.58 trillion, below the $1.71 trillion high seen in 2021 [1].
While the filing could catalyze gains in top U.S.-made tokens, investors should remain cautious. Canary Capital’s ETF is classified as high-risk and speculative, with no protection under the Commodity Exchange Act. It is also not regulated by the Commodity Futures Trading Commission (CFTC), exposing investors to greater financial risk [1].
Source: [1] What Canary American-made crypto ETF means for altcoins? (https://coinmarketcap.com/community/articles/68ae07a39c42f64b0a740e10/)
