Canary Capital Files to Launch ETF Tracking Cross-Chain Protocol Axelar (AXL)
Canary Capital, the digital asset-focused investment firm founded by Steven McClurg, formerly of Valkyrie Funds, is set to revolutionize the cryptocurrency investment landscape with its latest initiative: an exchange-traded fund (ETF) designed to track the price of Axelar (AXL). The firm made waves recently by submitting an S-1 filing with the Securities and Exchange Commission (SEC) to initiate this fund, which is part of a broader strategy that has included previous filings for other ETFs—some of which are still awaiting SEC approval.
Steven McClurg, CEO of Canary Capital, expressed strong confidence in AXL’s potential, stating, "Axelar has one of the best dev teams in blockchain. Most viable protocols work with them on chain interoperability. There is no question that AXL will be a top 20 token by market capitalization as the market discovers them." This belief underscores the firm’s calculated risk in launching an ETF based on what it views as a rapidly ascending asset.
AXL, the native token of the Axelar Network, functions as a cross-chain protocol that seamlessly connects disparate blockchains, thereby enabling decentralized and secure cross-chain transactions. The protocol distinguishes itself from other interoperability solutions that depend on a limited number of validators by utilizing a proof-of-stake consensus model, making participation accessible to a broader network of stakeholders. Sergey Gorbunov, co-founder of Axelar, highlighted this aspect, reinforcing the implications for decentralized finance.
The Axelar protocol has gained traction in major financial institutions, having been integrated with platforms such as J.P. Morgan’s Kinexys and Microsoft’s Azure marketplace, along with widely used decentralized applications like Uniswap and MetaMask. Recently, Axelar announced the inclusion of former Coinbase chief legal officer Brian Brooks on its Institutional Advisory Board, an addition designed to navigate the complexities of traditional finance integration.
Brooks brings a wealth of experience to the table. As Gorbunov noted, he understands the intricacies traditional asset issuers face and sees decentralized interoperability as crucial to alleviating various systemic issues. This strategic appointment reflects Axelar’s intent to bridge the gap between traditional finance and the burgeoning world of decentralized technologies.
As the cryptocurrency landscape evolves, trends indicate that stablecoins and tokenization will significantly shape institutional adoption in the space. Anticipation surrounds upcoming regulatory developments, particularly regarding stablecoin legislation. Companies like PayPal, BlackRock, and Robinhood are already exploring stablecoin integration for more efficient transactional processes, heralding a new era for financial institutions.
Currently, AXL is trading at approximately $0.36, with a market capitalization of around $340 million. Notably, the token previously peaked at an all-time high of $2.69 in March 2024 but has experienced a decline since then. The forthcoming ETF from Canary Capital could provide a renewed focus on AXL, fueling investor interest as the market navigates this volatile yet promising environment.
In summary, Canary Capital’s move into ETF territory with AXL could significantly impact both Axelar’s traction and the overall landscape of digital asset investment. As major firms lay the groundwork for evolving financial practices, the implications for blockchain interoperability and institutional adoption are profound and far-reaching.
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