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Canary Capital Plans to Launch an ETF Tracking the Price of Axelar (AXL)
Canary Capital, a digital asset-focused investment firm founded by former Valkyrie Funds co-founder Steven McClurg, has announced plans to launch an exchange-traded fund (ETF) tracking the price of Axelar (AXL). The firm submitted an S-1 filing with the Securities and Exchange Commission (SEC) on Wednesday, kicking off the process to launch the fund.
About Axelar (AXL)
AXL is the native token of the Axelar Network, a cross-chain protocol that connects other blockchains, enabling decentralized, secure cross-chain transactions. Unlike many interoperability solutions that rely on a small set of validators, Axelar operates on a proof-of-stake consensus model, allowing anyone to participate in its network.
Institutional Adoption of AXL
Sergey Gorbunov, co-founder of Axelar, stated in an interview with CoinDesk that institutional adoption of AXL is key to its success. "Brian comes with a pretty deep understanding of how to make sure blockchain is adopted by traditional finance," he said, referring to the appointment of Brian Brooks, former Coinbase chief legal officer and Acting Comptroller of the Currency, to Axelar’s Institutional Advisory Board. "He understands what pain points these asset issuers have and he believes that decentralized interoperability is very essential to not introduce all of those issues in the process."
Regulatory Developments
According to Gorbunov, stablecoins and tokenization are poised to be the next major trends for institutions in crypto, driven by regulatory developments and efficiency gains. A stablecoin bill expected in the coming months could open the door for more financial institutions to issue and integrate stablecoins, with firms like PayPal, BlackRock, and Robinhood already exploring their use for settlement to reduce costs.
Market Performance
AXL currently trades at $0.36 and stands at a market cap of $340 million, according to CoinDesk data. The token reached an all-time high in March 2024 at $2.69, but has since dropped.
Conclusion
Canary Capital’s plans to launch an ETF tracking the price of Axelar (AXL) mark an important step in institutional adoption of the token. With its unique proof-of-stake consensus model and cross-chain interoperability capabilities, Axelar is poised for significant growth in the coming months.
FAQs
Q: What is the Axelar Network?
A: The Axelar Network is a cross-chain protocol that connects other blockchains, enabling decentralized, secure cross-chain transactions.
Q: What is the current price of AXL?
A: The current price of AXL is $0.36, according to CoinDesk data.
Q: What is the market cap of AXL?
A: The market cap of AXL is $340 million, according to CoinDesk data.
Q: Who is behind the Canary Capital ETF?
A: Canary Capital is a digital asset-focused investment firm founded by former Valkyrie Funds co-founder Steven McClurg.
Q: What is the purpose of the ETF?
A: The ETF is designed to track the price of AXL, providing investors with exposure to the token’s potential for growth.
