The U.S. crypto ETF race is getting more crowded, with two fresh proposals highlighting just how far issuers are willing to go to carve out niches in the market.
On August 25, Canary Capital submitted an application to the SEC for a spot product dubbed the Canary American-Made Crypto ETF. Unlike most funds, this one would exclusively hold tokens with strong ties to the United States — from projects built domestically to assets largely mined, minted, or operated within the country.
The ETF would track the Made-in-America Blockchain Index, a benchmark aggregating qualifying tokens. According to the filing, the trust would also generate income through staking or transaction validation, in addition to mirroring index performance.
While no specific coins were listed, market data points to potential candidates. CoinGecko estimates U.S.-origin digital assets collectively carry a market value above $520 billion, with names like XRP, Solana, Cardano, Chainlink, Stellar, Avalanche, Hedera, and Sui often mentioned in that bucket.
Bloomberg ETF analyst Eric Balchunas noted that the filing reflects the growing creativity among fund issuers. “Get ready for ETFs to try every combination imaginable,” he commented.
The Canary proposal arrives just as Grayscale seeks approval for another altcoin-focused product. The asset manager has filed to convert its existing Avalanche Fund into a Nasdaq-listed trust under the name Grayscale Avalanche Trust ETF.
If approved, the vehicle would offer investors exposure to Avalanche’s AVAX token without requiring direct custody. Coinbase has been tapped to serve both as custodian and prime broker, managing issuances and redemptions. Like the Canary product, the Avalanche trust may also stake its holdings to generate additional yield.
These filings come during one of the busiest seasons yet for crypto ETF applications. Beyond bitcoin and ether, issuers are lining up products tied to a variety of altcoins, with proposals for Solana and XRP ETFs expected to face decisions later this year.
The growing roster illustrates the scramble to capture institutional demand for digital assets — and how issuers are experimenting with every possible angle to win investor interest.
