MRCA: Canary Capital's American-Focused Crypto ETF Enters Regulatory Pipeline

Canary Capital files major SEC submission for USA-centric digital asset fund

In late August 2025, Canary Capital submitted its Form S-1 filing to the SEC, marking a significant step toward launching MRCA (Canary American‑Made Crypto ETF), a groundbreaking investment vehicle targeting cryptocurrencies with strong US origins. The ETF aims for listing on Cboe BZX, positioning itself as a differentiated player in the growing institutional crypto investment landscape.

The MRCA Approach: What Sets This ETF Apart

Unlike broad-market crypto funds or single-asset vehicles, MRCA introduces a geographic filter that channels capital exclusively toward protocols and tokens developed, mined, or predominantly governed within the United States. The fund operates with a deliberately simplified architecture:

• Direct token acquisition without leverage or derivative instruments
• Quarterly index rebalancing every 90 days to adjust composition and weights based on liquidity and compliance standards
• Segregated custody maintained through a US-regulated trust, primarily held in cold storage for security
• Staking integration for proof‑of‑stake assets through vetted third-party providers, with rewards reinvested into fund assets

This structure reflects a pragmatic approach to custody and operational transparency—critical factors historically flagged by the SEC in previous crypto product reviews.

The “Made-in-USA” Selection Framework

MRCA’s index methodology prioritizes assets meeting rigorous governance and infrastructure criteria. An independent oversight committee evaluates candidates based on:

Admission Requirements:

• Tokens must be custodied by a US-regulated trust or custody institution
• Sufficient liquidity and trading depth across established platforms
• Continuous technical and legal due diligence oversight
• Exclusion of stablecoins, memecoins, and fiat-pegged assets

Geographic Focus Implications: Potential candidates meeting these standards include Solana (SOL), Ripple/XRP, Chainlink (LINK), Stellar (XLM), and Algorand (ALGO)—projects with documented American development or governance influence. Conversely, assets like Bitcoin and Ether, regarded as truly decentralized global ecosystems, fall outside the “USA-origin” mandate.

Custody, Staking, and Risk Management

The fund’s operational framework emphasizes security and regulatory alignment. Digital assets reside with a US-regulated trust entity (potentially based in South Dakota or similar jurisdictions), with the majority held in cold storage to minimize exchange risk. For proof‑of‑stake protocols, delegated staking arrangements with third-party providers include built-in protections addressing slashing risks, lock-up periods, and provider credibility verification.

This custodial model distinguishes MRCA from earlier spot crypto ETFs, which typically exclude on-chain staking activities.

Regulatory Timeline and Approval Pathway

The SEC approval process for a crypto-backed ETF typically spans 30 to 120 days from the Form S-1 filing, with the agency potentially requesting supplementary documentation on custody arrangements, governance safeguards, and staking protocols. Parallel to SEC effectiveness approval, Cboe BZX will review the Form 19b‑4 listing application, introducing additional procedural requirements.

Industry analysts note that regulatory scrutiny intensified following the initial spot ETF approvals. The inclusion of staking mechanics and multi-asset exposure adds complexity to the evaluation process, making delays or clarification requests probable scenarios in the near term.

Competitive Positioning in the ETF Landscape

MRCA addresses a market gap by offering:

• Concentrated geographic exposure unavailable in broad diversification funds
• Transparent sourcing criteria aligned with US-centric development narratives
• Managed custody standards exceeding early-generation crypto products
• Staking yield potential where applicable, unlike most current spot ETFs

The trade-off includes reduced diversification through the exclusion of BTC and ETH, potential regulatory uncertainty around staking classification, and concentration risk inherent in a curated, geographically filtered basket.

Investor Implications

For institutional and retail participants, MRCA represents a regulated pathway to thematic crypto exposure, with SEC-reviewed custody and periodic index governance. The quarterly rebalancing cadence introduces predictability compared to self-managed portfolios, though the “Made-in-USA” filter introduces both opportunity and constraint depending on market direction.

As the SEC continues calibrating its stance on staking-inclusive products, MRCA’s approval trajectory will likely influence subsequent filing strategies across the industry.