Crypto.com Bets on US with CRO Fund: A Mainstreaming Push?
Crypto.com, the popular cryptocurrency exchange, is doubling down on its commitment to mainstreaming crypto by partnering with asset manager Canary Capital to launch a US investment fund focused on the Cronos (CRO) blockchain. The “Canary CRO Trust” will hold CRO tokens in a regulated fund wrapper, catering exclusively to accredited investors.
This move reflects Crypto.com‘s strategy of providing more traditional financial access points to the crypto world. The company has been actively pursuing regulatory approval for various products, including exchange-traded funds (ETFs), in a bid to make crypto more accessible to a wider audience.
Regulatory Hurdles Remain
While Crypto.com emphasizes its focus on “mainstreaming crypto,” the fund’s launch is not without its challenges. The Canary CRO Trust is explicitly not an ETF, and its approval from the US Securities and Exchange Commission (SEC) remains pending. The SEC has yet to greenlight any CRO ETFs for US trading, underscoring the regulatory hurdles that crypto faces.
Growing Interest in Crypto ETFs
The push for crypto ETFs has gained momentum in recent months, with several asset managers filing applications for various crypto-related funds. This surge in interest is fueled by the increasing institutional adoption of digital assets and the desire for regulated investment vehicles. While the SEC has been cautious in approving ETFs, the agency’s growing engagement with the crypto space suggests a shift towards greater oversight and potential mainstream acceptance.
Cronos‘s Growing Ecosystem
The Cronos blockchain, a layer-1 network affiliated with Crypto.com, has been steadily gaining traction. Its focus on integrating with Ethereum and Cosmos ecosystems and supporting DeFi applications, NFTs, and other Web3 initiatives has attracted developers and users. Cronos boasts a total value locked (TVL) of nearly $440 million, according to DefiLlama, with popular applications like VVS Finance driving its growth.
A Look Ahead
The launch of the Canary CRO Trust is a significant step for Crypto.com in its quest to penetrate the US market. The fund’s success will hinge on both its ability to attract accredited investors and navigate the regulatory landscape. If approved, it could pave the way for other crypto funds to follow suit, potentially accelerating the mainstream adoption of digital assets in the US.
