Digital asset manager Canary Capital on Monday filed for an exchange-traded fund that will track a U.S.-focused crypto index, as the industry rolls out new products to capitalize on the burgeoning popularity of tokens.

WHY IT'S IMPORTANT

Canary American-Made Crypto ETF joins a long line of funds that give investors exposure to digital assets, as issuers race to meet rising demand with products that track cryptocurrencies, blockchain firms and other corners of the industry.

ETFs have surged in popularity in the U.S. under President Donald Trump's administration, which has taken a friendlier stance toward the sector, prompting issuers to expand filings beyond bitcoin and ether.

CONTEXT

Canary American-Made Crypto ETF will track the Made-in-America Blockchain Index and also seek to generate rewards from validating transactions on the underlying networks.

America-first investing has gained traction under the Trump administration, with fund managers rolling out products that emphasize U.S.-based assets and operations.

In crypto, that has translated into indexes and funds that spotlight tokens created, minted or primarily operated in the U.S.

The market is expected to expand in the coming years as lower barriers to entry and new investment products draw more retail traders and institutional investors alike.

KEY QUOTE

"The Trust provides investors with the opportunity to access the market for crypto assets through a traditional brokerage account without the potential barriers to entry or risks involved with acquiring and holding crypto assets directly," Canary Capital said in a regulatory filing.

WHAT'S NEXT

The ETF aims to list on the Cboe BZX Exchange, pending regulatory approval.

It has applied to trade under the ticker symbol 'MRCA'.

(Reporting by Manya Saini in Bengaluru; Editing by Shreya Biswas)