Grayscale Investments has filed with the U.S. Securities and Exchange Commission to launch a spot Canton Coin exchange-traded fund, extending its recent push into crypto investment products. According to a registration statement submitted to the SEC, the proposed Grayscale Canton ETF would hold Canton Coin (CC) directly and issue publicly traded shares designed to track the token's market performance. Under the proposed structure, investors would gain exposure to CC through brokerage accounts without having to purchase, store, or manage the token themselves. The filing states that the trust's assets would consist primarily of Canton Coin held on behalf of shareholders.
The crypto market developments coincide with significant legislative activity as the U.S. House Ways and Means Committee has released seven packages of crypto tax discussion drafts to address multiple areas of digital asset taxation. As reported by crypto journalist Eleanor Terrett, these drafts tackle everything from stablecoin transactions and mining to staking, DeFi crypto lending, and wash sale rules. The committee is set to hold a hearing on crypto taxation next week on June 9, with these discussion drafts expected to feature prominently at the Tuesday hearing. The legislative effort effectively breaks apart broader tax bills, such as the bipartisan PARITY Act and Senator Cynthia Lummis' bill, into standalone proposals.
The crypto market has experienced severe volatility with $1.20 billion in liquidations across Bitcoin, Ethereum, XRP, Solana, and other major altcoins in the past 24 hours, according to Coinglass data. Bitcoin crashed to $61,000 lows as investors liquidated $248 million in BTC holdings, while Ethereum fell to a year-low at $1,627 and XRP dropped more than 6% to $1.09. The broader cryptocurrency market has erased more than $590 billion from Bitcoin, ETH, XRP, SOL, and other top altcoins since the recent crash began. The decline was attributed to investors pulling back from risk assets following Bitcoin's sharp decline toward the $60,000 support level, triggering a broader crypto market selloff.
The Canton filing arrives shortly after Grayscale's Hyperliquid staking ETF entered the market on June 3, receiving SEC approval and beginning trading. The investment product has attracted nearly $5 million in net inflows during its first two trading sessions, with Grayscale pricing the fund with a 0.29% management fee to compete against rival issuers seeking exposure to Hyperliquid's HYPE token. As per 21shares, single-asset ETFs focus on just one cryptocurrency, letting investors invest in it directly through the simplicity of an ETF.
Canton Network, whose native asset is Canton Coin, operates as a blockchain platform focused on financial institutions and enterprise users. According to project materials referenced in the filing, the network is designed to connect traditional financial infrastructure with blockchain-based systems while offering privacy controls for participants. The filing adds Canton Coin to a growing list of digital assets Grayscale has sought to package into regulated investment vehicles as part of its ongoing crypto ETF expansion strategy. Meanwhile, the legislative developments come as the CLARITY Act is expected to be signed into law this year, making it the second piece of crypto legislation after the GENIUS Act.
