CRYPTO 101 Ep. 700: Canary Capital Reveals Their Altcoin Winners for 2026

Release Date: January 17, 2026
Hosts: Bryce Paul & Brendan Viehman
Featured Guest: Stephen McClurg (CEO & Founder, Canary Capital)

Episode Overview

In this milestone episode, Bryce and Brendan are joined by Stephen McClurg, the CEO and founder of Canary Capital—one of the most innovative digital asset investment firms, best known for launching and managing crypto-focused ETFs and trusts. The theme centers on Canary Capital’s approach to identifying altcoin “winners” heading toward 2026, exploring their criteria, market insights, and vision for the future of crypto investing (especially beyond Bitcoin and Ethereum). Listeners are offered a behind-the-scenes look at asset selection, NFT trends, misunderstood narratives, diversification pitfalls, and emerging narratives in privacy coins and institutional adoption.

Key Discussion Points & Insights

1. Stephen McClurg’s Background and Entry into Crypto

[04:49]

• McClurg describes his shift from traditional finance (bonds) to crypto in 2016, motivated by the stagnant yields and excitement for blockchain innovation.
• Emphasis on bringing a traditional investing mindset to the rapidly evolving world of digital assets.

“I got a little bored in the bond Market… and 2016 decided to go all in on the new technology that was out there. And for me, that was blockchain.” — Stephen McClurg, [04:49]

2. Canary Capital’s Origin & Mission

[05:45]

• Began as a hedge fund platform, pivoted to ETF filings realizing altcoins were ready for increased mainstream investment (esp. after Bitcoin and Ethereum ETF approvals).
• Canary surfaced as an unknown “out of nowhere,” rapidly filing for diverse crypto ETFs and single-asset trusts.

“We sort of just came out of nowhere without saying anything and just started filing ETFs.” — Stephen McClurg, [05:45]

3. How Canary Capital Selects Altcoins for Trusts & ETFs

[07:09]

• Selection is driven by observable market demand but filtered for compliance and fundamental interest.
• Noteworthy products: XRP, HBAR, Marinade Staked SOL, Pengu (Pudgy Penguins).
• Special attention to privacy coins (e.g., new privacy features in Litecoin), and enterprise adoption (e.g., HBAR’s role in corporate infrastructure).

“There is a filter where we're not just putting anything out there… If we think that there's strong demand in the market, we're going to go forward with it.” — McClurg, [07:09]

• Unique perspective: Institutional demand isn’t just Wall Street; engineers and enterprise tech players matter.

4. Willingness to Innovate and Track Global Trends

[10:14]

• McClurg reflects on experience in mobile gaming innovation (Electronic Arts), relating it to crypto’s evolution—emphasizing that laggards who ignore new tech trends are left behind.
• Forward-thinking: Observes Asian (Korea, Japan) trends for early signals.

“What I learned in my brief stint in the video game business is that if you're not constantly improving and innovating, you're going to get behind… I actually look at bitcoin the same way.” — McClurg, [10:14]

• Warns that Bitcoin dominance could wane if it stops addressing market needs and innovating.

5. Broadening the ETF Market: Beyond Bitcoin & Ethereum

[13:16]

• Discussion on the shift in institutional hunger for new ETFs, especially with the introduction of Solana and other altcoin ETFs.
• Teasing multi-asset “basket” ETFs that may offer broader, potentially risk-managed exposure to crypto.

“I think baskets are important and coming up with unique baskets is extremely important… what we want to do next is come up with things that are a little bit more innovative, that pushes the envelope.” — McClurg, [17:37]

6. The Pudgy Penguins (Pengu) Phenomenon & Web3 IP

[18:18]

• Canary Capital has created products around innovative NFT projects, with Pudgy Penguins highlighted as the standout for successfully bridging physical and digital worlds.
• McClurg likens their growth and cultural pull to Hello Kitty, underscoring staying power and IP monetization, both online and offline.

“What Penguins is doing is creating a real IP in both the real and the virtual worlds… they've tapped into that vibe, you know, better than anybody else has.” — McClurg, [18:37]

7. Misunderstood Narratives: NFTs, Privacy, and Ripple/XRP

[20:52]

• Sees NFTs as largely misunderstood—many focus on “old guard” projects (Punks, Apes), but longevity and utility (i.e., Penguins) are key.
• Privacy is a major emerging narrative (Litecoin, Zcash, Monero).
• XRP is “massively misunderstood,” now showing real-world utility in financial rails and stablecoin launches.

“XRP is massively misunderstood. I'll admit that I misunderstood it for probably the first 10 years of its existence… they've truly taken their time. They've built financial rails and they are now transacting on it by launching their first version of a stablecoin.” — McClurg, [21:34]

8. The Trap Retail Investors Fall Into

[23:56]

• Biggest mistake? Becoming “maximalists” on a single narrative or coin—ignoring new opportunities or competitive projects.
• Advocates for open-mindedness and adaptability: Legendary technologies fade, and so do their returns.

“Getting tied into one narrative and thinking that… everything else sucks and I'm going to put blinders on, not see anything else and just put all my eggs in this one basket and pray that it all goes well… there is no clear winner ever.” — McClurg, [23:56]

9. Canary’s 12–18 Month Roadmap

[28:04]

• Currently four ETFs launched—aiming to double that by next year.
• Focus: Expanding available products, letting the market decide what wins.
• Notes that success isn’t always about the best tech—oftentimes, the best-marketed projects come out on top.

“Our goal is to really put a lot of different things out there and let the market decide which. Which is best. …It's often the one that's best marketed and best sold… is the winner.” — McClurg, [28:04]

Notable Quotes & Memorable Moments

• On Innovating Past Bitcoin:
  “Unless it keeps innovating, it keeps addressing some of the issues that are real issues in the world. It could get left behind.” — McClurg, [10:14]

• NFT Evolution:
  "If you're really paying attention. Penguins. I don’t, I honestly don’t know anything else out there that is, that has that staying power right now. But I'm probably missing something." — McClurg, [21:14]

• On Embracing Change:
  "Radio is old technology. I hate to say it, but you're not going to make a whole lot of money in radio anymore. So you've got to be aware when something new comes along." — McClurg, [25:13]

Highlighted Segments (with Timestamps)

• [04:49] Introduction of Stephen McClurg & his background in traditional finance/tradfi
• [05:45] Canary Capital’s beginnings and stealth ETF filings
• [07:09] Filtering process for launching new altcoin ETFs/trusts
• [10:14] Lessons from innovation in mobile gaming—parallels in crypto
• [13:16] ETF market evolution; multi-asset product ambitions
• [18:37] Case study: Pudgy Penguins and what sets them apart in NFT world
• [20:52] Misunderstood areas in crypto: NFTs, privacy coins, and new XRP use cases
• [23:56] Retail investor pitfalls: over-concentration, tribalism, ignoring innovation
• [28:04] Canary Capital’s roadmap: expansion of ETFs, market-driven approach

Conclusion

This episode gives listeners an expert lens on how a leading asset manager approaches the altcoin space—balancing fundamental analysis, compliance, global trends, and market demand—with practical advice for retail investors trying to avoid common traps. Canary's strategy: embrace diversity, prioritize innovation, and keep an eye on the narratives that matter (privacy, NFTs, digital rails). Listeners walk away with grounded insight into how the next wave of crypto investment products may be shaped, and which narratives and assets might lead the space in the years ahead.

Find more about Canary Capital:
Canary Capital Website
Twitter: @CanaryFunds