Canary Capital Files for Spot TRX ETF With Staking
Catenaa, Wednesday, April 30, 2025-Canary Capital has filed an application with the US Securities and Exchange Commission to launch a spot exchange-traded fund based on Tron (TRX) that includes staking capabilities, the firm announced Friday. The proposed “Canary Staked TRX ETF” aims to offer investors direct price exposure to Tron while allowing them to earn staking rewards, a first-of-its-kind feature for a US-based crypto ETF. The Nashville-based asset manager’s filing comes amid a wave of altcoin ETF applications sparked by the strong market reception of Bitcoin and Ethereum funds. According to the S-1 prospectus, the fund’s investment goal is to track Tron’s market value. However, the filing did not specify which exchange would list the product. Tron is currently the ninth-largest cryptocurrency by market cap, valued at $23 billion, and was recently trading at $0.24 after a 3% daily decline. Staking, a process that lets users earn rewards by supporting proof-of-stake blockchain networks, remains a regulatory gray area in ETF products. While proponents argue it incentivizes institutional adoption, critics warn it introduces new risks to retail investors. The SEC has yet to approve staking within any crypto ETF and recently delayed a decision on a similar proposal for Grayscale’s spot Ethereum fund. Canary Capital has also submitted filings for ETFs tied to XRP, Solana, Sui and Pudgy Penguins NFTs. Analysts suggest XRP and Solana may be next in line for regulatory approval as demand for diversified crypto investment vehicles continues to surge.