U.S. Asset Manager Canary Capital Files to Launch a New TRX-Focused ETF

U.S. asset manager Canary Capital has filed to launch a new exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC), focused on the Tron blockchain's native token

U.S. asset manager Canary Capital has filed to launch a new exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC), this time focusing on the Tron blockchain's native token, TRX.

According to a filing with the SEC on Thursday, the ETF will hold spot TRX and also intend to stake a portion of the tokens to generate additional yield. This makes Canary's proposal appear to be one of the first in the U.S. to seek approval for staking in its initial application.

On the other hand, other issuers of ETFs, such as those of Ether (ETH), have applied for staking rights after getting the green light for the spot token fund.

TRX, the token that powers the Tron network founded by Justin Sun, currently has a market cap of over $22 billion, according to CoinMarketCap. Staking TRX offers an annual yield of around 4.5%, according to data from StakingRewards.com.

The founder of Tron has also not been without legal issues despite the platform's popularity. In March 2023, the SEC sued Sun for manipulating the prices of TRX and BitTorrent's BTT. However, both parties recently agreed to stay the case for possible settlement.

Canary Capital's TRX ETF is part of a broader trend, sometimes called "altcoin ETF season." Since President Trump took office, U.S. regulators have seen a surge in crypto ETF filings. Canary has already proposed ETFs for altcoins like XRP, Litecoin, Hedera (HBAR), Sui, and even memecoins like PENGU.

However, some experts remain skeptical about these new filings.

"Most crypto ETFs will fail to attract AUM and cost issuers money," said crypto analyst Alex Krüger.

Only time will tell if investors warm up to these altcoin ETFs and if they ultimately get approved by the SEC.