Canary Capital Files an Application for an Exchange-Traded Fund (ETF) That Will Hold and Stake TRX ,the Native Token of the Tron Blockchain

Canary Capital, a U.S.-based asset manager, has filed an application for an exchange-traded fund (ETF) that will hold and stake TRX ,the native token of the Tron blockchain.

Canary Capital, a U.S.-based asset manager, has applied for an exchange-traded fund (ETF) that will hold and stake TRX, the native token of the Tron blockchain.

The ETF aims to offer investors exposure to TRX market prices and will produce additional yield by staking tokens, according to a filing with the U.S. Securities and Exchange Commission (SEC) on Tuesday.

Canary Capital’s application comes amid a growing trend of alternative cryptocurrency ETFs, presenting institutional investors with a broader set of investment options for better portfolio diversification.

The ETF will track TRX’s spot price index through CoinDesk Indices and will be covered by BitGo Trust Company for token custody services.

The ticker symbol and management fee details for the Canary Staked TRX ETF have not yet been disclosed in the filing.

The ETF will hold some of its assets in TRX tokens and will also engage in staking to generate additional yield, the filing shows.

Canary Capital’s application also incorporates a staking feature, a factor that has been a key point of discussion in the approval of U.S. crypto products.

The SEC has previously opposed staking in crypto-related products due to redemption and tax treatment concerns, and has also raised questions about whether staking services could be classified as unregistered securities.

These regulatory problems have caused delays in the approval of similar products such as Ethereum ETFs, where the commission has expressed concerns over Union Bank’s role in providing custody services for the tokens.

However, despite the regulatory barriers, U.S.-listed crypto ETFs continue to pursue staking in their operations. In recent months, the SEC and the crypto industry have been discussing and developing models to address the identified concerns.

The use of third-party providers for staking and issuance of liquid staking tokens could enable compliance with the SEC’s settlement cycles and compliance requirements.

Earlier this year, the senators requested the SEC to publish their position on crypto products and specifically on staking.

They noted that current policies limit U.S. asset managers compared to international competitors, especially in Europe, Canada and the UK, in offering such products to investors.