Canary Capital Files a Form S-1 Registration with the SEC to Launch a Tron (TRX) Cryptocurrency Spot ETF

This move is to launch a spot exchange-traded fund (ETF) based on the Tron (TRX) cryptocurrency. This proposed ETF will maintain TRX tokens alongside stake-based reward functions.

Canary Capital has officially filed an S-1 registration with the Securities and Exchange Commission (SEC) to launch a spot exchange-traded fund (ETF) based on the Tron (TRX) cryptocurrency.

The proposed ETF will hold TRX tokens and also provide stake-based reward functions to investors. This will create a unique dual-functioning investment tool for TRON investors, which is not present in U.S. financial markets.

The filing states that BitGo Trust Company will be the protective authority of ownership for TRX assets. The fund’s sponsor role will be taken by Canary Capital. An ETF investment strategy centers on delivering TRX price exposure together with participation in yield generation through staking for investors.

Justin Sun, the founder of Tron, took to the social media platform X to share his perspective regarding the TRON news. He urged U.S. investors to take immediate action.

According to Sun, TRX is a stellar investment as its market value should grow steadily. In turn, investors from American venture capital institutions should begin purchasing TRX tokens now.

“US VCs should start buying TRX — and fast. Don’t wait until it’s too late. TRX is a price that only moves one way: up,” he stated.

The proposed measure faces multiple obstacles during its current implementation. The SEC facilitates pushback against ETFs that incorporate staking services within their structures according to its previous actions.

The previous attempts by similar Ethereum ETF proponents had to discontinue staking elements because of regulatory reasons. The SEC maintains that different staking services fall under the category of unregistered securities thus causing legal challenges.

TRX ETF Could Attract Both Retail and Institutional Investors

Despite this, some firms continue to push forward. For example, Grayscale is advocating for ETFs that include staking and broader crypto exposure. Other nations are currently succeeding with their efforts to create crypto ETFs. Canada is moving toward introducing the very first Solana ETFs to operate as spot products in North American markets. Independent sources indicate that BlackRock plans to introduce exchange-त्रेaded funds (ETFs) for XRP and Solana (SOL) in the near future as the top asset management corporation worldwide.

There remains uncertainty about the potential future of the Canary TRX ETF. The risk increases because of the SEC’s stern position regarding staking while Justin Sun faces longstanding controversies. The Tron network has previously been accused of being used for illegal activities. Although the team behind Tron denies these claims, they may still affect the ETF’s chances of approval.

Data from CoinMarketCap indicates that Tron (TRX) maintains a market capitalization of $23 billion with a current trading rate of $0.2427. TRX continues to be one of the major active participants in the cryptocurrency market.

If the ETF is approved, it would create a significant advancement for the industry sector. The United States has not witnessed an ETF delivering combined exposure to crypto assets while paying staking rewards until this point. Retail along with institutional investors may show interest in this structure as a way to obtain returns above basic price appreciation.

Lastly, if approved, the TRX ETF from Canary Capital will create significant possibilities for the crypto investment space. Time will determine whether U.S. regulators accept the innovative approach made possible by spot exposure combined with staking rewards.