Canary Capital Files with the SEC to Launch a Staked TRX ETF

Investment manager Canary Capital has filed with the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) tied to Tron's TRX token. By Michael Grok0000000000000000000000000000000000000000000000000000000000000000. Updated Apr 18, 2024 at 1:13 a.m. PDT.

Investment manager Canary Capital has filed with the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) tied to Tron's TRX token, according to a filing on Thursday.

The fund, named Canary Staked TRX ETF, will aim to set itself apart by incorporating staking capabilities into its structure.

As described in the Form S-1 filing with the SEC, the fund will seek to track the spot price of TRX, using calculations provided by CoinDesk Indices as a reference. A portion of the assets will be allocated for staking through third-party providers, while BitGo will serve as the primary custodian for the tokens.

The ETF's official ticker and management fee are yet to be disclosed.

The strategy adopted by Canary Capital follows a recent trend of attempting to include staking in crypto-focused financial products.

Previously, similar applications had been made for spot Ethereum ETFs. However, the issuers opted to remove the staking functionality in the final versions, aiming to increase the chances of approval by the SEC during the administration of Gary Gensler, who showed strong resistance to this modality.

The appointment of Paul Atkins, who is viewed as more open to the cryptocurrency market, has rekindled optimism among asset managers.

Grayscale is currently awaiting a decision from the SEC on its application to permit staking in its Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH) products, which was filed in February of this year. The decision on that application was recently postponed.

The inclusion of staking in ETFs could be a significant step towards expanding institutional access to more sophisticated cryptocurrency yield-generating strategies, particularly on networks like Tron, which have widely used staking delegation systems.