Canary Capital Files for a Staked TRX ETF

Canary Capital has officially submitted an S-1 filing with the United States Securities and Exchange Commission (SEC) for a proposed exchange-traded fund (ETF)

Canary Capital has submitted an S-1 filing with the SEC for a proposed exchange-traded fund that would track the spot price of Tron’s native token, TRX, and use a portion of the fund to be staked in order to generate additional yield.

The firm is applying to list the fund, named Canary Staked TRX ETF, on the Nasdaq Stock Exchange. It would be the first ETF in the US to provide exposure to TRX.

Canary Capital is applying to list the fund, named Canary Staked TRX ETF, on the Nasdaq Stock Exchange. It would be the first ETF in the US to provide exposure to TRX.

The new fund will hold actual TRX tokens and a portion of the fund will be staked with third-party providers, according to the filing.

It is also being disclosed that BitGo Trust Company will be the custodian for the fund and will have private key control.

The ETF will seek to reflect the price of TRX based on the CoinDesk Indices, less any applicable fees and expenses.

It is part of Canary Capital’s broader strategy to expand its crypto ETF offerings amid a growing regulatory interest in alternative digital assets. The proposed fund’s management fee and ticker symbol have yet to be disclosed.

What Is Different About This Filing?

One notable aspect of the Canary Staked TRX ETF is its inclusion of staking in the initial proposal.

While other applicants, particularly for Ethereum-based ETFs, initially included staking in their filings, many later removed it in amended versions to align with SEC expectations. Those ETFs are still awaiting regulatory approval.

Holders of TRX can choose to stake their tokens to earn annual rewards, which is currently around 4.5%, according to StakingRewards.com. They essentially lock up their tokens to contribute to the blockchain’s proof-of-stake consensus mechanism.

The ETF aims to integrate this feature to enhance investor returns while fully complying with regulatory guidelines.

The filing specifies that staking services will be provided by trusted third parties, although the names of the platforms to be used have not yet been disclosed. BitGo will be the primary custodian, ensuring the safety and efficient management of the assets.

The ETF structure is designed to simplify TRX investment access for traditional market participants.

Part Of A Broader Crypto ETF Strategy

Canary Capital’s application for a TRX-focused ETF follows its broader plan to introduce multiple digital asset ETFs in the US.

The Nashville-based asset manager is targeting a wide range of cryptocurrencies for future products, including Sui (SUI), Solana (SOL), XRP, Litecoin (LTC), Hedera (HBAR), and Axelar (AXL).

The recent influx of altcoin ETF applications follows the successful launch of Bitcoin and Ethereum ETFs earlier this year.

These filings come as the SEC faces increasing pressure to approve more crypto ETFs.

The 11 US-listed spot Bitcoin ETFs have collectively attracted over $35 billion in net inflows over the past 15 months, highlighting the strong institutional demand for crypto investment products.

Although there are still regulatory hurdles to overcome, such as the SEC’s stance on staking and the reporting requirements for crypto ETFs, asset managers like Canary Capital are actively expanding their offerings to cater to the evolving needs of investors.

As the crypto industry continues to mature and intersect with the traditional finance sector, we can expect to see further innovation and activity in the development of novel investment products like these.