Canary Capital Files for TRX ETF Featuring Staking Rewards

Highlights:

• Canary Capital introduces the Canary Staked TRX ETF, designed to follow TRX price trends and staking returns.
• BitGo Trust Company will safeguard TRX assets, with ETF application awaiting SEC approval.
• Regulatory changes pave the way for altcoin ETF approvals, with hopes for mid-2025 fund launches.

Canary Capital has officially submitted a proposal to the United States Securities and Exchange Commission (SEC) for a new exchange-traded fund named the Canary Staked TRX ETF. According to the S-1 registration submitted on April 18, the fund will track TRX price movements. The offering will also feature staking rewards as part of its benefits.

For the secure storage of TRX assets, BitGo Trust Company will serve as the custodian. The application is currently under regulatory review and awaits approval. Details such as the management fee and ticker symbol have not been disclosed yet.

This marks the sixth altcoin ETF proposal from the Nashville-based firm, highlighting its fast-growing presence in the crypto ETF market. Canary’s fund stands out because it asks for staking approval in its first filing. Other ETFs in the U.S., like those tied to Ethereum, applied to stake only after their spot products were listed. These applications are presently under regulatory examination.

The SEC has blocked staking in crypto ETPs, despite its importance for networks like Ethereum and Tron. Initial Ethereum ETF proposals had staking removed due to SEC concerns about timelines, taxes, and securities. Crypto reps met with the SEC to suggest solutions, like third-party staking. 

Tron (TRX) Rises 120% Over the Past Year, Despite Recent Dip

Tron, the blockchain involved in this proposal, operates on a proof-of-stake model. It was created by Justin Sun, who also owns Rainberry, the company behind the BitTorrent protocol. Tron, currently the ninth-largest cryptocurrency with a $23 billion market cap, has surged nearly 120% in the last year, even with a recent 3% decline. Recent figures from Defillama reveal around 2.3 million active addresses in the last 24 hours, generating $1.82 million in chain revenue.

Altcoin ETF Approvals Set to Surge with Regulatory Shifts

Although the SEC has delayed decisions on multiple altcoin ETF proposals, optimism in the industry remains strong. Asset managers such as BlackRock, Bitwise, 21Shares, Franklin Templeton, and VanEck are among those seeking SEC approval for their ETF proposals. Analysts believe that the regulator is likely to approve XRP and Solana (SOL) ETFs next.

Earlier this year, Bloomberg analysts estimated a 90% chance of a Litecoin ETF receiving approval in 2025. This forecast is based on Litecoin’s classification as a commodity and its structural similarities to Bitcoin. The recent appointment of Paul Atkins as SEC Chair is expected to enhance the chances of crypto ETF approvals. Together with industry-friendly commissioners Mark Uyeda and Hester Peirce, Atkins is seen as a beneficial influence on the sector.

Our official alt coin ETF approval odds are out. Litecoin leads w 90% chance, then Doge, followed by Solana and XRP. We are only doing for 33 Act $IBIT-esque filings. But def poss to see futures or Cayman-subsidiary type 40 Act stuff get through as well. https://t.co/JSaNnifjbu

— Eric Balchunas (@EricBalchunas) February 10, 2025