TLDR
- Canary Capital filed for a TRX spot ETF with staking included.
- It’s the first U.S. ETF proposal focused on Tron (TRX).
- The fund will stake TRX to earn extra yield for investors.
- BitGo will custody the TRX and manage private keys.
- SEC approval could influence future staking-based ETFs.
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) tracking the spot price of Tron’s native token, TRX. The April 18 filing outlines the Canary Staked TRX ETF, which would provide exposure to TRX while incorporating staking to generate additional yield.
NEW: @CanaryFunds just filed for a staked TRX ETF (Tron) pic.twitter.com/2Vm5L1zWT9
— James Seyffart (@JSeyff) April 18, 2025
The proposed fund plans to hold actual TRX tokens and stake a portion through third-party providers. The fund’s custodian will be BitGo Trust Company, which will maintain control over the private keys. According to the filing, the ETF seeks to reflect the price of TRX based on CoinDesk Indices, minus fees and expenses.
This marks the first ETF application in the US centered on TRX. The move 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 not yet been disclosed.
Staking Element Sets ETF Apart from Prior Filings
One of the distinct features of the Canary Staked TRX ETF is its inclusion of staking directly 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.
Staking allows TRX holders to earn annual rewards, currently around 4.5% according to StakingRewards.com, by contributing to the blockchain’s proof-of-stake consensus mechanism. The ETF aims to utilize this feature to enhance investor returns while fully complying with regulatory guidelines.
The filing indicates that staking will be conducted through trusted third-party services, though specific platforms have not been named. BitGo will remain the primary custodian and ensure the security of the assets. The ETF structure is designed to simplify TRX investment access for traditional market participants.
Broader Crypto ETF Strategy by Canary Capital
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 filings stems from the market response to the successful launch of Bitcoin and Ethereum ETFs. Data shows that the 11 US-listed spot Bitcoin ETFs have collectively attracted more than $35 billion in net inflows over the past 15 months.
Although staking remains a regulatory concern, Canary Capital is moving forward with applications integrating staking as a core feature. Incorporating staking into ETFs could lead to broader institutional adoption of digital assets.
Future Outlook
The SEC has not provided a timeline for a decision on the Canary Staked TRX ETF. The outcome of this filing could influence the structure and scope of future crypto investment products in the US.
Canary Capital’s filing for a staked TRX ETF represents a notable development in the evolution of cryptocurrency investment vehicles in the US. By combining direct exposure to TRX with staking capabilities, the fund aims to appeal to a growing base of investors seeking yield-generating opportunities in the digital asset space. The regulatory decision on this proposal will likely shape the future direction of similar crypto ETF products.
