Canary Capital has filed a new application with the U.S. Securities and Exchange Commission (SEC) to create a spot Tron exchange-traded fund (ETF) that integrates a staking component.
The filing, submitted on Friday, features the S-1 prospectus for the proposed Canary Staked TRX ETF, designed to provide investors with direct exposure to Tron (TRX), which ranks as the ninth-largest cryptocurrency by market cap.
The investment objective outlined in the filing is to mirror Tron’s price performance while allowing investors to earn additional rewards through staking activities.
Controversy Surrounding Staking in ETFs amid Regulatory Review
Staking involves holders of proof-of-stake (PoS) cryptocurrencies participating in network security and functionality in exchange for periodic rewards, but integrating staking into an ETF has raised regulatory concerns.
The SEC has not yet granted approval for any ETF that incorporates staking, pointing to possible risks for investors and operational complications.
Earlier this week, the agency postponed a decision regarding whether Grayscale’s proposed spot Ethereum fund could feature staking options.
Canary Capital, based in Nashville, Tennessee, is among several companies striving to introduce altcoin-focused ETFs in a rapidly evolving market.
The firm has also submitted applications for ETFs related to cryptocurrencies such as XRP, Sui, and Pudgy Penguins, amid a surge in interest driven by the recent success of Bitcoin and Ethereum ETFs.
Canary has filed for first spot trx ETF…
Currently 9th largest digital asset by market cap (approx $23bil). pic.twitter.com/emKm2DpHl9
— Nate Geraci (@NateGeraci) April 19, 2025
Since their introduction in early 2023, the 11 spot Bitcoin funds have attracted net inflows exceeding $35 billion.
The filing did not indicate which exchange the proposed Tron ETF would be listed on, leaving that aspect to be clarified in later updates.
At the time of the filing, TRX, the native token of the Tron blockchain, was trading around $0.24, experiencing a 3% decrease over the previous 24 hours. Nevertheless, the token has achieved a notable 120% increase over the last year.
Major financial entities like BlackRock, Bitwise, VanEck, and 21Shares are also pursuing SEC approval for their altcoin ETFs, with industry analysts speculating that XRP and Solana are likely candidates for the next potential approvals.
SEC Delays Decisions on Staking and In-Kind ETF Guidelines
Last week, the SEC postponed its decisions on proposed regulatory changes related to staking features and in-kind transactions for several cryptocurrency ETFs.
This delay provides the regulator additional time to assess the ramifications as its dedicated crypto task force continues its efforts to formulate long-term policies for digital assets. Final decisions are anticipated later this year.
The SEC’s crypto task force, established to clarify regulations in the sector, has already held discussions with various industry stakeholders.
In February, executives from Jito and Multicoin Capital met with the agency to advocate for staking-enabled ETFs, which would enable investors to earn yield by locking up their crypto assets.
The task force has also reassessed prior enforcement actions against crypto firms.
Among the proposals awaiting a decision are the Grayscale Ethereum Trust and Ethereum Mini Trust, which requested to stake their held ETH, as well as VanEck’s Bitcoin and Ethereum Trusts, proposing in-kind transactions using cryptocurrency instead of cash.
Deadline extensions for these proposals have been set for June 1 and June 3, respectively.
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