Canary Capital Files for Tron ETF With Staking Feature

A Bold Step Towards Institutional Crypto Adoption Amid Regulatory Uncertainty

In a move signaling the continued evolution of cryptocurrency-based financial products, Canary Capital has officially filed a Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) for the Canary Staked TRX ETF. If approved, the proposed fund would become one of the first in the U.S. to incorporate staking capabilities for Tron’s native token, TRX.

Key Highlights from the Filing

• Fund Name: Canary Staked TRX ETF
• Filing Date: Friday
• Custodian: BitGo Trust Company
• Trustee: CSC Delaware Trust
• Location: Nashville, Tennessee
• Tracking Index: TRX spot price, via CoinDesk Indices
• Ticker & Fees: To be announced in future amendments
• Trading Venue: Not yet disclosed

Staking Feature: A New Frontier

In a departure from traditional ETF structures, this fund would stake a portion of its TRX holdings using third-party providers, allowing it to earn rewards through the Tron blockchain’s proof-of-stake mechanism. This inclusion positions the ETF at the heart of a growing industry debate: Should staking be allowed in SEC-approved ETFs?

While the SEC, under former Chair Gary Gensler, had firmly opposed such features, the climate appears to be shifting under new leadership. With crypto-optimistic Chair Paul Atkins at the helm, industry participants are increasingly optimistic.

"Staking may drive broader institutional acceptance," supporters argue. Meanwhile, critics see it as an unnecessary risk, particularly for retail investors.

Market Context & Strategic Timing

The filing comes as TRX’s price climbs 3.92% to $0.2403, reflecting positive investor sentiment. TRX, with a fully diluted market cap of $22.8 billion and $464 million in 24-hour trading volume, has recently shown bullish behavior, sparking speculation around institutional interest.

This development follows a broader trend of altcoin ETFs gaining attention after the successful rollout of Bitcoin and Ethereum ETFs, which together attracted $35+ billion in net inflows over the past 15 months.

Canary Capital is no stranger to crypto fund filings. Besides TRX, its ETF ambitions include applications for:

• Sui (SUI)
• Pudgy Penguins (PENGU)
• Solana (SOL)
• XRP
• Hedera (HBAR)

Each reflects Canary’s strategy to capitalize on the regulatory tailwinds of the current U.S. administration, particularly as interest in diversified crypto investment products grows.