Canary Capital Seeks SEC Approval for Tron ETF With Staking

In brief

Canary Capital is seeking approval to launch a U.S. ETF based around Tron (TRX).
The proposed product would include staking benefits for investors.
Canary has also filed to launch XRP, Solana, Sui, and Pudgy Penguins ETFs.

The ETF applications keep coming. Canary Capital on Friday filed an S-1 prospectus with the U.S. Securities and Exchange Commission on Friday for a spot Tron ETF that would include staking capabilities.

The staking feature of the Canary Staked TRX ETF would allow investors to earn extra yield with their investment.

The fund’s “investment objective is to seek to provide exposure to the price of Tron,” the filing said.

Nashville, Tennessee-based Canary has filed for a number of crypto ETFs. The fledgling crypto-focused asset manager is hoping Wall Street’s biggest regulator will give the green light to Sui, Pudgy Penguins, and XRP funds.

Those applications are part of a flurry of filings for ETFs tracking altcoins, a result of last year’s successful debut of funds tracking Bitcoin and Ethereum’s performance, respectively. The 11 Bitcoin funds have garnered more than $35 billion in net inflows over a 15-month period.

The prospectus, also called a registration statement, did not say on which exchange the proposed fund would trade.

Staking, the process of pledging proof-of-stake assets to a network to help it function in exchange for rewards, has been a controversial issue in regulators’ consideration of crypto ETFs. Proponents maintain that staking will lead to wider institutional adoption of crypto products, but critics view it as an unnecessary risk for investors.

The SEC has yet to approve a staking feature in a crypto ETF, and on Monday, the regulator delayed a decision on a proposed rule change that would enable Grayscale’s spot ETH funds to engage in staking on Ethereum.

Tron, which trades as TRX and is the ninth-biggest cryptocurrency with a $23 billion market capitalization, was recently trading at about $0.24, down more than 3% over the past 24 hours. TRX has risen roughly 120% during the past year. The coin runs on its own blockchain, and aims to build a decentralized internet controlled and owned by the individuals who use it.

BlackRock, Bitwise, 21Shares and VanEck are among the long list of major fund issuers currently seeking an SEC green light for proposed ETFs tracking different digital assets. Industry analysts have said that XRP and Solana ETFs are the most likely to receive approval next.

Edited by James Rubin