U.S. asset manager Canary Capital has filed to launch a new exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC), focused on the Tron blockchain’s native token, TRX.
According to regulatory filings, the ETF will hold spot TRX and stake a portion of the tokens to generate extra yield. This move makes Canary’s proposal one of the first in the U.S. to seek approval for staking in its initial application.
On the other hand, other issuers of ETFs, such as those of Ether (ETH), have sought staking rights only after getting the green light for the spot token fund.
TRX, the token powering the Tron network founded by Justin Sun, currently has a market cap of over $22 billion, as per CoinMarketCap. Staking TRX offers an annual yield of around 4.5%, data from StakingRewards.com shows.
However, the founder of Tron has not been out of legal issues even though the platform is quite popular. In March 2023, the SEC sued Justin Sun for manipulating the prices of TRX and BitTorrent’s BTT. However, both parties recently agreed to stay the case for possible settlement purposes.
Canary Capital’s TRX ETF is part of a wider trend, often dubbed “Altcoin ETF season.” Since President Trump took office, U.S. regulators have seen a surge in crypto ETF filings. Canary has already proposed ETFs for altcoins like XRP, Litecoin, Hedera (HBAR), Sui, and even memecoins like PENGU.
Still, some experts remain skeptical. “Most crypto ETFs will fail to attract AUM and cost issuers money,” said crypto analyst Alex Krüger.
Only time will tell if investors embrace these altcoin ETFs.
Also Read: XRP ETF Hopes Rise as Ripple SEC Case Pauses
