Canary Capital is entering the competitive crypto ETF race with a new filing for a spot-based Tron ETF that incorporates staking rewards. The firm submitted an S-1 prospectus to the U.S. Securities and Exchange Commission (SEC) on Friday, seeking approval for the first U.S. ETF offering direct exposure to Tron (TRX) alongside staking yield.
Named the Canary Staked TRX ETF, the proposed fund aims to track the price of TRX while utilizing third-party staking providers to generate additional returns. If approved, it would represent a significant milestone in merging decentralized finance features—like staking—with traditional investment products.
The filing comes amid a surge of altcoin ETF applications, as asset managers vie for regulatory approval of funds based on Solana, XRP, Dogecoin, and other major tokens. Canary’s approach of combining staking with spot exposure could set its TRX fund apart in an increasingly crowded ETF landscape.
Canary Broadens ETF Plans as Staking Debate Grows
Nashville-based Canary Capital continues to expand its footprint in the digital asset space, with filings for ETFs tied to Sui, XRP, and even the Pudgy Penguins NFT collection. The company is positioning itself to capitalize on growing momentum following the launch of 11 spot Bitcoin ETFs in the U.S., which have attracted over $35 billion in inflows since their debut.
With the SEC showing signs of a softened stance under new leadership, firms like Canary are pushing for approval of altcoin-based ETFs that include staking. Advocates say staking adds yield-generation potential and may help bridge the gap between DeFi and institutional finance. Critics argue staking brings added complexity, including slashing risks and governance hurdles, which could prove unsuitable for retail ETF investors.
While the TRX filing did not specify a listing exchange, the move reflects a broader industry trend: the increasing convergence of DeFi tools with mainstream financial products.
SEC Stalls on Staking, But Altcoin ETFs Proliferate
Despite rising interest, the SEC has yet to approve any ETF incorporating staking features. Earlier this week, the agency delayed its decision on Grayscale’s proposal to include staking in its spot Ethereum ETF, highlighting continued regulatory caution around the practice.
Canary’s staked TRX filing adds to growing pressure on the SEC to address staking in the ETF context. Tron (TRX), the blockchain powering the fund’s underlying asset, is the ninth-largest cryptocurrency by market cap, valued at roughly $23 billion. While TRX was trading near $0.24—down 3% on the day—it remains up over 120% year-over-year, reflecting investor interest in its decentralized web vision.
The race for altcoin ETFs is heating up. BlackRock, Bitwise, 21Shares, and VanEck have each filed for single-asset ETFs targeting coins like Solana, XRP, and Avalanche. Analysts suggest XRP and Solana could be among the first to receive SEC approval as the regulatory environment continues to evolve.
Quick Facts
- Canary Capital has filed for a staked TRX ETF with the SEC
- The fund aims to provide TRX price exposure and staking rewards
- BitGo will act as custodian; CoinDesk Indices will supply pricing data
- The filing reflects rising demand for altcoin and staking ETFs
