Canary Capital has taken a bold step in the crypto investment space by filing the first U.S. spot exchange-traded fund (ETF) proposal for Tron’s native token, TRX, that includes staking rewards. This new product, named the Canary Staked TRX ETF, aims to give investors direct exposure to TRX’s price while also offering passive income through staking rewards.
What Makes This ETF Unique?
| Feature |
Details |
|
Fund Type |
Spot ETF holding actual TRX tokens |
|
Staking |
Portion of TRX tokens staked to generate yield |
|
Yield |
Around 4.5% annualized staking rewards |
|
Custodian |
BitGo Trust Company |
| Price Tracking |
CoinDesk Indices |
| Regulatory Status |
Filed with SEC, decision expected by June 2025 |
| Management Fee & Ticker |
Not disclosed |
Unlike traditional ETFs that only track the price of an asset, this fund plans to stake a portion of its TRX holdings on the Tron blockchain. Staking helps secure the network and rewards token holders with additional tokens. By including staking, the ETF offers a way for investors to earn yield without managing wallets or technical staking themselves.
Why This Matters
This proposal is a first for TRX in the U.S. market. It combines two key benefits:
- Price exposure: Investors gain from TRX’s market movements.
- Staking rewards: Investors earn passive income from the blockchain’s proof-of-stake system.
The SEC has been cautious about approving ETFs with staking features. Past Ethereum ETF proposals had to remove staking components to move forward. Canary Capital’s filing challenges this norm by explicitly including staking, testing how regulators view these new crypto income streams.
The Growing Altcoin ETF Trend
Canary Capital is not stopping at TRX. Since 2024, it has filed for ETFs on several altcoins like Litecoin (LTC), Ripple (XRP), Hedera (HBAR), Solana (SOL), and even NFT-linked funds. This push reflects growing institutional interest in bringing diverse crypto assets to traditional investors through regulated products.
What Investors Should Know
- Staking rewards: The fund expects about 4.5% annual yield from staking TRX.
- Custody and security: BitGo Trust will securely hold TRX tokens.
- Regulatory risk: SEC approval is uncertain and expected by mid-2025.
- Simplified access: Investors can gain TRX exposure and staking income without crypto technicalities.
Key Takeaways
- Canary Capital’s TRX ETF is the first U.S. proposal combining spot TRX and staking rewards.
- It offers a new way to earn passive income from TRX within a regulated ETF.
- SEC approval remains a hurdle due to concerns around staking.
- The filing highlights growing interest in altcoin ETFs beyond Bitcoin and Ethereum.
FAQs
Q: What is staking in this ETF?
- A: Staking means locking TRX tokens to support the Tron network and earn rewards. This ETF will stake part of its holdings to share rewards with investors.
Q: Why is the SEC cautious about staking ETFs?
- A: The SEC worries about investor protection, regulatory compliance, and the complexity of staking mechanics.
Q: When will the SEC decide?
- A: A decision is expected by June 2025 but is not guaranteed.
Q: How does this ETF help traditional investors?
- A: It allows them to invest in TRX and earn staking rewards without managing wallets or technical details.
Canary Capital’s filing is a notable move toward blending traditional finance with blockchain innovation. If approved, the Canary Staked TRX ETF could open doors for mainstream investors to tap into crypto staking rewards safely and easily. Will this pave the way for more staking-enabled ETFs? Time will tell.
