{"id":11211,"date":"2025-04-18T23:37:40","date_gmt":"2025-04-18T21:37:40","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=11211"},"modified":"2025-04-18T23:37:40","modified_gmt":"2025-04-18T21:37:40","slug":"canary-capital-seeks-approval-for-innovative-staked-trx-exchange-traded-fund","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/04\/18\/canary-capital-seeks-approval-for-innovative-staked-trx-exchange-traded-fund\/","title":{"rendered":"Canary Capital Seeks Approval for Innovative Staked TRX Exchange-Traded Fund"},"content":{"rendered":"

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The asset management firm in the United States, Canary Capital, has submitted a request to list an exchange-traded fund (ETF) that will encompass the native token of the Tron blockchain network, TRX (TRX<\/a>), as indicated by regulatory documents.<\/p>\n

The fund aims to possess spot TRX and stake a part of the tokens for increased return, as the filing states<\/a>.<\/p>\n

As per<\/a> CoinMarketCap, the TRX token boasts a total market value exceeding $22 billion. Staking TRX yields an annualized return of nearly 4.5%, according to data from Stakingrewards.com demonstrates<\/a>.<\/p>\n

This filing represents the most recent in a series of submissions aimed at launching ETFs that include alternative cryptocurrencies, often referred to as \u201caltcoins.\u201d<\/p>\n

Nonetheless, Canary\u2019s proposed fund is somewhat distinct in seeking authorization to stake its crypto assets in its initial application. Other US ETFs, like those involving the Ethereum network\u2019s native token, Ether (ETH<\/a>), have requested approval for staking only after securing the listing of a fund that holds the spot token. They are still awaiting a regulatory verdict.<\/p>\n

Founded by Justin Sun, Tron is a proof-of-stake blockchain network, who also owns Rainberry (formerly Bittorrent), the creator of the BitTorrent protocol.<\/p>\n

In March 2023, the SEC filed a lawsuit against Sun<\/a> for allegedly misleadingly inflating the prices of the Tron token as well as BitTorrent\u2019s BTT token.<\/p>\n

In February, both the SEC and Sun requested the judge overseeing the lawsuit to suspend the case<\/a> to facilitate settlement discussions.<\/p>\n

Platforms for staking TRX. Source: <\/em>Stakingrewards.com<\/em><\/a><\/figcaption><\/figure>\n

Related:\u00a0<\/strong><\/em>Canary Capital suggests first Sui ETF in US SEC submission<\/strong><\/em><\/a><\/p>\n

Altcoin ETF season<\/strong><\/h3>\n

Since the inauguration of US President Donald Trump in January, US regulatory bodies have acknowledged multiple submissions for proposed cryptocurrency investment products.<\/p>\n

This includes initiatives for ETFs that incorporate native layer-1 tokens like Solana (SOL<\/a>) as well as meme coins such as Official Trump (TRUMP).<\/p>\n

In 2024, Canary has submitted applications for several proposed US crypto ETFs, which include funds holding Litecoin (LTC<\/a>), XRP\u00a0(XRP<\/a>), Hedera\u00a0(HBAR<\/a>), Axelar\u00a0(AXL), Pengu (PENGU), and Sui (SUI<\/a>).<\/p>\n

Some experts in the industry express skepticism that ETFs focusing on non-core cryptocurrencies will gain acceptance among conventional investors.<\/p>\n

\u201cMost crypto ETFs are likely to struggle to generate assets under management (AUM) and will incur costs for issuers,\u201d crypto analyst Alex Kr\u00fcger\u00a0commented<\/a>\u00a0in a March post on the X platform.<\/p>\n

Magazine:\u00a0<\/strong><\/em>SEC\u2019s policy reversal on crypto leaves significant questions unanswered<\/strong><\/em><\/a><\/p>\n