Canary Capital Files for Staked TRX ETF with SEC

TLDR

• Canary Capital filed for the first U.S. TRX spot ETF with integrated staking rewards.
• The ETF will stake TRX tokens to generate additional yield for investors.
• BitGo will serve as custodian, managing private keys and asset security.
• Approval could pave the way for future staking-based crypto ETFs.
• No management fee or ticker symbol disclosed yet.

Overview

Canary Capital has submitted an S-1 filing with the SEC for the Canary Staked TRX ETF, a fund designed to track the spot price of Tron’s native token (TRX) while leveraging staking for passive income.

👉 Explore how staking enhances crypto ETF returns

Key Features:

• Direct TRX exposure via spot holdings.
• Staking integration through third-party providers (estimated 4.5% annual yield).
• BitGo as custodian for secure asset management.
• Price tracking based on CoinDesk Indices, minus fees.

Why This ETF Stands Out

Unlike earlier crypto ETF proposals that removed staking to align with SEC expectations, Canary Capital’s filing retains staking as a core feature. This positions the fund as a potential benchmark for yield-generating crypto products.

Staking Mechanics:

• TRX tokens are staked via proof-of-stake (PoS) to validate transactions.
• Rewards are distributed to ETF investors, enhancing returns.
• Regulatory compliance emphasized in the filing.

Canary Capital’s Crypto ETF Strategy

The TRX ETF is part of a broader initiative to expand crypto-based investment products. The firm plans future ETFs for:

• Solana (SOL)
• XRP
• Litecoin (LTC)
• Hedera (HBAR)

👉 Discover emerging altcoin investment opportunities

Market Context:

• Bitcoin and Ethereum ETFs have attracted $35B+ in net inflows since 2024.
• Altcoin ETFs aim to capitalize on growing institutional interest.

Regulatory Outlook

The SEC has not set a decision timeline, but approval could:

1. Validate staking-integrated ETFs as a viable product.
2. Encourage similar filings for other PoS assets.
3. Accelerate institutional adoption of yield-focused crypto investments.

FAQ Section

1. What makes the Canary Staked TRX ETF unique?

It’s the first U.S. ETF proposal combining spot TRX exposure with staking rewards, offering both price appreciation and passive income.

2. How does staking work in the ETF?

The fund stakes TRX via third-party providers, earning ~4.5% annual yield, which is distributed to investors after fees.

3. Who is the custodian for the ETF?

BitGo will manage TRX holdings and private keys, ensuring institutional-grade security.

4. Could this ETF influence other crypto ETFs?

Yes. Approval may prompt more staking-based ETF filings for assets like SOL, ADA, or DOT.

5. When will the SEC decide?

No timeline is confirmed, but analysts suggest a 6–12 month review period.

Conclusion

Canary Capital’s staked TRX ETF filing marks a significant step toward yield-generating crypto investment vehicles. By bridging traditional finance with blockchain staking, the fund targets investors seeking diversified returns. The SEC’s decision will be pivotal for the future of crypto ETFs and institutional participation.