Canary Capital Files For Staked TRX ETF Amid Regulatory Shifts

Canary Capital has filed for an exchange-traded fund (ETF) that will track the price of Tron’s native token, TRX. The hedge fund submitted a Form S-1 for the Canary Staked TRX ETF with the Securities and Exchange Commission (SEC) on Friday. If approved, the fund will stake portions of its holdings through third-party providers, with BitGo acting as custodian for the assets. The fund will track TRX’s spot price using CoinDesk Indices calculations.

The proposed ticker and management fee for the product have not been disclosed yet. Initially, issuers had filed applications for spot ethereum (ETH) ETFs with the staking feature included but later removed them in an amended filing to receive approval from the SEC on their proposals. The SEC under former Chair Gary Gensler was strictly against staking, but issuers have grown more hopeful that they will be able to add the feature to their spot ether funds with the appointment of crypto-friendly Chair Paul Atkins.

A decision on a February request from Grayscale to allow staking in the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF (ETH) was postponed by the regulator just a few days ago. This move by Canary Capital comes at a time when the regulatory environment for cryptocurrencies is evolving, and the approval of staking features in ETFs could significantly impact the market dynamics. The filing of the Canary Staked TRX ETF represents a strategic move by Canary Capital to capitalize on the growing interest in cryptocurrencies and the potential for staking to enhance returns for investors.