Canary Capital Files Application with SEC for Innovative Staked Tron Exchange-Traded Fund

Investment firm Canary Capital has formally submitted a request to the U.S. Securities and Exchange Commission seeking regulatory approval for a groundbreaking staked Tron ETF. This proposed financial product would allow investors to gain exposure to TRX cryptocurrency while earning staking rewards through a regulated exchange-traded vehicle. The filing represents a significant development in the institutional adoption of blockchain-based assets and could set a precedent for future crypto-related investment products. Market analysts are closely watching the SEC’s response, as approval could open doors for similar staked cryptocurrency ETFs in the traditional financial markets.

Canary Capital expands ETF lineup with Tron filing

Renowned for pioneering some of the most notable altcoin ETF products, this latest Tron ETF further solidifies the firm’s position at the forefront of the exchange-traded fund revolution. Canary Capital has yet to reveal the trading platform on which the product will trade; however, it confirms it will provide exposure to the price of Tron.

Canary Capital plans to use Coindesk Indices’ pricing data to determine the product’s Net Asset Value (NAV). This latest filing comes barely a month after the asset manager filed for Pengu ETF with the US Securities and Exchange Commission (SEC). Nashville, Tennessee-based Canary is also seeking approval for Sui and XRP ETFs, in addition to filings for Hedera (HBAR) and Polkadot (DOT), bringing its total number of altcoin ETF proposals to six.

The spike in applications is part of a flurry of filings for ETFs tracking altcoins, resulting from last year’s successful debut of funds tracking Bitcoin and Ethereum’s performance, respectively. The 11 Bitcoin funds have gained over $35 billion in net inflows over 15 months.

As the trust’s sponsor, Canary Capital Group LLC will oversee the ETF’s operations and manage its performance. CSC Delaware Trust Company is expected to act as the trustee.  The company notes that this new product structure intends to offer investors regulated access to staking rewards and market exposure to one of the most popular proof-of-stake digital assets.

Tron, trading as TRX and the ninth-biggest cryptocurrency with a $23 billion market capitalization, was trading at about $0.24, down more than 3% over the past 24 hours. TRX has risen roughly 120% during the past year. The coin runs on its own blockchain and aims to build a decentralized internet controlled and owned by the individuals who use it.

New SEC leadership hopes for altcoin ETF approvals by mid-2025

Industry Optimism remains high despite the SEC’s ongoing delays in ruling on several altcoin ETF proposals.

Other asset managers, including BlackRock, Bitwise, 21Shares, Franklin Templeton, and VanEck, are on the list of major fund issuers seeking an SEC green light for proposed ETFs. The companies have now filed applications for ETFs based on Solana (SOL), XRP, Cardano (ADA), Dogecoin (DOGE), and Litecoin (LTC). Industry analysts have said that XRP and Solana ETFs will likely receive approval next. 

Earlier this year, Bloomberg analysts forecasted a 90% chance of a Litecoin ETF gaining approval in 2025, citing its classification as a commodity and its structural resemblance to Bitcoin.

The recent appointment of Paul Atkins as the new SEC Chair is also expected to boost the prospects for crypto ETF approvals. Alongside commissioners Mark Uyeda and Hester Peirce—both industry-friendly—Atkins is viewed as a positive force for the sector.

With the change in leadership, experts anticipate that the SEC could greenlight multiple altcoin ETFs by mid-2025.

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