The Tron ecosystem has now joined the ETF bandwagon, as Canary Capital filed for the first staked TRX Fund with the US SEC, fueling market hype.
Canary Capital, a well-known investment firm, has applied for a new crypto fund with the U.S. Securities and Exchange Commission (SEC). The company wants to launch a spot Tron exchange-traded fund (ETF) that includes staking. This would allow investors to earn extra rewards while holding TRX tokens if approved.
Canary Capital To Bring A New Type of Tron ETF
The Nashville-based investment firm filed a new application with the SEC for the Canary Staked TRX ETF fund. This ETF would follow the price of Tron (TRX), one of the top cryptocurrencies. What makes this fund different is its staking feature.
Staking is when people lock up their crypto to support the blockchain. In return, they earn rewards. Canary’s initiative will allow investors to earn more TRX by helping the Tron network work smoothly. This means investors could get more value from their investment than regular ETFs.
Crypto staking has become popular in the crypto world, but U.S. regulators are still skeptical about approving an ETF that includes a staking option. This week, the SEC delayed a decision on whether Grayscale can add staking to its Ethereum fund.Â
Some believe staking helps crypto grow, but others think it may be too risky for average investors. The filing does not say where the Tron ETF would be listed if approved. However, Canary is one of many companies hoping for approval.Â
This is not Canary’s first try. The company has also applied for other crypto ETFs, including HBAR, XRP, Sui, Litecoin (LTC), and Pudgy Penguins. None of these applications has been approved yet.
Since Ethereum (ETH) and Bitcoin ETFs became popular last year, many companies have filed for similar funds. In just 15 months, over $35 billion has been invested in Bitcoin ETFs, leading to a wave of new filings for other digital assets.
Big firms like BlackRock, Bitwise, and VanEck await the SEC’s decision on their ETF applications. Analysts believe that XRP and Solana ETFs will most likely be approved next.
Why A Tron ETF?
Tron is a blockchain project that wants to build a decentralized internet. Its token, TRX, is currently the ninth-largest cryptocurrency, with a market value of about $23 billion. Even though TRX dropped slightly in the past day, it has increased by around 120% in the past year.
Canary Capital believes Tron’s growth makes it a strong choice for an ETF. Like the others, the crypto community is watching to see whether the SEC will approve or delay this new filing.
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