Canary Tests SEC: Files First Spot TRX ETF Proposal with Staking

• Canary Capital’s TRX ETF filing is the first to combine spot exposure with staking rewards.
• The proposed ETF will use BitGo as custodian and CoinDesk Indices for TRX price tracking.
• TRON’s TRX token has a $22B market cap and offers approximately 4.5% annual staking yield.

Canary Capital filed an S-1 form with the SEC on Friday, proposing a spot exchange-traded fund (ETF) for TRON’s TRX cryptocurrency. Uniquely, the proposed ETF includes staking rewards alongside exposure to TRX’s spot price. This marks it as the first proposed spot ETF in the U.S. to offer both market exposure and staking yield.

The Canary Staked TRX ETF aims to provide returns from TRX price movement and its staking mechanism. Third-party providers will manage staking, according to the filing. BitGo Trust Company will serve as custodian, using CoinDesk Indices for pricing data. The fee and ticker are yet to be disclosed. 

This proposal stands out because most crypto ETF applicants removed staking components from filings to meet SEC requirements. Canary’s direct inclusion of staking explicitly tests current regulatory boundaries regarding yield features.

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