TRX ETF: Canary Capital Moves to File for TRON ETF with Regulated Staking Scheme

The crypto investment space is seeing a potential game-changer as Canary Capital officially files for a TRON (TRX) exchange-traded fund (ETF) featuring a regulated staking model. This innovative financial product aims to offer both direct exposure to TRX's spot price and staking rewards—a combo that hasn’t yet received the green light from the U.S. Securities and Exchange Commission (SEC). Backed by TRON founder Justin Sun, this move could signal a new era in how investors tap into TRON's expanding ecosystem.

What is the TRX ETF?

Canary Capital’s proposed TRX ETF is designed to mirror the spot price of TRON’s native token, TRX, while staking a portion of the holdings to generate annual rewards for investors. The fund's registration was submitted via a Form S-1 with the SEC, making it the first attempt to launch a TRX ETF with staking in the U.S.

BitGo Trust Company will serve as the custodian to ensure the security and transparency of asset storage. The ETF plans to provide an estimated 4.5% annual yield from staking, offering investors not just price exposure but also a passive income stream. This distinguishes it from previous crypto ETF proposals, which typically excluded staking due to regulatory uncertainty. The fund will use third-party staking service providers, aiming for compliance within a regulated framework.

Canary Capital’s Staking Model and Regulatory Outlook

So far, the SEC has resisted approving ETFs with staking features, often considering them akin to unregistered securities. Several Ethereum ETF filings were forced to strip out staking components to improve their odds of approval. However, the regulatory climate may be shifting with Paul Atkins now at the helm of the SEC—a chairman seen as more receptive to crypto innovation.

By integrating a regulated staking component and third-party service providers, Canary Capital is pushing the envelope. Its transparent structure could serve as a precedent for other crypto ETFs, especially those looking to blend price exposure with yield generation.

Justin Sun and TRON’s Rising Market Power

Justin Sun has publicly backed the ETF proposal, encouraging U.S. investors and VCs to consider TRX as a viable, forward-looking investment. TRON has been on a strong upward trend, recently overtaking Cardano to claim the ninth spot in global cryptocurrency rankings by market cap. TRX has surged over 122% in the past year, maintaining solid momentum even amid market volatility.

Sun's endorsement isn't just symbolic—it reflects TRON’s broader strategy to attract institutional capital and increase mainstream adoption. The ETF, if approved, could play a pivotal role in deepening liquidity and providing compliant pathways for investors to earn returns.

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TRX ETF Price and Market Forecast

Analysts are eyeing the TRX ETF as a potential price catalyst. Forecasts for 2025 range widely—from a conservative $0.127 to a bullish $0.73—underscoring both the optimism and caution in the market. The ETF's regulated staking feature could elevate demand for TRX, supporting long-term value growth.

The projected 4.5% staking reward is especially attractive to investors hunting for a mix of capital gains and passive income. Should the SEC approve the proposal, this could open the floodgates for more staking-integrated ETFs across other blockchain ecosystems.

Conclusion

Canary Capital's bid to launch the first-ever TRX ETF with regulated staking is a bold and potentially groundbreaking move. By merging spot price exposure with yield-generating staking, this ETF stands to meet the growing demand for diversified crypto investment tools—while aligning with emerging regulatory standards. 

With Justin Sun's full support and TRON’s strong market performance, the TRX ETF could be a game-changer for both retail and institutional investors. Approval is still pending, but this development hints at a larger shift toward staking-friendly investment products in traditional finance.

FAQ

What is the TRX ETF proposed by Canary Capital?
The TRX ETF is a spot exchange-traded fund that tracks the performance of TRON’s native token, TRX, and offers a 4.5% annual return through a regulated staking model.

Who is backing the TRX ETF filing?
Canary Capital is leading the filing, with public support from Justin Sun, the founder of TRON.

How does the staking component work in the TRX ETF?
A portion of TRX holdings will be staked via third-party providers, with BitGo Trust Company ensuring secure and transparent custody of the assets.

What regulatory challenges does the TRX ETF face?
The SEC has traditionally resisted ETFs involving staking, but leadership changes and market demand may improve the ETF’s approval chances.

What is the potential impact of the TRX ETF on TRON’s market?
If approved, the ETF could significantly boost TRX’s liquidity and price by attracting both institutional and retail investors interested in staking rewards.