Canary Capital, a prominent asset manager based in the United States, has recently made a significant move in the cryptocurrency space. According to regulatory filings, the firm has submitted an application to list an exchange-traded fund (ETF) that will hold the native token of the Tron blockchain network, TRX (TRX). The ETF is designed to include spot TRX holdings and aims to stake a portion of the tokens to generate additional yield.

As per data from CoinMarketCap, the TRX token currently boasts a total market capitalization exceeding $22 billion. Staking TRX is shown to offer an annualized yield of around 4.5%, as indicated by Stakingrewards.com. This filing by Canary Capital represents a growing trend of ETF submissions seeking to include alternative cryptocurrencies, or "altcoins," in their portfolios.

What sets Canary's proposed fund apart is its request to stake the crypto holdings right from the initial application stage. In contrast, other US ETFs focusing on tokens like Ether (ETH) from the Ethereum network have pursued approval for staking after successfully listing a fund holding the spot token, awaiting a regulatory decision.

Tron, the blockchain network behind the TRX token, was founded by Justin Sun, who is also the owner of Rainberry (formerly Bittorrent), the entity behind the BitTorrent protocol. In a legal development, the Securities and Exchange Commission (SEC) filed a lawsuit against Sun in March 2023, alleging fraudulent activities related to inflating the prices of the Tron token and BitTorrent's BTT token. Subsequently, in February, both the SEC and Sun requested a pause in the case to engage in settlement discussions.

Since President Donald Trump's term began in January, US regulators have been presented with numerous filings for potential crypto investment products, including ETFs featuring native layer-1 tokens like Solana (SOL) and even memecoins such as Official Trump (TRUMP). Canary Capital has been at the forefront of these submissions, proposing ETFs holding various cryptocurrencies like Litecoin (LTC), XRP (XRP), Hedera (HBAR), Axelar (AXL), Pengu (PENGU), and Sui (SUI).

Despite the increasing interest in crypto ETFs, some industry analysts remain skeptical about the broader appeal of these investment products to traditional investors. Alex Krüger, a renowned crypto researcher, expressed doubts in a post on the X platform, suggesting that most crypto ETFs may

Source: https://cointelegraph.com/news/canary-files-for-staked-trx-etf?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound