In a move that could reshape the cryptocurrency investment landscape, Canary Capital has filed registration documents with the SEC for the first-ever U.S.-based Tron ETF with an integrated staking feature. The Form S-1 registration, submitted on April 18, 2025, introduces the “Canary Staked TRX ETF,” designed to hold spot TRX tokens while simultaneously offering staking rewards to investors.
Unlike previous crypto ETFs that simply track the underlying asset’s price, Canary’s proposal ventures into uncharted waters. The fund plans to stake a portion of its TRX holdings through third-party providers, potentially passing those rewards—currently hovering around 4.5% to 5% annually—directly to ETF holders. It’s like growing apples while also making apple pie. The delegated staking approach allows the fund to participate in network validation without maintaining its own infrastructure.
Canary’s innovative TRX ETF doesn’t just hold the asset—it puts it to work, delivering staking rewards alongside price exposure.
BitGo Trust Company will shoulder the responsibility of cryptocurrency custody, managing the private keys and overseeing staking operations. The filing represents a historic milestone for combining TRX exposure with yield generation in a regulated investment product. The fund aims to track TRX’s spot price performance based on CoinDesk Indices, minus fees that haven’t yet been disclosed. The ticker symbol remains similarly shrouded in mystery.
The filing carries special significance given Tron’s position as the ninth-largest cryptocurrency by market capitalization, approximately $22-23 billion. Tron’s blockchain, launched in 2017, has gained traction particularly in stablecoin settlements, where it ranks second only to Ethereum. This innovative ETF represents Canary’s commitment to expanding their altcoin ETF portfolio which already includes proposals for SOL, XRP, HBAR, LTC, SUI, and AXL.
However, Canary’s ambitious staking feature faces substantial regulatory headwinds. The SEC has historically viewed staking services with suspicion, considering them potential unregistered securities. Previous Ethereum ETF applicants abandoned similar staking components to appease regulators. Canary’s persistence suggests either remarkable confidence or strategic maneuvering.
This TRX ETF proposal isn’t Canary’s first rodeo. The firm specializes in institutional crypto trading and has already filed for ETFs focused on other altcoins including SOL, XRP, and HBAR. Their strategy clearly aims to capitalize on the momentum generated by successful Bitcoin and Ethereum ETFs, extending regulated investment vehicles further into the cryptocurrency ecosystem.
For traditional investors, the proposed ETF offers a bridge to both Tron’s potential growth and its staking rewards—without the technical hurdles of direct blockchain participation.
