rewrite this title Canary Capital Files First-Ever TRX ETF With Staking, A Bold Move Into Tron Exposure

Key Takeaways:

Canary Capital has filed for the first U.S.-based ETF focused on Tron (TRX), incorporating staking.The proposed Canary Staked TRX ETF will hold and stake TRX while offering spot price exposure.BitGo will serve as custodian; SEC approval could set a precedent for future staking-based ETFs.

Canary Capital is expanding its crypto ETF ambitions with a bold new filing targeting Tron. The firm’s proposal marks the first exchange-traded fund in the U.S. dedicated to TRX, and uniquely, it includes staking from the start—an approach not yet approved by the SEC but gaining traction among institutional investors.

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Canary Capital Moves First on TRX ETF

On April 18, Canary Capital submitted a Form S-1 filing with the U.S. Securities and Exchange Commission (SEC), introducing the Canary Staked TRX ETF. If approved, this would be the first exchange-traded fund in the country that tracks Tron’s native token, TRX, while also utilizing its staking functionality to generate additional yield.

The ETF proposes to hold actual TRX tokens and stake a portion of them through trusted third-party platforms. BitGo Trust Company will manage custody of the tokens, securing the private keys and overseeing staking operations. The price of the fund will reflect TRX’s spot value, based on CoinDesk Indices, minus fees.

This filing positions Canary Capital as a front-runner in the emerging segment of staking-integrated ETFs, a trend that’s gaining ground but still navigating regulatory uncertainty.

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Staking Sets This ETF Apart

First Proposal to Combine TRX Staking With Regulated Exposure

While several Ethereum ETF applicants initially explored staking, most removed the feature in later amendments. Canary’s filing stands out by keeping staking as a core element. The goal is to enhance investor returns through TRX’s native proof-of-stake model, while maintaining compliance with U.S. regulations.

As of now, TRX staking offers an annual reward of around 4.5%, according to StakingRewards.com. By staking a portion of the fund’s TRX holdings, Canary Capital seeks to combine regulated exposure to a leading Layer 1 blockchain with the yield-generating benefits of on-chain participation.

The fund will use third-party staking providers, although the specific platforms are yet to be disclosed. BitGo remains the main custodian, ensuring the ETF’s assets are secure and staking operations are properly managed. This simplifies access for traditional investors who may not be familiar with crypto wallet management or on-chain staking.

Institutional Appetite Shifts Toward Altcoin ETFs

Canary Capital’s TRX proposal is part of a broader strategic push into altcoin-focused ETFs. The Nashville-based firm is reportedly working on additional crypto funds targeting other digital assets, including Solana (SOL), XRP, Hedera (HBAR), Litecoin (LTC), Sui (SUI), and Axelar (AXL).

This move comes after the strong reception of spot Bitcoin ETFs, which have seen over $35 billion in net inflows across 11 U.S.-listed funds since their introduction. Ethereum-based ETF proposals have followed suit, but regulatory hesitation—especially regarding staking—has delayed approvals.

By maintaining staking in the original TRX ETF proposal, Canary Capital is testing the SEC’s evolving stance on yield-generation within regulated funds. Should this fund gain approval, it could pave the way for a new generation of staking-enabled ETFs, offering both price exposure and passive yield in a fully compliant structure.

Regulatory Outlook and Market Implications

The SEC has not yet suggested when it will rule on the Canary Staked TRX ETF. Still, the outcome might greatly affect the future of crypto ETFs in the United States.