Canary Capital has filed a Form SB-2 registration statement with the U.S. Securities and Exchange Commission (SEC). They are launching the Canary Staked TRX ETF which seeks to provide investment results that correspond to the performance of TRON’s native token, TRX. With its novel structure, the proposed ETF will offer investors exposure to TRX while earning them additional yield by staking their tokens.
The ETF would track the spot price of TRX, with benchmark rates calculated by CoinDesk Indices. To power these activities, the proposed product seeks to stake a significant portion of its TRX holdings. It will partner with third party providers to create more yield for investors. As part of its partnership with WisdomTree, BitGo is scheduled to act as the custodian for the yet-to-be-launched product.
This decision coincides with recent hopeful signs that the regulatory tide for crypto-related investment products is turning. Under the direction of new SEC Chair Paul Atkins, the regulatory tide may be turning. Yet many view his successor as being decidedly more crypto-friendly. The prior SEC leadership, led by Gary Gensler, was against the introduction of staking-based products.
To wit, the SEC has just delayed its decisions on spot Ethereum ETF filings. This delay indicates that regulatory clarity on staking ETFs is a continuing process. Previous spot Ethereum ETF applications started off with staking, only for applicants to strip out that feature in order to win the regulatory nod. And Grayscale continues to wait impatiently for a decision on its proposal. If approved, the proposal would add staking to the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF.
If approved, Canary Capital’s TRX ETF would be one of the first U.S.-listed crypto ETFs to include staking. Information like the ETF’s expected ticker symbol and management fees are still unknown.
TRX, or Tronix, is the native token of the TRON blockchain. Should the proposed ETF be approved it would be the first U.S.-listed crypto ETF. Canary Capital is the official applicant for the proposed ETF.
