Canary Capital, operating in the cryptocurrency investment management sector, has submitted an application to the U.S. Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) called “Canary Staked TRX ETF,” which will track the TRX coin of the altcoin Tron and offer staking returns. According to official documents submitted to the SEC, BitGo Trust Company will provide custody services for this product. The fund aims to enhance investor returns by incorporating certain assets on the Tron network into staking.
Targeting Returns with TRX ETF + Staking
The Canary Staked TRX ETF will not only track the price movements of the TRX coin but also plans to utilize some fund assets through staking. According to the information contained in the filing with the SEC, the fund aims to provide passive income to investors by operating a portion of the TRX coin through multiple staking infrastructure providers.
This model specifically aims to attract investors focused on staking income. BitGo Trust Company, which will handle custody services for the fund, is recognized for its regulatory compliance and corporate security in the sector. Currently, the market cap of TRX stands at approximately $22.9 billion, ranking ninth in the cryptocurrency market. Tron, founded by Justin Sun, has evolved into a preferred platform for decentralized applications (dApps) over the years.
In addition to TRX, Canary Capital is also working on various ETFs based on cryptocurrencies such as Pengu, Sui, Hedera, and Litecoin. Additionally, ETF applications based on XRP and Solana 
$85 have also been submitted to the SEC by different companies.
SEC’s Shifting Attitude Towards Cryptocurrencies
Until 2024, the SEC maintained a cautious stance towards cryptocurrency ETF applications, especially under Gary Gensler’s leadership. However, following the approval of spot Bitcoin 
$74,999 ETFs and subsequently spot Ethereum 
$2,298 ETFs in January 2024, this approach began to shift. These approvals came after Grayscale won its lawsuit against the SEC, marking a significant turning point in the market.
With Donald Trump set to take office in early 2025, signs of a softer approach from the SEC towards the cryptocurrency sector have become more apparent. The regulatory body has started holding public roundtable discussions focused on cryptocurrencies and has withdrawn lawsuits against some major companies in the sector. All these developments have further increased interest among investors and fund managers in cryptocurrency ETFs.
