Canary Capital Targets 4.5% Yield with TRX Staking ETF

Overview:
In a bold move that could reshape how altcoin investment products are structured, Canary Capital has officially filed with U.S. regulators to launch a staked TRX ETF a first-of-its-kind proposal combining spot exposure to Tron’s native token TRX and passive staking yield. If approved, this fund could open new doors for crypto ETF innovation and put Tron in the spotlight alongside Ethereum and Bitcoin.

What Is the Staked TRX ETF?

Canary Capital's proposed ETF is not just a standard crypto product. The fund will hold spot TRX tokens, but what sets it apart is its plan to stake a portion of those holdings to generate additional returns. According to StakingRewards.com, staking TRX currently yields an estimated 4.5% annually.

This hybrid model blends capital appreciation from price movement with passive income from staking, targeting both long-term crypto investors and yield hunters. As traditional ETF issuers search for new product differentiation, staking-enabled funds may soon become the next frontier.

For context, TRX, the utility token for the Tron blockchain, is currently priced at $0.25 with a market cap north of $22 billion, per CoinMarketCap.

Why This ETF Filing Matters

What makes this filing especially notable is Canary Capital's decision to include staking in the initial application something most crypto ETFs have avoided until post-approval.

For example, ETFs holding Ethereum (ETH), such as those by ARK Invest and Grayscale, filed for staking rights only after their spot ETH ETFs were cleared. Those filings remain pending.

If Canary’s TRX ETF is approved as proposed, it may set a regulatory precedent and serve as a template for other altcoin funds that want to incorporate staking yields into their offering from the get-go.

Inside the Tron Ecosystem

Tron is a proof-of-stake blockchain network launched by Justin Sun, known for its speed, scalability, and integration with platforms like BitTorrent (now Rainberry). With its efficient delegation mechanism, Tron enables users to stake TRX and vote for Super Representatives, who maintain the network and distribute staking rewards.

Despite its technical strengths, Tron has had its share of regulatory drama. In March 2023, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Justin Sun, alleging price manipulation involving both TRX and BitTorrent's BTT token.

As of February 2025, court documents revealed that both parties were seeking a settlement to resolve the ongoing case. While these legal challenges hover in the background, Tron’s network activity, user base, and TVL (total value locked) in DeFi remain relatively strong.

Canary Capital’s ETF Ambitions Don’t Stop at TRX

This TRX ETF is just one of several crypto offerings Canary Capital has recently put forward. The firm has aggressively pursued approvals for alternative crypto ETFs, making it a prominent player in what many are calling "Altcoin ETF season."

Their ETF filing spree includes:

- Litecoin (LTC)

- XRP

- Hedera (HBAR)

- Axelar (AXL)

- Sui (SUI)

- [Pengu (PENGU)] – a memecoin gaining traction

- [Official Trump (TRUMP)] – a politically-themed memecoin

This flood of applications began after Donald Trump took office in January 2025, which led to a sudden openness by regulators to explore more diverse crypto products.

Still, not everyone is convinced of their viability.

Market Reaction: Skepticism Around Altcoin ETFs

Even with all the momentum, some experts warn that many of these altcoin ETFs may not attract meaningful capital.

“Most crypto ETFs will fail to attract AUM and cost issuers money,” warned crypto analyst Alex Krüger on X (formerly Twitter) back in March. He believes institutional investors may remain focused on Bitcoin, Ethereum, and a handful of blue-chip tokens, at least in the short term.

For an ETF to be sustainable, it needs enough assets under management (AUM) and trading volume to offset operational costs. Whether TRX, despite its $22B market cap, can deliver that in the U.S. institutional space remains to be seen.

A Regulatory Litmus Test for Altcoins and Staking

At its core, Canary Capital's TRX ETF filing is a regulatory test case not just for Tron, but for how staking is treated in the context of traditional financial products. The SEC’s decision will provide insight into:

- Whether staking can be approved at the ETF launch stage

- How altcoins are categorized relative to major tokens like BTC and ETH

- What precedent will be set for future yield-bearing crypto ETFs

If approved, this fund could be the first U.S. ETF to blend passive staking income with altcoin exposure, paving the way for more dynamic products that better reflect the crypto economy’s structure.

Final Thoughts

The proposed staked TRX ETF by Canary Capital signals a maturing market that’s moving beyond basic spot exposure. By combining staking rewards with traditional ETF infrastructure, this product could appeal to a new wave of investors seeking yield + growth from altcoins.

However, regulatory clarity remains the biggest wildcard. As the SEC debates whether staking constitutes a security-like activity, the outcome of this application will be closely watched by both crypto innovators and Wall Street institutions.

Will the TRX ETF go live? If it does, we may witness a paradigm shift in how digital assets are packaged and delivered to mainstream investors.

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