Canary Capital Ignites Staked TRX Market with New ETF Filing

US-based asset manager Canary Capital has officially filed for an exchange-traded fund (ETF) that would hold Tron’s native token, TRX, according to newly released regulatory documents.

Unlike other applications, this TRX ETF filing stands out because it includes a proposal to stake a portion of the fund’s TRX holdings. This would allow the ETF to generate passive income through staking, offering investors a potential annual yield of around 4.5%, based on figures from StakingRewards.com.

According to CoinMarketCap, TRX currently boasts a market capitalisation exceeding $22 billion, making it one of the more established altcoins in the crypto space.

What Makes This TRX ETF Filing Unique?

While the race to launch crypto ETFs in the US is heating up, Canary’s proposal is one of the first to include staking from the start. Other funds—such as those holding Ethereum (ETH)—have only requested staking permission after gaining approval for spot ETF trading. These applications are still awaiting regulatory decisions.

This bold approach may signal a shift in how altcoin ETFs are structured, potentially paving the way for more actively managed crypto products that generate yield for investors.

A Closer Look at Tron and Its Founder

The Tron network operates as a proof-of-stake blockchain, designed to offer fast, low-cost transactions. It was created by entrepreneur Justin Sun, who also owns Rainberry (formerly BitTorrent Inc.), the company behind the BitTorrent protocol.

However, Tron has not escaped controversy. In March 2023, the US Securities and Exchange Commission (SEC) filed a lawsuit against Sun, accusing him of manipulating the prices of TRX and BitTorrent’s BTT token. As of February, both parties have requested a pause in the legal proceedings to explore settlement options.

Altcoin ETF Season Is Heating Up

The TRX ETF filing is part of a broader trend. Since 2024, Canary Capital has submitted multiple ETF applications involving various altcoins including:

Litecoin (LTC)
XRP (XRP)
Hedera (HBAR)
Axelar (AXL)
Pengu (PENGU)
Sui (SUI)

These filings come amid a wave of interest in alternative cryptocurrencies, spurred in part by regulatory developments and increased investor demand for diversified exposure.

Some filings even include memecoins, such as Official Trump (TRUMP), reflecting the evolving and sometimes unpredictable nature of crypto investing in the US.

Not Everyone Is Convinced

Despite the momentum, not all analysts are optimistic. Crypto researcher Alex Krüger noted in a March post on X (formerly Twitter) that:

“Most crypto ETFs will fail to attract AUM and cost issuers money.”

This suggests that ETF filings for non-core cryptocurrencies might struggle to gain traction with mainstream investors—especially if regulatory uncertainty persists.

cold wallet ledger Stax and Trezor safe 5

Secure Your Crypto with a Cold Wallet

Keeping your crypto safe is more important than ever. With the rise of ETF staking and institutional adoption, protecting your Ethereum and other digital assets should be a top priority.

A cold wallet ensures that your funds remain safe from hacks, scams, and online threats. Unlike hot wallets, which are connected to the internet, cold wallets keep your private keys offline, offering maximum security.

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👉 Ledger Stax – A next-gen E Ink touchscreen wallet designed for seamless crypto security.
👉 Trezor Safe 5 – A highly secure hardware wallet with advanced protection features.

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Quiz: Answer the following questions in 2–3 sentences each.

What is unique about Canary Capital’s TRX ETF filing?
What yield does staking TRX currently offer?
Why is the TRX token significant in market cap terms?
How does Tron’s proof-of-stake model benefit users?
What controversy surrounds Tron’s founder Justin Sun?
Which other altcoins has Canary Capital proposed ETFs for?
What is Alex Krüger’s view on altcoin ETFs?
How do staking-enabled ETFs differ from traditional spot ETFs?
Why are memecoins being included in ETF filings?
What makes cold wallets essential for crypto holders?

Quiz Answer Key:

It proposes staking TRX tokens from the beginning, not after approval.
Around 4.5% annually, based on StakingRewards.com.
TRX has a market cap of over $22 billion, placing it among top altcoins.
It enables fast, affordable transactions and supports staking.
He was sued by the SEC for alleged price manipulation of TRX and BTT.
Litecoin, XRP, Hedera, Axelar, Pengu, and Sui.
He believes most altcoin ETFs won’t attract sufficient investment.
They allow passive income generation through on-chain staking.
They reflect the expanding scope and creativity in the crypto ETF market.
Cold wallets keep private keys offline, protecting funds from online threats.

Glossary of Terms

TRX
The native token of the Tron blockchain, used for transactions, staking, and governance.

ETF (Exchange-Traded Fund)
A regulated investment vehicle that tracks the price of an asset and can be traded on stock exchanges.

Staking
Locking crypto assets in a blockchain network to earn rewards and support network operations.

Proof-of-Stake
A consensus mechanism where validators are chosen based on the number of coins they hold and are willing to “stake” as collateral.

Altcoin
Any cryptocurrency other than Bitcoin, including tokens like TRX, ETH, and SOL.

SEC (Securities and Exchange Commission)
The US regulator responsible for overseeing securities markets and protecting investors.

Market Capitalisation
The total value of a cryptocurrency, calculated by multiplying the price by its circulating supply.

Justin Sun
Founder of the Tron blockchain and owner of Rainberry (formerly BitTorrent Inc.).

Cold Wallet
A hardware device that stores cryptocurrency offline for security purposes.

AUM (Assets Under Management)
The total value of assets an investment fund or firm manages on behalf of clients.

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Source Cointelegraph