The Cboe BZX Exchange has filed a proposal with the SEC to list the **Canary Staked TRX ETF**, which would become the first US-based spot Tron ETF offering native staking rewards. Filed on May 12 under rule SR-CboeBZX-2025-069, the fund would track TRX’s price while automatically compounding staking yields for investors.
According to the filing, the ETF will hold TRX tokens in a trust structure and stake them through regulated custodians to generate approximately **4.6% APR** – a yield comparable to decentralized staking mechanisms on the Tron network. This contrasts with existing crypto ETFs that don’t offer integrated staking features.
The fund’s net asset value (NAV) will be calculated daily using the **CoinDesk TRX USD CCIX 60-minute New York Rate**, an index aggregating spot prices from major exchanges. BitGo will serve as primary custodian, with staking operations managed at the trust level to shield authorized participants from direct exposure.
Get breakout alerts
Install Coin Push to get profitable crypto trading notifications.
ETF Structure and Market Positioning
Key features of the proposed ETF include:
- 10,000-share creation/redemption baskets (cash-only)
- Daily NAV calculations at 4 PM ET
- Staking rewards distributed as additional TRX holdings
- No direct blockchain operations required for investors
This structure mirrors the operational framework of spot Bitcoin ETFs but introduces novel staking mechanics. Unlike Grayscale’s Ethereum Trust conversion in 2023, the Canary ETF would be the first US-listed product to combine spot TRX exposure with automated yield generation.
Tron Network’s Growing Institutional Footprint
The proposal arrives as Tron’s TRX demonstrates:
- $9.8B market capitalization (16th among cryptocurrencies)
- 4.6% staking yield via delegated proof-of-stake
- 2.3M daily active addresses (Q1 2025)
Tron founder Justin Sun’s blockchain now processes more daily transactions than Ethereum, though critics note its centralized validation model. The ETF filing specifically references Tron’s StakingRewards data to justify the projected yield sustainability.
Canary Capital’s Crypto Expansion
The ETF sponsor previously launched:
- Canary Bitcoin Trust (2024)
- SUI Staking ETF (April 2025)
- Polygon Yield Fund (2023)
Canary’s CTO emphasized in the S-1 filing that their staking infrastructure uses “military-grade cold storage” with multi-sig authorization. The firm has partnered with blockchain analytics firm Chainalysis for real-time compliance monitoring.
Regulatory scrutiny remains a key challenge. SEC Chair Gary Gensler has previously criticized proof-of-stake tokens as potential unregistered securities. However, the filing argues TRX qualifies as a commodity under existing CFTC guidance.
Market makers including Jane Street and Virtu have expressed preliminary interest in providing liquidity. The ETF’s success may hinge on overcoming the SEC’s historical reluctance to approve staking-enabled products.
Industry analysts suggest approval could trigger:
- $300M-$500M in first-year inflows
- Increased TRX liquidity across CEXs
- Competitor filings for staking-enabled altcoin ETFs
Install Coin Push mobile app to get profitable crypto alerts. Coin Push sends timely notifications – so you don’t miss any major market movements.
Market Impact: Approval would mark a watershed moment for proof-of-stake assets, potentially unlocking institutional capital flows to TRX and similar Layer 1 tokens. The SEC’s decision could reshape how staking rewards are treated under US securities law, with implications for Ethereum ETFs and beyond.
