United States asset supervisor Canary Capital has filed to record an exchange-traded fund (ETF) holding the Tron blockchain community’s native token, TRX (TRX), regulatory filings present.
The fund intends to carry spot TRX and stake a portion of the tokens for added yield, the submitting said.
According to CoinMarketCap, the TRX token has a complete market capitalization of greater than $22 billion. Staking TRX generates an annualized yield of roughly 4.5%, information from Stakingrewards.com shows.
The submitting is the newest in an outpouring of submissions aimed toward itemizing ETFs holding various cryptocurrencies, or “altcoins.”
Nevertheless, Canary’s proposed fund is comparatively distinctive in requesting permission to stake its crypto holdings in its preliminary software. Different US ETFs, corresponding to these holding the Ethereum community’s native token, Ether (ETH), have sought approval for staking solely after efficiently itemizing a fund holding the spot token. They’re nonetheless ready for a regulatory choice.
Tron is a proof-of-stake blockchain community based by Justin Solar, who additionally owns Rainberry (previously Bittorrent), the developer of the BitTorrent protocol.
In March 2023, the SEC sued Sun for allegedly fraudulently inflating the costs of the Tron token and BitTorrent’s BTT token.
In February, the SEC and Solar requested the choose overseeing the lawsuit to pause the case to permit the events to enter into settlement talks.
Associated: Canary Capital proposes first Sui ETF in US SEC filing
Altcoin ETF season
Since US President Donald Trump took workplace in January, US regulators have acknowledged dozens of filings for proposed crypto funding merchandise.
They embody plans for ETFs holding native layer-1 tokens corresponding to Solana (SOL) in addition to memecoins corresponding to Official Trump (TRUMP).
Since 2024, Canary has filed for a number of proposed US crypto ETFs, together with funds holding Litecoin (LTC), XRP (XRP), Hedera (HBAR), Axelar (AXL), Pengu (PENGU), and Sui (SUI).
Some business analysts doubt that ETFs holding non-core cryptocurrencies will likely be embraced by conventional traders.
“Most crypto ETFs will fail to draw AUM and value issuers cash,” crypto researcher Alex Krüger said in a March put up on the X platform.
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