tl;dr
Canary Capital has filed with the US SEC to launch the Canary Staked TRX ETF, offering exposure to TRX price movements along with staking features. The ETF would hold actual TRX tokens with custody by BitGo Trust Company and is the first ETF related to TRX. The filing is pending regulatory approval ...
Canary Capital has filed with the US Securities and Exchange Commission (SEC) to launch the Canary Staked TRX ETF, marking the first ETF related to TRX. This fund aims to offer investors exposure to TRX price movements while incorporating staking features, holding actual TRX tokens under the custody of BitGo Trust Company. The filing, submitted on April 18, is currently pending regulatory approval.
The ETF represents a push to expand crypto investment products beyond traditional spot holdings by integrating yield-generating features tied to proof-of-stake (PoS) blockchain networks. However, including staking within US-listed crypto ETFs remains a contentious regulatory challenge.
The SEC has historically barred staking in crypto exchange-traded products (ETPs) due to concerns over settlement timing, tax complexities, and the potential classification of staking services as unregistered securities. Early Ethereum ETF proposals had to remove staking during their review, highlighting the strict regulatory stance.
In response, crypto industry representatives met with the SEC’s Crypto Task Force on February 5, proposing solutions such as third-party staking services and liquid staking tokens to mitigate regulatory concerns. Meanwhile, US senators, including Cynthia Lummis, have advocated for staking's inclusion, citing competitive disadvantages to US asset managers compared to counterparts in Canada, Europe, and the UK.
Despite these efforts, the SEC has postponed decisions on key crypto ETP rules, including proposals to enable staking within funds like the Grayscale Ethereum Trust. Regulatory clarity and rulings are now anticipated by June 2025, leaving the future of staking in US-listed crypto ETFs uncertain but actively debated.