Canary Capital Files for Staked TRX ETF in Push for Altcoin Exposure

Canary Capital has taken a bold step in the growing race for cryptocurrency ETFs, filing to launch a staked TRX exchange-traded fund (ETF), according to recent regulatory disclosures. The fund would hold spot TRX — the native token of the Tron blockchain — and stake a portion of the assets to generate additional yield, potentially offering investors both price exposure and staking rewards.

As of April, TRX offers an annual staking yield of roughly 4.5%, based on data from StakingRewards.com. The token itself holds a market capitalization exceeding $22 billion, according to CoinMarketCap.

The move positions Canary Capital among a growing number of asset managers pushing for crypto ETFs beyond Bitcoin and Ethereum, the current staples of institutional crypto investment. However, Canary’s proposal stands out by seeking staking approval from the outset — a departure from other ETF applicants that have only pursued staking options post-approval.

For instance, several Ether-based ETFs filed in the U.S. have yet to receive the green light for staking, even after gaining approval to hold spot ETH. Canary’s strategy could allow it to get ahead of the curve, especially if regulators soften their stance on staking within registered investment vehicles.

Platforms for staking TRX. Source: Stakingrewards.com

Tron, the network behind TRX, operates on a delegated proof-of-stake model and was founded by crypto entrepreneur Justin Sun. In addition to Tron, Sun controls Rainberry (formerly BitTorrent), the company behind the BitTorrent protocol. However, Sun has been entangled in legal troubles. In March 2023, the U.S. Securities and Exchange Commission (SEC) sued him for allegedly manipulating the markets for TRX and BitTorrent’s BTT token. The case was paused in early 2025 to allow for potential settlement discussions.

This filing comes amid what many are calling an “Altcoin ETF Season,” as a wave of fund proposals seeks to capitalize on investor interest in a broader range of digital assets. Since U.S. President Donald Trump took office in January 2025, regulators have seen a sharp increase in crypto ETF filings. These include funds targeting layer-1 tokens like Solana (SOL) and even politically themed tokens such as the Official Trump (TRUMP) memecoin.

Canary Capital has been especially active. Since 2024, the firm has filed for ETFs tied to Litecoin (LTC), XRP, Hedera (HBAR), Axelar (AXL), Sui (SUI), and the meme-themed Pengu (PENGU) token.

Despite the momentum, some analysts remain skeptical. “Most crypto ETFs will fail to attract AUM and cost issuers money,” warned crypto researcher Alex Krüger in a March post on X. For now, Canary’s staked TRX ETF represents both an experiment and a test of whether investor appetite will extend beyond the biggest names in crypto.

If approved, the fund could offer a new type of exposure — combining spot token performance with the yield-generating potential of on-chain staking — potentially setting a precedent for future altcoin ETF designs.