On April 18, Canary Capital Group officially submitted the S-1 document to the U.S. Securities and Exchange Commission (SEC) to apply for the launch of the Canary Staked TRX ETF. This marks a new phase in the integration of the cryptocurrency market with the traditional financial system. This event not only recognizes the TRON ecosystem but also deeply affirms the value of TRX as a core cryptocurrency asset.
If approved, the TRX ETF will become a significant tool that drives the large-scale institutionalization of digital assets, following Bitcoin and Ethereum ETFs. Its significance goes far beyond that of a single financial product; it is a key node for the entire blockchain industry to penetrate the mainstream financial system.
The Icebreaking Significance of the TRX ETF
The traditional financial market's acceptance of cryptocurrencies has always been cautious. The approval of Bitcoin and Ethereum spot ETFs is already a milestone, and if TRX becomes the third approved crypto asset ETF, its symbolic significance will far exceed that of the former. As industry cornerstones, the approval of Bitcoin and Ethereum ETFs is a natural outcome, but TRX represents a breakthrough for a number of 'competing coins' into the traditional asset management domain. This is not only a victory for TRON but also a landmark event for the entire crypto industry moving from the margins to the mainstream.
The background of Canary Capital should not be underestimated. Founded in September 2024, this crypto investment company, while new, has its founder and CEO as a co-founder of the well-established crypto asset management institution Valkyrie Funds, and TRON founder Sun Yuchen is also an investor in this institution. So far, Canary Capital has participated in the spot ETF applications of five projects: XRP, LTC, SUI, TRX, and PENGU.
We have observed certain commonalities — among the altcoins that have submitted spot ETF applications, SOL / XRP / LTC / ADA / SUI are all so-called 'American coins', with teams having rich American resources or originally being American native teams, while others like AVAX / APT / MOVE / TRX belong to the WLFI Portfolio.
It seems that decentralization, like blockchain, cannot escape the 'human relationships' factor. The deep binding of Sun Yuchen with Wang and WLFI is quite evident. TRX first entered the WLFI bundle of tokens and then submitted the spot ETF application; these connections reveal the deeper logic of the cryptocurrency market: the process of compliance relies not only on technological strength but also on the collaboration of political and regulatory resources. The deep binding of Sun Yuchen with WLFI paves the way for TRX's compliance and shows a clear strategic layout.
Dual Advantages of Staking Yield and Institutional Product Design
Unlike traditional Bitcoin ETFs, the biggest highlight of Canary Staked TRX ETF is its staking mechanism. The POS mechanism of the TRON network allows holders to earn returns through staking, and this ETF directly returns that income to investors, forming a 'yield-bearing asset' property. According to historical data from the TRON network, the annualized staking yield of TRX has remained stable at 4%-6%, far exceeding traditional money market funds or government bond yields. For institutional investors, this dual return model of 'passive income + capital appreciation' is highly attractive.
In addition, the structural design of the ETF further reduces participation barriers. Ordinary investors do not need to deal with complex operations such as TRX wallet custody, node operation, or tax declaration, but can configure it with a single click through their securities account. BitGo, as the custodian, provides institutional-level asset security guarantees, while the price benchmark from CoinDesk Indices ensures the transparency of net asset value calculations. This 'traditional fund experience + crypto asset returns' hybrid model is likely to become the standard paradigm for the next stage of crypto financial products, further eliminating the technical barriers for traditional institutional capital entry.
Strong Support from TRON's Fundamental Ecosystem
The competitiveness of the TRX ETF is rooted in the solid performance of the TRON ecosystem. By 2025, the total locked value (TVL) on the TRON chain is expected to remain in the top three globally, with an average daily transaction volume exceeding 15 million, more than three times that of Ethereum. Its low transaction fees (less than $0.01 per transaction) and high throughput (2000 TPS) characteristics make it the preferred chain for DeFi, NFT, and cross-border payments. For example, among the on-chain issuance of USDT, the TRON version accounts for over 30%, with an average daily settlement amount exceeding $10 billion. This genuine commercial demand forms the foundational support for TRX's value.
Sun Yuchen's ability to integrate global resources further amplifies the ecosystem's potential. From cooperating with the Caribbean nation of Dominica to launch a national-level blockchain infrastructure to being selected as a strategic reserve token by WLFI, TRON's compliance landscape is rapidly expanding. Especially in the field of cross-border payments, the TRON network has covered millions of users in emerging markets like Southeast Asia and Latin America. These scenarios not only enhance the practicality of TRX but also provide long-term imaginative space for it to become a 'crypto version of VISA'.
Comprehensive ecosystem + liquidity depth builds competitive advantage
In the context where competitors like SOL and XRP are applying for ETFs, TRX's advantage lies in the comprehensiveness of its ecosystem. Compared to certain chains that focus on a single function (like SOL targeting high-performance contracts, XRP focusing on interbank settlement), TRON covers multiple tracks such as payments, DeFi, NFT, and GameFi, with leading applications in each field. For instance, JustSwap's daily trading volume has consistently remained above $500 million, and the NFT trading volume of the APENFT Marketplace ranks in the top five globally. This diversification reduces the risk of a single business and provides a more balanced exposure for ETF investors.
Moreover, TRX's market liquidity is sufficient to support large fund operations. Its 24-hour trading volume consistently maintains at the $1 billion level, with liquidity depth only second to Bitcoin and Ethereum. Mainstream exchanges like Coinbase and Kraken have already launched spot and derivative trading, and the market maker network is mature. For ETFs, the liquidity of the underlying asset is directly related to whether the product can operate smoothly, and TRX has already met the conditions comparable to traditional ETF targets in this regard.
Reshape the valuation logic of crypto assets
If the TRX ETF is approved, its far-reaching impact lies in reconstructing the market's valuation system for competing coins. The valuation dilemma of crypto assets in traditional financial markets has existed for a long time. Stocks have mature models like PE and PB, bonds have yield curves for reference, while cryptocurrency pricing has long depended on market sentiment. The launch of the TRX ETF could completely change this situation — when institutional investors begin to systematically analyze fundamental indicators such as staking yield, on-chain transaction fee income, and active address growth, a new framework for cryptocurrency valuation will naturally emerge.
The involvement of the ETF will force institutions to analyze its value with a more rigorous framework. A stable staking yield in the 5% range can be compared to corporate dividends, and the number of active addresses on the chain is equivalent to the MAU of internet products. These indicators will combine with traditional valuation tools such as price-to-earnings and price-to-sales ratios to form a new pricing model.
When Wall Street analysts start calculating the reasonable value range of TRX using discounted cash flow models, the investment logic of cryptocurrency will complete its essential transformation from a 'speculative tool' to a 'strategic asset'. This shift in cognitive paradigm could bring trillions of dollars in incremental funds to the entire cryptocurrency market.
The flow entrance effect of traditional financial channels
Once the TRX ETF is approved for listing, it will directly connect to the vast liquidity of the U.S. stock market. The U.S. ETF market is over $7 trillion; even a tiny proportion of funds allocated to the TRX ETF could bring tens of billions of dollars in new demand. This influx of funds will not only drive up the price of TRX but also enhance the capital efficiency of the entire TRON ecosystem. For example, increased institutional participation could accelerate the TVL growth of DeFi protocols and push for more investment in the development resources of NFT and blockchain gaming projects, creating positive feedback for ecosystem expansion.
More importantly, the launch of the ETF will significantly lower the entry barriers for institutional investors. Currently, many traditional funds cannot directly hold cryptocurrencies due to compliance or custody issues, while ETFs provide a familiar investment tool. For the traditional asset management industry, TRX ETF may become the 'gateway' for allocating digital assets. Many pension funds and insurance funds, restricted by compliance from directly holding cryptocurrencies, can indirectly allocate through ETFs. It is estimated that even if only 0.1% of global fixed-income assets shift to staking-based crypto ETFs, it will bring more than $20 billion in incremental funds to TRX. Once this capital siphoning effect is initiated, TRX's market position will irreversibly upgrade to that of a mainstream financial asset. This institutional-level recognition will further consolidate TRX's market position, making it part of the 'first tier' of the crypto market alongside Bitcoin and Ethereum.
Sun Yuchen's global influence will play a key role
TRON founder Sun Yuchen played a key role in promoting this ETF application. As one of the most influential Chinese entrepreneurs in the blockchain industry, Sun Yuchen has long been dedicated to bridging the gap between traditional finance and the crypto world. From the launch of the TRON mainnet to the acquisition of BitTorrent, from promoting the large-scale migration of stablecoins like USDT to this ETF attempt, his strategic layout has always revolved around one core goal: to make blockchain technology a standard configuration of global financial infrastructure.
Sun Yuchen's vision is also reflected in the global operations of TRON. The network has a high user penetration in Asia, Europe, and Latin America, and has partnered with multiple international payment companies. This broad geographic coverage provides TRX with resilience against single-market fluctuations and offers a diversified demand base for the long-term growth of the ETF. All these will become clear advantages promoting the approval of the TRX ETF.
From a broader perspective, the potential significance of the TRX ETF goes beyond product innovation. It represents that after more than a decade of wild growth in the crypto industry, it has finally begun to participate in the game according to the rules of traditional finance. When TRX ETF holdings appear in pension fund allocation portfolios, and when brokerage research reports begin to regularly track TRON ecosystem data, cryptocurrency can be considered to have truly transformed from a geek toy to a financial tool. And TRON, with its solid ecosystem construction and proactive compliance layout, is playing a key role at this historic turning point.
