Canary Capital applies for a TRON ETF with staking capability
Just a few days ago, the Securities and Exchange Commission postponed its decision on Grayscale's request to add staking to its Ethereum ETF products.
Canary Capital has submitted an application for a spot ETF in the U.S. that would track the price of TRON's TRX token and include staking.
The proposed fund would use external providers for staking and BitGo as custodian, with price data from CoinDesk Indices.
The SEC has previously resisted incorporating staking features into crypto ETFs, although current leaders may be more open to them.
Canary Capital is looking to launch an exchange-traded fund (ETF) that tracks the price of TRON's native token, TRX, according to a filing.
The hedge fund submitted an S-1 Form for the Canary Staked TRX ETF to the Securities and Exchange Commission (SEC) on Friday. As its name suggests, if approved, the fund would invest in shares of its holdings.
This would be done through external providers, with BitGo acting as the custodian of the assets. The fund would follow the spot price of TRX using CoinDesk Indices' calculations.
The proposed ticker and management fee for the product have not yet been shared.
Issuers had initially submitted applications for spot Ethereum (ETH) ETFs with the staking feature included, but later remote them in a subsequently amended filing in order to gain SEC approval for their proposals.
While the SEC, under former chairman Gary Gensler, was strictly against staking, issuers have more hope of being able to add the feature to their spot ether funds, among others, with the appointment of chairman Paul Atkins, who is favorable to cryptocurrencies.
