$TRX

Canary Capital applies to launch a Staked TRX ETF

According to StakingRewards data, the ETF plans to hold and stake the native token TRX of the Tron blockchain, with an annualized yield of approximately 4.5%.

Regulatory documents show that the American asset management company Canary Capital has submitted an application to list an exchange-traded fund (ETF) that will hold the native token TRX of the Tron blockchain network.

According to the application documents, the fund plans to hold spot TRX and stake part of the tokens for additional income.

According to CoinMarketCap data, the total market capitalization of TRX tokens exceeds $22 billion. Data platform Stakingrewards shows that the annualized yield for staking TRX is approximately 4.5%.

This application is the latest example in the recent wave of applications for listing altcoin ETFs.

The fund proposed by Canary is relatively unique because it requested permission to stake its cryptocurrency holdings in the initial application. Other American ETFs, such as those holding the native token ETH of the Ethereum network, sought staking approval only after successfully listing spot token funds. These staking applications are still awaiting regulatory decisions.

Tron is a proof-of-stake blockchain network founded by Justin Sun. Sun also owns Rainberry (formerly known as Bittorrent), which is the developer of the BitTorrent protocol.

In March 2023, the SEC sued Sun for allegedly manipulating the prices of Tron tokens and BitTorrent's BTT tokens fraudulently.

In February of this year, the SEC and Sun requested that the judge overseeing the lawsuit pause the case to allow both parties to engage in settlement negotiations.