Canary Capital's Staked Tron ETF Filing Has Been Officially Acknowledged by the US SEC

In the latest crypto news, the US SEC has officially acknowledged Canary Capital's staked Tron ETF filing.

The US Securities and Exchange Commission (SEC) has acknowledged receipt of 19b-4 filing for a Canary Capital staked Tron ETF via Cboe BZX Exchange, according to the regulator’s notice on Thursday, May 22.

The development comes amid recent delays in approving several other exchange-traded funds, including the highly anticipated staked ETH ETF. However, as pointed out by Bloomberg analyst James Seyffart, the TRX ETF acknowledgment is a positive takeaway.

“On the more positive side: SEC acknowledged Canary Fund's staked TRX filing,” he stated in a recent X post.

As reported by CoinGape earlier, investment firm Canary Capital put forth an application to launch its staked Tron ETF in April. The product will offer investors a regulated avenue to participate in staking rewards and gain exposure to a leading proof-of-stake digital asset.

For the unversed, the asset manager has partnered with Bitgo as the fund’s custodian.

“The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons and to indicate the basis on which the Commission will approve or disapprove the proposed rule change,” the SEC said in its notice.

A Staked Tron ETF is an exchange-traded fund designed to track the price of the Tron token while also allowing the fund to earn staking rewards on behalf of investors.

The proposal from Cboe BZX Exchange suggests that the size and structure of the Tron market, along with the surveillance measures in place, will render the ETF largely immune to price manipulation. This is similar to the recently approved Bitcoin and Ethereum ETFs, which are also covered by a 12b-25 order.

The ETF will store TRX in a cold wallet and use a cash-only creation and redemption process. Shares of the ETF will be traded based on the fund’s net asset value.

ETFs Face Delays

Earlier this week, the SEC announced a delay in its decision on 21Shares’ proposal to add staking services to its spot Ethereum ETF. The regulator is now extending the review period for the product.

However, as seen in a new SEC filing on Thursday, May 22, the regulator has acknowledged receipt of 19b-4 filing for a Canary Capital staked Tron ETF via Cboe BZX Exchange.

The regulator is now seeking public comments on the proposed rule change.

“The Commission is publishing this notice to solicit comments from interested persons and to indicate the basis on which the Commission will approve or disapprove the proposed rule change,” the SEC said.

The development comes amid recent setbacks in the crypto ETF space.