Canary Capital's Staked TRX ETF Gains Traction

The U.S. Securities and Exchange Commission (SEC) has officially acknowledged a 19b-4 filing for a staked TRX ETF submitted by Canary Capital

The U.S. Securities and Exchange Commission (SEC) has officially acknowledged a 19b-4 filing for a staked TRX ETF submitted by Canary Capital via the Cboe BZX Exchange. This marks a rare move forward amid a wave of crypto ETF delays. While the staked TRX ETF shows progress, the SEC postponed decisions on multiple high-profile proposals, including Bitwise and CoinShares’ XRP ETFs, Fidelity’s in-kind Bitcoin ETF, and a separate Litecoin ETF. ETF analyst James Seyffart noted that these delays are expected and part of the SEC’s usual pattern of taking full review time.

Canary Capital’s Staked TRX ETF Fills Spot Among Piles of Filings

On Thursday, the commission announced proposals for a new ETF focused on Commodity-Based Trust Shares. Among the filings, Cboe BZX Exchange’s proposal to list and trade the Canary Staked TRX ETF was highlighted. This ETF, backed by staked TRX, aims to integrate staking yield into regulated investment vehicles.

Tron (TRX), founded by Justin Sun, currently holds a $26 billion market cap, ranking it as the tenth-largest cryptocurrency. Bitgo serves as the fund custodian for this product.

Canary has also filed ETFs covering altcoins like Hedera, Sui, and Litecoin, showcasing its initiative to expand crypto ETF options in the U.S.

The SEC’s acknowledgment of the staked TRX ETF signals potential for broader innovation in crypto ETFs. If approved, this ETF would be among the first to embed staking—a core aspect of proof-of-stake networks—into a compliant, regulated fund structure. This could clear the way for other crypto assets utilizing staking mechanisms to enter the ETF space, merging yield generation with accessibility for traditional investors.

But Several Major Crypto ETF Filings Face Expected Delays

The Securities and Exchange Commission has deferred making decisions on several major crypto ETF filings.

The regulator extended review periods for Bitwise’s and CoinShares’ spot XRP ETF proposals and a Litecoin ETF filing. These filings aim to offer exposure to XRP without direct ownership, appealing to institutional investors seeking regulatory clarity.

The regulator also extended review periods for Fidelity’s in-kind Bitcoin ETF and a Litecoin ETF proposal. The in-kind structure would allow investors to exchange Bitcoin directly for shares, reducing taxable events and improving efficiency.

Despite growing institutional demand, the SEC continues to stall these crypto ETF filings, with Seyffart projecting that decisions could stretch into Q4 2025. This signals the agency’s cautious approach even under a more crypto-tolerant administration.

These decisions highlight the SEC’s strategy of exhausting review deadlines, which is typical for any type of ETF filing. Though the political environment has shifted slightly, the commission appears to be prioritizing a comprehensive analysis of the filings and the broader implications of crypto ETFs on the U.S. market.

The SEC’s actions come as no surprise, considering the implications of approving the first-ever spot Bitcoin ETFs. These ETFs would provide a direct and efficient way for traditional investors to invest in Bitcoin, signaling a significant shift in the U.S. investment landscape.

The SEC’s Role in Shaping the Future of Crypto Investing

The SEC’s decisions will have far-reaching consequences for the future of crypto investing in the U.S.

If the commission approves the first-ever spot Bitcoin ETFs, it will open the door for a wave of new crypto ETFs tracking various coins and sectors within the digital asset industry.

However, if the SEC continues to stall or reject these filings, it could hinder the development of the crypto ETF market and limit investment opportunities for traditional investors.

The SEC is juggling a difficult task of balancing innovation in the financial markets with its duty to protect investors and maintain market stability. As the dust settles on this round of filings, the regulator will need to signal its next steps and how it plans to shape the role of crypto investment products within the U.S. financial system.