US spot exchange-traded fund applications continue to pile up

Nashville, Tennessee-based Canary Capital filed to list an ETF on Friday that holds the Tron blockchain network's native token, TRX

Canary Capital has filed with the U.S. Securities and Exchange Commission for an exchange-traded fund that would hold and stake the Tron blockchain network’s native token, TRX.

The Nashville, Tennessee-based firm submitted an S-1 registration statement for the Canary Staked TRX ETF on Friday. As the name suggests, the fund will seek to hold spot TRX and a portion of the tokens with one or more staking infrastructure providers. The staking feature would allow investors to earn extra yield on their investment.

Canary is filing to list the fund on a U.S. exchange and details such as the proposed ticker symbol and management fee will be disclosed at a later date.

The fund will invest in a portfolio of securities that closely tracks the price and yield performance of TRX. A portion of the fund’s tokens will be staked with third-party service providers to generate additional returns for investors.

Canary Capital is known for its filings for various altcoin ETFs. Since the start of 2024, the firm has also submitted plans for ETFs that, if approved, would give investors exposure to Litecoin (LTC), Ripple’s XRP, Hedera (HBAR), and Pengu (PENGU).

The appeal of crypto ETFs is that they give traditional investors exposure to an asset without requiring them to buy and store it themselves.

Despite the growing interest in crypto among institutional investors, U.S. regulators have been slow to approve any crypto ETFs. So far, only ETFs that track Bitcoin and Ether have been authorized to list in the U.S.

However, the SEC is showing signs of opening up to new products. Since U.S. President Donald Trump’s inauguration on Jan. 20, the commission has acknowledged dozens of new altcoin ETF filings.

Among the proposed ETFs are funds holding native layer-1 tokens such as Solana and SUI, as well as meme tokens like Dogecoin (DOGE) and Official Trump (TRUMP).

President Trump has said he wants America to become the world’s crypto capital and has appointed pro-crypto leaders to key regulatory agencies, including the SEC.

The flurry of altcoin ETF applications reflects issuers’ growing efforts to address demand for crypto investment products. Kaiko recently suggested that an XRP-based fund was the next most likely to secure the SEC’s sign-off.

Still, the regulator has yet to approve a staking component in a crypto ETF, and on Monday, the regulator postponed a decision on a proposed rule change that would enable Grayscale’s spot ETH funds to engage in staking on Ethereum.