Cboe BZX Exchange just threw its hat in the ring, filing a proposal with the SEC to list the Canary Staked TRX ETF.
This would be the first-ever US-listed spot Tron ETF that actually pays out staking rewards, an ETF that doesn’t just track price but throws you some yield on the side, about 4.6% APR, thanks to Tron’s delegated proof-of-stake system.
Staking income, and worldwide market for TRX ETF
In theory, the fund holds real TRX tokens, none of that fake stuff, and stakes a chunk, maybe all of them, through trusted providers.
The rewards from staking feed right back into the fund’s net asset value, so investors get a double whammy, exposure to TRX’s price and a steady income stream.
The ETF will peg its value to the CoinDesk TRX USD CCIX 60-minute New York Rate, updated every 15 seconds, keeping things fresh and transparent.
Cboe argues this ETF doesn’t need a surveillance-sharing agreement with a regulated market of significant size, a hurdle that sunk past crypto ETF proposals.
They lean on recent SEC approvals for spot Bitcoin and Ethereum ETFs, where futures markets were too small, but other anti-manipulation measures made the cut.
Cboe says Tron’s market is decentralized, liquid, and trades 24/7 worldwide, making it tough to rig prices without the whole global market going haywire. Arbitrage keeps the bad guys in check.
Fundamentals
And don’t forget the trust’s cold storage, the intraday pricing every 15 seconds, and publicly available NAV data, all designed to keep investors protected.
This filing is testing the waters on something new, staking inside a US-listed crypto ETF.
Ethereum-based funds approved last year skipped staking to dodge regulatory headaches, but Tron is stepping up to see if delegated proof-of-stake tokens can play nice with public funds.
No ticker symbol or staking provider named yet, but all rewards flow back into the trust. They’re also waving off any claims on forked or airdropped tokens, so no freebies here.
The first of its kind?
Why does this matter? With Bitcoin and Ethereum ETF fees shrinking toward zero, staking rewards could be the secret sauce to attract investors hungry for yield in this low-interest-rate world.
If the SEC gives the green light, Canary Staked TRX ETF could literally open the floodgates for staking-enabled ETFs on other networks like Solana.
But the SEC hasn’t set a timeline for a decision yet. So, while this could be a game changer, we’re stuck waiting for the regulators to make up their minds. As always.
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