The U.S. financial regulatory landscape is witnessing a notable development as the Securities and Exchange Commission (SEC) moves forward with its review of a distinctive investment product. Canary Capital’s application for a spot exchange-traded fund (ETF) tied to TRON (TRX) has officially progressed to the formal consideration phase, signaling a potential shift in how digital assets are integrated into mainstream financial offerings. This particular application stands out due to its innovative inclusion of a staking mechanism within the fund’s structure.
Pioneering Spot TRX-ETF
Canary Capital initially submitted its 19b-4 application for the spot TRX-ETF in mid-April 2025. If approved, the fund is slated to trade on the Cboe exchange, with BitGo Trust Company designated as the custodian. This marks the first instance of a spot TRX-ETF proposal reaching the review stage in the United States. What makes this proposal particularly noteworthy is its explicit inclusion of staking, a feature not commonly found in the majority of other altcoin ETF applications currently under consideration. This integration of staking could potentially offer an additional layer of yield for investors, aligning the fund more closely with the native economic model of the TRON network.
Regulatory Review and Timeline
The SEC’s formal acceptance of the application initiates a crucial 240-day period during which the regulator must render a decision. While the clock has begun, financial experts suggest that the SEC typically utilizes the full extent of this timeframe. According to James Seyffart, a prominent analyst at Bloomberg Intelligence, the Commission tends to exhaust the allotted period before making a final determination on such complex financial products. Seyffart has previously speculated that the first spot altcoin ETFs in the U.S. are more likely to receive approval in the fourth quarter of 2025, indicating a cautious yet progressing regulatory environment for digital asset investment vehicles.
Market Response and Broader Implications
Despite the positive news of the SEC’s review, TRON (TRX) experienced a modest decline of approximately 3% in its trading value. This dip, however, appears to be less about the specific ETF news and more reflective of a broader downturn affecting the wider cryptocurrency market at the time. The acceptance of this application underscores the ongoing efforts by various firms to bring more diverse cryptocurrency-backed investment products to traditional markets, following the precedent set by spot Bitcoin ETFs. Canary Capital is also known to have submitted applications for other altcoin-based investment products, further emphasizing the growing interest in expanding the range of regulated digital asset offerings.
Kate specializes in clear, engaging coverage of business developments and financial markets. With a knack for breaking down economic data, she makes complex topics easy to understand.