Canary Capital’s new Tron-based staking fund marks a significant shift in the regulatory landscape for cryptocurrency exchange-traded funds, as it seeks to capitalize on growing investor demand for staking features.
The Securities and Exchange Commission (SEC) has seen a shift in its stance towards cryptocurrency exchange-traded funds (ETFs), particularly when it comes to staking features. Just days ago, the SEC postponed its decision on Grayscale’s request to add staking to its Ethereum ETF products.
A New Entrant in the Market
Canary Capital has filed for a U.S. spot ETF that would track the price of Tron’s native token, TRX, and include staking capabilities. The proposed fund would use third-party providers for staking and BitGo as custodian, with pricing data from CoinDesk Indices.
Staking in Crypto ETFs: A Changing Landscape
The SEC has previously resisted staking features in crypto ETFs, citing concerns over regulatory compliance and market volatility. However, the current leadership may be more open to these features. With the appointment of crypto-friendly Chair Paul Atkins, issuers have grown more hopeful that they will be able to add staking to their spot ether funds.
Key Features of the Proposed Fund
The Canary Staked TRX ETF would stake portions of its holdings through third-party providers, with BitGo acting as custodian for the assets. The fund would track TRX‘s spot price using CoinDesk Indices calculations. A proposed ticker and management fee for the product have not been shared yet.
A Shift in Regulatory Approaches
The decision to file for an ETF that includes staking capabilities reflects a shift in regulatory approaches towards cryptocurrency investments. As the crypto market continues to evolve, issuers are looking for innovative ways to provide investors with exposure to their assets. The approval of this fund could pave the way for other issuers to follow suit and add staking features to their products.
Recent Developments
Just a few days ago, the SEC postponed its decision on Grayscale’s request to allow staking in the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF (ETH). This development highlights the ongoing debate around staking in crypto ETFs and the need for regulatory clarity.
- coindesk.com | Canary Capital Files for Tron ETF With Staking Capabilities
