The SEC is reviewing Canary Capital’s proposed TRX staking ETF, potentially the first of its kind in the U.S.

A public comment period has been initiated, but no approval decision has been made yet.

The SEC has delayed decisions on several other crypto ETF proposals, including XRP and Litecoin.

The U.S. Securities and Exchange Commission (SEC) has formally acknowledged a filing for a staked exchange-traded fund (ETF) based on Tron (TRX), submitted by Canary Capital through the Cboe BZX Exchange. The proposed product would be the first ETF in the U.S. to offer exposure to staked TRX, marking a significant milestone for the Tron ecosystem and the growing class of staking-based crypto investment vehicles.

On Thursday, the commission posted a notice stating it is seeking public comment on the proposed rule change associated with the TRX ETF filing. This step initiates the public review process but stops short of signaling imminent approval.

“The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons,” the SEC stated.

Canary Capital originally filed its registration for the ETF in April, naming crypto custody firm BitGo as the fund’s custodian. The firm has recently ramped up its crypto ETF ambitions, also submitting proposals for ETFs based on other altcoins such as Sui (SUI), Hedera (HBAR), and Litecoin (LTC).

TRX is the native asset of the Tron blockchain, a network founded in 2017 by crypto entrepreneur Justin Sun. With a current market capitalization of $26 billion, TRX ranks as the tenth-largest cryptocurrency, according to data from The Block.

SEC Delays Decisions on Other Crypto ETFs

While the acknowledgment of Canary Capital’s TRX ETF proposal is a promising development, the SEC simultaneously extended review periods for multiple other crypto ETF applications. These include Bitwise’s and CoinShares’ spot XRP ETFs, a spot Litecoin ETF, and Fidelity’s innovative in-kind Bitcoin ETF proposal.

Bloomberg Intelligence ETF analyst James Seyffart noted the trend on X (formerly Twitter), emphasizing that such delays are par for the course. “Delays on various crypto ETFs are expected,” Seyffart wrote, reiterating his prior stance that any potential early approvals likely wouldn’t occur before late June or July, with a more realistic window being early Q4.

“The SEC tends to use the full review period available before making final determinations,” Seyffart added. “Early decisions would be a departure from the norm no matter how ‘crypto-friendly’ this SEC appears.”

While the SEC’s overall posture toward cryptocurrencies has softened in recent months, especially under the evolving direction of the administration, the agency continues to tread carefully. The latest delays suggest a methodical, if not cautious, approach to evaluating the evolving landscape of digital asset ETFs, particularly those involving staking and non-Bitcoin cryptocurrencies.

SEC Reviews TRX ETF Driving Staking ETF Optimism

As the broader market waits on regulatory clarity, Canary Capital’s TRX ETF acknowledgment stands out as a rare advancement, hinting at the possibility that staking-based ETFs could gain traction as the next frontier in crypto financial products, provided they can clear the SEC’s rigorous hurdles.

The crypto community will be closely watching how the SEC handles public feedback on the TRX proposal, which could set a precedent for other staking-based ETF products. In a regulatory environment still largely defined by cautious optimism, even a simple acknowledgment signals progress.

If approved, the TRX ETF would offer U.S. investors regulated access to staking rewards through a traditional market structure. This development could significantly broaden institutional and retail exposure to proof-of-stake assets.

As deadlines loom for other major crypto ETF decisions, all eyes remain on the SEC’s calendar and on what may be a transformative second half of 2025 for digital asset investing.

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Filed under: Bitcoin - @ May 23, 2025 8:15 am