On May 22, 2025, the U.S. Securities and Exchange Commission (SEC) made a landmark decision that sent shockwaves through the crypto market. The Commission approved Canary Capital’s ETF application for a Tron (TRX)-based staked exchange-traded fund. With this approval, TRX became the first ETF product to offer staking rewards to investors, making history.
This decision is not only significant for the Tron network but could also pave the way for staking-based Layer-1 projects in the ETF market. Notably, while ETF applications for other similar blockchain networks such as Ethereum, Solana, and Avalanche are still under review, the approval of TRX marks a striking turning point.
An Unexpected Move from the SEC: TRX ETF Approved While Others Remain in Limbo
Under the 19b-4 filing, the SEC officially accepted the proposal submitted by Cboe BZX Exchange. As per standard procedure, the Commission published a notice for public comment. However, this time, the process moved swiftly and the TRX ETF was formally approved.
This decision is being interpreted as a sign of changing sentiment at the SEC, which had been taking a more cautious approach in recent months regarding staking-based products. The fact that a smaller project like Tron received approval while Ethereum-based staking ETFs remain pending is seen by market analysts as a bold and surprising move.
Meanwhile, the SEC has not yet made final decisions on other major ETF applications. The final ruling dates for Bitwise’s spot XRP ETF and CoinShares’ XRP and Litecoin ETF applications have been pushed back. According to Bloomberg ETF analyst James Seyffart, these decisions are not expected until late summer or Q4.
What is the TRX ETF and What Does It Offer to Investors?
The approved TRX ETF is based on Tron’s native cryptocurrency, TRX. What sets this ETF apart is that it provides access not only to price performance but also to staking yields. In other words, investors will be able to earn passive income from staking rewards in addition to TRX’s market value movements.
This structure represents the first model to combine ETFs with Proof-of-Stake (PoS) systems, opening the door to a new era of diversified financial products.
Canary Capital has appointed BitGo as the custodian for the TRX ETF. This secure custody infrastructure could enhance the product’s appeal among institutional investors.
Why Is This Important?
- First staking-backed ETF: TRX becomes the first Layer-1 ETF to offer both price and staking yield exposure.
- Regulatory shift signal: The SEC’s move may suggest a softening stance toward staking-based funds.
- Path cleared for new applications: The door could now be open for similar products from PoS projects like Solana, Avalanche, and Polkadot.
- Potential rise in institutional interest: With regulatory approval, institutional investors may now be more inclined to include staking-backed products in their crypto portfolios.
