Canary Capital’s application for a staked exchange-traded fund based on Tron (TRX) was recognized by the U.S. Securities and Exchange Commission, although it postponed approving a number of other cryptocurrency ETFs. This acknowledgement opens up the floor for public comments on the proposed rule change.
The filing, which was made to the Cboe BZX Exchange, was submitted in April, with BitGo acting as the fund’s custodian. Canary Capital has also filed for other altcoin-based ETFs, including those for Sui, Hedera, and Litecoin.
Tron, the native cryptocurrency of the Tron blockchain, was created by Justin Sun in 2017. It boasts a market capitalization of $26 billion, making it the 10th-largest cryptocurrency by market cap.
While this staked TRX ETF is moving forward with the SEC’s acknowledgment, the commission has also delayed its decisions on several other high-profile crypto ETFs. These include proposals for Bitwise’s spot XRP ETF, CoinShares’ spot XRP ETF, and Fidelity’s in-kind Bitcoin ETF, as well as a spot Litecoin ETF.
This delay is no surprise, as the SEC has been taking its time reviewing crypto-related proposals. The commission, which has taken a more crypto-friendly stance compared to previous administrations, is still carefully weighing its decisions on a multitude of crypto ETF filings.
Crypto analysts, such as James Seyffart from Bloomberg Intelligence, have been expecting these delays. According to Seyffart, while we might see some early approvals, it’s unlikely that any major ETF will be given the green light before late June or early July. More likely, decisions will be made later in the year, possibly in the fourth quarter.
Seyffart mentioned on X, “The SEC typically takes the full time to respond to a 19b-4 filing… Early decisions would be the action that’s out of the norm.”
The SEC has greenlit Canary Capital’s TRX ETF, marking a big step for crypto ETFs, but with the SEC’s crypto-friendly approach, the wait continues for other high-profile proposals like XRP and Litecoin.
