CBOE filed to launch a US Spot Exchange Trade Fund (ETF) that provides exposure to Tron’s native currency TRX.
Canary’s new ETF bid: Track TRX with built-in staking rewards
CBOE BZX Exchange has submitted a proposal to the SEC to list the stocks of Canary Stake Take Torx ETF. This is a fund designed to hold Tron’s TRX cryptocurrency, generating staking rewards. The filing reflects the recent approvals of Bitcoin (BTC) and Ethereum (ETH) ETFs, claiming that the $25 billion TRX market structure and market surveillance measures adequately protect the operation.
The ETF operates under CBOE’s product-based Trust Shares Rules, which keeps TRX in cold storage through third-party custodians. Unlike traditional ETFs, 10,000 shares are traded based on the net asset value (NAV) calculated using Coindesk’s TRX pricing benchmark, using a cash-only creation/redemption process.
CBOE’s 67-page SEC 19B-4 Submission Submission Submission leaning against the acceptance of the SEC’s recent “other measures” to prevent fraud in Spot Crypto ETFs, with TRX’s distributed network and 24/7 global trading reducing operational risk. This filing highlights Tron’s proof model of delegated proofs as inherently resistant to single actor control.
The exchange argues that the lack of supply shocks on the TRX (like goods such as gold) and any heavy markets are not vulnerable to price distortions. We are also looking to see Trust publishing real-time NAV data and partnering with FINRA for Cross-Market Surveillance.
If approved, the ETF marks the first US registered product that provides staking exposure to Tron (TRX) that does not have a fixed supply cap. The CBOE highlighted that the fund structure would avoid direct processing of TRX by accredited participants, aiming to align with the concerns of SEC custodians.
The SEC has 45 days to approve, reject or extend reviews. The proposal comes as regulators weigh similar crypto-based funds and test how existing commodity ETF frameworks apply to the evolving digital asset market.
