SEC Acknowledges Canary Capital’s Staked Tron ETF Filing — TRX in Spotlight

• A staked Tron (TRX) Exchange Traded Fund (ETF) application was filed by Canary Capital in April; almost a month later, the US Securities and Exchange Commission (SEC) has acknowledged the filing. 
• The price of TRX is, however, struggling to break out of a tight range to target its all-time high price. 

The US Securities and Exchange Commission (SEC) has acknowledged receipt of a staked Tron Exchange Traded Fund (ETF) application filed by Canary Capital. According to our research, this notice of receipt was uploaded on Thursday, May 22.

The Background of the Story

In April, Canary announced that it had filed a Form S-1 registration statement with the SEC. According to the preliminary prospectus, the fund is designed to ensure that shares are issued for investors to have a direct exposure to the price of Tron. As explained in our previous news story, the Trust would stake a portion of its TRX to earn rewards based on associated liquidity and penalty risk.

With Canary Capital being the sponsor, CSC Delaware Trust Company is reported to be a trustee with Bitgo Trust Company named as the custodian. Also, the proposal clarifies that individuals or entities who would have ownership of shares would not be entitled to voting rights. Additionally, the trust would in no way serve as collateral.

Basically, the trust will take charge of extraordinary costs while the sponsor focuses on ordinary operating expenses. Meanwhile, Canary has also filed another staked ETF linked to the SEI token. As detailed in our previous news, this is to provide passive profit for staking while tracking the market price for SEI. Canary has also filed several spot ETFs to track the price of the likes of SUI, LTC, PENGU, HBAR, XRP, AXL, DOGE and SOL.

Updates on Already Filed ETF Applications, TRX Still Struggling

As indicated in our earlier discussion, the SEC has already delayed the deadlines of several ETF applications on its desk including Bitwise’s spot XRP ETF, Coinshares’ spot XRP ETF, spot Litecoin ETF, Fidelity’s in-kind bitcoin ETF filing, etc.

Meanwhile, Bloomberg ETF analyst James Seyffart believes that delays are expected. According to him, early decisions are usually abnormal. In this case, the last quarter of the year could see most of these ETFs approved by the Commission.

If we’re gonna see early approvals from the SEC on any of these assets — I wouldn’t expect to see them until late June or early July at the absolute earliest. More likely to be in early 4Q…Early decisions would [be an]action that’s out of the norm. No matter how ‘Crypto-friendly’ this SEC is.

Amidst the backdrop of this, TRX is still struggling to break above its current bearish trend as it declines by 4.7% and 2% on its daily and weekly price charts, respectively.

According to our recent analysis, the asset could hit $1 from the current price of $0.26 before the end of the year once it breaks above $0.3. However, it would demand a substantial increase in market cap to possibly enter the top five largest cryptos from the 10th position.

As also explored in our previous news brief, TRX is first expected to break out of the $0.22 and the $0.27 tight range that has been in place for multiple months now before targeting its $0.3 level.