Canary Files for Fourth TRX ETF with 1.10% Fee – What Investors Need to Know

Canary, a Singapore-based investment firm, has submitted an application to the U.S. Securities and Exchange Commission (SEC) for a fourth ETF—this one focused on staking rewards for the cryptocurrency TRON (TRX) and temporarily designated under the ticker “TRXS.” With an annual fee of 1.10%, it’s significantly higher than the average for comparable ETFs. But is that a dealbreaker?
Admittedly, when I first heard about this new ETF, the fee gave me pause. At 1.10%, it’s not cheap—especially when established ETFs like BlackRock’s Bitcoin fund (IBIT) charge just 0.25%. But let’s dig deeper—because there are some compelling aspects to this ETF.
Why TRON? Why Staking?
Canary has already successfully launched three staking-based ETFs with the SEC, including funds for Bitcoin and Ethereum. The focus on TRON isn’t random: TRX is one of the major blockchains in the DeFi space, offering attractive staking yields. Those looking to stake directly must overcome technical hurdles—an ETF could simplify that process for many investors.
For institutional investors who have steered clear of staking due to its complexity, this could be a game-changer. And yes, even retail investors could benefit if they prefer not to stake actively.
Fee Comparison – Is It Worth It?
Here’s where things get interesting. At 1.10%, the fee is indeed high—but not necessarily unreasonable. TRON currently offers staking rewards of around 4–5% annually. Af



ter deducting the ETF’s fee, that leaves roughly 3%—still appealing, despite crypto’s inherent volatility.
But I wonder: Will Canary’s fee structure make it competitive? Other staking ETFs, like Bitwise’s “BTCS,” charge just 0.85%, while industry giants like BlackRock and Fidelity come in at 0.25%. It remains to be seen whether the market is willing to pay a premium for the convenience of a TRX ETF.
Regulatory and Tax Hurdles
The application is still in its early stages, and the SEC has a history of rejecting proposals over concerns like market manipulation or transparency. Another consideration: the U.S. tax treatment of staking rewards. A 2023 court ruling classified them as taxable income, which could dampen appeal for U.S. investors.
Still, demand for staking-based ETFs is growing. More investors are seeking ways to generate passive crypto income without active trading.
Final Thoughts: An Exciting but Risky Experiment
Canary’s TRX ETF is another step toward bridging crypto with traditional finance. The high fee might deter institutional investors—but perhaps that’s precisely the audience Canary is targeting.
For retail investors, the key is weighing the risks. If approved, the ETF could be a valuable addition to a diversified crypto portfolio. Until then, we’ll have to wait and see how the SEC rules.
What do you think? Would you pay higher fees for the convenience of a TRX ETF? I’d love to hear your thoughts!