SEC to Review Application for TRON-Based ETF with Staking Features

The U.S. Securities and Exchange Commission (SEC) has begun its evaluation of a filing submitted by the Chicago Board Options Exchange (CBOE) to register a spot exchange-traded fund (ETF) based on TRON (TRX) featuring staking capabilities, offered by Canary Capital.

Bitgo will serve as the custodian for the product.

The agency has invited stakeholders to provide comments on the proposed rule change.

Previously, Canary had filed applications to launch spot ETFs based on Sui, Hedera, and Litecoin.

On May 22, the SEC extended the deadline for reviewing ETF listing proposals for XRP from Bitwise, as well as XRP and Litecoin ETFs from Coinshares, along with a BTC ETF from Fidelity with physical settlement.

Currently, the SEC is examining over 70 applications for ETF launches based on various cryptocurrencies.

Bloomberg analyst James Seyffart anticipates that the number of approved products could increase in the fourth quarter as final decision deadlines approach.

If the regulator decides to shift from its current practices, issuers could receive approvals by late June or early July, he added.

“A verdict ahead of schedule would fall outside the norm, regardless of how ‘crypto-friendly’ the SEC might be,” Seyffart explained.

Earlier, the expert noted that the Litecoin ETF has the best likelihood of receiving approval.

In February, Seyffart, along with colleague Eric Balchunas, assessed the chances of registering a Litecoin ETF at 90%, while products based on Dogecoin were estimated at 75%. They assessed the probabilities for Solana at 70% and XRP at 65% as more modest.

It’s worth recalling that on May 2, investment firm VanEck submitted a proposal for listing and trading a BNB-based ETF with staking options.

In January, ConsenSys founder Joe Lubin indicated that issuers of spot ETH ETFs in the U.S. are hopeful for an “early” approval of staking by the Commission.