Canary Files Fourth Staked TRX ETF Amendment at 1.10% Fee

CoinGecko data shows canary Capital filed a fourth amendment for its Staked TRX exchange-traded fund on Friday, setting the management fee at 1.10% and keeping the product alive in a review cycle that has already outlasted most first-time crypto ETF attempts. The amendment, submitted to the SEC under the 19b-4 framework, marks the fourth time Canary has revised the S-1 since its initial filing in January. per CoinGecko, each revision has narrowed the fee, from 1.50% in the first draft to 1.10% now, while adding disclosure around staking mechanics, custody arrangements with Coinbase Prime, and the tax treatment of TRON's delegated proof-of-stake rewards. TRX traded at $0.34 on Friday, up 0.4% in 24 hours and 2.6% over the past week, per CoinGecko data. The token's market cap sits at $32.3 billion, placing it eighth globally. Volume over the last day reached $494 million, a level that has held above $400 million for six of the past seven sessions. Staked ETF mechanics Figures from the desk show the product would hold TRX directly and delegate it to validators, passing staking rewards to shareholders after the 1.10% fee. TRON's network yield currently runs near 4.5% annually, implying a net return of roughly 3.4% for ETF holders before trading costs. CoinGecko data shows that math mirrors the staked ether ETF structure approved in July, though TRON's validator set is more concentrated, 27 super representatives produce blocks versus Ethereum's ~1 million validators. Coinbase Prime is custodian for both products, a detail Canary emphasized in the third amendment after the SEC requested clarity on asset segregation. The fourth filing adds a tax-opinion appendix arguing that staking rewards distributed in-kind qualify for deferred recognition under Section 305(c), a position the IRS has not yet ruled on for proof-of-stake assets. The SEC's 240-day review clock started with the initial 19b-4 publication in January. Each material amendment can reset portions of the review period, and the fourth filing likely extends the final decision into Q1 2027. The Commission has approved 11 spot bitcoin ETFs, 9 spot ether ETFs, and 2 staked ether ETFs since January 2024, but no products tied to layer-one tokens outside the top two. TRON's market structure adds a wrinkle. per CoinGecko, the network's 27 super representatives are elected by TRX holders, and the top five control roughly 35% of delegated stake. Concentration risk disclosures in the amendment acknowledge that a coordinated validator action could affect reward distribution or, in an extreme scenario, chain finality. Institutional flow data for TRX-linked products remains thin. Figures from the desk show Grayscale's TRON Trust (TRXN) holds approximately 180 million TRX with a 2.5% fee, trading at a persistent 15-25% discount to NAV. Canary's ETF would compete directly on fee, 1.10% versus 2.5%, but lacks the trust's first-mover advantage and OTC liquidity. The broader crypto ETF pipeline has slowed since the summer approvals. Of 34 pending 19b-4 filings tracked by Bloomberg, only three, Canary's TRX, Bitwise's Dogecoin, and VanEck's Solana, have seen amendments in the past 60 days. CoinGecko data shows analysts at JPMorgan estimate the total addressable market for non-BTC/ETH crypto ETFs at $15-20 billion in year-one assets, contingent on SEC willingness to expand the approved asset class. What breaks the thesis A denial would likely center on TRON's validator concentration or the tax treatment of in-kind staking rewards. Approval would probably come with a 19b-4 order specifying ongoing disclosure of validator set changes and quarterly attestation of reward calculations. Either outcome arrives no earlier than February 2027 under the current timeline. The next material event is the SEC's response to the fourth amendment, typically a comment letter within 45 days, followed by Canary's reply. per CoinGecko, market participants should watch for fee compression in competing filings; if Bitwise or VanEck drop below 1% for their respective products, Canary may file a fifth amendment to match.