Canary Capital Launches First Staked TRX ETF, Tapping Blockchain's Economic Potential
Crypto exchange-traded funds (ETFs) are evolving beyond simply tracking token prices. Canary Capital's new Canary Staked TRX ETF (BATS:TRXS), which began trading on Wednesday, offers investors exposure to TRON's TRX token while also utilizing the blockchain's staking system.
The TRXS fund tracks the value of its TRX holdings and pursues a secondary objective of earning additional TRX through TRON's delegated proof-of-stake system. The staking rewards are incorporated into the fund's daily net asset value, rather than being paid out separately.
This makes TRXS different from conventional spot crypto ETFs, which allow investors to simply bet on token appreciation. With TRXS, investors also get exposure to the rewards generated by putting the underlying tokens to work on the network.
The staking feature is also where TRXS gets more complicated, with an annual sponsor fee of 1.10% and staking fees that can take a portion of the rewards generated. This means investors will not receive the full staking yield that someone directly staking TRX might earn.