The possibility of a Tron (TRX) exchange-traded fund (ETF) is gaining momentum after a public endorsement from Tron founder Justin Sun. In a recent post shared with his 3.8 million followers on X (formerly Twitter), Sun validated the growing speculation around a TRX ETF by linking directly to a filing submitted to the U.S. Securities and Exchange Commission (SEC). His message was short but impactful: “Finally seeing something that makes sense on the SEC website — TRX ETF LFG!!!”

Sun’s post added weight to the conversation surrounding TRX and its increasing market relevance. It came just after Canary Capital submitted a Form S-1 registration statement to the SEC, officially proposing the creation of a TRX ETF. This would mark a first in the market—not only for Tron but for the broader ETF space—by including a staking feature, which aims to offer investors exposure to both the spot price of TRX and the rewards generated through staking.

ETF With Staking Feature Breaks New Ground

The proposed Tron ETF stands out because it incorporates a staking mechanism, promising an annual yield of 4.5% for its investors. This is a significant development, as no cryptocurrency ETF currently approved by the SEC includes any form of staking. While Grayscale has previously attempted to add a staking component to its Ethereum ETF, that request remains under regulatory review with no decision issued yet.

If approved, the TRX ETF would be the first fund of its kind to combine exposure to a digital asset's price movements with passive income through staking. However, the SEC filing remains silent on one key point: the specific exchange where the proposed ETF would be listed. This leaves some uncertainty about its timeline and market strategy.

The inclusion of staking could potentially attract a new wave of institutional and retail interest in Tron, especially among income-focused investors who see value in passive rewards alongside market appreciation. If the SEC begins to entertain staking-based ETFs more seriously, it could open doors for other similar products tied to different proof-of-stake cryptocurrencies.

Market Reaction and Tron’s Momentum

Sun’s confirmation of the ETF filing comes at a time when Tron is already showing strong market performance. The cryptocurrency has recently climbed the ranks, overtaking Cardano to become the ninth-largest digital asset by market capitalization. Over the past year, TRX has surged by more than 122%, with a modest 5.5% gain in the last 30 days alone.

At the time of writing, TRX was trading at $0.2417, reflecting a slight 1.23% dip over the past 24 hours, according to data from CoinMarketCap. Despite this minor pullback, market analysts suggest that Sun’s ETF revelation could serve as a catalyst for a new rally. The prospect of a TRX ETF, especially one that incorporates staking, may encourage renewed interest among investors looking for more than just speculative gains.

The idea of a Tron ETF also fits into a broader trend in the crypto space. Several asset managers have recently submitted applications for spot ETFs tied to various digital assets, including XRP, Solana, and even Dogecoin. While the SEC has yet to approve any of these filings, the surge in interest points to an evolving market where traditional finance and blockchain technology continue to converge.

What Comes Next for TRX and the ETF Push?

With the TRX ETF application now officially public and backed by one of the most recognizable names in the crypto industry, the next step rests with the SEC. Whether the regulatory body is ready to take this leap—especially with the added complexity of staking—remains to be seen.

However, Sun’s vocal support and Tron's strong performance against both Bitcoin and Ethereum in recent months could help boost the case. If Canary Capital’s proposal gains traction, it may not be long before other asset managers follow suit, triggering a wave of new ETF filings focused on staking coins.

For now, the crypto world will be watching closely to see if the SEC warms up to staking ETFs—and if Tron’s bullish momentum can carry it even higher.