Cboe BZX Exchange Proposes Listing of Canary Staked TRX ETF Shares

This filing proposes to list these shares under BZX Rule 14.11(e)(4), which pertains to the listing and trading of Commodity-Based Trust Shares.

Trust Overview

The Canary Staked TRX ETF was established as a Delaware statutory trust on February 27, 2025, and operates as a C corporation with no set termination date. The Trust is sponsored by Canary Capital Group LLC. Importantly, the Trust is not registered as an investment company under the Investment Company Act of 1940, nor is it classified as a commodity pool under the Commodity Exchange Act. As such, neither the Trust nor its Sponsor is regulated as a commodity pool operator or commodity trading advisor in connection with the Shares.

Listing and Registration Details

The Canary Staked TRX ETF shares will be listed and traded on the Cboe BZX Exchange under BZX Rule 14.11(e)(4), which governs the listing of Commodity-Based Trust Shares. The shares are set to be registered with the SEC through the Trust’s registration statement on Form S-1, dated April 18, 2025. This filing outlines the details of the Trust’s operations and structure, confirming its classification outside the scope of traditional investment company and commodity pool regulations.

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Surveillance and Regulatory Considerations

In its filing, Cboe BZX Exchange addresses regulatory concerns regarding the potential for market manipulation and fraud. Since 2017, the SEC has approved exchange filings for Trust Issued Receipts based on whether the listing exchange has a comprehensive surveillance-sharing agreement with a regulated market of significant size related to the underlying commodity. This is known as the “Winklevoss Test.” While this has been the primary standard for approval, the SEC has acknowledged that exchanges may demonstrate sufficient safeguards through alternative means to justify listing without a surveillance-sharing agreement.

The filing notes that the Cboe BZX Exchange aims to meet regulatory expectations by demonstrating its capacity to prevent fraudulent and manipulative practices. This proposal highlights the growing interest in offering investors access to new and innovative exchange-traded products based on digital assets like the Canary Staked TRX ETF.

Conclusion

The Cboe BZX Exchange’s filing to list and trade the Canary Staked TRX ETF represents an important step in expanding the range of exchange-traded products available to investors. By proposing to list the Trust under BZX Rule 14.11(e)(4), the Exchange aligns itself with current regulatory standards while ensuring sufficient mechanisms are in place to safeguard market integrity. If approved, the Trust will offer investors another avenue for exposure to cryptocurrency-linked assets in a regulated environment.

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