Sun Yuchen: I am confident in the approval of the TRX ETF; the impact of crypto ETFs is still underestimated
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Sun Yuchen: I am confident in the approval of the TRX ETF; the impact of crypto ETFs is still underestimated
The TRX ETF applied for this time is distinctive in that it incorporates a staking mechanism, offering investors opportunities for enhanced returns.
Navigating Web3 tides with focused insightsRecently, Canary Capital Group officially filed an S-1 document with the U.S. Securities and Exchange Commission (SEC), applying to launch the Canary Staked TRX ETF, marking TRON's entry into the U.S. regulated market. On the evening of April 21, Huobi HTX hosted a live stream titled “Is a TRX ETF Coming? The First Altcoin ETF with Staking Yield—Will It Spark a New Bull Run?” Justin Sun, founder of TRON and global advisor of Huobi HTX, shared the story behind the S-1 filing and offered his outlook on the approval prospects of the TRX ETF. Industry experts including Huobi HTX’s Sixth Master, DaDa, Strategy Master, JH, MEJ MaoMao Sister, Data Alchemist, Brother Chai, and MIC Qiege also joined the event.
Staking Innovation: TRX ETF Breaks Traditional Yield Models
The proposed TRX ETF stands out by incorporating a staking mechanism, offering investors enhanced yield opportunities. Among all crypto ETFs that have submitted S-1 filings so far, the TRX ETF is one of the few featuring staking functionality.
Although such ETF applications are significantly more challenging than spot ETFs—previous attempts like the Staked ETH ETF having failed—Justin Sun stated that under the leadership of Paul Atkins, the SEC’s new crypto-friendly chair, the regulatory environment is becoming increasingly open toward digital assets. Therefore, the TRX ETF application aims directly to become the first crypto ETF with integrated staking. If successful, its value would be "irreplicable."
Path to Listing: Key Strategies from S-1 Filing to SEC Negotiation
"The market may currently underestimate the likelihood of the TRX ETF being approved—I am personally very confident," said Justin Sun. Indeed, Sun brings substantial experience in crypto ETF applications. He revealed that he was involved in the application processes for both the first wave of Bitcoin futures ETFs and subsequent Bitcoin spot ETFs. Moreover, the TRX ETP has already been listed in Europe, outperforming similar Bitcoin and Ethereum products.
Sun emphasized that very few ETF applications reach the S-1 submission stage, and once submitted, the TRX ETF is not far from approval. Even if the SEC initially rejects it, the team will revise the S-1 based on feedback and resubmit accordingly.
Underestimated Impact: From Market Confidence to RWA Ripple Effects
Sun also believes the potential impact post-approval is underestimated. "After the spot Bitcoin ETF was approved, only tens of billions of dollars in new capital flowed in—but it drove a multi-trillion-dollar surge in market cap. That’s a classic 'confidence leverage effect.' If the TRX ETF gets approved, its impact won’t be less significant; it could even spark the next bull cycle and reignite Wall Street’s enthusiasm for crypto ETFs."
Additionally, the ETF is expected to accelerate the rapid growth of RWA (Real World Assets). "RWA won’t explode due to technological breakthroughs, but through closing the incentive loop," Sun explained. "Traditional institutions aren't unable to go on-chain—they're unable to buy public blockchain tokens and capture the upside. The ETF is precisely the key that unlocks this door. Without ETFs, institutions won’t allocate large positions, and thus lack motivation to move trillions in real-world assets onto blockchains. An ETF isn’t just a price catalyst—it’s the decisive switch determining whether RWA can truly succeed."
Regarding future plans, Sun said this year will be pivotal for enhancing compliance and expanding partnerships in the U.S. market. "The TRX ETF application is just the beginning. Every quarter this year, TRON and Huobi HTX will roll out major initiatives—these efforts are already in planning."
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