Canary's Staked TRX ETF: A Cold Market Reception
Canary Capital Files for Staked TRX ETF
US asset manager, Canary Capital, has filed with the SEC for a new exchange-traded fund (ETF) focused on Tron's TRX token. The proposed "Canary Staked TRX ETF" aims to hold TRX and stake it to generate additional yield for investors, providing regulated access to staking rewards and market exposure. This filing follows a recent wave of ETF applications, capitalizing on a perceived shift in the SEC's stance toward cryptocurrencies. Canary has also filed for ETFs on other altcoins including Litecoin (LTC), XRP, Hedera (HBAR), Sui (SUI), and Pudgy Penguins (PENGU).
Market Sentiment Remains Bearish Despite ETF News
Despite the positive development of an ETF filing, TRX is currently facing significant bearish pressure. At the time of writing, TRX is trading at $0.24, down 1.28% daily and 2.8% weekly. This downturn is reflected in several key metrics.
- Decreased Buyer Demand: TRON buyers have largely disappeared from the market, indicating a lack of bullish conviction.
- Low Futures Buy Volume: Weekly futures buy volume has plummeted to a low of $6.5k, further highlighting weak investor sentiment.
- Negative Funding Rate: The volume-weighted funding rate is at a monthly low in negative territory, suggesting aggressive shorting of TRX by investors anticipating further price declines.
The images below show the low futures buy volume and negative funding rate, illustrating the bearish sentiment toward TRX.
[Insert Image 1: Tron Futures Buy Volume Chart][Insert Image 2: Tron Funding Rate (Volume Weighted) Chart]
Will the ETF Change the Trajectory for TRX?
While the ETF could potentially boost TRX adoption and attract institutional investors, its impact on the current bearish market remains uncertain. A successful ETF listing could help TRX reclaim $0.259. However, if negative market sentiment persists, a further drop to $0.23 is a possibility.
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