Justin Sun, founder of Tron (TRX), has broken the silence on the speculation about an exchange-traded fund (ETF) making the rounds in the crypto space. Sun validated the news by sharing an update with his over 3.8 million followers on X.

SEC faces new ETF bid with staking component

Notably, the Securities and Exchange Commission (SEC) has been flooded with different ETF filings for XRP, Solana and even Dogecoin. When the rumors of a spot Tron ETF filtered in, some doubted the news' authenticity.

Sun has now validated it by attaching a link to the form S-1 filed by Canary Capital to the regulatory body.

"Finally seeing something that makes sense on the SEC website — TRX ETF LFG!!!" he wrote.

This development makes Canary Capital the first asset manager to file for a staked Tron ETF. The aim is to expose investors to TRX’s spot price and staking rewards with an annual yield of 4.5%.

The staking feature would allow investors in the Tron ETF to earn extra yield on their investments. Interestingly, the SEC has not granted any staking feature for any crypto ETF. The regulatory body has not decided upon the change proposed by Grayscale's spot Ethereum fund for staking.

Meanwhile, according to Canary’s filing, the registration statement was silent on the exchange on which it hopes to trade the proposed fund.

Will ETF filing spark Tron rally?

Tron recently flipped Cardano to become the ninth-ranked crypto asset by market capitalization. The asset has shown impressive growth, with a 122.17% increase in the past year. In the last 30 days, TRX has recorded a 5.52% growth rate.

As of this writing, TRX was trading at $0.2417, representing a 1.23% decline in 24 hours, per CoinMarketCap data.

Market observers anticipate a rally with TRX following Sun’s confirmation of the ETF filing.

It is also likely that other asset managers will become interested in and file for a spot Tron ETF. They might be swayed by Tron's recent performance against Bitcoin and Ethereum and its future potential.