Sun Yuchen: Confident in the successful approval of TRX ETF, the influence of crypto ETFs is still underestimated

Recently, Canary Capital Group officially submitted an S-1 filing to the U.S. Securities and Exchange Commission (SEC) to launch the Canary Staked TRX ETF, marking the entry of TRON into the U.S. compliant market. On the evening of April 21, Huobi HTX held a themed live broadcast titled "Is the TRX ETF Coming? Will the First Altcoin ETF with Staking Rewards Ignite a New Round of Crypto Bull Market?" TRON founder and Huobi HTX global advisor Justin Sun personally shared the story behind the S-1 filing and looked forward to the prospects of the TRX ETF's approval. Industry leaders such as Huobi HTX's Liu Ye, DaDa, Strategy Master, JH, MEJ Maomaojie, Data Alchemist, Chai Wangye, and MIC Qie Ge also attended.

Innovative Staking Mechanism: TRX ETF Breaks Traditional Yield Models

The uniqueness of this TRX ETF application lies in its incorporation of a staking mechanism, which can provide investors with enhanced yield opportunities. Among all cryptocurrency ETFs that have submitted S-1 filings, the TRX ETF is one of the few with staking functionality.

Although the application for such ETFs is much more challenging than for spot ETFs—previous applications for Staked ETH ETFs have all failed—Justin Sun stated that under the leadership of the SEC's new crypto-friendly chairman Paul Atkins, the SEC is becoming more open to cryptocurrencies. Therefore, the TRX ETF application aims to be a one-stop process, striving to become the first cryptocurrency ETF with staking functionality. If successful, its value will be "inimitable."

Pathway to Listing: Key Strategies from S-1 Submission to SEC Negotiation

"The current market may underestimate the probability of the TRX ETF's approval, and I am very confident about it," Justin Sun said. In fact, Justin Sun has ample experience in applying for cryptocurrency ETFs. He revealed that he participated in the application processes for the first batch of approved Bitcoin futures ETFs and the subsequent Bitcoin spot ETFs. Additionally, the TRX ETP has already been listed in Europe, outperforming similar products like Bitcoin and Ethereum.

Justin Sun believes that very few ETF applications reach the S-1 filing stage, and after successfully submitting the S-1, the TRX ETF is not far from approval; even if the SEC rejects it in the first round of feedback, they will modify the S-1 based on the SEC's comments and continue to resubmit.

Underestimated Impact: From Market Confidence to RWA Chain Reaction

Justin Sun stated that the potential impact after the ETF's approval is also underestimated. "After the Bitcoin spot ETF was approved, the new funds flowing in were only a few hundred billion dollars, but it pulled up a market value of over a trillion dollars, which is a typical 'confidence leverage effect.' If the TRX ETF is approved, its influence will not be less than last time; it may even be the catalyst for the next wave of market trends and will drive a new wave of cryptocurrency ETF enthusiasm on Wall Street."

At the same time, the ETF will stimulate rapid growth in RWA (Real World Assets). "The real explosion of RWA is not driven by technological breakthroughs, but by the closure of the profit loop," Justin Sun said. "Traditional institutions are not unable to go on-chain, but they cannot buy public chain tokens and cannot earn profits from growth. The ETF is the key that officially opens this door—without the ETF, institutions cannot allocate large positions, and there is no motivation to move trillions of assets on-chain. The ETF is not a price catalyst but a decisive switch for whether RWA can run smoothly."

Regarding the next steps, Justin Sun stated that this year will be a significant year for enhancing compliance and expanding cooperation in the U.S. market. "The application for the TRX ETF is just the beginning; in the following quarters, TRON and Huobi HTX will release major initiatives, and related work is currently in planning."