Justin Sun: 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 document to the U.S. Securities and Exchange Commission (SEC) to apply for the launch of the Canary Staked TRX ETF, which marks that TRON is entering the U.S. compliance market. On the evening of April 21, Huobi HTX held a live broadcast with the theme of "TRX ETF is coming? Will the first altcoin ETF with staking income trigger a new round of crypto bull market?" Sun Yuchen, founder of TRON and global advisor of Huobi HTX, personally told the story behind the submission of the S-1 document and looked forward to the prospects of the approval of TRX ETF. Huobi HTX Liuye, DaDa, Strategy Master, JH, MEJ Maomaojie, Data Alchemist, Chai Wangye, MIC Qiagegebifu and other industry leaders also attended.

Innovation in pledge mechanism: TRX ETF breaks through the traditional income model

The special feature of the TRX ETF applied for this time is that it incorporates a pledge mechanism, which can provide investors with opportunities to increase their returns. Among all the cryptocurrency ETFs that have submitted S-1 documents, the TRX ETF is one of the few with a pledge function.

Although the application of such ETFs is much more difficult than that of spot ETFs - previous applications for Staked ETH ETFs have all failed - Sun Yuchen said that the SEC is becoming more open to cryptocurrencies under the leadership of the crypto-friendly new chairman Paul Atkins, so the application for TRX ETF should be completed in one step, aiming to become the first cryptocurrency ETF to incorporate the staking function. If successful, its value will be "difficult to replicate."

Listing Path Deduction: Key Strategies from S-1 Submission to SEC Game

"The current market may underestimate the probability of TRX ETF passing, and I am very confident about this," said Justin Sun. In fact, Justin Sun has sufficient experience in applying for cryptocurrency ETFs. According to him, he participated in the application process of the first batch of Bitcoin futures ETFs and subsequent Bitcoin spot ETFs. In addition, TRX ETP has long been listed in Europe and has outperformed similar products of Bitcoin and Ethereum.

Justin Sun believes that there are very few ETF applications that can enter the S-1 document submission stage. After successfully submitting S-1, TRX ETF is not far from approval; even if the SEC rejects it in the first round of feedback, the S-1 document will be modified according to the SEC's opinions and submitted.

Underestimated impact: From market confidence to the chain reaction of RWA

Sun Yuchen said that the potential impact after the ETF is approved has also been underestimated. "After the Bitcoin spot ETF was approved, the new funds that flowed in were only tens of billions of dollars, but the market value has reached trillions of dollars. This is a typical 'confidence leverage effect'. If the TRX ETF is approved, the impact will not be worse than the last time, and it may even be the fuse for the next wave of market conditions, and will also drive a new wave of cryptocurrency ETFs on Wall Street."

At the same time, ETFs will also stimulate the rapid growth of RWA (real world assets). "The real explosion of RWA is not due to technological breakthroughs, but to the opening of a closed loop of interests." Sun Yuchen said, "It's not that traditional institutions can't go on the chain, but they can't buy public chain tokens and earn the benefits brought by growth. ETFs are the key to officially open this door - without ETFs, institutions can't make large positions, and there is no motivation to move trillions of assets on the chain. ETFs are not price catalysts, but the decisive switch for whether RWA can run smoothly."

Talking about the next step, Justin Sun said that this year will be a big year for improving compliance and expanding cooperation in the US market. "The application for TRX ETF is just the beginning. In each subsequent quarter, TRON and Huobi HTX will release big moves, and related work is currently being planned."

The article comes from the Internet:Justin Sun: Confident in the Successful Approval of TRX ETF, the Influence of Crypto ETFs is Still Underestimated