What are the factors that drive institutions to adopt a particular cryptocurrency?
From a fundamental perspective, a growing number of institutions today are becoming more forward-looking in their approach rather than purely speculative. That is, institutions today consider the token’s utility, network growth, and yield potential in the long run, not just the short-term risk/reward profile.
With that being said, the focus naturally shifts to Canary Capital, which has launched the Canary Staked TRX ETF (TRXS), which offers U.S. investors with exposure to TRON’s spot price and staking rewards. But the timing of this move is what really matters.
Technically, TRX failed to capitalize on the parabolic rally in the price of the crypto-asset during August, registering a gain of just over 1% on the chart. However, Ethereum [ETH] surged over 30% during the same period. In other words, TRX underperformed the majority of large-cap tokens that have followed Bitcoin’s 25% gain during the past month.
But fundamentally, the picture looks different. According to DeFiLlama data, the amount of USDT on the Tron blockchain has increased by more than 2% in the last thirty days. On the contrary, the balance on Ethereum has decreased by 0.5% during the same period. The key takeaway? Tron has once again overtaken Ethereum in terms of total USDT supply.
According to the figures, USDT supply has already crossed the threshold of $92 billion on Tron versus $73 billion on Ethereum. This means that more than 50% of the total Tether supply is now on the Tron blockchain. Thus, despite a lack of growth of TRX on the price chart, the network is actively accumulating liquidity, which indicates its ongoing demand.
In this context, Canary Capital’s Tron [TRX] ETF launch could be more than just a random move.
Tron’s institutional case is getting harder to ignore
TRON getting its first-ever staking ETF in the U.S. is just one example of its rising appeal.
In addition, the stock of Tron Inc. (NASDAQ: TRON) has been added to the Russell 2000, Russell 2500, and Russell 3000 indexes, all broad-based U.S. indexes. The result? A key divergence was observed. The DAT gained a solid 25% in August despite the weak TRX momentum.
Moreover, Justin Sun recently pointed out that several heavyweights like BlackRock, Vanguard, and Goldman Sachs have entered the DAT’s shareholder register. So, clearly, there is a growing institutional interest in TRX even as its price chart remains weak.
In particular, Tron Inc. holds nearly 700 million TRX in its treasury, valued at over $240 million. At the same time, the stock was included in the majority of major U.S. indices and attracted institutional investors to the buy side. This makes the question of further TRX accumulation even more relevant.
Against this background, the launch of a staking TRX ETF could not have come at a better time.
Given the strong institutional demand and accumulation that’s already happening in the ecosystem, the staking ETF could get investors to actually hold and stake their TRX rather than sell it.
Increasing the amount of TRX being locked up for staking, in turn, could cause a supply shock in the market and put the TRX price in for a huge move.
Final Summary
- TRON is gaining more interest from big investors.
- The staking ETF could lock up TRX and reduce selling pressure.
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