SEC Filing Document

Company: Canary Staked TRX ETF
Ticker: 
CIK: 2064768
Filing Type: S-1
Document Type: S-1
Date Filed: 2025-04-18
Accession Number: 0001999371-25-004423
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2064768/000199937125004423/canary-s1_041825.htm

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directly. The differences in performance may be due to factors such as fees, transaction costs, [proceeds from staking activities,] and Pricing Benchmark tracking risk. Investors will also forgo certain rights conferred by owning TRX directly, such as the right to claim air drops. See “A Temporary Or Permanent “Fork” or a “Clone” Of The TRX Blockchain Could Adversely Affect The Value Of The Shares.” Pricing Benchmark tracking risk. The Trust may not achieve the desired degree of correlation between its performance and that of the Pricing Benchmark and thus may not achieve its investment objective. The difference in performance may be due to factors such as fees, transaction costs, redemptions of, and subscriptions for, Shares, pricing differences, differences in the timing of the addition or removal of constituent exchanges underlying the Pricing Benchmark or the cost to the Trust of complying with various new or existing regulatory requirements. Liquidity risk.

The
Trust’s and the Authorized Participants’ ability to buy or sell TRX may be adversely affected by limited trading volume, lack
of a market maker, or legal restrictions. It is also possible that a TRX spot market or governmental authority may suspend or restrict
trading in TRX altogether. Therefore, it may not always be possible to execute a buy or sell order at the desired price or to liquidate
an open position due to market conditions on spot markets, regulatory issues affecting TRX or other issues affecting counterparties. TRX
is a new asset with a very limited trading history. Therefore, the markets for TRX may be less liquid and more volatile than other markets
for more established products.

The
value of the Shares may be influenced by a variety of factors unrelated to the value of TRX.

The
value of the Shares may be influenced by a variety of factors unrelated to the price of TRX and the TRX exchanges included in the Pricing
Benchmark that may have an adverse effect on the price of the Shares. These factors include, but are not limited to, the following factors:

•	Unanticipated problems or issues with respect to the mechanics of the Trust’s
operations and the trading of the Shares may arise, in particular due to the fact that the mechanisms and procedures governing the creation
and offering of the Shares and storage of TRX have been developed specifically for this product;

•	The Trust could experience difficulties in operating and maintaining its technical
infrastructure, including in connection with expansions or updates to such infrastructure, which are likely to be complex and could lead
to unanticipated delays, unforeseen expenses and security vulnerabilities;

•	The Trust could experience unforeseen issues relating to the performance and effectiveness
of the security procedures used to protect the Trust’s account with the TRX Custodian, or the security procedures may not protect
against all errors, software flaws or other vulnerabilities in the Trust’s technical infrastructure, which could result in theft,
loss or damage of its assets; or

•	Service providers may decide to terminate their relationships
with the Trust due to concerns that the introduction of privacy enhancing features to the Tron Network may
increase the potential for TRX to be used to facilitate crime, exposing such service providers to potential reputational harm.

Any
of these factors could affect the value of the Shares, either directly or indirectly through their effect on the Trust’s assets.

Authorized
Participants’ buying and selling activity associated with the creation and redemption of Baskets may adversely affect an investment
in the Shares.

While
the Trust currently only facilitates the creation and redemption of Baskets in exchange for cash, Authorized Participants may take long
or short positions in TRX for hedging or other purposes and in some cases those positions may be substantial relative to the TRX market
as a whole. Authorized Participants’ purchase of TRX in connection with Basket creation orders may cause the price of TRX to increase,
which will result in higher prices for the Shares. Increases in the TRX prices may also occur as a result of TRX purchases by other market
participants who attempt to benefit from an increase in the market price of TRX when baskets are created. The market price of TRX may
therefore decline immediately after Baskets are created.

Selling
activity associated with sales of TRX by Authorized Participants in connection with redemption orders may decrease TRX prices, which will
result in lower prices for the Shares. Decreases in TRX prices may also occur as a result of selling activity by other market participants.

addition to the effect that purchases and sales of TRX by Authorized Participants may have on the price of TRX, sales and purchases of
TRX by similar investment vehicles (if developed) could impact the price of TRX. If the price of TRX declines, the trading price of the
Shares will generally also decline.

The
inability of Authorized Participants and market makers to hedge their TRX exposure may adversely affect the liquidity of Shares and the
value of an investment in the Shares.

Authorized
Participants and market makers will generally want to hedge their exposure in connection with Basket purchase and redemption orders. To
the extent Authorized Participants and market makers are unable to hedge their exposure due to market conditions (e.g., insufficient TRX
liquidity in the market, inability to locate an appropriate hedge counterparty, extreme volatility in the price of TRX, wide spreads between
prices quoted on different TRX trading platforms, the closing of TRX trading platforms due to fraud, failures, security breaches or otherwise
etc.), such conditions may make it difficult to purchase or redeem Baskets or cause them to not create or redeem Baskets. In addition,
the hedging mechanisms employed by Authorized Participants and market makers to hedge their exposure to TRX may not function as intended,
which may make it more difficult for them to enter into such transactions. Such events could negatively impact the market price of Shares
and the spread at which Shares trade on the open market

Arbitrage
transactions intended to keep the price of Shares closely linked to the price of TRX may be problematic if the process for the creation
and redemption of Baskets encounters difficulties, which may adversely affect an investment in the Shares.

If the processes
of creation and redemption of Shares (which depend on timely transfers of TRX to and by the TRX Custodian) encounter any unanticipated
difficulties due to, for example, the price volatility of TRX, the insolvency, business failure or interruption, default, failure to perform,
security breach, or other problems affecting the TRX Custodian, the closing of TRX trading platforms due to fraud, failures, security
breaches or otherwise, or network outages or congestion, spikes in transaction fees demanded by validators, or other problems or disruptions
affecting the Tron Network, then potential market participants, such as the Authorized Participants and their customers, who would otherwise
be willing to purchase or redeem Baskets to take advantage of any arbitrage opportunity arising from discrepancies between the price of
the Shares and the price of the underlying TRX may not take the risk that, as a result of those difficulties, they may not be able to
realize the profit they expect.

Alternatively, in
the case of a network outage or other problems affecting the Tron Network, the processing of transactions on the Tron Network may be disrupted,
which in turn may prevent TRX Trading Counterparties from depositing or withdrawing TRX from their custody accounts, which in turn could
affect the creation or redemption of Baskets. If this is the case, the liquidity of the Shares may decline and the price of the Shares
may fluctuate independently of the price of TRX and may fall or otherwise diverge from NAV. Furthermore, in the event that the market
for TRX should become relatively illiquid and thereby materially restrict opportunities for arbitraging by delivering TRX in return for
Baskets, the price of Shares may diverge from the price of TRX.

The
use of cash creations and redemptions, as opposed to in-kind creations and redemptions, may adversely affect the arbitrage transactions
by Authorized Participants intended to keep the price of the Shares closely linked to the price of TRX and, as a result, the price of
the Shares may fall or otherwise diverge from NAV.