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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described below and (2) DTC Participants. To become an Authorized Participant, a person must enter into an Authorized Participant Agreement with the Distributor. As of the Trust’s commencement of operations, Baskets may only be purchased or redeemed by Authorized Participants for cash. connection with a Cash Creation Order (as defined below) or Cash Redemption Order (as defined below), an Authorized Participant is responsible for any operational processing and brokerage costs, transfers fees, network fees and stamp taxes (the “Transaction Fee”). The Transaction Fee may be reduced, increased or otherwise changed by the Sponsor. Authorized Participants who make deposits with the Trust in exchange for Baskets receive no fees, commissions or other form of compensation or inducement of any kind from either the Trust or the Sponsor, and no such person will have any obligation or responsibility to the Sponsor or the Trust to effect any sale or resale of Shares.

Certain
Authorized Participants and their agents and affiliates are expected to be capable of participating directly in the spot markets. Some
Authorized Participants or their agents and affiliates may from time to time buy or sell TRX and may
profit in these instances. To the extent that the activities of Authorized Participants or their agents and affiliates have a meaningful
effect on the TRX market, it could affect the price of TRX and
impact the ability of the Authorized Participants to effectively arbitrage the difference between the price at which the shares trade
and the NAV of the Trust. While the Sponsor currently expects that Authorized Participants’ and their agents’ and affiliates’
direct activities in the TRX or securities markets in connection with the creation and redemption
activities of the Trust will not significantly affect the price of TRX or the Shares, the impact of
the activities of the Trust and its Authorized Participants and their agents and affiliates on TRX or
securities markets is unknown and beyond the control of the Sponsor.

Each
Authorized Participant will be required to be registered as a broker-dealer under the 1934 Act and a member in good standing with FINRA,
or exempt from being or otherwise not required to be licensed as a broker-dealer or a member of FINRA, and will be qualified to act as
a broker or dealer in the states or other jurisdictions where the nature of its business so requires. Certain Authorized Participants
may also be regulated under federal and state banking laws and regulations. Each Authorized Participant has its own set of rules and procedures,
internal controls and information barriers as it determines is appropriate in light of its own regulatory regime.

The
following description of the procedures for the creation and redemption of Baskets is only a summary and a Shareholder should refer to
the form of Authorized Participant Agreement for more detail. A form of Authorized Participant Agreement will be filed as an exhibit to
the registration statement of which this Prospectus is a part.

Creation Procedures

any business day, an Authorized Participant may place an order with the Transfer Agent to create one or more Baskets. For purposes of
processing creation and redemption orders, a “business day” means any day other than a day when the Exchange is closed for
regular trading. Purchase orders must be placed by the close of Regular Trading Hours on the Exchange or an earlier time as determined
and communicated by the Sponsor and its agent. A purchase order will be effective on the date it is received in good order by the Transfer
Agent (“Purchase Order Date”).

The
manner by which creations are made is dictated by the terms of the Authorized Participant Agreement. Creation orders are denominated and
settled in cash (“Cash Creation Order”). By placing a Cash Creation Order, an Authorized Participant agrees to facilitate
the deposit of cash with the Cash Custodian. If an Authorized Participant fails to consummate the foregoing, the order will be cancelled
or delayed until the full cash deposit has been received. An Authorized Participant may not withdraw a creation order without the prior
consent of the Sponsor in its discretion.

Following
an Authorized Participant’s Cash Creation Order, the Trust’s account at the Cash Custodian must be credited with the
Basket Cash Deposit amount by the end of the following business day or such earlier or later time as may be agreed upon by the
Authorized Participant and the Sponsor following the Purchase Order Date. Upon receipt of the Basket Cash Deposit amount in the
Trust’s account at the Cash Custodian, the Transfer Agent will notify the Distributor, the Authorized Participant, and the
Sponsor that the Basket Cash Amount has been deposited. The Sponsor, on behalf of the Trust, will instruct a TRX trading
counterparty to purchase the amount of TRX equivalent in value to the cash deposit amount associated with the creation order, with
such purchase transaction prearranged to be executed, in the Sponsor’s reasonable efforts, at the Pricing Benchmark price used
by the Trust to calculate NAV, taking into account any spread, commissions, or other trading costs on the applicable Purchase Order
Date. The resulting TRX will be deposited in the Trust’s account with the TRX Custodian. Any slippage incurred (including, but
not limited to, any trading fees, spreads, or commissions), on a cash equivalent basis, will be the responsibility of the Authorized
Participant and not of the Trust or Sponsor. To the extent the execution price of the TRX acquired by the trading counterparty
exceeds the cash deposit amount, such cash difference will be the responsibility of the Authorized Participant and not the Trust or
Sponsor. The Transfer Agent will then direct DTC to credit the number of Shares created to the Authorized Participant’s DTC
account.

Determination of Required Deposits

The
amount of the Basket Deposit changes from day to day. On each day that the Exchange is open for regular trading, the Administrator adjusts
the quantity of cash constituting the Basket Deposit as appropriate to reflect the value of the Trust’s TRX and cash less accrued
expenses. The computation is made by the Administrator as promptly as practicable after 4:00 p.m. EST
or at an earlier time set forth in the Authorized Participant Agreement or otherwise provided to all Authorized Participants on the date
such order is placed in order for the creation of Baskets to be effected based on the NAV of Shares as next determined on such date after
receipt of the order in proper form.

The
Basket Cash Deposit is an amount of cash that is in the same proportion to the total assets of the Trust, net of accrued expenses and
other liabilities, on the Purchase Order Date, as the number of Shares constituting a Basket is in proportion to the total number of Shares
outstanding on the Purchase Order Date, plus the amount of any Transaction Fee. For a discussion of how the Trust determines the value
of TRX, see “Calculation of NAV” above. The Basket Cash Deposit so determined is communicated via electronic mail message
to all Authorized Participants.

the extent the price at which the Trust executes a TRX purchase in connection with a Cash Creation exceeds the amount described in the
paragraph above, the Authorized Participant that placed such order will be responsible for any such difference in price. The Sponsor expects
that its TRX trading counterparties will be able to provide pricing based on the Pricing Benchmark price at 4:00 p.m. EST, which would
minimize or eliminate any such shortfall. However, there can be no guarantee that the price at which the Trust executes TRX trades will
be the Pricing Benchmark price at 4:00 p.m. EST, and Authorized Participants bear the risk of any such differences in price.

Delivery of Required Deposits