SEC Filing Document

Company: Canary Staked TRX ETF
Ticker: 
CIK: 2064768
Filing Type: S-1/A
Document Type: S-1/A
Date Filed: 2026-05-15
Accession Number: 0001999371-26-010857
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2064768/000199937126010857/canary-s1a_051526.htm

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the Commodity Exchange Act. Consequently, Shareholders will not have the regulatory protections provided to Shareholders in Commodity Exchange Act-regulated instruments or commodity pools. Trading on digital asset trading platforms outside the United States is not subject to U.S. regulation and may be less reliable than U.S. trading platforms. To the extent any of the Trust’s trading is conducted on digital asset trading platforms outside the United States, trading on such trading platforms is not regulated by any U.S. governmental agency and may involve certain risks not applicable to trading on U.S. trading platforms. Certain foreign markets may be more susceptible to disruption than U.S. trading platforms. These factors could adversely affect the performance of the Trust. Future legal or regulatory developments may negatively affect the value of TRX or require the Trust or the Sponsor to become registered with the SEC or CFTC, which may cause the Trust to liquidate.

Current and future
legislation, SEC and CFTC rulemaking, and other regulatory developments may impact the manner in which TRX are treated for classification
and clearing purposes. In particular, TRX itself in the future might be classified by the CFTC as a “commodity interest” under
the CEA, subjecting all transactions in TRX to full CFTC regulatory jurisdiction. Alternatively, in the future TRX might be classified
by a court as a “security” under U.S. federal securities laws. The Sponsor and the Trust cannot be certain as to how future
regulatory developments will impact the treatment of TRX under the law. In the face of such developments, the required registrations and
compliance steps may result in extraordinary, nonrecurring expenses to the Trust. If the Sponsor decides to terminate the Trust in response
to the changed regulatory circumstances, the Trust may be dissolved or liquidated at a time that is disadvantageous to Shareholders.

The SEC has stated
that certain digital assets may be considered “securities” under the federal securities laws. The test for determining whether
a particular digital asset is a “security” is complex and the outcome is difficult to predict. If TRX is in the future determined
to be a “security” under federal or state securities laws by the SEC or any other agency, or in a proceeding in a court of
law or otherwise, it would likely have material adverse consequences for the value of TRX. For example, it may become more difficult or
impossible for TRX to be traded, cleared and custodied in the United States as compared to other digital assets that are not considered
to be securities, which could in turn negatively affect the liquidity and general acceptance of TRX and cause users to migrate to other
digital assets.

To the extent that
TRX is determined to be a security, the Trust and the Sponsor may also be subject to additional regulatory requirements, including under
the 1940 Act, and the Sponsor may be required to register as an investment adviser under the Investment Advisers Act of 1940, as amended
(the “Advisers Act”). If the Sponsor determines not to comply with such additional regulatory and registration requirements,
the Sponsor will terminate the Trust. Any such termination could result in the liquidation of the Trust’s TRX at a time that is
disadvantageous to Shareholders.

To the extent that
TRX is deemed to fall within the definition of a “commodity interest” under the CEA, the Trust and the Sponsor may be subject
to additional regulation under the CEA and CFTC regulations. These additional requirements may result in extraordinary, recurring and/or
nonrecurring expenses of the Trust, thereby materially and adversely impacting the Shares. If the Sponsor and/or the Trust determines
not to comply with such additional regulatory and registration requirements, the Sponsor may terminate the Trust. Any such termination
could result in the liquidation of the Trust’s TRX at a time that is disadvantageous to Shareholders.

The SEC
has recently proposed amendments to the custody rules under Rule 206(4)-2 of the Advisers Act. The proposed rule changes would
amend the definition of a “qualified custodian” under Rule 206(4)-2(d)(6) and expand the current custody rule in 206(4)-2
to cover all digital assets, including TRX, and related advisory activities. If enacted as proposed, these rules would likely impose
additional regulatory requirements with respect to the custody and storage of digital assets, including TRX. The Sponsor is studying
the impact that such amendments may have on the Trust and its arrangements with the Custodian. It is possible that such amendments,
if adopted, could prevent the Custodian from serving as service providers to the Trust, or require potentially significant modifications
to existing arrangements under the Custody Agreement, which could cause the Trust to bear potentially significant increased costs.
If the Sponsor is unable to make such modifications or appoint successor service providers to fill the role that the Custodian
currently plays, the Trust’s operations (including in relation to creations and redemptions of Baskets and the holding of
TRX) could be negatively affected, the Trust could dissolve (including at a time that is potentially disadvantageous to Shareholders),
and the value of the Shares or an investment in the Trust could be affected.

Further, the proposed
amendments could have a severe negative impact on the price of TRX and therefore the value of the Shares if enacted, by, among other things,
making it more difficult for investors to gain access to TRX, or causing certain holders of TRX to sell their holdings.

It may
be illegal now, or in the future, to acquire, own, hold, sell or use TRX in one or more countries, and ownership of, holding or trading
in the Shares may also be considered illegal and subject to sanction.

Although currently
TRX is not regulated or is lightly regulated in most countries, including the United States, one or more countries such as China, India
or Russia may take regulatory actions in the future that severely restricts the right to acquire, own, hold, sell or use TRX or to exchange
TRX for fiat currency. Such an action may also result in the restriction of ownership, holding or trading in the Shares. Such a restriction
could result in the termination and liquidation of the Trust at a time that is disadvantageous to Shareholders, or may adversely affect
an investment in the Shares.

Tax Risk

The
ongoing activities of the Trust may generate tax liabilities for Shareholders.

As described
below under “United States Federal Income Tax Consequences—Taxation of U.S. Shareholders,” it is expected
that the Trust would be taxed as a C corporation and returns to an owner of Shares would be on an after-tax basis. Each sale or
other disposition of TRX by the Trust (including, under current Internal Revenue Service (“IRS”) guidance, the use
of TRX to pay expenses of the Trust) will give rise to gain or loss and will therefore constitute a taxable event for the Trust.

Because
the Trust will be a C corporation and neither a regulated investment company nor a grantor trust, the Trust will not be able to
make in-kind redemption on a tax-free basis. If the Trust redeems Shares in-kind, the Trust will recognize gain in the asset distributed
as if the Trust had sold the asset at it fair market value at the time of the redemption.

The
Trust will not be able to make capital gains dividends. However, a portion of the distributions from the Trust may be eligible
to be treated as “qualified dividends” for individual investors. See “United States Federal Income Tax Consequences—Taxation
of U.S. Shareholders.”

The
tax treatment of TRX and transactions involving TRX for United States federal income tax purposes may change.