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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expenses related to the listing, quotation or trading of the Shares on the Exchange (including customary legal, marketing and audit fees and expenses), (iii) legal fees and expenses incurred in the ordinary course, (iv) audit fees, (v) regulatory fees, including, if applicable, any fees relating to the registration of the Trust and Shares, including any ongoing filings related to the offering of Shares, under the 1933 Act or the 1934 Act, (vi) printing and mailing costs, (vii) costs of maintaining the Trust’s website and (viii) applicable license fees (each, a “Sponsor-paid Expense” and collectively, the “Sponsor-paid Expenses”), provided that any expense that qualifies as an Extraordinary Expense (as defined below) will not be deemed to be a Sponsor-paid Expense. There is no cap on the amount of Sponsor-paid Expenses. The Sponsor has also assumed all fees and expenses related to the organization and offering of the Trust and the Shares.

The
Trust may incur certain extraordinary, nonrecurring expenses that are not Sponsor-paid Expenses, including, but not limited to, brokerage
and transaction costs associated with the sale or transfer of TRX, taxes and governmental charges, expenses and costs of any extraordinary
services performed by the Sponsor (or any other service provider) on behalf of the Trust to protect the Trust, the Trust’s assets,
or the interests of Shareholders, any indemnification of the TRX Custodian or other agents, service providers or counterparties of the
Trust, and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory
enforcement or investigation matters (collectively, “Extraordinary Expenses”). To the extent on-chain transaction fees are
incurred in connection with transfers or sales of TRX to pay Extraordinary Expenses, the Trust will bear such fees.

the extent it does not have cash readily available, the Sponsor will cause the transfer or sale of TRX in such quantity as may be necessary
to permit the payment of Trust expenses and liabilities not assumed by the Sponsor or for payment of cash redemption proceeds to Authorized
Participants. The Trust will seek to transfer or sell TRX at such times and in the smallest amounts required to permit such payments as
they become due. With respect to transfers or sales necessary to pay Trust expenses and liabilities that are denominated other than in
TRX, the amount of TRX transferred or sold may vary from time to time depending on the actual sales price of TRX relative to the Trust’s
expenses and liabilities (e.g., if the price of TRX falls, the amount of TRX needed to be transferred or sold to pay an expense or liability
denominated in U.S. dollars will increase). To the extent the Trust must buy or sell TRX, the Trust may do so through a third-party digital
asset broker or dealer. The Sponsor will select third party brokers or dealers that it believes have implemented adequate AML, KYC and
other legal compliance policies and procedures.

Under
the terms of each Authorized Participant Agreement, the Authorized Participants will be responsible for any brokerage or transaction costs
associated with the sale or transfer of TRX incurred in connection with the fulfillment of a creation or redemption order.

[Custody of the Trust’s
Assets

The TRX Custodian
is authorized to safeguard the Trust’s TRX holdings allocated to it by the Sponsor. The TRX Custodian maintains one or more custody
accounts on its books, pursuant to the terms of the TRX Custody Agreement, for the receipt, safekeeping, and maintenance of TRX.

As a regulated
custodian, the TRX Custodian is subject to a detailed statutory and regulatory framework, including holding customer assets in segregated
client accounts on behalf of customers. 100% of Trust assets and private keys safekeeped by the TRX Custodian will be held in cold storage
in segregated accounts and are never commingled with the TRX Custodian or other client assets. The TRX Custodian applies industry standards,
such as CryptoCurrency Security Standard (CCSS) and SOC1 and SOC2, while also working with the most trusted brands in the industry and
offering clients comprehensive insurance solutions.

The TRX Custodian
is a South Dakota trust company and the private keys are strategically distributed across various geographic locations within the United
States. In order to enhance security measures, the TRX Custodian refrains from disclosing the exact locations of these keys. As all custody
wallets are segregated, the existence of TRX held by the Trust can be verified on-chain by the Sponsor or any other authorized party.

The TRX Custodian
cold wallets are supported by a $250 million insurance policy issued by Lloyd’s of London. The specifics of the policy include Cyber
Insurance, E&O, general specie. Any copying and theft of private keys, insider theft or dishonest acts by the TRX Custodian employees
or executives, and loss of keys directly related to the TRX Custodian’s custody of keys would be covered by this amount at minimum.
This insurance policy is shared among all of the TRX Custodian’s clients and is not specific to the Trust or to customers holding
TRX and may not be available or sufficient to protect the Trust from all possible losses or sources of losses. The Sponsor may purchase
additional insurance coverage through the TRX Custodian’s underwriter, though the Sponsor has not purchased such additional insurance
cover as of the date of this prospectus. The TRX Custodian is not FDIC-insured.

The
Trust generally does not intend to hold cash or cash equivalents except for cash received from Authorized Participants in connection with
a creation transaction or cash held by the Trust pending distribution to Authorized Participants in a redemption transaction or payment
of Trust expenses. The Trust has entered into a custodian agreement (the “Cash Custody Agreement”) with the Cash Custodian
under which the Cash Custodian acts as custodian of the Trust’s cash. The Trust is obligated to convert any cash contributed to
TRX as soon as practicable, except to the extent necessary for a redemption transaction or to pay expenses.

The Trust may change
the custodial arrangements described in this Prospectus at any time without notice to Shareholders. To the
extent a change in custodial arrangements is deemed material by the Sponsor, the Trust will notify Shareholders in a Prospectus supplement
and/or a current report on Form 8-K or in its annual or quarterly reports.]

Staked TRX

The Trust
intends to establish a program to stake a portion of the Trust’s assets through one or more Staking Providers. The TRX Custodian
will maintain exclusive possession and control of the private keys associated with any staked TRX at all times. However, as part of the
“voting” and “withdrawing” processes of TRX staking, any staked TRX will be inaccessible for a period of time
determined by a range of factors.

The Shares

The
Trust will issue Shares, which represent fractional undivided beneficial interests in and ownership of the Trust. Shares issued by the
Trust will be registered in a book entry system and held in the name of Cede & Co. at the facilities of the Depository Trust Company
(“DTC”), and one or more global certificates issued by the Trust to DTC will evidence the Shares. Shareholders may hold their
Shares through DTC if they are direct participants in DTC (“DTC Participants”) or indirectly through entities (such as broker-dealers)
that are DTC Participants.

Net Asset Value

Net
Asset Value means the total assets of the Trust including, but not limited to, all TRX and cash less total liabilities of the Trust.

The
Administrator determines the NAV of the Trust on each day that the Exchange is open for regular trading, as promptly as practical after
4:00 p.m. EST. The NAV of the Trust is the aggregate value of the Trust’s assets less its accrued but unpaid liabilities (which
include accrued expenses). In determining the Trust’s NAV, the Administrator values the TRX held by the Trust based on the price
set by the Pricing Benchmark as of 4:00 p.m. EST. The Administrator also determines the NAV per Share. For purposes of the Trust’s
financial statements, the Trust will utilize a pricing source that is consistent with U.S. Generally Accepted Accounting Principles (“GAAP”),
as of the financial statement measurement date, which may result in valuations that differ from the Trust’s daily NAV calculations.
The Sponsor will determine in its sole discretion the valuation sources and policies used to prepare the Trust’s financial statements
in accordance with GAAP.

Plan of Distribution