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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206(4)-2(d)(6) and expand the current custody rule under Rule 206(4)-2 to cover digital assets 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 and could lead to additional regulatory oversight of the digital asset ecosystem more broadly. In addition, it is possible the market turbulence in late 2022, which led to the failure of FTX Trading Ltd. (“FTX”) in November 2022 and the resulting market turmoil, could lead to increased SEC, CFTC, or other governmental investigations, enforcement, and/or other regulatory activity across the digital asset ecosystem. Various foreign jurisdictions have adopted and may continue in the near future to adopt laws, regulations or directives that affect a digital asset network, the digital asset markets, and their users, particularly digital asset exchanges and service providers that fall within such jurisdictions’ regulatory scope. For example:

•	China has made transacting in cryptocurrencies illegal for Chinese citizens in mainland
China, and additional restrictions may follow. China has banned initial coin offerings and there have been reports that Chinese regulators
have taken action to shut down a number of China-based digital asset exchanges.

•	South Korea determined to amend its Financial Information Act in March 2020 to require
virtual asset service providers to register and comply with its AML and counter-terrorism funding framework. These measures also provide
the government with the authority to close digital asset exchanges that do not comply with specified processes. South Korea has also banned
initial coin offerings.

•	The Reserve Bank of India in April 2018 banned the entities it regulates from providing
services to any individuals or business entities dealing with or selling digital assets. In March 2020, this ban was overturned in the
Indian Supreme Court, although the Reserve Bank of India is currently challenging this ruling.

•	The United Kingdom’s Financial Conduct Authority published final rules in
October 2020 banning the sale of derivatives and exchange-traded notes that reference certain types of digital assets, contending that
they are “ill-suited” to retail investors citing extreme volatility, valuation challenges and association with financial crime.
A new bill, the Financial Services and Markets Bill (the “FSMB”), has made its way through the House of Commons and is expected
to work through the House of Lords and become law. The FSMB would bring digital asset activities within the scope of existing laws governing
financial institutions, markets and assets.

•	The European Council of the European Union approved the text of the Markets in
Crypto-Assets Regulation (“MiCA”) in October 2022, establishing a regulatory framework for digital asset services across the
European Union. MiCA is intended to serve as a comprehensive regulation of digital asset markets and imposes various obligations on digital
asset issuers and service providers. The main aims of MiCA are industry regulation, consumer protection, prevention of market abuse and
upholding the integrity of digital asset markets. MiCA was ratified by the European Parliament on April 20, 2023, and will begin to take
effect in June 2024.

•	There remains significant uncertainty regarding foreign
governments’ future actions with respect to the regulation of digital assets and digital asset exchanges. Such laws, regulations
or directives may conflict with those of the United States and may negatively impact the acceptance of TRX by
users, merchants and service providers outside the United States and may therefore impede the growth or sustainability of the TRX
ecosystem in the United States and globally, or otherwise negatively affect the value of TRX held
by the Trust.

There remains significant
uncertainty regarding foreign governments’ future actions with respect to the regulation of digital assets and digital asset trading
platforms. Such laws, regulations or directives may conflict with those of the United States and may negatively impact the acceptance
of TRX by users, merchants and service providers outside the United States and may therefore impede the growth or sustainability of the
TRX ecosystem in the United States and globally, or otherwise negatively affect the value of TRX held by the Trust. The effect of any
future regulatory change on the Trust or the TRX held by the Trust is impossible to predict, but such change could be substantial and
adverse to the Trust and the value of the Shares.

Not a Regulated Commodity Pool

The Trust will
not trade, buy, sell, or hold TRX derivatives, including TRX futures contracts, on any futures exchange or through bilateral
contracts. The Trust is authorized solely to take immediate delivery or, distribute, buy or sell actual TRX. The Sponsor does not
believe the Trust’s activities are required to be regulated by the CFTC under the CEA as a “commodity pool” under
current law, regulation and interpretation. A CFTC-regulated commodity pool operator will not operate the Trust because it will not
trade, buy, sell or hold TRX derivatives, including TRX futures contracts, on any futures exchange. Shareholders of the Trust will
not receive the regulatory protections afforded to investors in regulated commodity pools, nor may the COMEX division of the New
York Mercantile Exchange or any futures exchange enforce its rules concerning the Trust’s activities. In addition,
shareholders of the Trust will not benefit from the protections afforded to investors in regulated TRX futures contracts on
regulated futures exchanges.

RISK FACTORS

You should consider carefully
the risks described below before making an investment decision. You should also refer to the other information included in this Prospectus,
as well as information found in documents incorporated by reference in this Prospectus, before you decide to purchase any Shares. These
risk factors may be amended, supplemented or superseded from time to time by risk factors contained in any periodic report or Prospectus
supplement in the future. Neither the Trust nor the Sponsor has any current obligation to provide any periodic report or supplement to
investors and is not required to update these risk factors.

Risks Associated with TRX and
the Tron Network

The
Trading Prices Of Many Digital Assets, Including TRX, Have Experienced Extreme Volatility In Recent Periods And May Continue To Do So.
Extreme Volatility In The Future, Including Further Declines In The Trading Prices Of TRX, Could Have A Material Adverse Effect On The
Value Of The Shares And The Shares Could Lose All Or Substantially All Of Their Value.

The
trading prices of many digital assets, including TRX, have experienced extreme volatility in recent periods and may continue to do so.
For instance, there were steep increases in the value of certain digital assets over the course of 2021, and multiple market observers
asserted that digital assets were experiencing a “bubble.” These increases were followed by steep drawdowns throughout 2022
in digital asset trading prices. These episodes of rapid price appreciation followed by steep drawdowns have occurred multiple times throughout
the history of the digital asset industry. ​Since its launch in 2018, TRX has experienced significant price volatility, reaching
an all-time low of $0.001091 in November 2017 and an all-time high of $0.4407 in December 2024. As of April 16, 2025, TRX was trading
at approximately $0.2503.

Extreme
volatility may persist and the value of the Shares may significantly decline in the future without recovery. The digital asset markets
may still be experiencing a bubble or may experience a bubble again in the future. For example, in the first half of 2022, each of Celsius
Network, Voyager Digital Ltd., and Three Arrows Capital declared bankruptcy, resulting in a loss of confidence in participants of the
digital asset ecosystem and negative publicity surrounding digital assets more broadly. In November 2022, FTX Trading Ltd. (“FTX”),
one of the largest digital asset exchanges by volume at the time, halted customer withdrawals amid rumors of the company’s liquidity
issues and likely insolvency, which were subsequently corroborated by its CEO. Shortly thereafter, FTX’s CEO resigned and FTX and
many of its affiliates filed for bankruptcy in the United States, while other affiliates have entered insolvency, liquidation, or similar
proceedings around the globe, following which the U.S. Department of Justice brought criminal fraud and other charges, and the SEC and
CFTC brought civil securities and commodities fraud charges, against certain of FTX’s and its affiliates’ senior executives,
including its former CEO. In addition, several other entities in the digital asset industry filed for bankruptcy following FTX’s
bankruptcy filing, such as BlockFi Inc. and Genesis Global Capital, LLC (“Genesis”). In response to these events (collectively,
the “2022 Events”), the digital asset markets have experienced extreme price volatility and other entities in the digital
asset industry have been, and may continue to be, negatively affected, further undermining confidence in the digital asset markets.