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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Trust on each day that the Exchange is open for regular trading, as promptly as practical after 4:00 p.m. ET. 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. ET. 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

The
Trust is an exchange-traded product. When the Trust sells or redeems its Shares, it will do so in blocks of 10,000 Shares (a “Basket”)
based on the quantity of TRX attributable to each Share of the Trust (net of accrued but unpaid expenses and liabilities). For
a subscription for Shares, the subscription shall be in the amount of cash needed to purchase the amount of TRX represented by
the Basket being created or in-kind in TRX equal to the amount of TRX represented by the Basket being created, as calculated by
the Administrator (as defined below). For a redemption of Shares, the Sponsor shall arrange for the TRX represented by the Basket
to be sold and the cash proceeds distributed or for the in-kind TRX represented by the Basket to be distributed. Authorized Participants
will deliver, or facilitate the delivery of, TRX or cash to the Trust’s account with the Custodian (in the case of TRX) or
Cash Custodian (in the case of cash) in exchange for Shares when they purchase Shares, and the Trust will deliver TRX or cash to
such Authorized Participant or an Authorized Participant Designee when they redeem Shares with the Trust. Shares initially comprising
the same Basket but offered by the Authorized Participants to the public at different times may have different offering prices,
which depend on various factors, including the supply and demand for Shares, the value of the Trust’s assets, and market
conditions at the time of a transaction. Shareholders who buy or sell Shares during the day from their broker on the secondary
market may do so at a premium or discount relative to the per Share net asset value of the Trust.

Shareholders
who decide to buy or sell Shares of the Trust will place their trade orders through their brokers and will incur customary brokerage commissions
and charges. Prior to this offering, there has been no public market for the Shares. The Shares are expected to be listed for trading,
subject to notice of issuance, on the Exchange under the ticker symbol “____.”

Federal Income Tax Considerations

is expected that an owner of Shares will be treated, for U.S. federal income tax purposes, as if they owned a proportionate
share of the assets of the Trust. A shareholder will accordingly include in the computation of their taxable income their
proportionate share of the income and expenses realized by the Trust. 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 some or all of the Shareholders. See
“United States Federal Income Tax Consequences—Taxation of U.S. Shareholders.”

The IRS may disagree
with or seek to challenge the Trust’s treatment as a grantor trust.

On November
10, 2025, the IRS released a safe harbor for trust that otherwise qualify as grantor trusts that stake their digital assets. Like
other safe harbors, the safe harbor is not a substantive rule of law. Although the promulgation of the safe harbor is a significant
step forward, the safe harbor is not currently drafted in a way which may be practically applied. For example, one requirement
of the safe harbor is that the SEC has reviewed and approved the trust’s disclosure regarding the staking of its digital
assets. There is not currently a procedure for a trust to receive “approval” of the SEC. Industry representatives have
been in discussions with the IRS on conforming the safe harbor requirements to prior guidance in regard to grantor trusts and currently
available regulatory and market practices. The Trust intends to relying upon the IRS safe harbor as well as historical guidance
in regard to grantor trusts generally. Although the safe harbor does not claim to be the exclusive way for a grantor trust to be
permitted in stake its assets, the IRS may take a position that trusts that do not conform to the safe harbor either have a power
to vary the investment of the shareholders or are engaged in a trade or business, either of which would terminate the grantor trust
status.

Based
on the safe harbor, and an opinion of Chapman and Cutler, the Sponsor intends to take the position that the Trust is properly treated
as a grantor trust for U.S. federal income tax purposes. Assuming that the Trust is a grantor trust, the Trust will not be subject
to U.S. federal income tax. Rather, if the Trust is a grantor trust, each beneficial owner of Shares will be treated as directly
owning its pro rata share of the Trust’s assets and a pro rata portion of the Trust’s income, gain, losses and deductions
will “flow through” to each beneficial owner of Shares.

In order
to qualify as a grantor trust, the Trust must not be in a trade or business and no person may have a power to vary the investment
of the Shareholders to take advantage of market fluctuations. The IRS has generally classified digital assets as “property”,
so the mere holding of digital assets would not raise issues in regard to grantor trust classification. However, the trust will
expand and contract over time with creations and redemptions by Authorized Participants. The Trust is relying on informal guidance
from the IRS that receipt of contributions in cash do not create a power to vary if they are required to immediately converted
into the assets identical to those already held by the Trust. Incidental rights also create a potential issue because the Trust
may from time to time be granted property that the Trust did not voluntarily acquire. Again, the trust is relying on informal guidance
from the IRS that acquiring different property without choosing to acquire the different property is not itself a power to vary.
In addition, staking of digital assets raises both trade or business and power to vary issues. The Trust intends to arrange its
affairs to limit staking so that any staking that occurs to non-discretionary and will not vary based on market conditions. There
is currently no guidance precedential from the IRS about the treatment of staking in a grantor trust, so the Trust is relying primarily
on guidance promulgated in regard to rental real estate, which allows a grantor trust to rent property, but limits the ability
to renegotiate the lease and the activity of the trust in regard to the property. The Trust will not undertake validation activity
with regard to any staking.

the Trust is incorrect in its interpretation of the safe harbor and other relevant authority, the Trust could be classified as
a partnership or as an association taxable as a corporation. If the Trust is classified as a partnership, the Trust would not generally
be taxable at the Trust level, but would be required to issue Form K-1s to the Shareholders. If the Trust is classified as an association
taxable as a corporation, the Trust will be subject to corporate tax at the Trust level, and the Shareholder’s return on
investment may be reduced.

Use of Proceeds

Proceeds
received by the Trust from the issuance of Baskets consist of either TRX or cash. In addition, the Trust will receive proceeds
from its Staking Program that consist of TRX. Deposits of TRX are held by the Custodian on behalf of the Trust (including for
use in the Staking Program) until (i) transferred out or sold in connection with redemptions of Baskets or (ii) transferred or
sold by the Sponsor to pay fees due to the Sponsor or Trust expenses and liabilities not assumed by the Sponsor. Deposits of cash
are held by the Cash Custodian on behalf of the Trust until (i) transferred in connection with the purchase of TRX, (ii) delivered
out in connection with redemptions of Baskets or (iii) transferred to pay fees due to the Sponsor and Trust expenses and liabilities
not assumed by the Sponsor.

Emerging Growth Company