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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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

The
Trust is an exchange-traded product. When the Trust sells or redeems its Shares, it will do so in blocks of [ ] 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,
as calculated by the Administrator. For a redemption of Shares, the Sponsor shall arrange for the TRX represented by the Basket to be
sold and the cash proceeds distributed. Authorized Participants will deliver, or facilitate the delivery of, cash to the Trust’s
account with the Cash Custodian in exchange for Shares when they purchase Shares, and the Trust will deliver cash to such Authorized Participants
when they redeem Shares with the Trust. Further, Authorized Participants will not directly or indirectly purchase, hold, deliver, or receive
TRX as part of the creation or redemption process or otherwise direct the Trust or a third party with respect to purchasing, holding,
delivering, or receiving TRX as part of the creation or redemption process. 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 may do so at a premium or discount relative to the NAV of the Shares of the Trust.

of the date of this Prospectus, the Trust only creates and redeems Shares in exchange for cash. If the Trust were to create or redeem
shares in exchange for TRX, the Trust would first need to seek certain regulatory approvals, including an amendment to the Exchange’s
listing rules and an amendment to the Trust’s registration statement of which this Prospectus forms a part. There can be no guarantee
that the Trust will be successful in obtaining such regulatory approvals, and the timing of any such approvals is unknown. If the Trust
is successful in obtaining the necessary regulatory approvals to allow for creations and redemptions in-kind, 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.

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 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.”

Use of Proceeds

Proceeds
received by the Trust from the issuance of Baskets consist of cash. 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.

When
the Trust uses cash proceeds from creation transactions to purchase TRX, the Trust will receive TRX from a third party that is not an
Authorized Participant. The Trust—not any Authorized Participant—is responsible for selecting the third party to deliver the
TRX. Furthermore, the third party will not be acting as an agent of any Authorized Participant with respect to the delivery of the TRX
to the Trust or acting at the direction of any Authorized Participant with respect to the delivery of the TRX to the Trust. The Trust
will redeem Shares by delivering TRX to a third party that is not an Authorized Participant. The Trust—not any Authorized Participant—is
responsible for selecting the third party to receive the TRX. In addition, the third party will not be acting as an agent of any Authorized
Participant with respect to the receipt of the TRX from the Trust or acting at the direction of any Authorized Participant with respect
to the receipt of the TRX from the Trust. The third party will be unaffiliated with the Trust and the Sponsor.

Emerging Growth Company

The
Trust is an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”).
For as long as the Trust is an emerging growth company, unlike other public companies, it will not be required to, among other things:
(i) provide an auditor’s attestation report on management’s assessment of the effectiveness of its system of internal control
over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002; or (ii) comply with any new audit rules adopted
by the PCAOB after April 5, 2012, unless the SEC determines otherwise.

The
Trust will cease to be an “emerging growth company” upon the earliest of (i) its having $1.235 billion or more in annual
revenues, (ii) at least $700 million in market value of Shares being held by non-affiliates, (iii) its issuing more than $1.0
billion of non-convertible debt over a three-year period or (iv) the last day of the fiscal year following the fifth anniversary
of its initial public offering.

addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition
period provided in Section 7(a)(2)(B) of the Securities Act of 1933 (the “1933 Act”) for complying with new or revised
accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards
would otherwise apply to private companies. The Trust intends to take advantage of the benefits of the extended transition period.

TRX, TRX MARKETS AND REGULATION
OF TRX

This
section of the Prospectus provides a more detailed description of TRX, including: information about the historical development of TRX;
how a person holds TRX; how to use TRX in transactions; how to trade TRX; the spot markets where TRX can be bought, held and sold; and
the TRX OTC market.

TRX

TRX is the
native cryptographic token of the Tron Network, a permissionless and decentralized blockchain network and development platform. TRX serves
multiple functions within the Tron Network, including securing the network through staking, enabling governance participation and facilitating
the payment of transaction fees.

Tron Network – Overview

The Tron Network is a decentralized
blockchain platform launched in 2017 by entrepreneur Justin Sun. It is designed to facilitate high-speed, low-cost transactions and support
the creation of decentralized applications (“dApps”), with a particular emphasis on content sharing and entertainment services.
The Tron Network aims to address the scalability and cost limitations of earlier blockchain infrastructures by implementing a delegated
proof-of-stake (“DPoS”) consensus mechanism, enabling it to process up to 2,000 transactions per second (“TPS”),
making it suitable for applications requiring high throughput, such as gaming and multimedia platforms.