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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of TRX, which could adversely impact the value of the Shares. Sales of TRX that have been newly released from escrow may cause the price of TRX to decline, which could negatively affect an investment in the Shares. TRX markets have a limited history, TRX trading prices have exhibited high levels of volatility, and in some cases such volatility has been sudden and extreme. Because of such volatility, Shareholders could lose all or substantially all of their investment in the Trust. Regulation of the use of TRX and the Tron Network continues to evolve both in the United States and in foreign jurisdictions, which may restrict the use of TRX or otherwise impact the demand for TRX. Disruptions at digital asset trading platforms could adversely affect the availability of TRX and the ability of Authorized Participants to purchase or sell TRX and, therefore, their ability to create and redeem Shares.

Spot
markets on which TRX trades are relatively new and largely unregulated or may not be complying with existing regulations and, therefore,
may be more exposed to fraud and security breaches than established, regulated exchanges for other financial assets or instruments, which
could have a negative impact on the performance of the Trust. Disruptions at TRX spot markets, futures markets and in the over-the-counter
(“OTC”) markets could adversely affect the availability of TRX and the ability of Authorized Participants (as defined below)
to purchase or sell TRX or TRX derivatives (or provide cash in relation thereto) and therefore their ability to create and redeem Shares
of the Trust. The loss or destruction of certain “private keys,” including by the TRX Custodian, could prevent the Trust from
accessing its TRX. Loss of these private keys may be irreversible and could result in the loss of all or substantially all of an investment
in the Trust. Loss of private keys may also impede the Trust’s ability to operate, including by limiting the Trust’s ability
to transfer TRX in the face of a redemption request and forcing the Trust to consider liquidation.

Risks
Associated with the Pricing Benchmark

The
failure of the Pricing Benchmark methodology to measure the actual price of TRX could have an adverse effect on the Trust and on the value
of an investment in the Trust. In addition, the price of TRX as calculated by the Pricing Benchmark methodology may differ from the price
of TRX calculated by other methodologies and the price of TRX on any single spot market.

Risks
Associated with Investing in the Trust

Shareholders
may choose to use the Trust as a means of investing indirectly in TRX. As noted, there are significant risks and hazards inherent in
the TRX market that may cause the price of TRX to fluctuate widely. Shareholders considering a purchase of Shares of the Trust
should carefully consider what percentage of their total assets should be exposed to the TRX market, and should fully understand, be
willing to assume, and have the financial resources necessary to withstand, the risks involved in the Trust’s investment
strategy, and be in a position to bear the potential loss of their entire investment in the Trust. Because the value of TRX, and
thus the value of the Shares, may be extremely volatile, Shareholders will need to monitor their
investment frequently.

There
is no assurance that the Trust will generate a profit for investors. In addition, an actual or perceived breach of the Trust’s account
with the TRX Custodian could harm the Trust’s operations, result in partial or total loss of the Trust’s assets, damage the
Trust’s reputation and negatively affect the market perception of the effectiveness of the Trust, all of which could in turn reduce
demand for the Shares, resulting in a reduction in the price of the Shares. The Trust may also cease operations, the occurrence of which
could similarly result in a reduction in the price of the Shares. Any investment made in the Trust may result in a total loss of the investment.

The
Trust’s net return will not match the performance of the Pricing Benchmark because the Trust incurs operating expenses and other
fees and liabilities. Moreover, the NAV of the Trust may deviate from the market price of its Shares for a number of reasons, including
price volatility, trading activity, normal trading hours for the Trust, the calculation methodology of the NAV, and/or the closing of
TRX trading platforms due to fraud, failure, security breaches or otherwise.

Shareholders
of the Trust should not expect to receive the economic benefit of any “fork” of the Tron Network or asset “air dropped”
to holders of TRX. The Sponsor will cause the Trust to irrevocably abandon any digital asset resulting from a fork in the Tron Network
(other than what the Sponsor determines to be TRX) or any air drop. If the Trust were to change this policy, the Trust would need to seek
and obtain certain regulatory approvals, including an amendment to the Trust’s registration statement of which this Prospectus is
a part and approval of an application by the Exchange to amend its listing rules.

Pricing Information Available
on the Exchange and Other Sources

The
current market price per Share (symbol: “____”) will be published continuously as trades occur throughout each trading day
on the consolidated tape by market data vendors.

The website
for the Trust, https://efts.canary.capital, or any successor thereto, which will be publicly accessible
at no charge, will contain the following information: (a) the prior business day’s NAV; (b) the prior business day’s official
closing price; (c) calculation of the premium or discount of such Exchange’s official closing price against such NAV; (d) data in
chart form displaying the frequency distribution of discounts and premiums of the Exchange’s official closing price against the
NAV, within appropriate ranges for each of the four previous calendar quarters (or for the life of the Trust, if shorter); (e) the Prospectus;
and (f) other applicable quantitative information. The Trust will also disseminate the Trust’s holdings on a daily basis on the
Trust’s website. The NAV for the Trust will be calculated by the Administrator once a day and will be disseminated daily to all
market participants at the same time. Quotation and last sale information regarding the Shares will be disseminated through the facilities
of the consolidated tape.

Any
adjustments made to the Pricing Benchmark will be published on ________ website at ________.

The
intra-day levels and closing levels of the Pricing Benchmark are published by the Benchmark Provider, and the closing NAV is published
by the Administrator (as defined below).

The
Shares are not issued, sponsored, endorsed, sold or promoted by the Exchange, and the Exchange makes no representation regarding the advisability
of investing in the Shares.

The
Benchmark Provider makes no warranty, express or implied, as to the results to be obtained by any person or entity from the use of
the Pricing Benchmark for any purpose. Pricing Benchmark information and any other data calculated and/or disseminated, in whole or
part, by the Benchmark Provider is for informational purposes only, not intended for trading purposes, and provided on an “as
is” basis. The Benchmark Provider does not warrant that the Pricing Benchmark information will be uninterrupted or error-free,
or that defects will be corrected. The Benchmark Provider also does not recommend or make any representation as to possible benefits
from any securities or investments, or third-party products or services. Shareholders should undertake their own due diligence
regarding securities and investment practices.

For
more information on the Pricing Benchmark and the Benchmark Provider, see “The Trust and TRX Prices” below.

The Trust’s Legal Structure

The
Trust is a Delaware statutory trust, formed on April 8, 2025, pursuant to the Delaware Statutory Trust Act. The Trust continuously issues
common shares representing fractional undivided beneficial interest in and ownership of the Trust that may be purchased and sold on the
Exchange. The Trust will operate pursuant to a Trust Agreement, as amended and/or restated from time to time (the “Trust Agreement”).
CSC Delaware Trust Company, a Delaware trust company, is the trustee of the Trust (the “Trustee”). The Trust is managed and
controlled by the Sponsor. The Sponsor is a limited liability company formed in the state of Delaware on September 12, 2024.

The Trust’s Service Providers

The
Sponsor

The
Sponsor, Canary Capital Group LLC, arranged for the creation of the Trust and is responsible for the ongoing registration of the Shares
for their public offering in the United States and the listing of Shares on the Exchange. The Sponsor’s principal address is 1131
4th Avenue S #230, Nashville, TN 37210. The Sponsor will develop a marketing plan for the Trust, will prepare marketing materials
regarding the Shares of the Trust, and will exercise the marketing plan of the Trust on an ongoing basis. The Sponsor has agreed to pay
all normal operating expenses except for Extraordinary Expenses (defined below) out of the Sponsor’s unified fee.

The
Trustee