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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occurrence. To the extent the valuation determined in accordance with the policy approved by the Sponsor differs materially from the actual market price of TRX, the price of the Shares may no longer track, whether temporarily or over time, the global market price of TRX, which could adversely affect an investment in the Trust by reducing investors’ confidence in the Shares’ ability to track the global market price of TRX. To the extent such prices differ materially from the market price for TRX, investors may lose confidence in the Shares’ ability to track the market price of TRX, which could adversely affect the value of the Shares. The Sponsor does not anticipate that the need to “fair value” TRX will be a common occurrence. The Pricing Benchmark could fail to track the global TRX price, and a failure of the Pricing Benchmark could adversely affect the value of the Shares.

Although the Pricing
Benchmark is intended to accurately capture the market price of TRX, third parties may be able to purchase and sell TRX on public or private
markets not included among the Constituent Platforms, and such transactions may take place at prices materially higher or lower than the
Pricing Benchmark price. Moreover, there may be variances in the price of TRX on the various Constituent Platforms, including as a result
of differences in fee structures or administrative procedures on different Constituent Platforms. While the Pricing Benchmark provides
a U.S. dollar-denominated composite for the price of TRX based on the volume-weighted price of TRX on certain Constituent Platforms, at
any given time, the prices on each such Constituent Platform or pricing source may not be equal to the price of TRX as represented by
the Pricing Benchmark. It is possible that the price of TRX on the Constituent Platforms could be materially higher or lower than the
Pricing Benchmark price. To the extent the Pricing Benchmark price differs materially from the actual prices available on a Constituent
Platform, or from the global market price of TRX, the price of the Shares may no longer track, whether temporarily or over time, the global
market price of TRX, which could adversely affect an investment in the Trust by reducing investors’ confidence in the Shares’
ability to track the market price of TRX. To the extent such prices differ materially from the Pricing Benchmark price, investors may
lose confidence in the Shares’ ability to track the market price of TRX, which could adversely affect the value of the Shares.

The
Sponsor can discontinue using the Pricing Benchmark and use a different pricing or valuation methodology instead.

The Sponsor, in
its sole discretion, may cause the Trust to price its portfolio based upon an index, benchmark or standard other than the Pricing Benchmark
at any time, with prior notice to the Shareholders, if investment conditions change or the Sponsor believes that another index, benchmark
or standard better aligns with the Trust’s investment objective and strategy. The Sponsor may make this decision for a number of
reasons, including, but not limited to, a determination that the Pricing Benchmark price of TRX differs materially from the global market
price of TRX and/or that third parties are able to purchase and sell TRX on public or private markets not included among the Constituent
Platforms, and such transactions may take place at prices materially higher or lower than the Pricing Benchmark price. The Sponsor, however,
is under no obligation whatsoever to make such changes in any circumstance. In the event that the Sponsor intends to establish the Trust’s
NAV by reference to an index, benchmark or standard other than the Pricing Benchmark, it will provide Shareholders with notice in a prospectus
supplement and/or through a current report on Form 8-K or in the Trust’s annual or quarterly reports.

The
Pricing Benchmark price used to calculate the value of the Trust’s TRX may be volatile, adversely affecting the value of the Shares.

The price of TRX
on public digital asset trading platforms has a limited history, and during this history, TRX prices on the digital asset markets more
generally, and on digital asset trading platforms individually, have been volatile and subject to influence by many factors, including
operational interruptions. While the Pricing Benchmark is designed to limit exposure to the interruption of individual digital asset trading
platforms, the Pricing Benchmark price, and the price of TRX generally, remains subject to volatility experienced by digital asset exchanges,
and such volatility could adversely affect the value of the Shares.

Furthermore,
because the number of liquid and credible digital asset trading platforms is limited, the Pricing Benchmark will necessarily be
composed of a limited number of digital asset trading platforms. If a digital asset trading platform were subjected to regulatory,
volatility or other pricing issues, the Benchmark Provider would have limited ability to remove such digital asset trading platform
from the Pricing Benchmark, which could skew the price of TRX as represented by the Pricing Benchmark. Trading on a limited number
of digital asset trading platforms may result in less favorable prices and decreased liquidity of TRX and, therefore, could have an
adverse effect on the value of the Shares.

The
Pricing Benchmark price being used to determine the NAV of the Trust may not be consistent with GAAP. To the extent that the Trust’s
financial statements are determined using a different pricing source that is consistent with GAAP, the NAV reported in the Trust’s
periodic financial statements may differ, in some cases significantly, from the Trust’s NAV determined using the Pricing Benchmark
pricing.

The Trust will determine
the NAV of the Trust on each business day based on the value of TRX as reflected by the Pricing Benchmark. The methodology used to calculate
the Pricing Benchmark price to value TRX in determining the NAV of the Trust may not be deemed consistent with GAAP. To the extent the
methodology used to calculate the Pricing Benchmark is deemed inconsistent with GAAP, the Trust will utilize an alternative GAAP-consistent
pricing source for purposes of the Trust’s periodic financial statements. Creation and redemption of Baskets, the Sponsor Fee and
other expenses borne by the Trust will be determined using the Trust’s NAV determined daily based on the Pricing Benchmark. Such
NAV of the Trust determined using the Pricing Benchmark price may differ, in some cases significantly, from the NAV reported in the Trust’s
periodic financial statements.

Risks
Related to Pricing.

The Trust’s
portfolio will be priced, including for purposes of determining the NAV, based upon the Pricing Benchmark. The price of TRX in U.S. dollars
or in other currencies available from other data sources may not be equal to the prices used to calculate the NAV.

The NAV of the Trust
will change as fluctuations occur in the market price of the Trust’s TRX holdings as reflected in the Pricing Benchmark. Shareholders
should be aware that the public trading price per Share may be different from the NAV for a number of reasons, including price volatility;
trading activity; the closing of TRX trading platforms due to fraud, failure, security breaches or otherwise; and the fact that supply-and-demand
forces at work in the secondary trading market for Shares are related, but not identical, to the supply-and-demand forces influencing
the market price of TRX.

Shareholders also
should note that the size of the Trust in terms of total TRX held may change substantially over time and as Baskets are created and redeemed.

In the event that
the value of the Trust’s TRX holdings or TRX holdings per Share is incorrectly calculated, neither the Sponsor nor the Administrator
will be liable for any error and such misreporting of valuation data could adversely affect the value of the Shares.

Regulatory Risk

Digital
Asset Markets In The United States Exist In A State Of Regulatory Uncertainty, And Adverse Legislative Or Regulatory Developments Could
Significantly Harm The Value Of TRX Or The Shares, Such As By Banning, Restricting Or Imposing Onerous Conditions Or Prohibitions On The
Use Of TRX, Mining Activity, Digital Wallets, The Provision Of Services Related To Trading And Custodying TRX, The Operation Of The Tron
Network, Or The Digital Asset Markets Generally.

There is a lack
of consensus regarding the regulation of digital assets, including TRX, and their markets. As a result of the growth in the size of the
digital asset market, as well as the 2022 Events, the U.S. Congress and a number of U.S. federal and state agencies (including FinCEN,
SEC, OCC, CFTC, FINRA, the Consumer Financial Protection Bureau (“CFPB”), the Department of Justice, the Department of Homeland
Security, the Federal Bureau of Investigation, the IRS, state financial institution regulators, and others) have been examining the operations
of digital asset networks, digital asset users and the digital asset markets. Many of these state and federal agencies have brought enforcement
actions or issued consumer advisories regarding the risks posed by digital assets to investors.