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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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.” The tax treatment of TRX and transactions involving TRX for United States federal income tax purposes may change.

Under
current IRS guidance, TRX is treated as property, not as currency, for U.S. federal income tax purposes and transactions involving payment
in TRX in return for goods and services are treated as barter exchanges. Such exchanges result in capital gain or loss measured by the
difference between the price at which TRX is exchanged and the taxpayer’s basis in the TRX. However, because TRX is a new technological
innovation, because IRS guidance has taken the form of administrative pronouncements that may be modified without prior notice and comment,
and because there is as yet little case law on the subject, the U.S. federal income tax treatment of an investment in TRX or in transactions
relating to investments in TRX may change from that described in this Prospectus, possibly with retroactive effect. Any such change in
the U.S. federal income tax treatment of TRX may have a negative effect on prices of TRX and may adversely affect the value of the Shares.
In this regard, the IRS has indicated that it has made it a priority to issue additional guidance related to the taxation of virtual currency
transactions, such as transactions involving TRX. While it has started to issue such additional guidance, whether any future guidance
will adversely affect the U.S. federal income tax treatment of an investment in TRX or in transactions relating to investments in TRX
is unknown. Moreover, future developments that may arise with respect to digital currencies may increase the uncertainty with respect
to the treatment of digital currencies for U.S. federal income tax purposes.

The
tax treatment of TRX and transactions involving TRX for state and local tax purposes is not settled.

Because
TRX is a new technological innovation, the tax treatment of TRX for state and local tax purposes, including, without limitation state
and local income and sales and use taxes, is not settled. It is uncertain what guidance, if any, on the treatment of TRX for state and
local tax purposes may be issued in the future. A state or local government authority’s treatment of TRX may have negative consequences,
including the imposition of a greater tax burden on investors in TRX or the imposition of a greater cost on the acquisition and disposition
of TRX generally. Any such treatment may have a negative effect on prices of TRX and may adversely affect the value of the Shares.

hard “fork” of the TRX blockchain could result in the Trust incurring a tax liability.

a hard fork occurs in the TRX Blockchain, the Trust could temporarily hold both the original TRX and the alternative new TRX.
The IRS has held that a hard fork resulting in the creation of new units of cryptocurrency is a taxable event giving rise to ordinary
income. Moreover, if such an event occurs, the Trust Agreement provides that the Sponsor shall have the discretion to determine
whether the original or the alternative asset shall constitute TRX. The Trust shall treat whichever asset the Sponsor determines
is not TRX as Incidental Rights or IR Virtual Currency, which it has committed to irrevocably abandon.

The
receipt, distribution and/or sale of the alternative TRX may cause the Trust to incur a United States federal, state, and/or local, or
non-U.S., tax liability. Any tax liability could adversely impact an investment in the Shares.

Non-U.S.
holders may be subject to U.S. federal withholding tax on distributions from the.

Unless
reduced by applicable treaties, distributions treated as dividends will be subject to a 30% withholding tax to non-U.S. Shareholders.

Other Risks

The
Exchange on which the Shares are listed may halt trading in the Trust’s Shares, which would adversely impact a Shareholder’s
ability to sell Shares.

The
Trust’s Shares are listed for trading on the Exchange under the market symbol “____.” Trading in Shares may be halted
due to market conditions or, in light of the Exchange rules and procedures, for reasons that, in the view of the Exchange, make trading
in Shares inadvisable. In addition, trading is subject to trading halts or pauses caused by extraordinary market volatility pursuant to
“circuit breaker” rules and/or “limit up/limit down” rules that require trading to be halted or paused for a specified
period based on a specified market decline. Additionally, there can be no assurance that the requirements necessary to maintain the listing
of the Trust’s Shares will continue to be met or will remain unchanged.

The
liquidity of the Shares may also be affected by the withdrawal from participation of Authorized Participants, which could adversely affect
the market price of the Shares.

the event that one or more Authorized Participants or market makers that have substantial interests in the Trust’s Shares withdraw
or “step away” from participation in the purchase (creation) or sale (redemption) of the Trust’s Shares, the liquidity
of the Shares will likely decrease, which could adversely affect the market price of the Shares and result in Shareholders incurring a
loss on their investment.

The
market infrastructure of the TRX spot market could result in the absence of active Authorized Participants able to support the trading
activity of the Trust.

TRX
is extremely volatile, and concerns exist about the stability, reliability and robustness of many spot markets where TRX trade. In a highly
volatile market, or if one or more spot markets supporting the TRX market faces an issue, it could be extremely challenging for any Authorized
Participants to provide continuous liquidity in the Shares. There can be no guarantee that the Sponsor will be able to find an Authorized
Participant to actively and continuously support the Trust.

Shareholders
that are not Authorized Participants may only purchase or sell their Shares in secondary trading markets, and the conditions associated
with trading in secondary markets may adversely affect Shareholders’ investment in the Shares.

Only
Authorized Participants may create or redeem Baskets. All other Shareholders that desire to purchase or sell Shares must do so through
the Exchange or in other markets, if any, in which the Shares may be traded. Shares may trade at a premium or discount to the NAV per
Share.

The
Sponsor relies heavily on key personnel.

The
Sponsor relies heavily on key personnel to manage its activities. These key personnel intend to allocate their time managing the Trust
in a manner that they deem appropriate. If such key personnel were to leave or be unable to carry out their present responsibilities,
it may have an adverse effect on the management of the Sponsor.

Shareholders
have no right or power to take part in the management of the Trust. Accordingly, no investor should purchase Shares unless such investor
is willing to entrust all aspects of the management of the Trust to the Trustee and the Sponsor.

Additionally,
there can be no assurance that all of the personnel who provide services to the Trust will continue to be associated with the
Trust for any length of time. The loss of the services of one or more such individuals could have an adverse impact on the Trust’s
ability to realize its investment objectives.

The
Trust is new, and if it is not profitable, the Trust may terminate and liquidate at a time that is disadvantageous to Shareholders.

The
Trust is new. If the Trust does not attract sufficient assets to remain open, or if the trust experiences excessive withdrawals, then
the Trust could be terminated and liquidated at the direction of the Sponsor (or required to do so because it is delisted by the Exchange).
Termination and liquidation of the Trust could occur at a time that is disadvantageous to Shareholders. When the Trust’s assets
are sold as part of the Trust’s liquidation, the resulting proceeds distributed to Shareholders may be less than those that may
be realized in a sale outside of a liquidation context.

Shareholders
do not have the rights enjoyed by investors in certain other vehicles and may be adversely affected by a lack of statutory rights and
by limited voting and distribution rights.