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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to occur of: (a) termination by the Cash Custodian by an instrument in writing delivered or mailed to the Trust, such termination to take effect not sooner than ninety (90) days after the date of such delivery; (b) termination by the Trust by an instrument in writing delivered or mailed to the Cash Custodian, such termination to take effect not sooner than thirty (30) days after the date of such delivery; or (c) termination by the Trust by written notice delivered to the Cash Custodian, based upon the Trust’s determination that there is a reasonable basis to conclude that the Cash Custodian is insolvent or that the financial condition of the Cash Custodian is deteriorating in any material respect, in which case termination shall take effect upon the Cash Custodian’s receipt of such notice or at such later time as the Trust shall designate. UNITED STATES FEDERAL INCOME TAX CONSEQUENCES

The
following discussion describes the material U.S. federal income tax consequences associated with the purchase, ownership and
disposition of Shares by a U.S. Shareholder (as defined below), and certain U.S. federal income consequences that may apply to an
investment in Shares by a Non-U.S. Shareholder (as defined below). The discussion below is based on the Code, Treasury Regulations
promulgated thereunder and judicial and administrative interpretations of the Code, all as in effect on the date of this Prospectus
and all of which are subject to change either prospectively or retroactively. The tax treatment of Shareholders may vary depending
upon their own particular circumstances. Except where noted, this discussion only deals with Shares held as capital assets
(generally, property held for investment), and does not address special situations, including those of banks, financial
institutions, insurance companies, regulated investment companies, real estate investment trusts, dealers in securities, currencies,
or commodities, tax-exempt organizations, tax-exempt or tax-advantaged retirement plans or accounts, traders using a mark-to-market
method of accounting, entities that are partnerships for U.S. federal income tax purposes, persons holding Shares as a position in a
“hedging,” “straddle,” “conversion,” “constructive sale” or other integrated
transaction for U.S. federal income tax purposes, persons whose “functional currency” is not the U.S. dollar, persons
required for U.S. federal income tax purposes to accelerate the recognition of any item of gross income with respect to the Shares
as a result of such income being recognized on an applicable financial statement, or persons subject to the federal alternative
minimum tax. Moreover, the discussion below does not address the effect of any state, local or foreign tax law consequences that may
apply to an investment in Shares. Purchasers of Shares are urged to consult their own tax advisers with respect to all federal,
state, local and foreign tax law considerations potentially applicable to their investment in Shares.

For
purposes of this discussion, a “U.S. Shareholder” is a Shareholder that is:

•	an individual who is treated as a citizen or resident of the United States for U.S.
federal income tax purposes;

•	a corporation (or entity treated as a corporation for U.S. federal income tax purposes)
created or organized in or under the laws of the United States, any state thereof or the District of Columbia;

•	an estate, the income of which is includible in gross income for U.S. federal income
tax purposes regardless of its source; or

•	a trust, if a court within the United States is able to exercise primary supervision
over the administration of the trust and one or more United States persons have the authority to control all substantial decisions of
the trust.

a partnership or other entity or arrangement treated as a partnership for U.S. federal income tax purposes holds Shares, the tax treatment
of a partner generally depends upon the status of the partner and the activities of the partnership. If you are a partner of a partnership
holding Shares, the discussion below may not be applicable and we urge you to consult your own tax adviser for the U.S. federal income
tax implications of the purchase, ownership and disposition of such Shares.

Taxation of the Trust

The Trust is expected
to be classified as a domestic corporation for U.S. federal income tax purposes and as such is expected to be obligated to pay
U.S. federal and applicable state corporate taxes on its taxable income. This differs from investment companies that elect to be
treated as “regulated investment companies” under the Internal Revenue Code of 1986, as amended (the “Code”),
to avoid paying entity-level income taxes. In pursuing its investment objectives, the Trust will not be required to comply with
the diversification requirements of a regulated investment company.

The amount of taxes
currently paid by the Trust will vary depending on the amount of income and gains derived from its investments. Taxes paid by the
Trust will reduce your return from an investment in the Trust.

The Trust will be
subject to U.S. federal income tax at the regular corporate tax rate, currently 21%, on any gain recognized by the Trust on any sale of
assets by the Trust.

Taxation of U.S. Shareholders

The
Trust may periodically make distributions to its Shareholders. To the extent such distributions are out of the Trust’s earnings
and profits such distributions will be treated as dividends to the Shareholders. Such dividends may be eligible to be treated as “qualified
dividends” for individual Shareholders or eligible for a dividends received deduction by corporate Shareholders depending other
factual circumstances. If a distribution is not paid out of earnings and profits it will be treated, first, as a reduction of the Shareholder’s
basis, and, to the extent the distribution exceeds the Shareholder’s basis as gain from the sale or disposition of the Shares. A
distribution that reduces a Shareholder’s basis is not currently taxable but will increase the amount of gain or reduce the amount
of loss recognized on an ultimate sale or disposition of the Shares.

Current
IRS guidance on the treatment of convertible virtual currencies classifies TRX as “property” that is not currency for
U.S. federal income tax purposes and clarifies that TRX can be held as a capital asset, but it does not address several other
aspects of the U.S. federal income tax treatment of TRX. Because TRX is a new technological innovation, the U.S. federal income tax
treatment of TRX or transactions relating to investments in TRX may evolve and change from that discussed below, possibly with
retroactive effect. 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 the IRS 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
Trust expects to sell or use TRX to pay certain expenses of the Trust or to fund cash redemptions if and when applicable. If the Trust
sells TRX (for example to generate cash to pay fees or expenses) or is treated as selling TRX (for example by using TRX to pay fees or
expenses), the Trust will generally recognize gain or loss on the use of TRX to pay expenses.

Upon
a Shareholder’s sale of some or all of its Shares, the Shareholder will recognize gain or loss on the sale in an amount
equal to the difference between (a) the amount realized pursuant to the sale of the Shares, and (b) the Shareholder’s tax
basis in the Shares sold. A Shareholder’s tax basis is generally the amount paid for the Shares, but is subject to some
adjustments. Based on current IRS guidance, such gain or loss on the sale of Shares will generally be long-term capital gain or
loss if the Shareholder has a holding period of greater than one year in the Shares that were sold and otherwise will be short-term
capital gain or loss.

Sales of TRX
to fund cash redemptions are expected to result in gains and losses with such gains and losses expected to be treated as incurred
by the Trust.

After
any sale or redemption of less than all of a Shareholder’s Shares, the Shareholder’s tax basis for its Shares generally will
be equal to its tax basis in its Shares immediately prior to the sale or redemption, less the portion of such basis which is taken into
account in determining the amount of gain or loss recognized by the Shareholder upon such sale or cash redemption.

3.8% Tax on Net Investment
Income