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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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 objective.

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.

The
Shares have limited voting and distribution rights. For example, Shareholders do not have the right to elect directors, the Trust may
enact splits or reverse splits without Shareholder approval, and the Trust is not required to pay regular distributions, although the
Trust may pay distributions at the discretion of the Sponsor.

Shareholders
may be adversely affected by creation or redemption orders that are subject to postponement, suspension or rejection under certain circumstances.

The
Trust may, in its discretion, suspend the right of creation or redemption or may postpone the redemption or purchase settlement date,
for (1) any period during which an emergency exists as a result of which the fulfillment of a purchase order or the redemption distribution
is not reasonably practicable, or (2) such other period as the Sponsor determines to be necessary for the protection of the Shareholders
of the Trust. When determining whether such an emergency exists, the Sponsor may consider, among other things, the overall impact such
emergency has had on price, volume, volatility and liquidity in TRX markets; the Sponsor’s view on the how long such emergency will
persist; and the Sponsor’s view on whether such emergency is likely to ease or worsen. An emergency could include situations where
the Trust is unable to transact in TRX or where the Trust is unable to value its TRX holdings, such as a circumstance where a digital
asset trading platform experiences technical failure, power outage, network error or other circumstance resulting in a market-wide halt
to trading, or the Trust is unable to access the TRX in the Trust TRX Account at the TRX Custodian
due to technical or operating issues at the Trust or the TRX Custodian. Such disruptions may have an effect on overall TRX liquidity or
cause price spreads of TRX to widen, which may have a detrimental effect on the value of the Shares.

addition, the Trust may reject a redemption order if the order is not in proper form as described in the Authorized Participant Agreement
or if the fulfillment of the order might be unlawful. Any such postponement, suspension or rejection could adversely affect a redeeming
Authorized Participant. Suspension of creation privileges may adversely impact how the Shares are traded and arbitraged on the secondary
market, which could cause them to trade at levels materially different (premiums and discounts) from the fair value of their underlying
holdings.

Shareholders
may be adversely affected by an overstatement or understatement of the NAV calculation of the Trust due to the valuation methodology employed
on the date of the NAV calculation.

the Pricing Benchmark is not available or the Sponsor determines, in its sole discretion, that the Pricing Benchmark should not be
used, the Trust’s TRX investments may be valued using techniques other than reliance on the price established by the Pricing
Benchmark. The value established by using the Pricing Benchmark may be different from what would be produced through the use of
another methodology. TRX valued using techniques other than those employed by the Pricing Benchmark, including TRX investments that
are “fair valued,” may differ from the value established by the Pricing Benchmark.

The
Trust Agreement includes provisions that limit Shareholders’ voting rights and restrict Shareholders’ right to bring a derivative
action.

Under
the Trust Agreement, Shareholders generally have no voting rights and the Trust will not have regular Shareholder meetings. Shareholders
take no part in the management or control of the Trust. Accordingly, Shareholders do not have the right to authorize actions, appoint
service providers or take other actions as may be taken by shareholders of other trusts or companies where shares carry such rights. The
Sponsor may take actions in the operation of the Trust that may be adverse to the interests of Shareholders and may adversely affect the
value of the Shares.