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 the Tron Network. Since launch, portions of the allocated TRX have been released in accordance with these schedules. TRX was originally issued as an ERC-20 token on the Ethereum network and was later migrated to the native TRX Blockchain upon the launch of the mainnet in June 2018. TRX Supply Characteristics TRX does not have a fixed supply cap, distinguishing it from deflationary digital assets. New TRX may be introduced through block rewards issued to Super Representatives under the Tron Network’s delegated proof-of-stake consensus mechanism. The issuance rate and reward parameters are determined by network governance and may be adjusted over time. The ongoing emission of TRX is intended to support network security, reward validators and encourage active participation in governance and ecosystem development. All TRX in circulation is publicly viewable on the TRX Blockchain, and the supply is governed transparently through community-driven processes. TRX Market and TRX Exchanges

TRX can be transferred in
direct peer-to-peer transactions through the direct sending of TRX over the Tron Network from one TRX address to another. Among end-users,
TRX can be used to pay other members of the Tron Network for goods and services under what resembles a barter system. Consumers can also
pay merchants and other commercial businesses for goods or services through direct peer-to-peer transactions on the TRX Blockchain or
through third-party service providers.

In addition to using TRX to
engage in transactions, investors may purchase and sell TRX to speculate as to the value of TRX in the TRX market, or as a long-term investment
to diversify their portfolio. The value of TRX within the market is determined, in part, by the supply of and demand for TRX in the global
TRX market, market expectations for the adoption of TRX as a store of value, the number of merchants that accept TRX as a form of payment,
and the volume of peer-to-peer transactions, among other factors.

TRX spot markets provide investors
with a website that permits investors to open accounts with the spot market and then purchase and sell TRX. Prices for trades on TRX spot
markets are typically reported publicly. An investor opening a trading account must deposit an accepted government-issued currency into
their account with the spot market, or a previously acquired digital asset, before they can purchase or sell assets on the spot market.
The process of establishing an account with a TRX spot market and trading TRX is different from, and should not be confused with, the
process of users sending TRX from one TRX address to another TRX address on the TRX Blockchain. This latter process is an activity that
occurs on the Tron Network, while the former is an activity that occurs entirely on the private website operated by the spot market. The
spot market typically records the investor’s ownership of TRX in its internal books and records, rather than on the TRX Blockchain.
The spot market ordinarily does not transfer TRX to the investor on the TRX Blockchain unless the investor makes a request to the spot
market to withdraw the TRX in their exchange account to an off-exchange TRX wallet.

Outside of spot markets,
TRX can be traded OTC in transactions that are not publicly reported. The OTC market is largely institutional in nature, and OTC
market participants generally consist of institutional entities, such as firms that offer two-sided liquidity for TRX, investment
managers, proprietary trading firms, high-net-worth individuals that trade TRX on a proprietary basis, entities with sizeable TRX
holdings, and family offices. The OTC market provides a relatively flexible market in terms of quotes, price, quantity, and other
factors, although it tends to involve large blocks of TRX. The OTC market has no formal structure and no open-outcry meeting place.
Parties engaging in OTC transactions will agree upon a price—often via phone or email—and then one of the two parties
will then initiate the transaction. For example, a seller of TRX could initiate the transaction by sending the TRX to the
buyer’s TRX address. The buyer would then wire U.S. dollars to the seller’s bank account. OTC trades are sometimes
hedged and eventually settled with concomitant trades on TRX spot markets.

Authorized Participants will
deliver, or facilitate the delivery of, TRX or cash to the Trust’s account with the TRX Custodian in exchange for Shares of the
Trust, and the Trust, through the TRX Custodian, will deliver TRX or cash when such Authorized Participants redeem Shares of the Trust.
See “The Trust and TRX Prices” for more information.

Competition

As of ________, 202_, more
than ____ other digital assets, as tracked by CoinMarketCap.com, have been developed since the inception of bitcoin, which is currently
the most developed digital asset because of the length of time it has been in existence, the investment in the infrastructure that supports
it, and the network of individuals and entities that are using bitcoin in transactions. While TRX has enjoyed some success in its limited
history, the aggregate value of outstanding TRX is smaller than that of bitcoin and may be eclipsed by the more rapid development of other
digital assets.

Regulation of TRX and Government Oversight

digital assets have grown in both popularity and market size, the U.S. Congress and a number of U.S. federal and state agencies (including
FinCEN, SEC, CFTC, the Financial Industry Regulatory Authority (“FINRA”), the Consumer Financial Protection Bureau (“CFPB”),
the Department of Justice, the Department of Homeland Security, the Federal Bureau of Investigation, the IRS and state financial institution
and securities regulators) have been examining the operations of digital asset networks, digital asset users and the digital asset markets,
with particular focus on the extent to which digital assets can be used to launder the proceeds of illegal activities or fund criminal
or terrorist enterprises, and the safety and soundness of exchanges or other service providers that hold or have custody of digital assets
for users. Many of these state and federal agencies have issued consumer advisories regarding the risks posed to investors by digital
assets. President Trump’s January 23, 2025 Executive Order, titled “Strengthening American Leadership in Digital Financial
Technology, aimed to reorient the federal governments approach to digital assets. The Executive Order emphasized the importance of the
digital asset industry in innovation and economic development, and outlined policies to support the growth and use of digital assets,
blockchain technology and related technologies. President Trump’s order also revoked former President Biden’s March 9, 2022
Executive Order, titled, “Responsible Development of Digital Assets” and the U.S. Department of Treasury’s July 7, 2022
“Framework for International Engagement of Digital Assets” and all policies, directives and guidance issued pursuant to those
items produced by the previous administration.

On January 21, 2025, the SEC’s
acting Chairman Mark T. Uyeda announced the SEC Crypto Task Force. The task force has an objective of developing a comprehensive and clear
regulatory framework for crypto assets. The task force also seeks to establish a practical and achievable process for registration of
digital assets and design clearly defined disclosure requirements and frameworks.

addition, the previous chair of the SEC has stated that the SEC has authority under existing laws to regulate the digital asset sector,
and the SEC, U.S. state securities regulators and several foreign governments have issued warnings and instituted legal proceedings in
which they argue that certain digital assets may be classified as securities and that both those digital assets and any related initial
coin offerings are subject to securities regulations. The outcomes of these proceedings, as well as ongoing and future regulatory actions,
may alter, perhaps to a materially adverse extent, the nature of an investment in the Shares or the ability of the Trust to continue to
operate. Additionally, U.S. state and federal, and foreign, regulators and legislatures have taken action against virtual currency businesses
or enacted restrictive regimes in response to adverse publicity arising from hacks, consumer harm, or criminal activity stemming from
virtual currency activity.

The
SEC has also recently proposed amendments to the custody rules under Rule 206(4)-2 of the Investment Advisers Act. The proposed rule changes
would amend the definition of a “qualified custodian” under Rule 206(4)-2(d)(6) and expand the current custody rule under
Rule 206(4)-2 to cover digital assets and related advisory activities. If enacted as proposed, these rules would likely impose additional
regulatory requirements with respect to the custody and storage of digital assets and could lead to additional regulatory oversight of
the digital asset ecosystem more broadly. In addition, it is possible the market turbulence in late 2022, which led to the failure of
FTX Trading Ltd. (“FTX”) in November 2022 and the resulting market turmoil, could lead to increased SEC, CFTC, or other governmental
investigations, enforcement, and/or other regulatory activity across the digital asset ecosystem.

Various
foreign jurisdictions have adopted and may continue in the near future to adopt laws, regulations or directives that affect a digital
asset network, the digital asset markets, and their users, particularly digital asset exchanges and service providers that fall within
such jurisdictions’ regulatory scope. For example: