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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that the Shares have been received in the Transfer Agent’s DTC account, the Administrator instructs the TRX Custodian to transfer cash amount from the Trust’s Cash Custodian account to the Authorized Participant. For a Cash Redemption Order, the redemption distribution due from the Trust will be sent by the Cash Custodian to the Authorized Participant on the following business day or such later time as may be agreed upon by the Authorized Participant and the Sponsor, following the Redemption Order Date if, by 4:00 p.m. EST, on such business day, the Transfer Agent’s DTC account has been credited with the Baskets to be redeemed. If the Transfer Agent’s DTC account has not been credited with all of the Baskets to be redeemed by such time, the redemption distribution will be cancelled or delayed until such time as the Transfer Agent confirms receipt of all such Shares. Rejection of Redemption Orders

Redemption
orders must be made in whole Baskets. The Distributor acting by itself or through the person authorized to take redemption orders in the
manner provided in the Authorized Participant Agreement may, in its sole discretion, reject any redemption order (1) the Sponsor determines
not to be in proper form or (2) if requested by the Distributor, the Authorized Participant fails to deliver or execute supporting documentation
evidencing ownership or the Authorized Participant’s right to deliver sufficient Shares.

Suspension of Orders

The
Sponsor may, in its discretion, suspend redemption or creation transactions during any period when the transfer books of the Transfer
Agent are closed or if circumstances outside the control of the Sponsor or its delegate make it for all practicable purposes not feasible
to process Redemption Orders or for any other reason at any time or from time to time. For example, the Sponsor may determine that it
is necessary to suspend redemptions to allow for the orderly liquidation of the Trust’s assets. If the Sponsor has difficulty liquidating
the Trust’s positions, e.g., because of a market disruption event or an unanticipated delay in the liquidation of a position in
an over-the-counter contract, it may be appropriate to suspend creations and redemptions until such time as such circumstances are rectified.
Neither the Distributor, the person authorized to take redemption orders in the manner provided in the Authorized Participant Agreement,
nor the TRX Custodian will be liable to any person or in any way for any loss or damages that may result from any such suspension or postponement.
Any such suspension may cause to price of the Shares to deviate more significantly from the Trust’s NAV per Share than would be
the case if such suspension had not occurred. The Trust will notify Shareholders of any such suspension in a Prospectus supplement and/or
a current report on Form 8-K or in its annual or quarterly reports.

Creation and Redemption Transaction
Fees

connection with a Cash Creation Order or Cash Redemption Order, an Authorized Participant is responsible for the Transaction Fee, which
consist of the operational processing and brokerage costs, transfers fees, network fees and stamp taxes. The Transaction Fee may be reduced,
increased or otherwise changed by the Sponsor.

Tax Responsibility

Authorized
Participants are responsible for any transfer tax, sales or use tax, stamp tax, recording tax, value added tax or similar tax or governmental
charge applicable to the creation or redemption of baskets, regardless of whether or not such tax or charge is imposed directly on the
Authorized Participant, and agree to indemnify the Sponsor and the Trust if they are required by law to pay any such tax, together with
any applicable penalties, additions to tax and interest thereon.

Secondary Market Transactions

noted, the Trust will create and redeem Shares from time to time, but only in one or more Baskets. The creation and redemption of baskets
are only made in exchange for delivery to the Trust or the distribution by the Trust of the amount of cash equal to the number of Shares
included in the Baskets being created or redeemed determined on the day the order to create or redeem Baskets is properly received.

discussed above, Authorized Participants are the only persons that may place orders to create and redeem Baskets. Authorized Participants
must be registered broker-dealers or other securities market participants, such as banks and other financial institutions that are not
required to register as broker-dealers to engage in securities transactions. An Authorized Participant is under no obligation to create
or redeem Baskets, and an Authorized Participant is under no obligation to offer to the public Shares of any Baskets it does create.

Authorized
Participants that do offer to the public Shares from the Baskets they create will do so at per-Share offering prices that are expected
to reflect, among other factors, the trading price of the Shares on the Exchange, the NAV of the Trust at the time the Authorized Participant
purchased the Baskets, the NAV of the Shares at the time of the offer of the Shares to the public, the supply of and demand for Shares
at the time of sale, and the liquidity of TRX. Baskets are generally redeemed when the price per Share is at a discount to the NAV per
Share. Shares initially comprising the same basket but offered by Authorized Participants to the public at different times may have different
offering prices. An order for one or more Baskets may be placed by an Authorized Participant on behalf of multiple clients. Authorized
Participants who make deposits with the Trust in exchange for Baskets receive no fees, commissions or other forms of compensation or inducement
of any kind from either the Trust or the Sponsor and no such person has any obligation or responsibility to the Sponsor or the Trust to
effect any sale or resale of Shares.

Shares
are expected to trade in the secondary market on the Exchange. Shares may trade in the secondary market at prices that are lower or higher
relative to their NAV per Share. The amount of the discount or premium in the trading price relative to the NAV per Share may be influenced
by various factors, including the number of Shareholders who seek to purchase or sell Shares in the secondary market and the liquidity
of TRX.

USE OF PROCEEDS

Proceeds
received by the Trust from the issuance of Baskets consist of cash. Deposits of cash are held by the Cash Custodian on behalf of the Trust
until (i) transferred in connection with the purchase of TRX, (ii) delivered out in connection with redemptions of Baskets or (iii) transferred
to pay fees due to the Sponsor and Trust expenses and liabilities not assumed by the Sponsor.

When
the Trust uses cash proceeds from creation transactions to purchase TRX, the Trust will receive TRX from a third party that is not
an Authorized Participant. The Trust—not any Authorized Participant—is responsible for selecting the third party to
deliver the TRX. Furthermore, the third party will not be acting as an agent of any Authorized Participant with respect to the
delivery of the TRX to the Trust or acting at the direction of any Authorized Participant with respect to the delivery of the TRX to
the Trust. The Trust will redeem Shares by delivering TRX to a third party that is not an Authorized Participant. The
Trust—not any Authorized Participant—is responsible for selecting the third party to receive the TRX. In addition, the
third party will not be acting as an agent of any Authorized Participant with respect to the receipt of the TRX from the Trust or
acting at the direction of any Authorized Participant with respect to the receipt of the TRX from the Trust. The third party will be
unaffiliated with the Trust and the Sponsor.

OWNERSHIP
OR BENEFICIAL INTEREST IN THE TRUST

The
beneficial interest in the Trust is divided into Shares. Each Share of the Trust represents an equal beneficial interest in the net assets
of the Trust, and each holder of Shares is entitled to receive such holder’s pro rata share of distributions of income and capital
gains, if any.

All
Shares are fully paid and non-assessable. No Share will have any priority or preference over any other Share of the Trust. All distributions,
if any, will be made ratably among all Shareholders from the assets of the Trust according to the number of Shares held of record by such
Shareholders on the record date for any distribution or on the date of termination of the Trust, as the case may be. Except as otherwise
provided by the Sponsor, Shareholders will have no preemptive or other right to subscribe to any additional Shares or other securities
issued by the Trust.