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

Chunk 40 of 63
Word Count: 1275
Character Count: 7943

Document Content:

in the table below: Aggregate Trading Volume of TRX-USD Markets Pricing Benchmark Constituent Platforms Period ____ ____ ____ The market share for TRX-USD trading of the Constituent Platforms over the past four calendar quarters is shown in the table below: TRX Trading Platform Market Share of TRX-USD Trading Period ____ ____ ____ COINDESK DATA IS USED UNDER LICENSE AS A SOURCE OF INFORMATION FOR THE TRUST’S PRODUCTS. COINDESK, ITS AGENTS AND LICENSORS HAVE NO OTHER CONNECTION TO THE TRUST’S PRODUCTS AND SERVICES AND DOES NOT SPONSOR, ENDORSE, RECOMMEND OR PROMOTE ANY OF THE TRUST’S PRODUCTS OR SERVICES. COINDESK, ITS AGENTS AND LICENSORS HAVE NO OBLIGATION OR LIABILITY IN CONNECTION WITH THE TRUST’S PRODUCTS AND SERVICES. COINDESK, ITS AGENTS AND LICENSORS DO NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF ANY INDEX LICENSED TO THE TRUST AND SHALL NOT HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN.] Trust Structure

The
Trust is a statutory trust formed under the Delaware Statutory Trust Act, and the Trust Agreement constitutes the “governing
instrument” of the Trust under the laws of the State of Delaware relating to statutory trusts. The Trust holds TRX and is
expected from time to time to issue Baskets in exchange for deposits of cash and to distribute cash in connection with redemptions
of Baskets. The Trust’s primary investment objective is to seek to provide exposure to the price of TRX held by the Trust,
less the expenses of the Trust’s operations and other liabilities. A secondary investment objective is for the Trust to earn
additional TRX through its participation in the Staking Program administered by the Sponsor, in which staking rewards will be earned
through the validation of transactions on the Tron Network. In seeking to achieve its investment objectives, the Trust will hold
TRX and establish its NAV by reference to the Pricing Benchmark.

The
Sponsor believes the Trust is a straight-forward solution to seek its investment objectives. Besides cash received in connection
with purchase orders of Baskets, the Trust’s sole asset is expected to be TRX held with the Custodian. The Sponsor believes
that the Pricing Benchmark is a representative value for the USD-TRX price of TRX, based on the methodology administered by the
Benchmark Provider.

The
Trust processes and pays its only ordinary expense (the Sponsor Fee) in TRX. The Trust will only sell TRX (1) in connection with the redemption
of Baskets for cash, (2) on an as-needed basis to pay Trust expenses not assumed by the Sponsor, (3) in the event the Trust terminates
and liquidates its assets, or (4) as otherwise required by law or regulation. This restriction provides protection against potential attempts
by bad actors to manipulate the operation of the Trust based on how the Trust calculates its NAV.

Investors
may obtain on a 24-hour basis TRX pricing information based on the spot price for one TRX from various financial information service
providers. Current spot prices are also generally available with bid/ask spreads from digital asset trading platforms, including
the Constituent Platforms. Market prices for the Shares are available from a variety of sources including brokerage firms, information
websites and other information service providers. The NAV of the Trust is published by the Sponsor at the Trust’s website
(https://canaryetfs.com) on each day that the Exchange is open for regular trading and is posted on the Trust’s website.

CALCULATION
OF NAV

Under
normal circumstances, the Trust’s only asset will be TRX and, under limited circumstances, cash. The Trust’s TRX is carried,
for financial statement purposes, at fair value, as required by the U.S. generally accepted accounting principles (“GAAP”).
The Trust’s NAV will be determined by the Administrator once each Exchange trading day at 4:00 p.m. Eastern time (“ET”),
or as soon thereafter as practicable. The NAV for a normal trading day will be released after 4:00 p.m. ET. Trading during the core trading
session on the Exchange typically closes at 4:00 p.m. ET. However, NAVs are not officially struck until later in the day (often by 5:30
p.m. and almost always by 8:00 p.m.). The pause between 4:00 p.m. and 5:30 p.m. (or later) provides an opportunity for the Sponsor to
algorithmically detect, flag, investigate, and correct unusual pricing should it occur.

The
Administrator will calculate the NAV of the Trust by multiplying the number of TRX held by the Trust by the Pricing Benchmark for such
day, adding any additional receivables and subtracting the accrued but unpaid expenses and liabilities of the Trust. The Trust’s
NAV per Share is calculated by dividing the Trust’s NAV by the number of Shares then outstanding. The Administrator will determine
the price of the Trust’s TRX by reference to the Pricing Benchmark, which is published between 4:00 p.m. and 4:30 p.m. ET on every
calendar day. The methodology used to calculate the Pricing Benchmark price to value TRX in determining the NAV of the Trust may not be
deemed consistent with GAAP. To the extent the methodology used to calculate the Pricing Benchmark is deemed inconsistent with GAAP, the
Trust will utilize an alternative GAAP-consistent pricing source for purposes of the Trust’s periodic financial statements.

The
Sponsor has the exclusive authority to determine the NAV of the Trust. The Sponsor has delegated to the Administrator the responsibility
to calculate the NAV of the Trust and the NAV, based on a pricing source selected by the Sponsor (the Pricing Benchmark). The Administrator
will determine the NAV of the Trust each business day. In determining the NAV of the Trust, the Administrator values the TRX held by the
Trust based on the Pricing Benchmark, unless otherwise determined by the Sponsor in its sole discretion. If the Pricing Benchmark is not
available or the Sponsor in its sole discretion determines that the Pricing Benchmark should not be used, the Trust’s holdings may
be fair valued in accordance with the policy approved by the Sponsor. The Sponsor does not anticipate that the need to “fair value”
TRX will be a common occurrence.

The
Sponsor reserves the right to adjust the Share price of the Trust in the future to maintain convenient trading ranges for investors. Any
adjustments would be accomplished through stock splits or reverse stock splits. Such splits would decrease (in the case of a split) or
increase (in the case of a reverse split) the proportionate NAV per Share, but would have no effect on the net assets of the Trust or
the proportionate voting rights of Shareholders or the value of any Shareholder’s investment.

The
Trust’s periodic financial statements may not utilize the NAV of the Trust determined by reference to the Pricing Benchmark to the
extent the methodology used to calculate the Pricing Benchmark is deemed not to be consistent with GAAP. The Trust’s periodic financial
statements will be prepared in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification
Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”) and utilize an exchange-traded price from
the Trust’s principal market for TRX on the Trust’s financial statement measurement date. The Sponsor will determine in its
sole discretion the valuation sources and policies used to prepare the Trust’s financial statements in accordance with GAAP. The
Trust intends to engage a third-party vendor to obtain a price from a principal market for TRX, which will be determined and designated
by such third-party vendor daily based on its consideration of several exchange characteristics, including oversight, and the volume and
frequency of trades. Under GAAP, such a price is expected to be deemed a Level 1 input in accordance with the ASC Topic 820 because it
is expected to be a quoted price in active markets for identical assets or liabilities.