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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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

Certain
U.S. Shareholders, who are individuals, are required to pay a 3.8% tax on the lesser of the excess of their modified adjusted gross income
over a threshold amount ($250,000 for married persons filing jointly and $200,000 for single taxpayers) or their “net investment
income,” which generally includes capital gains from the disposition of property. This tax is in addition to any capital gains taxes
due on such investment income. A similar tax applies to estates and trusts. U.S. Shareholders should consult their own tax advisers regarding
the effect, if any, this tax may have on their investment in the Shares.

Brokerage Fees and Trust Expenses

Any
brokerage or other transaction fee incurred by a Shareholder in purchasing Shares will be treated as part of the Shareholder’s tax
basis in the underlying assets of the Trust. Similarly, any brokerage fee incurred by a Shareholder in selling Shares will reduce the
amount realized by the Shareholder with respect to the sale.

For
tax years beginning after December 31, 2025, noncorporate taxpayers may deduct certain miscellaneous itemized deductions only to the extent
they exceed in the aggregate 2% of the taxpayer’s adjusted gross income.

Investment by Certain Retirement
Plans

Individual
retirement accounts (“IRAs”) and participant-directed accounts under tax-qualified retirement plans are limited in the types
of investments they may make under the Code. Potential purchasers of Shares that are IRAs or participant-directed accounts under a Code
section 401(a) plan should consult with their own tax advisors as to the tax consequences of a purchase of Shares.

United States Information Reporting
and Backup Withholding; Tax Return Reporting for Cryptocurrency

The
Trustee will file certain information returns with the IRS, and provide certain tax-related information to Shareholders, in connection
with the Trust. To the extent required by applicable regulations, each Shareholder will be provided with information regarding its allocable
portion of the Trust’s annual income, expenses, gains and losses (if any). A U.S. Shareholder may be subject to United States backup
withholding tax in certain circumstances unless it provides its taxpayer identification number and complies with certain certification
procedures. Non-U.S. Shareholders may have to comply with certification procedures to establish that they are not a United States person,
and some Non-U.S. Shareholders may be required to meet certain information reporting or certification requirements imposed by Code requirements
popularly referred to as “FATCA” in order to avoid certain information reporting and withholding tax requirements.

The
amount of any backup withholding will be allowed as a credit against a Shareholder’s U.S. federal income tax liability and may entitle
the Shareholder to a refund, provided that the required information is furnished to the IRS in a timely manner.

Individual
U.S. Shareholders will be required to report on their federal income tax return the receipt, acquisition, sale, or exchange of any financial
interest in virtual currency, which includes a Shareholder’s interest in TRX held by the Trust.

Taxation of Authorized
Participants

If an Authorized
Participant invests in the Trust on its own behalf, the Authorized Participant will generally recognize income, gain, loss or deduction
as described for U.S. Shareholders. If an Authorized Participant is acting as agent for one or more other persons, who are the beneficial
owners of the Shares, the Authorized Participant will be obligated to issue an information statement to the beneficial owners, who will
recognize the consequences described above for U.S. Shareholders.

Taxation in Jurisdictions Other
Than the United States

Prospective
purchasers of Shares that are based in or acting out of a jurisdiction other than the United States are advised to consult their own tax
advisers as to the tax consequences under the laws of such jurisdiction (or any other jurisdiction other than the United States in which
they are subject to taxation) of their purchase, holding, sale and redemption of or any other dealing in Shares and, in particular, as
to whether any value added tax, other consumption tax or transfer tax is payable in relation to such purchase, holding, sale, redemption
or other dealing.

The
foregoing is only a general summary of the material U.S. federal income tax consequences associated with the purchase, ownership and disposition
of Shares by a U.S. Shareholder. Each prospective Shareholder should consult the Shareholder’s own tax advisor concerning the U.S.
federal, state, local, and non-U.S. tax considerations relevant to an investment in Shares in the Shareholder’s particular tax situation.

PROSPECTIVE
SHAREHOLDERS ARE URGED TO CONSULT THEIR LEGAL AND TAX ADVISERS BEFORE DECIDING WHETHER TO INVEST IN THE SHARES OF THE TRUST.

PURCHASES
BY EMPLOYEE BENEFIT PLANS

The
Employee Retirement Income Security Act of 1974 (“ERISA”) and/or Section 4975 of the Code impose certain requirements
on: (i) employee benefit plans and certain other plans and arrangements, including individual retirement accounts and annuities,
Keogh plans and certain collective investment funds or insurance company general or separate accounts in which such plans or
arrangements are invested, that are subject to Title I of ERISA and/or Section 4975 of the Code (collectively, “Plans”);
and (ii) persons who are fiduciaries with respect to the investment of assets treated as “plan assets” within the
meaning of U.S. Department of Labor (the “DOL”) regulation 29 C.F.R. § 2510.3-101, as modified by Section 3(42) of
ERISA (the “Plan Assets Regulation”), of a Plan. Investments by Plans are subject to the fiduciary requirements and the
applicability of prohibited transaction restrictions under ERISA and the Code. It is anticipated that the Shares will constitute
“publicly-held offered securities” as defined in the Department of Labor Regulations § 2510.3-101(b)(2).
Accordingly, Shares purchased by a Plan, and not the Plan’s interest in the underlying TRX held in the Trust represented by
the Shares, should be treated as assets of the Plan, for purposes of applying the “fiduciary responsibility” and
“prohibited transaction” rules of ERISA and the Code.

“Governmental
plans” within the meaning of Section 3(32) of ERISA, certain “church plans” within the meaning of Section 3(33) of ERISA
and “non-U.S. plans” described in Section 4(b)(4) of ERISA, while not subject to the fiduciary responsibility and prohibited
transaction provisions of Title I of ERISA or Section 4975 of the Code, may be subject to any federal, state, local, non-U.S. or other
law or regulation that is substantially similar to the foregoing provisions of ERISA and the Code. Fiduciaries of any such plans are advised
to consult with their counsel prior to an investment in the Shares.

contemplating an investment of a portion of Plan assets in the Shares, the Plan fiduciary responsible for making such investment should
carefully consider, taking into account the facts and circumstances of the Plan, the “Risk Factors” discussed above and whether
such investment is consistent with its fiduciary responsibilities. The Plan fiduciary should consider, among other issues, whether: (1)
the fiduciary has the authority to make the investment under the appropriate governing plan instrument; (2) the investment would constitute
a direct or indirect non-exempt prohibited transaction with a “party in interest” or “disqualified person” within
the meaning of ERISA and Section 4975 of the Code respectively; (3) the investment is in accordance with the Plan’s funding objectives;
and (4) such investment is appropriate for the Plan under the general fiduciary standards of investment prudence and diversification,
taking into account the overall investment policy of the Plan, the composition of the Plan’s investment portfolio and the Plan’s
need for sufficient liquidity to pay benefits when due. When evaluating the prudence of an investment in the Shares, the Plan fiduciary
should consider the DOL’s regulation on investment duties, which can be found at 29 C.F.R. § 2550.404a-1.

investing, each Plan shall be deemed to acknowledge and agree that: (a) none of the Sponsor, the Trustee, the Custodian or any
of their respective affiliates (the “Transaction Parties”) has through this Prospectus and related materials provided
any investment advice within the meaning of Section 3(21) of ERISA to the Plan in connection with the decision to purchase, acquire,
hold or dispose of such Shares; and (b) the information provided in this Prospectus and related materials will not make a Transaction
Party a fiduciary to the Plan.

INFORMATION YOU
SHOULD KNOW