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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and likely insolvency, which were subsequently corroborated by its CEO. Shortly thereafter, FTX’s CEO resigned and FTX and many of its affiliates filed for bankruptcy in the United States, while other affiliates have entered insolvency, liquidation, or similar proceedings around the globe, following which the U.S. Department of Justice brought criminal fraud and other charges, and the SEC and CFTC brought civil securities and commodities fraud charges, against certain of FTX’s and its affiliates’ senior executives, including its former CEO. In addition, several other entities in the digital asset industry filed for bankruptcy following FTX’s bankruptcy filing, such as BlockFi Inc. and Genesis Global Capital, LLC (“Genesis”). In response to these events (collectively, the “2022 Events”), the digital asset markets have experienced extreme price volatility and other entities in the digital asset industry have been, and may continue to be, negatively affected, further undermining confidence in the digital asset markets.

For
example, some sources report the price of Solana declined 94% overall in 2022, including over 50% in the two months following
FTX’s declaration of bankruptcy. The 2022 events have also negatively impacted the liquidity of the digital asset markets as
certain entities affiliated with FTX engaged in significant trading activity. If the liquidity of the digital asset markets
continues to be negatively impacted by these events, digital asset prices, including TRX, may continue to experience significant
volatility or price declines and confidence in the digital asset markets may be further undermined. In addition, regulatory and
enforcement scrutiny has increased, including from, among others, the Department of Justice, the SEC, the CFTC, the White House and
Congress, as well as state regulators and authorities. These events are continuing to develop and the full facts are continuing to
emerge. It is not possible to predict at this time all of the risks that they may pose to the Trust, its service providers or to the
digital asset industry as a whole.

Extreme
volatility in the future, including further declines in the trading prices of TRX, could have a material adverse effect on the value of
the Shares and the Shares could lose all or substantially all of their value. Furthermore, negative perception, a lack of stability and
standardized regulation in the digital asset economy may reduce confidence in the digital asset economy and may result in greater volatility
in the price of TRX and other digital assets, including a depreciation in value. The Trust is not actively managed and will not take any
actions to take advantage, or mitigate the impacts, of volatility in the price of TRX.

The
Value Of The Shares Depends On The Development And Acceptance Of The Tron Network. The Slowing Or Stopping Of The Development Or Acceptance
Of The Tron Network May Adversely Affect An Investment In The Trust.

Digital
assets such as TRX were only introduced within the past decade, and the medium-to-long term value of the Shares is subject to a number
of factors relating to the capabilities and development of the Tron Network and other digital asset networks, such as the infancy of their
development, their dependence on the internet and other technologies, their dependence on the role played by nodes, miners, stakers and
developers and the potential for malicious activity. For example, the realization of one or more of the following risks could materially
adversely affect the value of the Shares:

•	Digital asset networks and the software used to operate them are in the early stages
of development. Digital assets have experienced, and the Sponsor expects will experience in the future, sharp fluctuations in value. Given
the infancy of the development of digital asset networks, parties may be unwilling to transact in digital assets, which would dampen the
growth, if any, of digital asset networks.

•	The trading prices of many digital assets, including TRX, are derived from a variety
of factors including supply and demand for TRX, as well as more indirect and macro factors such as interest rates, monetary policy, broader
market uncertainty and geopolitical, social and economic events.

•	The trading prices of many digital assets, including TRX, have experienced extreme
volatility in recent periods and may continue to do so. For instance, there were steep increases in the value of certain digital assets
over the course of 2017, and multiple market observers asserted that digital assets were experiencing a “bubble.” These increases
were followed by steep drawdowns throughout 2018 in digital asset trading prices. These drawdowns notwithstanding, bitcoin and other digital
asset prices have increased again since 2019, despite significant drawdowns in early 2020 amidst broader market declines as a result of
the then novel coronavirus outbreak. Digital asset markets may still be experiencing a bubble or may experience a bubble again in the
future. Extreme volatility in the future, including further declines in the trading prices of TRX, could have a material adverse effect
on the value of the Shares and the Shares could lose all or substantially all of their value.

•	Digital asset networks are dependent upon the internet. A disruption of the internet
or a digital asset network, such as the Tron Network, would affect the ability to transfer digital assets, including TRX, and, consequently,
their value.

•	The loss or destruction of a private key required to access a digital asset such
as TRX may be irreversible. If private keys associated with the Trust Trust are lost, destroyed or otherwise compromised and no backup
of the private key is accessible, the Trust will be unable to access the TRX held in the Trust TRX Account that
correspond to such private keys and the private keys will not be capable of being restored by the Tron Network.

•	Nodes, developers and users may switch to or adopt certain digital assets at the
expense of their engagement with other digital asset networks, which may negatively impact those networks, including the Tron Network.

•	Many digital asset networks, including TRX, face significant scaling challenges
and are being upgraded with various features to increase the speed and throughput of digital asset transactions. These attempts to increase
the volume of transactions may not be effective. Because the Tron Network also relies on cross-chain communication to process transactions
between blockchains, delays can occur if there are bottlenecks in transaction finality on the source or destination chain or if TRX validators
take longer than expected to process a transaction.

•	The open-source structure of TRX services codebase, means that developers and other
contributors are generally not directly compensated for their contributions in maintaining and developing such protocols. As a result,
the developers and other contributors of a particular digital asset may lack a financial incentive to maintain or develop the network,
or may lack the resources to adequately address emerging issues. Alternatively, some developers may be funded by companies whose interests
are at odds with other participants in a particular digital asset network. A failure to properly monitor and upgrade the protocol of the
Tron Network could damage that network.

•	Bitcoin has only become selectively accepted as a means of payment by retail and
commercial outlets, and commercial use of bitcoin remains limited in commercial and retail ventures. Instead, TRX is largely used for
DeFi and token offering solutions launched on the Tron Network, the use of which may be cyclical and result in demand volatility. As a
result, the prices of TRX are largely determined by DeFi and token use, and by speculators, thus contributing to price volatility that
makes retailers less likely to accept it as a form of payment in the future.

•	Banks may not provide banking services, or may cut off banking services, to businesses
that provide digital asset-related services or that accept digital assets as payment, which could dampen liquidity in the market and damage
the public perception of digital assets generally or any one digital asset in particular, such as TRX, and their or its utility as a payment
system, which could decrease the price of digital assets generally or individually.

Moreover,
because digital assets, including TRX, have been in existence for a short period of time and are continuing to develop, there may be additional
risks in the future that are impossible to predict as of the date of this Prospectus.

Digital
Assets Represent A New And Rapidly Evolving Industry, And The Value Of The Shares Depends On The Acceptance Of TRX.

The
first major blockchain-based digital asset, bitcoin, was launched in 2009. The Tron Network launched in 2018. In general, digital asset
networks, including the Tron Network and other cryptographic and algorithmic protocols governing the issuance of digital assets represent
a new and rapidly evolving industry that is subject to a variety of factors that are difficult to evaluate. For example, the realization
of one or more of the following risks could materially adversely affect the value of the Shares: