10-Q: Canary Staked SUI ETF Reports Q2 2026 Results, NAV Declines

Canary Staked SUI ETF (SUIS) reported a significant decrease in Net Asset Value (NAV) for the second quarter ended June 30, 2026, primarily driven by a substantial decline in the price of SUI.

Summary

• The Canary Staked SUI ETF experienced a decrease in Net Asset Value (NAV) from $24,184,075 to $20,395,119 during the second quarter of 2026.
• This decline was attributed to a 21.01% depreciation in the price of SUI, which fell from $0.88 to $0.70.
• Net Asset Value per Share decreased by 20.89% from $22.82 to $18.05.
• The Trust generated $91,814 in staking income but incurred $47,514 in Sponsor Fees.
• The total decrease in net assets from operations for the quarter was $(5,154,333), largely due to unrealized losses on SUI investments.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative score due to significant unrealized losses and a substantial decrease in Net Asset Value per Share, reflecting the volatility of the underlying asset.

Positives

• The Trust earned $91,814 in staking income during the three months ended June 30, 2026.
• 70,000 Shares were created during the quarter, indicating continued investor interest in acquiring exposure to SUI.
• The Sponsor continues to waive Sponsor Fees for periods not covered by waivers, and covers certain expenses up to $200,000 annually.

Negatives

• The Net Asset Value (NAV) of the Trust decreased by $3,788,956 during the quarter, from $24,184,075 to $20,395,119.
• Net Asset Value per Share declined significantly by 20.89% from $22.82 to $18.05.
• The value of SUI investments experienced a substantial unrealized loss of $5,196,026 during the quarter.
• The Trust incurred net realized losses of $2,607 on the disposition of SUI.
• The highest NAV per Share during the quarter was $34.22, with a low of $17.42, indicating significant price volatility.

Risks

• Substantially all of the Trust's assets are holdings of SUI, creating concentration risk associated with fluctuations in the price of SUI.
• A decline in the price of SUI will have an adverse effect on the value of the Shares of the Trust.
• Factors that may cause a decline in the price of SUI include negative perception of digital assets, lack of stability and regulation in digital asset markets, closure of digital asset platforms, and loss of investor confidence.

Future Outlook

The Trust's investment objective is to provide exposure to the price of SUI and earn additional SUI through staking. The future performance is directly tied to the price movements of SUI and the effectiveness of its staking operations.

Management Comments

• The Trust's investment objective is to seek to provide exposure to the price of Sui (SUI) held by the Trust, less the expenses of the Trusts operations and other liabilities.
• A secondary investment objective is for the Trust to earn additional SUI through the validation of transactions in the SUI networks (the SUI Network) proof-of-stake (PoS) process.
• The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor Fee for stated periods of time.
• The Sponsor is under no obligation to waive any portion of its fees, and any such waiver shall create no obligation to waive any such fees during any period not covered by the waiver.

Industry Context

StockSavvy.ai notes that the performance of the Canary Staked SUI ETF is highly correlated with the price volatility of the SUI cryptocurrency. The broader digital asset market has experienced significant fluctuations, impacting the value of crypto-focused ETFs.

Comparison to Industry Standards

• The expense ratio of 0.75% is standard for actively managed cryptocurrency ETFs focused on staking rewards.
• The significant negative total return (-20.89% at NAV for the quarter) reflects the broader market downturn in digital assets during the period, which affected many cryptocurrency-related investment vehicles.
• Competitors in the crypto ETF space often face similar challenges with asset price volatility and regulatory uncertainty.

Legal Proceedings

• None disclosed.

Related Party Transactions

• The Sponsor, Canary Capital Group LLC, provides management services and receives a Sponsor Fee of 0.75% of the Trust's SUI Holdings.
• The Sponsor pays for certain Trust expenses up to $200,000 per fiscal year.
• Employees of PINE Advisors LLC serve as officers of the Trust, with the Sponsor paying PINE an annual fee and reimbursing out-of-pocket expenses.

Stakeholder Impact

• Shareholders have experienced a significant decrease in the value of their investment due to the decline in SUI's price.
• The Trust's ability to generate staking rewards is crucial for offsetting expenses and potentially increasing returns for shareholders.
• The Sponsor's role in managing expenses and potentially waiving fees impacts the net returns for shareholders.

Next Steps

• The Trust will continue to seek to provide exposure to the price of SUI and earn additional SUI through staking.
• The Sponsor will manage the Trust's assets and operations in accordance with the Trust Agreement and prospectus.
• The Trust will continue to calculate its NAV daily and publish its holdings.

Key Dates

Recommendation

The filing indicates significant unrealized losses and a substantial decrease in NAV per share, driven by the volatility of SUI. While staking income provides some offset, the overall performance is heavily dependent on the underlying cryptocurrency's price. Given the current market conditions and the inherent risks of digital assets, a 'hold' recommendation is appropriate for investors who understand and can tolerate the volatility.

Keywords

SUI, Staked SUI, Cryptocurrency ETF, Digital Assets, Proof-of-Stake, Exchange Traded Fund, NAV, Staking Rewards