10-Q: Canary Staked SUI ETF Reports Strong Q3 Performance

Canary Staked SUI ETF's Q3 2026 report shows significant net asset value growth, primarily due to a substantial appreciation in SUI value and successful staking rewards.

Summary

• The Canary Staked SUI ETF reported a significant increase in net asset value (NAV) for the quarter ended September 30, 2026.
• Total assets grew to $34,834,589, with liabilities at $947,437, resulting in a net asset value of $33,887,152.
• The NAV per Share increased by 64.70% to $29.73 for the quarter, reaching a high of $29.73 and a low of $17.04.
• The primary driver of this growth was the appreciation of the SUI cryptocurrency, which increased by 65.04% during the quarter.
• Staking income contributed positively to the results, with $77,954 earned in the three months ended September 30, 2026.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive report, driven by strong performance in the underlying SUI asset and effective staking operations, despite operational expenses.

Positives

• Significant appreciation in the value of SUI, increasing by 65.04% during the quarter, driving NAV growth.
• Successful generation of staking income, totaling $77,954 for the three months ended September 30, 2026.
• Net asset value per share saw a substantial increase of 64.70% for the quarter.
• The Trust successfully managed creations and redemptions, with a net increase of 10,000 shares during the quarter.

Negatives

• Total expenses for the three months ended September 30, 2026, were $122,924, exceeding staking income.
• The Trust incurred $80,339 in Excluded Expenses, which are not covered by the Sponsor's fee cap.
• Net investment income for the quarter was a loss of $44,970.

Risks

• Substantially all of the Trust's assets are holdings of SUI, creating concentration risk associated with fluctuations in the price of SUI.
• Negative perception of digital assets, lack of stability and regulation in digital asset markets, and potential closure of platforms due to fraud, business failure, or security breaches could adversely affect SUI prices.
• The value of Shares can trade at a premium or discount relative to the Trust's NAV due to market conditions and supply/demand for Shares.

Future Outlook

The Trust's investment objective is to provide exposure to the price of SUI and earn additional SUI through staking. The Sponsor anticipates continued operations based on the SUI Network's proof-of-stake process, subject to market conditions and operational expenses.

Management Comments

• The Trust's net asset value increased from $20,395,119 at June 30, 2026, to $33,887,152 at September 30, 2026.
• The net asset value per Share increased 64.70% from $18.05 at June 30, 2026, to $29.73 at September 30, 2026.
• The increase in net assets from operations for the quarter ended September 30, 2026, was $13,196,495.

Industry Context

StockSavvy.ai notes that the performance of the Canary Staked SUI ETF is highly correlated with the price movements of the SUI cryptocurrency. The ETF's strategy of earning additional SUI through staking is a common approach in the digital asset space to generate yield, but it is subject to the volatility inherent in the underlying digital asset and the operational costs of the fund.

Comparison to Industry Standards

• The expense ratio for the three months ended September 30, 2026, was 2.16% (annualized), which is on the higher side compared to traditional ETFs but may be within the range for actively managed crypto-focused funds.
• The total return at NAV of 64.70% for the quarter significantly outperformed broader market indices, reflecting the strong performance of SUI.
• Comparison with other staked SUI products would require specific data on their staking yields, expense ratios, and NAV performance, which are not detailed in this filing.

Legal Proceedings

• None disclosed.

Related Party Transactions

• The Trust pays the Sponsor an annual unified fee of 0.75% of the Trusts SUI Holdings.
• The Sponsor is obligated to pay Trust expenses up to $200,000 per fiscal year, with expenses exceeding this cap (Excluded Expenses) borne by the Trust.
• Fees incurred to PINE Advisors LLC, whose employees serve as officers of the Trust, were $8,976 for the period.

Stakeholder Impact

• Shareholders benefit from the appreciation of SUI and staking rewards, but are exposed to the volatility of SUI prices.
• Operational expenses and Sponsor fees reduce the net returns to shareholders.
• The Trust's structure as an ETF allows for liquidity through trading on the Nasdaq Stock Market.

Next Steps

• Continue to provide exposure to the price of SUI.
• Earn additional SUI through the validation of transactions in the SUI Network's proof-of-stake process.
• Monitor and manage operational expenses, including Sponsor Fees and Excluded Expenses.

Key Dates

Recommendation

The ETF's performance is heavily tied to the volatile SUI cryptocurrency. While the recent quarter showed strong gains due to SUI's appreciation and staking rewards, the inherent risks of digital assets and the fund's expense structure warrant a cautious 'hold' recommendation. Investors should be aware of the concentration risk and potential for significant price fluctuations.

Keywords

SUI, Cryptocurrency, ETF, Staking, Digital Assets, Exchange Traded Fund, NAV, Quarterly Report