TSOL

What the Trust is

• A Delaware statutory trust that continuously issues Shares (common shares of beneficial interest) trading on the Cboe BZX Exchange under the symbol TSOL.
• A passive investment vehicle intended to track the price of SOL, the native digital asset of the Solana blockchain, as measured by the CME CF Solana‑Dollar Reference Rate – New York Variant.
• May reflect rewards from staking a portion of its SOL to the extent the Sponsor determines this can be done without undue risk to the Trust’s tax status or regulatory compliance.
• Does not operate like a traditional corporation and has no officers, directors, or employees.

Key parties and roles

• Sponsor: 21Shares Group (affiliate of 21co Holdings Limited; FalconX affiliated). Responsible for formation, marketing, and the ongoing public offering and listing.
• Trustee: CSC Delaware Trust Company.
• Administrator, Transfer Agent, and Cash Custodian: The Bank of New York Mellon (Asset Servicing).
• SOL Custodians: Coinbase Custodian Trust Company, BitGo Bank & Trust Company, N.A., and Anchorage Digital Bank N.A.
• Prime Broker: Coinbase, Inc. (facilitates SOL trading related to creation/redemption and cash management).
• Staking service providers: Coinbase Crypto Services, Figment Inc., and Twinstake Ltd.
• Marketing Agent: Foreside Global Services, LLC.

Holdings and how the Trust tracks SOL

• Primary assets are SOL held by the SOL Custodians and, when necessary, cash.
• Creation and redemption occur in Baskets of 10,000 Shares. Authorized Participants (registered broker‑dealers with agreements with the Sponsor and Administrator) may purchase Shares in cash or in‑kind (by delivering SOL).
• The Trust does not actively trade SOL; sales occur only to cover expenses, pay Sponsor fees, or meet redemptions consistent with regulatory and tax constraints.
• The Trust may stake SOL through its Staking Service Providers subject to a Utilization Rate and liquidity considerations.

Investment objective and strategy

• Objective: Track SOL’s performance as measured by the Pricing Benchmark, net of expenses, and reflect staking rewards where permitted by the Sponsor’s discretion and regulatory considerations.
• Strategy: Passive. SOL and cash are held by custodians; there is no leverage and no active trading beyond staking and ordinary custody/administration.
• Staking utilization generally targets between 70% and 90% of SOL, with the possibility of staking up to 100% depending on liquidity needs and risk assessment.
• Staking rewards accrue to the Trust and are typically distributed to Shareholders quarterly. Staking providers receive a low single‑digit percentage of rewards; after that deduction, 10% of remaining staking rewards are paid to the Sponsor, and the balance is retained by the Trust for distribution to Shareholders.
• The Sponsor has discretion over treatment of incidental rights or virtual currency from forks and airdrops and will abandon such assets that are not included in the Pricing Benchmark unless required by law.

Pricing benchmark and valuation

• Pricing Benchmark: CME CF Solana‑Dollar Reference Rate – New York Variant.
• NAV and NAV per Share: Calculated daily at 4:00 p.m. ET based on the Pricing Benchmark.
• Principal Market NAV: Determined for financial reporting using the fair value of SOL at the principal market price at 4:00 p.m. ET.
• The Administrator computes NAV and Principal Market NAV; GAAP fair value measurements follow ASC 820 with SOL fair value set at the principal market.
• The Sponsor may change the Pricing Benchmark or valuation method with prior notice to shareholders.
• The Benchmark Provider disclaims certain liabilities related to the benchmark inputs and calculation.

Fees, expenses, and Sponsor economics

• Unitary Sponsor Fee: 0.21% of the Trust’s NAV, payable weekly in SOL and accruing daily.
• Sponsor pays most operating expenses from the Sponsor Fee, except specified items such as litigation and extraordinary expenses.
• Staking economics: After the Staking Provider Consideration is deducted, 10% of staking rewards are paid to the Sponsor; the remainder is retained by the Trust and distributed to Shareholders. Staking providers receive a low single‑digit percentage of rewards.
• Sponsor‑paid expenses include marketing, administrator fees, custodian fees, transfer agent fees, trustee fees, ordinary legal fees (subject to an annual cap), audits, regulatory fees, and website maintenance.
• Creation and redemption rights, including in‑kind transactions, are governed by Authorized Participant agreements.
• The Sponsor may convert portions of the Sponsor Fee to cash by selling SOL to finance expenses, subject to market conditions.

Custody, trading, and counterparties

• SOL Custodians hold SOL in cold storage and segregated wallets; private keys are protected and a portion may be held in hot wallets for operational efficiency.
• Custodial agreements limit custodial liability; insurance may be limited or shared among clients.
• The Prime Broker clears and facilitates SOL trading related to creation/redemption and maintains an omnibus Trading Balance for client SOL.
• Connected trading venues include Bitstamp, LMAX, Kraken, and multiple non‑display market makers; the Prime Broker routes orders through its trading platform to these venues.
• The Trust may replace or add custodians or prime brokers; changes are disclosed to shareholders.

Staking details

• Staking providers include Coinbase Crypto Services, Figment, and Twinstake, with agreements defining services and compensation.
• Figment and Twinstake agreements (effective Feb 4, 2026) provide validator and staking infrastructure services with compensation in line with a low single‑digit percentage of rewards and include termination provisions.
• Rewards accrue to the Trust’s SOL accounts, the Staking Provider Consideration is paid from those rewards, the Sponsor receives 10% of remaining rewards, and the balance is distributed to Shareholders.
• Staking involves an unbonding period; liquidity management is necessary to meet redemption requests and unbonding periods affect SOL availability.

Risks, regulation, and market context

• The Trust is not registered under the Investment Company Act of 1940 and is not treated as a commodity pool under the CEA; it does not create leverage or operate as a traditional investment company.
• SOL is a relatively new, volatile asset and is exposed to regulatory and technological risks, including forks, airdrops, MEV, platform risk, custody risk, and cyber risk.
• The Pricing Benchmark and SOL markets are relatively new and can be subject to illiquidity, spreads, slippage, and execution risk in creation and redemption.
• The Trust’s tax objective is to qualify as a grantor trust; staking and other activities are managed with tax considerations in mind.
• Sponsor discretion creates potential conflicts of interest, particularly around staking levels and allocation of staking rewards.
• Market concentration and limited Authorized Participants can affect liquidity and tracking performance.
• Changes to the Solana network or to regulatory regimes in the U.S. or other jurisdictions could affect the Trust’s structure, custody, staking, or trading activities.

Notable metrics and facts

• Sponsor Group assets under management: approximately $7.56 billion across 67 digital asset‑related exchange‑traded products (as of December 31, 2025).
• The Sponsor serves as sub‑adviser to four investment companies registered under the 1940 Act (as of November 2025).
• Creation Basket size: 10,000 Shares.
• Pricing Benchmark began operation in September 2024; the current roster of constituent exchanges has been in place since August 30, 2025.
• The largest 100 SOL wallets held approximately 26.54% of SOL in circulation (as of December 31, 2025).
• Stakeholder disclosures note potential conflicts of interest, indemnities, and limitations on recourse in the event of losses by Custodians or the Prime Broker.

In short

TSOL is a passively managed, SOL‑focused, ETF‑like trust designed to track SOL’s price using a Pricing Benchmark and to reflect staking rewards net of Sponsor and provider fees. It operates through a multi‑party framework of custodians, a prime broker, staking providers, an administrator, and a trustee, and faces operational, custody, market, and regulatory risks typical of on‑chain asset management.