FSOL 10-K & 10-Q changes, risk factors and insider trading

The Trust provides exposure to the value of SOL, and the Shares of the Trust are valued on a daily basis using the same methodology used to calculate the Index. The Trust provides investors with the opportunity to access the market for SOL through a traditional brokerage account without the potential barriers to entry or risks involved with holding or transferring SOL directly or acquiring it from a SOL spot market. The Trust is passively managed and does not pursue active management investment strategies.strategies, Theutilize Trustleverage, will notor invest in derivatives.derivatives in seeking to meet its investment objective. The Sponsor believes that the Shares are designed to provide investors with a cost-effective and convenient way to invest in SOL without purchasing, holding and trading SOL directly. The Trust sells and redeems Shares only with Authorized Participants in exchange for SOL or cash and only in blocks of 25,000 Shares (a “Basket”).

For purposes of calculating the Trust's net asset value (“Trust’s NAV”) per Share, the Trust’s holdings of SOL are valued using the same methodology as used to calculate the Index.

The Quarter Ended MarchJune 31,30, 2026

The Trust’s net assets decreasedincreased from $113.9 million as of December 31, 2025, to $97.4 million as of March 31, 2026, to $127.1 million as of June 30, 2026. The change in the Trust’s net assets resultedwas primarilypartially offset from a decrease in the price of SOL, which decreased 33.16%9.60% from $124.73 as of December 31, 2025 to $83.37 as of March 31, 2026 to $75.37 as of June 30, 2026. The decreaseincrease in net assets was partially offsetdriven by an increase in outstanding Shares, which rose from 7,775,000 as of December 31, 2025 to 9,900,000 as of March 31, 2026 to 14,325,000 as of June 30, 2026. The increase in outstanding Shares was primarily as a result of 3,425,0004,525,000 Shares (137181 Baskets) being issued partially offset by 1,300,000100,000 Shares (524 Baskets) being redeemed.

The NAV per Share decreased 32.84%9.86% from $14.66 as of December 31, 2025 to $9.84 as of March 31, 2026 to $8.87 as of June 30, 2026. The Trust’s NAV per Share decreased 33.03%11.37% from $14.57 as of December 31, 2025 to $9.76 as of March 31, 2026 to $8.65 as of June 30, 2026.

The Trust’s NAV per Share of $17.35$11.61 at JanuaryMay 14,11, 2026, was the highest during the three months ended MarchJune 31,30, 2026, compared with a low of $9.11$7.35 at FebruaryJune 12,5, 2026.

During the three months ended MarchJune 31,30, 2026, the quantity of SOL owned by the Trust and held by the SOL custodian increased from 913,562 as of December 31, 2025, to 1,168,872 as of March 31, 2026, to 1,687,589 as of June 30, 2026. The increase in quantity is the result of the net increase from capital share transactions.

The net decrease in net assets resulting from operations for the three months ended MarchJune 31,30, 2026, was $50.9$12.6 million, resulted primarily from a net unrealized depreciation on investment in SOL of $46.2$12.7 million and a net realized loss of $6.5$1.2 million from the sale of the investment in SOL for the redemption andincome distribution of Shares, partially offset by net investment income of $1.4$1.3 million and net realized gain of $0.4 million from the distribution of the investment in SOL for the redemption of Shares.million.

The Trust does not hold a cash balance except in connection with the issuance and redemption of Baskets or to pay expenses not assumed by the Sponsor. To the extent the Trust does not have available cash to facilitate redemptions or pay expenses not assumed by the Sponsor, the Trust will sell SOL. When selling SOL on behalf of the Trust, the Sponsor endeavors to minimize the Trust’s holdings of assets other than SOL. As a consequence, the Sponsor expects that the Trust will have an immaterial amount of cash flow from its operations and that its cash balance will be insignificant at the end of each reporting period. The Trust’s only sources of cash are proceeds from the sale of Baskets and SOL. The Trust intends to make cash distributions at least quarterly in order to rely on the safe harbor conditions established by IRS Revenue Procedure 2025‑31 applicable to grantor trusts that stake digital assets.

Sponsor Fee payments made to the Sponsor will beare calculated as a fixed percentage of 0.25% of the Trust’s SOL Holdings. As such, the Sponsor cannot anticipate the payment amounts that will be required under these arrangements for future periods as the Trust’s net assets are not known until a future date. In addition to the Sponsor Fee, the Trust will bearbears the Staking Fees, which the Sponsor, custodians, and node operators will each receive from the proceeds of the node operators' staking activities that the Trust receives from the Solana network. The total amount of the Staking Fee will equalequals 15% of all staking rewards received by the Trust. As the Sponsor cannot anticipate the amount of staking rewards that will be received by the Trust in future periods, the amount of the Staking Fee or the portion of the Staking Fee any party is entitled to will not be known until a future date.

The Trust performed an assessment of the principal market at 11:59:59 p.m., EST, on MarchJune 31,30, 2026.

The NAV per Share was calculated using the fair value of SOL based on the principal market price at 11:59:59 p.m., EST, on MarchJune 31,30, 2026.

As of 4:00 p.m., EST, on the last business day of the period ended MarchJune 31,30, 2026, the Trust’s total value of SOL based on the Index Price (non-GAAP methodology) was $96,604,937,$124,071,553, a difference of $843,926$3,122,040 to the GAAP value, which was $97,448,863,$127,193,593, and the total market value of the Trust’s SOL based on the price of SOL at 4:00 p.m., EST, in the principal market (non-GAAP methodology) was $96,548,831,$124,240,312, a difference of $900,032$2,953,281 to the GAAP value, which was $97,448,863.$127,193,593.

Monthly Staking Information for the QuarterSix Months Ended MarchJune 31,30, 2026

The following chart illustrates the movement in the Index Price, the principal market price, and the Trust’s NAV per Share during the threesix months ended MarchJune 31,30, 2026.

During the threesix months ended MarchJune 31,30, 2026, the Index Price has ranged from a low of $77.09$61.92 on FebruaryJune 12,6, 2026 to a high of $147.38 on January 14, 2026. The Sponsor has not observed a material difference between the Index Price and average prices from the constituent SOL spot markets individually or as a group.

During the threesix months ended MarchJune 31,30, 2026, the 11:59:59 p.m. EST market price of SOL, as reported on the Trust’s principal market, ranged from $76.83$62.81 on FebruaryJune 23,5, 2026, to $144.85 on January 13, 2026.

Shares trade in the secondary market on the Exchange. Shares may trade in the secondary market at prices that are lower or higher relative to the Trust’s NAV per Share. The amount of the discount or premium in the trading price relative to the Trust’s NAV per Share may be influenced by various factors, including the number of Shareholders who seek to purchase or sell Shares in the secondary market and the liquidity of SOL. The following chart sets out the historical closing prices for the Shares as reported by the Exchange and the Trust’s NAV per Share during the threesix months ended MarchJune 31,30, 2026.