Fidelity Solana Fund

What they do

The Trust holds SOL, which is custodied by Anchorage Digital Bank N.A., BitGo Bank & Trust N.A., and Coinbase Custody Trust Company, LLC. Its investment objective is to track the performance of SOL as measured by the Fidelity Solana Reference Rate (the Index), adjusted for expenses and liabilities, plus an amount based on staking rewards. The Trust is passively managed, does not invest in derivatives, and sells and redeems Shares only in Baskets of 25,000 Shares with Authorized Participants. The Sponsor, FD Funds Management LLC (a wholly owned subsidiary of FMR LLC), arranges for up to 100% of the Trust's SOL to be staked with node operators, with no minimum staking requirement.

Revenue drivers

• SOL holdings — The Trust's only asset is SOL; its value fluctuates with SOL's market price as measured by the Index. The Trust's total assets were $127.2 million as of June 30, 2026.
• Staking rewards — The Trust earns a portion of staking rewards generated by node operators on staked SOL, which is expected to cause the Trust to outperform the Index before expenses. The amount depends on the staking percentage, which can be up to 100% but has no minimum.
• Creation/redemption activity — The Trust issues and redeems Shares only in Baskets of 25,000 Shares, in exchange for SOL or cash. This activity does not generate revenue for the Trust but drives its asset base and corresponding fee base.

Recent performance

The Trust commenced operations on November 17, 2025, and had no operations prior to that date other than organizational matters. As of June 30, 2026, the Trust reported total assets of $127.2 million, total liabilities of $115,000, and shareholder equity of $127.1 million, with no cash and equivalents on hand. The trust's NAV is calculated daily using the Index's volume-weighted median price methodology. No revenue or net income figures were disclosed in the provided excerpts. The most recent 8-K noted a director or officer change and other events, but no details were given.

Strategy

The Trust's stated strategy is to passively track the performance of SOL, as measured by the Fidelity Solana Reference Rate, while also earning staking rewards. It aims to provide investors with a cost-effective and convenient way to gain exposure to SOL through a traditional brokerage account, without the barriers of direct holding. The Sponsor stakes all or a portion of the Trust's SOL with trusted node operators, subject to a liquidity risk management program. The Trust does not pursue active management, use leverage, or invest in derivatives. The Sponsor and its committees monitor the Index and may adjust valuation methodologies if the Index does not accurately reflect SOL's price.

Risks

• SOL price volatility — The Trust's NAV and share price are directly tied to the volatile price of SOL, which can fluctuate significantly, leading to substantial losses for investors.
• Staking risks — Staking involves risks such as slashing, validator misbehavior, and lock-up periods, which could reduce the Trust's SOL holdings or liquidity.
• Custody concentration — All SOL is held by three custodians (Anchorage, BitGo, and Coinbase), and any failure, insolvency, or cybersecurity breach at these custodians could result in loss of the Trust's assets.
• Index methodology risk — The Index relies on volume-weighted median prices from eligible spot markets; if the Index does not reflect accurate SOL prices, the Trust's NAV could be mispriced, and corrections could delay NAV publication.

Outlook

Management expects the Trust to outperform the Index before expenses due to staking rewards. The Trust will continue to hold SOL and stake a portion or all of it, subject to liquidity needs. While there is no minimum staking requirement, the Sponsor may stake up to 100% of SOL under normal circumstances. No specific forward-looking guidance was provided beyond the general expectation of tracking SOL performance plus staking rewards.