Grayscale Solana Staking ETF

What they do

The Trust holds SOL and issues Shares in exchange for SOL deposits, aiming to reflect SOL's value less expenses. It began staking SOL on October 6, 2025, earning Staking Consideration in additional SOL. The Trust uses Coinbase Custody Trust Company for cold storage of private keys and has a redemption program since October 28, 2025.

Revenue drivers

• SOL price appreciation — The Trust's primary value driver is the price of SOL; it holds approximately 0.23% of SOL in circulation and does not generate operational revenue besides staking rewards.
• Staking Consideration — Since October 6, 2025, the Trust earns additional SOL from staking, split among the Custodian, staking providers, and Sponsor, with the remainder retained by the Trust.
• Creation and redemption activity — The Trust issues Shares in Baskets of 10,000 Shares to Authorized Participants in exchange for SOL, and redeems Shares for SOL, impacting the number of Shares outstanding and the Trust's SOL holdings.

Recent performance

In fiscal 2025, the Trust reported a net loss of $49.3 million, swinging from net income of $32.3 million in 2024 and $15.0 million in 2023. Operating cash flow was negative $106.9 million in 2025. As of June 30, 2026, total assets were $101.2 million with total liabilities of only $1,000, and cash was zero at year-end 2025. These figures reflect the Trust's passive structure and its dependence on SOL's fair value changes.

Strategy

The Trust's strategy is to passively track SOL's price, using staking to generate additional SOL while avoiding leverage and derivatives. Management has uplisted to NYSE Arca and implemented a redemption program to align share price more closely with NAV. The Sponsor may adjust staking arrangements and has the discretion to dissolve the Trust if SOL is deemed a security.

Risks

• SOL price volatility — The Trust's value is directly tied to SOL's market price, which has historically experienced significant fluctuations.
• Security determination risk — If SOL is classified as a security, the Sponsor intends to dissolve the Trust or change operations, potentially causing termination or extraordinary expenses.
• Staking operational risks — Staked SOL may be inaccessible during unstaking periods, and the Trust depends on third-party providers, which could delay redemptions.
• Tracking error — Historically, Shares traded at premiums or discounts to NAV, and there is no assurance the Trust will meet its investment objective even after uplisting.

Outlook

Management expects Staking Consideration to vary due to network conditions and staking rates, and does not anticipate consistent earnings from staking. The Trust will continue to operate passively, with no plans for leverage or active management. The Sponsor has the discretion to distribute Staking Consideration to shareholders. Future actions depend on regulatory developments regarding SOL's classification.