Franklin Solana ETF

What they do

The Trust, formed February 10, 2025, offers one series, the Franklin Solana ETF, which issues Shares representing fractional undivided beneficial interests in the Fund. The Fund is a passive vehicle that holds Solana and seeks to reflect the price of Solana and staking rewards, staking up to 100% of its Solana where the Sponsor determines it can do so without undue legal or regulatory risk. It does not use leverage, derivatives or active management, and issues and redeems Shares only in 50,000-Share Creation Units through Authorized Participants. Service providers include BNY Mellon (Administrator, Transfer Agent, Cash Custodian), Coinbase Custody (Solana Custodian), Coinbase Crypto Services (Staking Provider), and Franklin Distributors, LLC (Marketing Agent).

Revenue drivers

• Solana price exposure — The Fund's value reflects the price of the Solana it holds, less expenses and liabilities; this is the primary driver of Share value, not a fee-based revenue line.
• Staking Rewards — The Fund seeks to stake up to 100% of its Solana and receive Staking Rewards in the form of Solana, treated as income for U.S. federal income tax purposes, subject to the Sponsor's discretion.
• Sponsor's Fee — The Sponsor accrues a fee on the Fund, described as accrued but unpaid remuneration deducted in Creation Unit issuance/redemption calculations; the filing does not quantify the rate.

Recent performance

The latest balance sheet as of June 30, 2026 shows total assets of $8.5 million, total liabilities of $8,825, shareholder equity of $12.0 million, and cash and equivalents of $0.00. The Fund's seed activity included the September 22, 2025 purchase of 4,000 Initial Seed Shares at $25.00 per Share for $100,000, which were redeemed on November 25, 2025 for $100,000. On November 25, 2025 the Seed Capital Investor purchased two Creation Units totaling 100,000 Shares at 8,500 Solana per Creation Unit (0.17 Solana per Share), for 17,000 Solana; cash proceeds were used to buy 17,000 Solana at $136.65 per Solana, for ultimate proceeds of $2,323,133.80. Shares first listed and began trading on December 3, 2025; the 10-Q MD&A excerpt does not disclose period revenue or net income figures.

Strategy

The Fund is a passive investment vehicle that does not actively manage its Solana holdings and will not use leverage, derivatives or similar instruments. Its stated objective is to reflect the price of Solana and staking rewards by staking as much of its Solana as is practicable, up to 100%, to the extent the Sponsor determines this can be done without undue legal or regulatory risk. The Fund issues Shares continuously in Creation Units of 50,000 through Authorized Participants in exchange for Solana and/or cash, and does not hold or trade commodity interests regulated under the Commodity Exchange Act. The Trust states it is not registered as an investment company under the Investment Company Act and is not a commodity pool. No forward operating plans beyond this passive mandate are described in the excerpts.

Risks

• Solana price volatility — The filing states trading prices of digital assets including Solana have experienced extreme volatility and could decline materially, causing the Shares to lose all or substantially all of their value.
• Staking and slashing loss — Staking activity carries risk of loss of Solana tokens, including through slashing penalties, though the filing notes no slashing penalty has ever been assessed on the Solana Network as of the report date.
• Custody and private key risk — Digital assets are bearer instruments, and loss, theft, destruction or compromise of associated private keys could result in permanent loss of the asset.
• Competition from other networks — Competition from alternative digital assets and smart contract platforms such as Ethereum, Avalanche or Cardano could reduce demand for and the price of Solana, adversely affecting Share value.

Outlook

The excerpts do not contain specific forward guidance on Fund performance, asset growth or fee levels. Management notes the Fund is a passive vehicle that does not actively manage Solana holdings and states it does not intend to update forward-looking statements except as required by federal securities law. The Fund's stated intent is to continue seeking exposure to Solana price performance and staking rewards, to the extent the Sponsor determines staking can be done without undue legal or regulatory risk.