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Item 1. Financial Statements

2026-05-13 compared with 2025-12-09 · 479 added, 272 removed, 25 unchanged (97% of the section changed)

Financial Statements.

Marinade Solana ETF

of Assets and Liabilities

September 30, 2025

Investment in SOL, at fair value (cost $ 0 )

Sponsor Fee payable

Canary Marinade Solana ETF

Statements of Assets and Liabilities

March 31, 2026 (Unaudited)

December 31, 2025

Investments in Solana, at value (Note 2)

Payable to Sponsor (Note 3)

Total Liabilities

Commitments and Contingent Liabilities (Note 6)

Shares issued and outstanding as of September 30, 2025 (par value $ 0.00 per share;

Unlimited number of shares authorized)

Net asset value per share

accompanying Notes to Financial Statements

Marinade Solana ETF

of Changes in Net Assets

For the period

August 27, 2025

September 30, 2025

Increase (decrease) in net assets resulting from operations

Net investment loss

Net realized gain (loss) on investment in SOL transferred to pay Sponsor Fee

Net change in unrealized appreciation (depreciation)

NET ASSETS CONSIST OF:

Paid-in capital

Total distributable earnings (accumulated deficit)

Net Asset Value (unlimited shares authorized):

Unlimited shares authorized:

Shares Outstanding ^

Net Asset Value, Offering and Redemption Price per Share

Investments in securities, at cost

No Par Value.

See accompanying notes to financial statements.

Canary Marinade Solana ETF

Schedule of Investment

March 31, 2026 (Unaudited)

Investments - 100.0 %

Crypto Currency - 100.0 %

TOTAL CRYPTO CURRENCY (Cost $ 1,854,598 )

TOTAL INVESTMENTS - 100.0 % (Cost $ 1,854,598 )

Assets in Excess of Liabilities - ( 0.0 )%

TOTAL NET ASSETS - 100.0 %

Percentages are stated as a percent of net assets.

(a) See Note 8 in Notes to the Financial Statements for information on the quantity of Solana

See accompanying notes to financial statements.

Canary Marinade Solana ETF

Schedule of Investment

December 31, 2025

Investments - 100.0 %

Crypto Currency - 100.0 %

TOTAL CRYPTO CURRENCY (Cost $ 2,096,032 )

TOTAL INVESTMENTS - 100.0 % (Cost $ 2,096,032 )

Assets in Excess of Liabilities - ( 0.0 )%

TOTAL NET ASSETS - 100.0 %

Percentages are stated as a percent of net assets.

(a) See Note 8 in Notes to the Financial Statements for information on the quantity of Solana

See accompanying notes to financial statements.

Canary Marinade Solana ETF

Statement of Operations

For the Quarter Ended March 31, 2026 (Unaudited) *

INVESTMENT INCOME

Staking Income (Note 8)

Sponsor fees (Note 3)

Total Expenses

Sponsor fees waived (Note 3)

Net Investment income (loss)

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS

Net realized gain (loss) on:

Investments in crypto currency

Net change in unrealized appreciation (depreciation) of:

Investments in crypto currency

Net realized and unrealized gain (loss) on investments

NET INCREASE (DECREASE) IN NET ASSETS RESULTING

FROM OPERATIONS

$ ( 551,958 )

* No comparative financial statements have been provided as the initial share purchase date of the Trust was November 17, 2025.

See accompanying notes to financial statements.

Canary Marinade Solana ETF

Statement of Changes in Net Assets

For the Quarter Ended March 31, 2026 (Unaudited) *

INCREASE (DECREASE) IN NET ASSETS:

Net investment income (loss)

Net realized gain (loss) on investments

Net change in unrealized appreciation (depreciation) of investments

Net increase (decrease) in net assets resulting from operations

Increase (decrease) in net assets resulting from capital share transactions

Creations for Shares issued

Redemptions for Shares redeemed

Net increase (decrease) in net assets resulting from capital share transactions

Total increase(decrease) in net assets from operations and capital share transactions

CAPITAL SHARE TRANSACTIONS

Shares redeemed

Net increase (decrease) in net assets from capital share transactions

Total increase (decrease) in net assets

Beginning of Period

End of Period

Shares issued and redeemed

Shares issued

Shares redeemed

Net increase (decrease) in Shares issued and outstanding

Shares outstanding at end of period

*No comparative financial statements

have been provided as the Trust’s operations commenced on November 17, 2025

See accompanying Notes to

Financial Statements

* No comparative financial statements have been provided as the initial share purchase date of the Trust was November 17, 2025.

See accompanying notes to financial statements.

Canary Marinade Solana ETF

NOTES TO FINANCIAL STATEMENTS

September 30, 2025

Canary Marinade Solana ETF (the “Trust”) is a Delaware statutory trust, formed on October 17, 2024, pursuant to the

Delaware Statutory Trust Act.

The Trust continuously issues common shares representing fractional undivided beneficial interest

in and ownership of the Trust that may be purchased and sold on the Nasdaq Stock Market, LLC (the “Exchange”) under

the symbol “SOLC.” The Trust operates pursuant to a Trust Agreement, as amended and/or restated from time to time

(the “Trust Agreement”).

CSC Delaware Trust Company, a Delaware trust company, is the trustee of the Trust (the “Trustee”).

The Trust is managed and controlled by Canary Capital Group LLC (the “Sponsor”).

Trust is an exchange-traded fund that issues shares of beneficial interest (the “Shares”) that are listed and trade

on the Exchange.

The Trust’s investment objective is to seek to provide exposure to the price of Solana (“SOL”)

held by the Trust, less the expenses of the Trust’s operations and other liabilities.

A secondary investment objective is

for the Trust to earn additional SOL through the validation of transactions in the SOL network’s (the “Solana Network”)

proof-of-stake (“PoS”) process.

In seeking to achieve its investment objectives, the

Trust will hold SOL and establish its net asset value (“NAV”) on each business day by reference to the CoinDesk Solana

CCIXber 60m New York Rate (the “Pricing Benchmark”).

The Pricing Benchmark is calculated by CoinDesk Indices (the

“Benchmark Provider”) based on a 60-minute time-weighted average price of the SOL-USD CCIXber Reference Rate (the

“Underlying Index”), which is an aggregation of executed trade flow of major SOL trading platforms (“Constituent

NOTES TO THE FINANCIAL STATEMENTS

March 31, 2026 (Unaudited)

The Canary Marinade

Solana ETF (the “Trust”) is a Delaware statutory trust, formed on June 6, 2025, pursuant to the Delaware Statutory Trust Act.

The Trust continuously issues common shares representing fractional undivided beneficial interest in and ownership of the Trust that may

be purchased and sold on the Nasdaq Stock Market, LLC (the “Exchange”) under the symbol “SOLC.” The Trust operates

pursuant to a Trust Agreement, as amended and/or restated from time to time (the “Trust Agreement”).

CSC Delaware Trust Company,

a Delaware trust company, is the trustee of the Trust (the “Trustee”).

The Trust is managed and controlled by Canary Capital

Group LLC (the “Sponsor”).

The Trust is an exchange-traded fund

that issues shares of beneficial interest (the “Shares”) that are listed and trade on the Exchange.

The Trust’s investment

objective is to seek to provide exposure to the price of Solana (“SOL”) held by the Trust, less the expenses of the Trust’s

operations and other liabilities.

A secondary investment objective is for the Trust to earn additional SOL through the validation of

transactions in the SOL network’s (the “Solana Network”) proof-of-stake (“PoS”) process.

In seeking to

achieve its investment objectives, the Trust holds SOL and establishes its net asset value (“NAV”) on each business day by

reference to the CoinDesk Solana CCIXber 60m New York Rate (the “Pricing Benchmark”).

The Pricing Benchmark is calculated

by CoinDesk Indices (the “Benchmark Provider”) based on a 60-minute time-weighted average price of the SOLUSD CCIXber Reference

Rate (the “Underlying Index”), which is an aggregation of executed trade flow of major SOL trading platforms (“Constituent

The Benchmark Provider publishes the Pricing Benchmark.

The Trust is sponsored by the Sponsor.

of September 30, 2025, the Trust has had no operations other than those actions relating to organizational and registration matters.

Accounting Policies

Basis of Presentation

following is a summary of significant accounting policies consistently followed by the Trust in the preparation of these financial

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted

in the United States of America (“GAAP”) and are stated in U.S.

The Trust’s financial statements were

prepared using the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting

Standards Codification (“ASC”) Topic 946, Financial Services — Investment Companies .

The Trust qualifies

as an investment company solely for accounting purposes and not for any other purpose.

The Trust is not registered, and is not

required to be registered, as an investment company under the Investment Company Act of 1940, as amended.

The Trust follows the

significant accounting policies described below.

The following

is a summary of significant accounting policies consistently followed by the Trust in the preparation of these financial statements.

accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States

of America (“GAAP”) and are stated in U.S.

The Trust’s financial statements were prepared using the accounting

and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)

Topic 946, Financial Services — Investment Companies.

The Trust qualifies as an investment company solely for accounting purposes

and not for any other purpose.

The Trust is not registered, and is not required to be registered, as an investment company under the Investment

Company Act of 1940, as amended.

The Trust follows the significant accounting policies described below.

Use of Estimates

preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect

the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial

Actual results could differ from those estimates.

the Trust does not intend to hold any cash.

The preparation

of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts

of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements.

Actual results

could differ from those estimates.

Generally, the

Trust does not intend to hold any cash.

Cash includes non-interest-bearing non-restricted cash with one institution.

in a bank deposit account, at times, may exceed U.S.

Cash in a bank deposit

account, at times, may exceed U.S.

federally insured limits.

The Trust has not experienced any losses in such

accounts and does not believe it is exposed to any significant credit risk on such bank deposits.

Investment Transactions

and Investment Income

Trust intends to purchase SOL upon the creation of Shares and sell SOL upon the redemption of Shares.

Transactions are recorded

on a trade-date basis.

Realized gains (losses) and changes in unrealized gains (losses) on open positions are determined on a

specific identification basis and recognized in the statement of operations in the period in which the sale occurred or the changes

in unrealized occurred.

Sponsor and the Trustee will treat the Trust as a grantor trust for U.S.

The Trust has not experienced any losses in such accounts and does not believe

it is exposed to any significant credit risk on such bank deposits.

Investment Transactions and Investment Income

The Trust purchases

SOL upon the creation of Shares and sells SOL upon the redemption of Shares.

Transactions are recorded on a trade date basis.

gains (losses) and changes in unrealized gains (losses) on open positions are determined on a specific identification basis and recognized

in the statement of operations in the period in which the sale occurred or the changes in unrealized gains (losses) occurred.

The Sponsor takes the position

that the Trust is properly treated as a grantor trust for U.S.

federal income tax purposes.

As a result, the Trust itself

would not be subject to U.S.

Assuming that the Trust is a grantor

trust, the Trust will not be subject to U.S.

federal income tax.

Instead, the Trust’s income, expenses and amounts realized should flow

through to the Shareholders, and the Trustee will report to Shareholders and the Internal Revenue Service (“IRS”)

on that basis.

If the IRS were to assert successfully that the Trust is not classified as a grantor trust, the Trust would likely

be classified as a partnership for U.S.

federal income tax purposes, which may affect the timing and other tax consequences to

the Shareholders.

Under such circumstances, the Trust might be classified as a publicly traded partnership that would be taxable

as a corporation for U.S.

federal income tax purposes, in which case the Trust would be taxed in the same manner as a corporation

on its taxable income and distributions to shareholders out of the earnings and profits of the Trust would be taxed to shareholders

as ordinary dividend income.

However, due to the uncertain treatment of digital assets for U.S.

federal income tax purposes, there

can be no assurance in this regard.

No interest expense or penalties have been recognized as of the date of the financial statements.

Digital Asset Trading

Platform Valuation

value of SOL is determined by the value that various market participants place on SOL through their transactions.

The most common

means of determining the value of SOL is by surveying one or more digital asset trading platforms where SOL is traded publicly

and transparently (e.g., Binance, Bitfinex, Coinbase Pro and Crypto.com).

Trust identifies and determines the principal market (or in the absence of a principal market, the most advantageous market) for

GAAP financial statement purposes consistent with the application of fair value measurement framework in FASB ASC 820.

820, a principal market is the market with the greatest volume and activity level for the asset or liability.

valuation procedures provide for the designation of the Sponsor to determine the valuation sources and policies to prepare the

Trust’s financial statements in accordance with GAAP.

Trust utilizes various inputs to determine the fair value of its investments on a recurring basis.

GAAP establishes a hierarchy

that prioritizes inputs to valuations methods.

The three levels of inputs are:

1 – Unadjusted quoted prices in active markets for identical assets or liabilities.

2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either

directly or indirectly.

These inputs may include quoted prices for the identical instrument on an inactive market, prices for

similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available;

the Trust’s own assumptions about the assumptions a market participant would use in valuing the asset or liability and would

be based on the best information available.

Administrator, defined below, determines the NAV of the Trust on each day that the Exchange is open for regular trading, as promptly

as practicable after 4:00 p.m.

The NAV of the Trust is the aggregate value of the Trust’s assets less its accrued but

unpaid liabilities (which include accrued expenses).

In determining the Trust’s NAV, the Administrator values SOL held by

the Trust based on the price set by the Index as of 4:00 p.m.

Rather, if the Trust is a grantor trust, each beneficial owner of

Shares will be treated as directly owning its pro rata Share of the Trust’s assets and a pro rata portion of the Trust’s

income, gains, losses and deductions will “flow through” to each beneficial owner of Shares.

If the Trust were not

properly classified as a grantor trust, the Trust might be classified as a partnership for U.S.

federal income tax purposes.

However, due to the uncertain treatment of digital assets, with respect to staking and including forks, airdrops and similar

occurrences for U.S.

federal income tax purposes, there can be no assurance in this regard.

If the Trust were classified as a

partnership for U.S.

federal income tax purposes, the tax consequences of owning Shares generally would not be materially different

from the tax consequences described herein, although there might be certain differences, including with respect to timing.

addition, tax information reports provided to beneficial owners of Shares would be made in a different form.

If the Trust were not

classified as either a grantor trust or a partnership for U.S.

federal income tax purposes, it would be classified as a corporation

for such purposes.

In that event, the Trust would be subject to entity-level U.S.

federal income tax (currently at the rate of 21%)

on its net taxable income and certain distributions made by the Trust to shareholders would be treated as taxable dividends to the

extent of the Trust’s current and accumulated earnings and profits.

Digital Asset Trading Platform Valuation

US GAAP defines fair value as the price the Trust

would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement

The Trust’s policy is to value investments held at fair value.

The Trust identifies

and determines the SOL principal market (or in the absence of a principal market, the most advantageous market) for GAAP purposes consistent

with the application of the fair value measurement framework in FASB ASC 820 – Fair Value Measurement.

A principal market is the

market with the greatest volume and activity level for the asset or liability.

The determination of the principal market will be based

on the market with the greatest volume and level of activity that can be accessed.

The Trust obtains relevant volume and level of activity

information and based on initial analysis will select an exchange market as the Trust’s principal market.

The net asset value (“NAV”)

and NAV per Share will be calculated using the fair value of SOL based on the price provided by this exchange market, as of 4:00 p.m.

ET on the measurement date for GAAP purposes.

The Trust will update its principal market analysis periodically and as needed to the extent

that events have occurred, or activities have changed in a manner that could change the Trust’s determination of the principal market.

Various inputs

are used in determining the fair value of assets and liabilities.

Inputs may be based on independent market data (“observable inputs”)

or they may be internally developed (“unobservable inputs”).

These inputs are categorized into a disclosure hierarchy consisting

of three broad levels for financial reporting purposes.

The level of a value determined for an asset or liability within the fair value

hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety.

The three levels

of the fair value hierarchy are as follows:

Unadjusted quoted prices in active markets

for identical assets or liabilities;

other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including

quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets

that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that

are derived principally from or corroborated by observable market data by correlation or other means;

Unobservable inputs, including the Trust’s

assumptions used in determining the fair value of investments, where there is little or no market activity for the asset or liability

at the measurement date.

The following table presents information about the

Trust’s assets measured at fair value as of March 31, 2026:

March 31, 2026 (Unaudited)

Investment in SOL

December 31, 2025

Investment in SOL

There were no transfers between

levels for the quarter ended March 31, 2026, or the period ended December 31, 2025.

The following tables summarize

activity in SOL for the quarter ended March 31, 2026 and for the period from November 17, 2025 (initial share purchase date) to December

Beginning balance as of January 1, 2026

SOL purchased

SOL earned from staking

SOL sold for the redemption of Shares

SOL contributed in-kind for the creation of Shares

SOL distributed in-kind for the redemption of Shares

SOL transferred to pay the Sponsor fee

Net change in unrealized appreciation (depreciation) in SOL

Net realized gain (loss) on investment in SOL

Ending balance as of March 31, 2026 (Unaudited)

Beginning balance as of November 17, 2025

SOL purchased

SOL earned from staking

SOL sold for the redemption of Shares

SOL contributed in-kind for the creation of Shares

SOL distributed in-kind for the redemption of Shares

Net change in unrealized appreciation (depreciation) in SOL

Net realized gain (loss) on investment in SOL

Ending balance as of December 31, 2025

Calculation of NAV

The Administrator,

defined below, determines the NAV of the Trust on each day that the Exchange is open for regular trading, as promptly as practicable after

The NAV of the Trust is the aggregate value of the Trust’s assets less its accrued but unpaid liabilities (which include

accrued expenses).

In determining the Trust’s NAV, the Administrator values SOL held by the Trust based on the price set by the

Index as of 4:00 p.m.

The Administrator also determines the NAV per Share.

of the Trust’s financial statements, the Trust utilizes a pricing source that is consistent with GAAP, as of the financial

statement measurement date, which may result in valuations that differ from the Trust’s daily NAV calculations.

determines in its sole discretion the valuation sources and policies used to prepare the Trust’s financial statements in

accordance with GAAP.

Trust’s NAV per Share is calculated by taking the current fair value of its total assets, subtracting any liabilities, and

dividing that total by the number of Shares.

Trust operates through a single operating and reporting segment with a primary objective of providing exposure to the price of

SOL held by the Trust, less the expenses of the Trust’s operations and other liabilities.

The Trust’s chief operating

decision maker (“CODM”) is the Sponsor.

The CODM monitors the operating results of the Trust and the Trust’s

long-term strategic asset allocation is predetermined in accordance with the terms of its prospectus, based on the defined investment

strategy against which the CODM assesses the Trust’s performance.

In addition to other metrics, the CODM uses net increase

(decrease) in net assets resulting from operations as a key metric to assess the Trust’s performance.

Trust Expenses and Other

Trust pays the Sponsor an annual unified fee of 0.50 % of the Trust’s SOL Holdings (the “Sponsor Fee”).

“SOL Holdings” is the quantity of the Trust’s SOL plus any cash or other assets held by the Trust represented

in SOL as calculated using the Index Price, less its liabilities (which include estimated accrued but unpaid fees and expenses)

represented in SOL as calculated using the Index Price.

The Sponsor Fee is paid by the Trust to the Sponsor as compensation for

services performed under the Trust Agreement.

The Administrator calculates the Sponsor Fee in respect of each day by reference

to the prior day’s SOL Holdings.

Except for periods during which all or a portion of the Sponsor Fee is being waived, the

Sponsor Fee accrues daily in SOL and is payable monthly in SOL or cash.

To the extent there are any on-chain transaction fees

incurred in connection with the transfers of SOL to pay the Sponsor Fee, the Sponsor, and not the Trust, shall bear such fees.

The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor Fee for stated periods of

The Sponsor is under no obligation to waive any portion of its fees, and any such waiver shall create no obligation to waive

any such fees during any period not covered by the waiver.

partial consideration for its receipt of the Sponsor Fee, the Sponsor is obligated under the Trust Agreement to assume and pay

all fees and other expenses incurred by the Trust in the ordinary course of its affairs, excluding taxes, but including:

fees of the Trust’s third-party service providers, including, but not limited to, the Marketing Agent, the Administrator,

the Custodian, the Transfer Agent, the Cash Custodian, the Index Provider, and the Trustee, (ii) the fees and expenses related

to the listing, quotation or trading of the Shares on the Exchange (including customary legal, marketing and audit fees and expenses),

(iii) legal fees and expenses incurred in the ordinary course, (iv) audit fees, (v) regulatory fees, including, if applicable,

any fees relating to the registration of the Trust and Shares, including any ongoing filings related to the offering of Shares,

under the 1933 Act or the 1934 Act, (vi) printing and mailing costs, (vii) costs of maintaining the Trust’s website and

(viii) applicable license fees (each, a “Sponsor-paid Expense” and collectively, the “Sponsor-paid Expenses”),

provided that any expense that qualifies as an Extraordinary Expense (as defined below) will not be deemed to be a Sponsor-paid

For purposes of the Trust’s financial statements,

the Trust utilizes a pricing source that is consistent with GAAP, as of the financial statement measurement date, which may result in

valuations that differ from the Trust’s daily NAV calculations.

The Sponsor determines in its sole discretion the valuation sources

and policies used to prepare the Trust’s financial statements in accordance with GAAP.

The Trust’s NAV per Share is calculated by taking

the current fair value of its total assets, subtracting any liabilities, and dividing that total by the number of Shares.

Segment Reporting

The Trust operates through a single

operating and reporting segment with a primary objective of providing exposure to the price of SOL held by the Trust, less the expenses

of the Trust’s operations and other liabilities.

The Trust’s chief operating decision maker (“CODM”) is the Principal

Executive Officer.

The CODM monitors the operating results of the Trust and the Trust’s long-term strategic asset allocation is

predetermined in accordance with the terms of its prospectus, based on the defined investment strategy against which the CODM assesses

the Trust’s performance.

In addition to other metrics, the CODM uses net increase (decrease) in net assets resulting from operations

as a key metric to assess the Trust’s performance.

Expenses and Other Agreements

The Trust pays

the Sponsor an annual unified fee of 0.50 % of the Trust’s SOL Holdings (the “Sponsor Fee”).

The Trust’s “SOL

Holdings” is the quantity of the Trust’s SOL plus any cash or other assets held by the Trust represented in SOL as calculated

using the Index Price, less its liabilities (which include estimated accrued but unpaid fees and expenses) represented in SOL as calculated

using the Index Price.

The Sponsor Fee is paid by the Trust to the Sponsor as compensation for services performed under the Trust Agreement.

The Administrator calculates the Sponsor Fee in respect of each day by reference to the prior day’s SOL Holdings.

Except for periods

during which all or a portion of the Sponsor Fee is being waived, the Sponsor Fee accrues daily in SOL and is payable monthly in SOL or

To the extent there are any on-chain transaction fees incurred in connection with the transfers of SOL to pay the Sponsor Fee, the

Sponsor, and not the Trust, shall bear such fees.

The Sponsor may, at its sole discretion and from time to time, waive all or a portion

of the Sponsor Fee for stated periods of time.

The Sponsor is under no obligation to waive any portion of its fees, and any such waiver

shall create no obligation to waive any such fees during any period not covered by the waiver.

The Sponsor agreed

to waive the Sponsor Fee in its entirety until the earlier of:

(1) the Federal Reserve’s Federal Open Market Committee establishing a

target range for the Federal Funds Rate that includes or is lower than 3.00 % ;

or (2) July 1, 2026.

For the period ended March 31, 2026,

the Trust incurred $ 1,691 in Sponsor Fees, of which, $ 1,691 was waived by the Sponsor, as presented on the Statement of Operations.

As partial consideration

for its receipt of the Sponsor Fee, the Sponsor is obligated under the Trust Agreement to assume and pay all fees and other expenses incurred

by the Trust in the ordinary course of its affairs, excluding taxes, but including:

(i) the fees of the Trust’s third-party service

providers, including, but not limited to, the Marketing Agent, the Administrator, the Custodian, the Transfer Agent, the Cash Custodian,

the Index Provider, and the Trustee, (ii) the fees and expenses related to the listing, quotation or trading of the Shares on the Exchange

(including customary legal, marketing and audit fees and expenses), (iii) legal fees and expenses incurred in the ordinary course, (iv)

audit fees, (v) regulatory fees, including, if applicable, any fees relating to the registration of the Trust and Shares, including any

ongoing filings related to the offering of Shares, under the 1933 Act or the 1934 Act, (vi) printing and mailing costs, (vii) costs of

maintaining the Trust’s website and (viii) applicable license fees (each, a “Sponsor-paid Expense” and collectively,

the “Sponsor-paid Expenses”), provided that any expense that qualifies as an Extraordinary Expense (as defined below) will

not be deemed to be a Sponsor-paid Expense.

There is no cap on the amount of Sponsor-paid Expenses.

The Sponsor has also assumed all fees and expenses related to

the organization and offering of the Trust and the Shares.

Trust may incur certain extraordinary, nonrecurring expenses that are not Sponsor-paid Expenses, including, but not limited to,

brokerage and transaction costs associated with the sale or transfer of SOL, taxes and governmental charges, expenses and costs

of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Trust to protect the Trust,

the Trust’s assets, or the interests of Shareholders, any indemnification of the Custodian or other agents, service providers

or counterparties of the Trust, and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection

with litigation, regulatory enforcement or investigation matters (collectively, “Extraordinary Expenses”).

extent on-chain transaction fees are incurred in connection with transfers or sales of SOL to pay Extraordinary Expenses, the

Trust will bear such fees, but to the extent there are any on-chain transaction fees incurred in connection with the transfers

of SOL to pay the Sponsor Fee or any Sponsor-paid Expenses, the Sponsor, and not the Trust, shall bear such fees.

the extent it does not have cash readily available, the Sponsor will cause the transfer or sale of SOL in such quantity as may

be necessary to permit the payment of Trust expenses and liabilities not assumed by the Sponsor or for payment of cash redemption

proceeds to financial firms that are authorized to purchase or redeem Shares with the Trust (known

as “Authorized Participants”) .

The Trust will seek to transfer or sell SOL at such times and in the smallest

amounts required to permit such payments as they become due.

With respect to transfers or sales necessary to pay Trust expenses

and liabilities that are denominated other than in SOL, the amount of SOL transferred or sold may vary from time to time depending

on the actual sales price of SOL relative to the Trust’s expenses and liabilities (e.g., if the price of SOL falls, the

amount of SOL needed to be transferred or sold to pay an expense or liability denominated in U.S.

The Sponsor has also assumed all fees

and expenses related to the organization and offering of the Trust and the Shares.

The Trust may

incur certain extraordinary, nonrecurring expenses that are not Sponsor-paid Expenses, including, but not limited to, brokerage and transaction

costs associated with the sale or transfer of SOL, taxes and governmental charges, expenses and costs of any extraordinary services performed

by the Sponsor (or any other service provider) on behalf of the Trust to protect the Trust, the Trust’s assets, or the interests

of Shareholders, any indemnification of the Custodian or other agents, service providers or counterparties of the Trust, and extraordinary

legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation

matters (collectively, “Extraordinary Expenses”).

To the extent on-chain transaction fees are incurred in connection with

transfers or sales of SOL to pay Extraordinary Expenses, the Trust will bear such fees, but to the extent there are any on-chain transaction

fees incurred in connection with the transfers of SOL to pay the Sponsor Fee or any Sponsor-paid Expenses, the Sponsor, and not the Trust,

shall bear such fees.

To the extent

it does not have cash readily available, the Sponsor will cause the transfer or sale of SOL in such quantity as may be necessary to permit

the payment of Trust expenses and liabilities not assumed by the Sponsor or for payment of cash redemption proceeds to Authorized Participants

(as defined below).

The Trust will seek to transfer or sell SOL at such times and in the smallest amounts required to permit such payments

as they become due.

With respect to transfers or sales necessary to pay Trust expenses and liabilities that are denominated other than

in SOL, the amount of SOL transferred or sold may vary from time to time depending on the actual sales price of SOL relative to the Trust’s

expenses and liabilities (e.g., if the price of SOL falls, the amount of SOL needed to be transferred or sold to pay an expense or liability

denominated in U.S.

dollars will increase).

extent the Trust must buy or sell SOL, the Trust may do so through a third-party digital asset broker or dealer.

The Sponsor will

select third party brokers or dealers that it believes have implemented adequate AML, KYC and other legal compliance policies

and procedures.

the terms of each Authorized Participant Agreement, the Authorized Participants are responsible for any brokerage or transaction

costs associated with the sale or transfer of SOL incurred in connection with the fulfillment of a creation or redemption order.

(b) Administrator,

Custodian and Transfer Agent

Bancorp Fund Services, LLC, doing business as U.S.

Bank Global Fund Services (the “Administrator” and “Transfer

Agent”) serves as administrator, transfer agent and accounting agent of the Trust pursuant to a Fund Servicing Agreement.

To the extent the Trust must buy or sell SOL, the Trust may do so through a third-party digital

asset broker or dealer.

The Sponsor will select third party brokers or dealers that it believes have implemented adequate AML, KYC and

other legal compliance policies and procedures.

Under the terms of each Authorized Participant Agreement,

the Authorized Participants will be responsible for any brokerage or transaction costs associated with the sale or transfer of SOL incurred

in connection with the fulfillment of a creation or redemption order.

Administrator, Custodian and Transfer Agent

Services, LLC, doing business as U.S.

Bank Global Fund Services (the “Administrator” and “Transfer Agent”) serves

as administrator, transfer agent and accounting agent of the Trust pursuant to a Fund Servicing Agreement.

BitGo Trust Company, Inc.

(the “Custodian”) serves as the Trust’s Custodian.

Under the Custodial Services Agreement,

the Custodian is responsible for safekeeping all the Trust’s SOL.

“Custodian”) serves as the Trust’s SOL Custodian.

Under the BitGo Custodial Services Agreement, the Custodian is responsible

for safekeeping all the Trust’s SOL.

The Custodian was selected by the Sponsor.

is responsible for opening accounts with the Custodian that holds the Trust’s SOL (the “SOL Accounts”), as well

as facilitating the transfer or sale of SOL required for the operation of the Trust.

The Sponsor is responsible for opening accounts

with the Custodian that hold the Trust’s SOL (the “SOL Accounts”), as well as facilitating the transfer or sale of SOL

required for the operation of the Trust.

Bank, N.A., an affiliate of the Administrator

and Transfer Agent serves as the cash custodian for the Trust (the “Cash Custodian”).

The Cash Custodian is responsible

for safekeeping all cash and other non-SOL assets of the Trust.

The Cash Custodian is responsible for

safekeeping all cash and other non-SOL assets of the Trust.

Marketing Agent

Distributors LLC is the marketing agent of the Trust (the “Marketing Agent”) and is responsible for reviewing and

approving the marketing materials, including the Trust’s website, prepared by the Sponsor for compliance with applicable

SEC and Financial Industry Regulatory Authority, Inc.

(“FINRA”) advertising laws, rules, and regulations pursuant

to a marketing agreement with the Trust.

The Marketing Agent is a broker-dealer registered under the Securities Exchange Act of

1934, as amended (the “Exchange Act”) and a member of FINRA.

With the assistance of the Marketing Agent, the Sponsor

developed a marketing plan for the Trust, prepared marketing materials regarding the Shares of the Trust, and exercises the marketing

plan of the Trust on an ongoing basis.

(d) Principal

Financial Officer

of PINE Advisors LLC (“PINE”) serve as officers of the Trust.

In consideration for these services, the Sponsor pays

PINE an annual fee.

The Sponsor also reimburses PINE for certain out-of-pocket expenses.

Paralel Distributors LLC is the marketing

agent of the Trust (the “Marketing Agent”) and is responsible for reviewing and approving the marketing materials, including

the Trust’s website, prepared by the Sponsor for compliance with applicable SEC and Financial Industry Regulatory Authority, Inc.

(“FINRA”) advertising laws, rules, and regulations pursuant to a marketing agreement with the Trust.

The Marketing Agent

is a broker-dealer registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and a member of

With the assistance of the Marketing Agent, the Sponsor developed a marketing plan for the Trust, prepared marketing materials

regarding the Shares of the Trust, and exercises the marketing plan of the Trust on an ongoing basis.

Principal Financial Officer

Employees of PINE Advisors LLC (“PINE”)

serve as officers of the Trust.

In consideration for these services, the Sponsor pays PINE an annual fee.

The Sponsor also reimburses

PINE for certain out-of-pocket expenses.

Share Transactions

Trust is an exchange-traded product.

The Trust issues Shares on a continuous basis and, when the Trust creates or redeems its

Shares, it does so in blocks of 10,000 Shares (a “Basket”) based on the quantity of SOL attributable to each Share

of the Trust (net of accrued but unpaid expenses and liabilities).

For a subscription of Shares, the subscription shall be in

the amount of cash needed to purchase the amount of SOL represented by the Basket being created, as calculated by the Administrator.

For a redemption of Shares, the Sponsor shall arrange for the SOL represented by the Basket to be sold and the cash proceeds distributed.

Financial firms that are authorized to purchase or redeem Shares of the Trust (“Authorized Participants”) deliver,

or facilitate the delivery of, cash to the Trust’s account with the Cash Custodian in exchange for Shares when they purchase

Shares, and the Trust delivers cash to such Authorized Participants when they redeem Shares with the Trust.

Further, Authorized

Participants do not directly or indirectly purchase, hold, deliver, or receive SOL as part of the creation or redemption process

or otherwise direct the Trust or a third party with respect to purchasing, holding, delivering, or receiving SOL as part of the

creation or redemption process.

Shares initially comprising the same Basket but offered by the Authorized Participants to the

public at different times may have different offering prices, which depend on various factors, including the supply and demand

for Shares, the value of the Trust’s assets, and market conditions at the time of a transaction.

Shareholders who buy or

sell Shares during the day from their broker may do so at a premium or discount relative to the NAV of the Shares of the Trust.

Trust creates and redeems Shares in exchange for cash or SOL.

who decide to buy or sell Shares of the Trust place their trade orders through their brokers and incur customary brokerage commissions

Authorized Participants may place orders to create and redeem baskets through the Transfer Agent.

The Transfer Agent coordinates

with the Trust’s custodian to facilitate settlement of the Shares.

Sponsor is considered to be a related party to the Trust.

The Trust is an

exchange-traded product.

The Trust issues Shares on a continuous basis and, when the Trust creates or redeems its Shares, it does so in

blocks of 10,000 Shares (a “Basket”) based on the quantity of SOL attributable to each Share of the Trust (net of accrued

but unpaid expenses and liabilities).

Certain financial firms are authorized to purchase or redeem Shares of the Trust (“Authorized

Participants”).

The manner by

which creations are made is dictated by the terms of the Authorized Participant Agreement.

Creation orders may be denominated and settled

in an amount of SOL (“In-Kind Creation Order”) or in cash (“Cash Creation Order”).

By placing an In-Kind Creation

Order, an Authorized Participant agrees to facilitate the deposit of SOL with the Custodian, either directly or indirectly through an

Authorized Participant Designee.

By placing a Cash Creation Order, an Authorized Participant agrees to facilitate the deposit of cash

with the Cash Custodian.

An Authorized Participant may not withdraw a creation order without the prior consent of the Sponsor in its discretion.

The manner by

which redemptions are made is dictated by the terms of the Authorized Participant Agreement.

Redemption orders are denominated and settled

either in-kind (“In-Kind Redemption Order”) or in cash (“Cash Redemption Order”).

By placing a redemption order,

an Authorized Participant agrees to facilitate the deposit of Shares with the Transfer Agent.

If an Authorized Participant fails to consummate

the foregoing, the order will be cancelled or delayed until the required Shares have been received.

An Authorized Participant may not

withdraw a redemption order without the prior consent of the Sponsor in its discretion.

Shares initially

comprising the same Basket but offered by the Authorized Participants to the public at different times may have different offering prices,

which depend on various factors, including the supply and demand for Shares, the value of the Trust’s assets, and market conditions

at the time of a transaction.

Shareholders who buy or sell Shares during the day from their broker may do so at a premium or discount

relative to the NAV of the Shares of the Trust.

Shareholders who decide to buy or sell Shares of the

Trust place their trade orders through their brokers and incur customary brokerage commissions and charges.

Only Authorized Participants may place orders to create

and redeem baskets through the Transfer Agent.

The Transfer Agent coordinates with the Trust’s custodian to facilitate settlement

of the Shares.

Share activity for the quarter ended March 31, 2026

was as follows:

Quarter Ended March 31, 2026 (Unaudited) (a)

Number of Shares

Net change in Shares created and redeemed

$ ( 229,232 )

(a) No comparative periods have been presented as the initial share purchase date of the Trust

was November 17, 2025.

The following

financial highlights relate to investment performance and operations for a Share outstanding for the quarter ended March 31, 2026.

The total return at NAV is based on the change in NAV of a Share during the period, and the total return at market value is based on

the change in market value of a Share on the Exchange during the period.

An individual investor’s return and ratios may vary based

on the timing of capital transactions.

Quarter Ended

March 31, 2026

(Unaudited) *

Net Asset Value, Beginning of Period

Net Investment Income (Loss) (a)

Net Realized and Unrealized Gain (Loss) on Investments (b)

Net Increase (Decrease) in Net Asset Value Resulting from Operations

Net Asset Value, End of Period

Market Value Per Share (c)

Total Return at Net Asset Value (d)

Total Return at Market Value (c)(d)

Ratios to Average Net Assets:

Expense Ratio Before Expense Waiver (e)

Expense Ratio After Expense Waiver (e)

Net Investment Income (Loss) Before Expense Waiver (e)

Net Investment Income (Loss) After Expense Waiver (e)

* No comparative financial highlights have been presented as the initial share purchase date of the Trust was November 17, 2025.

(a) Net investment loss per share represents net investment loss divided by the daily average

shares of beneficial interest outstanding during the period.

(b) Due to timing of capital share transactions, per share amounts may not compare with amounts

appearing elsewhere within these Financial Statements.

may be later than when the Trust’s net asset value is calculated.

(d) Not annualized.

(e) Annualized.

The Sponsor is considered to

be a related party to the Trust.

The Trust’s operations are supported by its Sponsor.

As of March 31, 2026, the Sponsor did not own any

Shares of the Trust.

and Contingent Liabilities

the normal course of business, the Trust may enter into contracts that contain a variety of general indemnification clauses.

Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the

Trust which have not yet occurred and cannot be predicted with any certainty.

However, the Sponsor believes the risk of loss under

these arrangements to be remote.

There were no commitments or contingencies required to be disclosed as of the date of the financial

November 17, 2025, the Trust’s registration statement became effective in accordance with the provisions of section 8(a)

of the Securities Act of 1933, and Canary Capital Group Inc.

(“Seed Capital Investor”), an affiliate of the Sponsor,

purchased 10,000 Shares of the Trust at a per-Share price of $ 25.00 (“Seed Shares”).

The Trust received $ 250,000

of SOL in connection with the issuance of the Seed Shares.

On November 18, 2025,

the Shares of the Trust were listed on the Exchange.

November 24, 2025, the Sponsor will voluntarily waive the Sponsor Fee in its entirety until the earlier of:

(1) the Federal Reserve’s

Federal Open Market Committee establishing a target range for the Federal Funds Rate that includes or is lower than 3.00 % ;

(2) July 1, 2026.

In the normal

course of business, the Trust may enter into contracts that contain a variety of general indemnification clauses.

The Trust’s maximum

exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust which have not yet

occurred and cannot be predicted with any certainty.

However, the Sponsor believes the risk of loss under these arrangements to be remote.

There were no commitments or contingencies required to be disclosed as of the date of the financial statements.

Under normal circumstances,

the Sponsor will seek to stake all of the Trust’s SOL through one or more staking providers (each, a “Staking Provider”)

except for SOL reserved by the Sponsor in its sole discretion to facilitate foreseeable redemption transactions, pay Trust expenses or

otherwise protect the Trust and its assets.

In consideration for any staking activity in which the Trust may engage, the Trust will receive

a portion of the staking rewards generated by a Staking Provider.

The Staking Provider for the Trust’s SOL is Sous Vide Ltd.

The Trust earns

staking rewards by delegating a portion of its SOL on the Solana Network’s proof-of-stake consensus protocol.

The Trust will stake

the Trust’s SOL on the Solana Network through the Custodian using a software protocol provided by Marinade Finance that connects

the Trust to a pool of verified validator nodes on the Solana Network for automated SOL staking optimization.

As a result of any staking

activity in which the Trust may engage, the Trust expects to receive certain staking rewards of SOL, which may be treated for federal

income tax purposes as income to the Trust.

The Trust itself will not engage in staking activities, including operation of a validator

Instead, the staking program will be operated through the Trust’s service providers, including the Custodian and Staking Provider.

The Staking Provider exercises no discretion as to the amount the Trust’s SOL to be staked or timing of the staking activities.

The Custodian will maintain exclusive possession and control of the private keys associated with any staked SOL at all times.

31, 2026, 13,782 SOL were staked, representing a fair value of $ 1,138,952 .

As of December 31, 2025, 15,503 SOL were staked,

representing a fair value of $ 1,926,423 .

The amounts of SOL staked are included in Investments, at fair value on the Statements of Assets

and Liabilities.

rewards represent variable consideration, as the amount of rewards is not known until the applicable validation activities are completed,

and the Trust receives rewards in their custodial account.

The contract term is the length of each staking epoch.

The staking epoch for

the Solana Network is approximately two days.

Staking rewards are recognized as income when the Trust satisfies its performance obligations

(i.e., successfully validates blocks or transactions as determined by the protocol) ratably over the contract term.

Staking rewards are

received in SOL, which represents non-cash consideration.

Non-cash consideration is measured at fair value at the inception of each contract

(i.e., the beginning of each staking epoch).

Because the Trust is not the principal to the block validation service, it does not control

the full output of the reward-generating activity, and instead receives net staking rewards, after Validator Fees are deducted.

the Trust presents staking income on a net basis, reflecting only the portion of protocol rewards to which it is entitled.

For the period

ended March 31, 2026, the Trust generated $ 21,975 in staking income, as presented on the Statement of Operations.

Concentration

Substantially

all of the Trust’s assets are holdings of SOL, which creates a concentration risk associated with fluctuations in the price of

Accordingly, a decline in the price of SOL will have an adverse effect on the value of the Shares of the Trust.

Factors that may

have the effect of causing a decline in the price of SOL include negative perception of digital assets;

a lack of stability and standardized

regulation in the digital asset markets;

the closure or temporary shutdown of digital asset platforms due to fraud, business failure,

security breaches or government mandated regulation;

and a loss of investor confidence.

The Sponsor has evaluated

subsequent events through the date the financial statements were issued.

Based on this evaluation, no adjustments or disclosures to the

financial statements were required.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements