What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-15 compared with 2025-12-31 · 225 added, 202 removed, 6 unchanged (99% of the section changed)

Management’s Discussion and Analysis of Financial Condition and Results of Operations

information should be read in conjunction with the financial statements and notes included in Item 1 of Part I of this Form 10-Q.

Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and such forward-looking statements involve risks and uncertainties.

All statements (other than

statements of historical fact) included in this Form 10-Q that address activities, events or developments that may occur in the future,

the Trust’s operations, the Sponsor’s plans and references to the Trust’s future success and other similar matters

are forward-looking statements.

Words such as “could,” “would,” “may,” “expect,” “intend,”

“estimate,” “predict,” and variations on such words or negatives thereof, and similar expressions that reflect

our current views with respect to future events and Trust performance, are intended to identify such forward-looking statements.

forward-looking statements are only predictions, subject to risks and uncertainties that are difficult to predict and many of which are

outside of our control, and actual results could differ materially from those discussed.

Forward-looking statements involve risks and

uncertainties that could cause actual results or outcomes to differ materially from those expressed therein.

We express our estimates,

expectations, beliefs, and projections in good faith and believe them to have a reasonable basis.

However, we make no assurances that

management’s estimates, expectations, beliefs, or projections will be achieved or accomplished.

These forward-looking statements

are based on assumptions about many important factors that could cause actual results to differ materially from those in the forward-looking

We do not intend to update any forward-looking statements even if new information becomes available or other events occur

in the future, except as required by the federal securities laws.

and Trust Overview

The Trust is a Delaware statutory trust, formed on June 3, 2024, pursuant to the DSTA.

The Trust operates pursuant to the Amended and

Restated Trust Agreement (the “Trust Agreement”).

The Trust is not registered as an investment company

under the Investment Company Act of 1940, as amended (the “1940 Act”) and is not a commodity pool for purposes of the Commodity

Exchange Act (“CEA”).

The Trust is managed and controlled by the Sponsor.

The Sponsor is a limited liability company formed

in the state of Delaware on June 16, 2021, and is a wholly owned subsidiary of Jura Pentium Inc., whose ultimate parent company is FalconX

Holdings Limited.

The Sponsor is not subject to regulation by the Commodity Futures Trading Commission (“CFTC”) as a commodity

pool operator with respect to the Trust, or a commodity trading advisor with respect to the Trust.

The Trust is an exchange-traded fund

that issues units of beneficial interest representing fractional undivided beneficial interests in its net assets that trade on the Cboe

BZX Exchange, Inc.

(the “Exchange”).

The Shares are listed for trading on the Exchange under the ticker symbol “TSOL”.

The Sponsor served as the “Seed Capital Investor” to the Trust.

On September 17, 2025, the Sponsor, in its capacity as Seed

Capital Investor, subject to conditions, purchased seed creation baskets comprising 2 Shares at a per-Share price of $50.00, as described

in “Seed Capital Investor.” Total proceeds to the Trust from the sale of these Initial Seed Shares were $100.

the Initial Seed Shares was made on September 17, 2025.

The Trust’s investment objective is to seek to track the performance of SOL, as measured by the performance of the Pricing Benchmark,

adjusted for the Trust’s expenses and other liabilities, and to reflect rewards from staking a portion of the Trust’s SOL, to the extent

the Sponsor in its sole discretion determines that the Trust may do so without undue legal or regulatory risk, such as, without limitation,

the risk of jeopardizing the Trust’s ability to qualify as a grantor trust for U.S.

This information should

be read in conjunction with the financial statements and notes included in Item 1 of Part I of this Form 10-Q.

This Form 10-Q contains

“forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act,

and such forward-looking statements involve risks and uncertainties.

All statements (other than statements of historical fact) included

in this Form 10-Q that address activities, events or developments that may occur in the future, the Trust’s operations, the Sponsor’s

plans and references to the Trust’s future success and other similar matters are forward-looking statements.

Words such as “could,”

“would,” “may,” “expect,” “intend,” “estimate,” “predict,” and

variations on such words or negatives thereof, and similar expressions that reflect our current views with respect to future events and

Trust performance, are intended to identify such forward-looking statements.

These forward-looking statements are only predictions, subject

to risks and uncertainties that are difficult to predict and many of which are outside of our control, and actual results could differ

materially from those discussed.

Forward-looking statements involve risks and uncertainties that could cause actual results or outcomes

to differ materially from those expressed therein.

We express our estimates, expectations, beliefs, and projections in good faith and

believe them to have a reasonable basis.

However, we make no assurances that management’s estimates, expectations, beliefs, or projections

will be achieved or accomplished.

These forward-looking statements are based on assumptions about many important factors that could cause

actual results to differ materially from those in the forward-looking statements.

We do not intend to update any forward-looking statements

even if new information becomes available or other events occur in the future, except as required by the federal securities law s.

Organization and Trust Overview

The Trust is a Delaware statutory

trust, formed on June 3, 2024, pursuant to the DSTA.

The Trust operates pursuant to the Trust Agreement.

The Trust is not registered as

an investment company under the 1940 Act and is not a commodity pool for purposes of the Commodity Exchange Act.

The Trust is managed

and controlled by the Sponsor.

The Sponsor is a limited liability company formed in the state of Delaware on June 16, 2021, and is a wholly

owned subsidiary of 21co Holdings Limited.

The ultimate parent company of 21co Holdings Limited is FalconX.

The Sponsor is not subject

to regulation by the Commodity Futures Trading Commission as a commodity pool operator with respect to the Trust, or a commodity trading

advisor with respect to the Trust.

The Trust is an exchange-traded fund that issues common shares of beneficial interest representing

fractional undivided beneficial interests in its net assets that trade on the Exchange.

The Shares are listed for trading on the Exchange

under the ticker symbol “TSOL”.

The Sponsor served as the

“Seed Capital Investor” to the Trust.

On September 17, 2025, the Sponsor, in its capacity as Seed Capital Investor, subject

to conditions, purchased the Initial Seed Shares at a per-Share price of $50.00.

Total proceeds to the Trust from the sale of these Initial

Seed Shares were $100.

Delivery of the Seed Shares was made on September 17, 2025.

The Trust’s investment

objective is to seek to track the performance of solana, as measured by the performance of the Pricing Benchmark, adjusted for the Trust’s

expenses and other liabilities, and to reflect rewards from staking a portion of the Trust’s solana, to the extent the Sponsor in

its sole discretion determines that the Trust may do so without undue legal or regulatory risk, such as, without limitation, the risk

of jeopardizing the Trust’s ability to qualify as a grantor trust for U.S.

Federal income tax purposes.

CF Benchmarks Ltd.

the Pricing Benchmark Provider.

The Pricing Benchmark is designed to reflect the performance of SOL in U.S.

Pricing Benchmark Provider.

The Pricing Benchmark is designed to reflect the performance of solana in U.S.

In seeking to achieve

its investment objective, the Trust holds SOL at Coinbase Custody Trust Company, LLC (“Coinbase”), Anchorage Digital Bank

(“Anchorage”), and BitGo Bank & Trust N.A.

(“BitGo” and together with Coinbase and Anchorage, as the

context may require, the “Custodian”, “Custodians” and each a “Custodian”) and values its Shares daily

based on the Pricing Benchmark.

The Trust is a passive investment vehicle and is not a leveraged product.

The Sponsor does not actively

manage the SOL held by the Trust.

As of September 30, 2025, the Constituent Exchanges included in the Pricing Benchmark that is utilized by the Trust are Coinbase, Gemini,

Kraken, LMAX Digital, Bitstamp and Crypto.com.

Gemini’s headquarters are located in New York, New York, and Gemini is registered as a

money services business with FinCEN and holds state licenses to engage in money transmission, or the state equivalent, in applicable U.S.

Coinbase operates as a remote-first company and has no physical headquarters, and is registered as a money services business with

FinCEN, and holds licenses to engage in money transmission, or the state equivalent, in the majority of U.S.

Kraken’s headquarters

are located in San Francisco, California, and is registered as a money services business with FinCEN and holds licenses to engage in money

transmission, or the state equivalent, in the majority of U.S.

LMAX Digital is a Gibraltar based exchange regulated by the GFSC

as a DLT provider for execution and custody services.

LMAX Digital does not hold a BitLicense and is part of LMAX Group, a U.K.-based

operator of a FCA regulated Multilateral Trading Facility and Broker-Dealer.

Bitstamp is a U.K.-based exchange registered as an MSB with

FinCEN and licensed as a virtual currency business under the NYDFS BitLicense as well as money transmitter in various U.S.

is a Singapore-based trading platform with a Digital Token License from the Monetary Authority of Singapore.

Crypto.com is also registered

as a Money Services Business with FinCEN.

The Trust issues Shares only in blocks of 10,000 Shares (a “Basket”) or multiples thereof.

Baskets are issued and redeemed

in exchange for cash.

Individual Shares will not be redeemed by the Trust but are listed and traded on the Exchange under the ticker symbol

The Trust issues Shares in Baskets on a continuous basis at the applicable net asset value (“NAV”) per

Share on the creation order date.

The Trust pays the unitary Sponsor fee of 0.21% of the Trust’s SOL holdings.

The Sponsor fee is paid by the Trust to the Sponsor as compensation

for services performed under the Trust Agreement.

The Sponsor fee accrues daily and is payable in SOL weekly in arrears.

The administrator

for the Trust (the “Administrator”) calculates the Sponsor fee on a daily basis by applying an annualized rate to the Trust’s

total SOL holdings, and the amount of SOL payable in respect of each daily accrual is determined by reference to the Benchmark Provider.

The Sponsor has agreed to pay all operating expenses (except for litigation expenses and other extraordinary expenses) out of the Sponsor

Trust is an “emerging growth company” as that term is used in the Securities Act, and, as such, the Trust may elect to comply

with certain reduced public company reporting requirements.

of Net Asset Value

The NAV of the Trust is used by the Trust in its day-to-day operations to measure the net value of the Trust’s assets.

The NAV is calculated

on each day other than when the Exchange is closed for regular trading (a “Business Day”) and is equal to the aggregate value

of the Trust’s assets less its liabilities based on the Benchmark Provider price.

In determining the NAV of the Trust on any Business

Day, the Administrator calculates the price of the SOL held by the Trust as of 4:00 p.m.

its investment objective, the Trust holds solana at its Custodians and values its Shares daily based on the Pricing Benchmark.

is a passive investment vehicle and is not a leveraged product.

The Sponsor does not actively manage the solana held by the Trust.

The Trust issues Shares only

in Creation Baskets of 10,000 or multiples thereof.

Creation Baskets are issued and redeemed in exchange for cash.

Individual Shares will

not be redeemed by the Trust but are listed and traded on the Exchange under the ticker symbol “TSOL”.

The Trust issues Shares

in Creation Baskets on a continuous basis at the applicable NAV per Share on the creation order date.

The Trust pays the unitary Sponsor fee of 0.21% of the Trust’s

NAV (the “Sponsor Fee”).

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

the Trust Agreement.

The Sponsor Fee accrues daily and is payable in solana weekly in arrears.

The Administrator calculates the Sponsor

Fee on a daily basis by applying an annualized rate to the Trust’s NAV, and the amount of solana payable in respect of each daily

accrual is determined by reference to the Pricing Benchmark.

The Sponsor has agreed to pay all operating expenses (except for litigation

expenses and other extraordinary expenses) out of the Sponsor Fee.

The Trust is an “emerging

growth company” as that term is used in the Securities Act, and, as such, the Trust may elect to comply with certain reduced public

company reporting requirements.

Calculation of NAV and NAV per Share

The NAV of the Trust is used

by the Trust in its day-to-day operations to measure the net value of the Trust’s assets.

The NAV is calculated on each day other

than a day when the Exchange is closed for regular trading (a “Business Day”) and is equal to the aggregate value of the Trust’s

assets less its liabilities based on the Pricing Benchmark price.

In determining the NAV of the Trust on any Business Day, the Administrator

calculates the price of the solana held by the Trust as of 4:00 p.m.

ET on such day.

The Administrator also calculates

the “NAV per Share” of the Trust, which equals the NAV of the Trust divided by the number of outstanding Shares.

In addition to calculating NAV and NAV per Share, for purposes of the Trust’s financial statements, the Trust determines the NAV of the

SOL market that the Trust considers its “principal market” as of 4:00 p.m.

ET on the valuation date (the “Principal

Market NAV”) and Principal Market NAV per Share on each valuation date for such financial statements.

The determination of the Principal

Market NAV and Principal Market NAV per Share is identical to the calculation of NAV and NAV per Share, respectively, except that the

value of SOL is determined using the fair value of SOL based on the price in the SOL market that the Trust considers its “principal

market” as of 4:00 p.m.

ET on the valuation date, rather than using the Benchmark Provider.

NAV and NAV per Share are not measures calculated in accordance with GAAP and are not intended as substitutes for Principal Market and

Principal Market NAV per Share, respectively.

The Trust’s staking model aims to maximize the portion of the Trust’s SOL available for staking while controlling for liquidity and redemption

The model determines an optimal utilization rate by balancing expected yield against potential costs (including borrowing costs

during redemptions, assuming we have access to suitable credit).

The third-party staking services provider (the “Staking Services Provider”) will exercise no discretion as to the amount of

the Trust’s SOL to be staked or the timing of the Trust’s staking activities (the “Staking Activities”).

While the Trust may

stake a maximum of 100% of its SOL holdings, the amount of SOL that remains unstaked is determined based on the Trust’s utilization rate

analysis, and accordingly may vary from time to time.

Based on utilization rate analysis applied to historical data, the Trust generally

intends to stake between 70% and 90% of the SOL it holds, although the amount of SOL that is staked may be lesser or greater from time

The precise percentage to be staked will be based on the estimated liquidity needs of the Trust and other factors, as determined

by the Sponsor.

The Trust intends to make available on its website the current percentage of the Trust’s SOL being staked on a daily basis.

The rewards owed or paid to the Custodians as compensation for the Staking Services Provider reduces the amount of SOL rewards that are

generated from the Trust’s Staking Activities that are available in the assets of the Trust.

Each Staking Services Provider that generates

staking rewards will be entitled to compensation determined as a portion of the staking rewards, which is generally expected to be determined

by a low single-digit percentage of the overall rewards amount (the “Staking Provider Consideration”).

The Staking Provider

Consideration is paid directly to the Staking Services Provider from the staking rewards or indirectly through the Custodians’ own accounts.

The Trust will pay 10% of the staking rewards generated by the Trust’s Staking Activities after deduction of the Staking Provider Consideration

to the Sponsor, and retain the remainder.

Beginning in 2026, the Trust intends to pay cash distributions at least quarterly to Shareholders to distribute staking rewards earned

by the Trust.

The amount of any distribution, if any, will depend on the staking rewards actually earned by the Trust during each quarter

and cannot be predicted with certainty.

The amount of staking rewards earned will vary based on factors including, but not limited to,

the amount of SOL held by the Trust, the percentage of the Trust’s SOL that is staked, network staking participation rates, protocol reward

rates on the Solana network, and network conditions.

Accordingly, there can be no assurance as to the amount of distributions that will

be paid in any quarter, and it is possible that no distributions will be paid in a given quarter if insufficient staking rewards are earned.

On the Solana network, in addition to staking rewards there are block rewards that are paid to validators.

Block rewards are not newly

minted SOL from inflation but are composed of transaction fees, with half the fee being burned and the other half going to the validator

who produces and validates the block.

Validators also earn through inflation rewards for securing the network and may receive additional

revenue from MEV.

Validators are paid immediately upon block production, and delegators receive their share of rewards from the validator

they stake with, usually at the end of an epoch.

As such, block rewards and transaction fees are not considered staking rewards and will

not accrete to the Trust.

Critical Accounting

financial statements and accompanying notes are prepared in accordance with GAAP.

The preparation of these financial statements relies

on estimates and assumptions that impact the Trust’s financial position and results of operations.

These estimates and assumptions

affect the Trust’s application of accounting policies.

The Administrator also calculates the “NAV

per Share” of the Trust, which equals the NAV of the Trust divided by the number of outstanding Shares.

In addition to calculating

NAV and NAV per Share, for purposes of the Trust’s financial statements, the Trust determines the net asset value of the Trust determined

on a GAAP basis (the “Principal Market NAV”) and net asset value of the Trust per Share determined on a GAAP basis (the “Principal

Market NAV per Share”) on each valuation date for such financial statements.

The determination of the Principal Market NAV and Principal

Market NAV per Share is identical to the calculation of NAV and NAV per Share, respectively, except that the value of solana is determined

using the fair value of solana based on the price in the solana market that the Trust considers its “principal market” as of

ET on the valuation date, rather than using the Pricing Benchmark.

NAV and NAV per Share are

not measures calculated in accordance with GAAP and are not intended as substitutes for Principal Market and Principal Market NAV per

Share, respectively.

The Trust’s staking

model aims to maximize the portion of the Trust’s solana available for staking while controlling for liquidity and redemption risks.

The model determines an optimal utilization rate by balancing expected yield against potential costs (including borrowing costs during

redemptions, assuming we have access to suitable credit).

The Staking Services Providers exercise no discretion as to the amount

of the Trust’s solana to be staked or the timing of the Trust’s Staking Activities.

While the Trust may stake a maximum of

100% of its solana holdings, the amount of solana that remains unstaked is determined based on the Trust’s utilization rate analysis,

and accordingly may vary from time to time.

Based on utilization rate analysis applied to historical data, the Trust generally intends

to stake between 70% and 90% of the solana it holds, although the amount of solana that is staked may be lesser or greater from time to

The precise percentage to be staked is based on the estimated liquidity needs of the Trust and other factors, as determined by the

The rewards owed or paid to

the Staking Services Provider reduces the amount of solana rewards that are generated from the Trust’s Staking Activities that are

available in the assets of the Trust.

Each Staking Services Provider that generates staking rewards is entitled to compensation determined

as a portion of the staking rewards, which is generally determined by a low single-digit percentage of the overall rewards amount (the

“Staking Provider Consideration”).

The Staking Provider Consideration is paid directly to the Staking Services Provider from

the staking rewards or indirectly through the Custodians’ own accounts.

The Trust pays 10% of the staking rewards generated by the

Trust’s Staking Activities after deduction of the Staking Provider Consideration to the Sponsor, and retains the remainder.

The Trust intends to pay cash distributions at least quarterly to Shareholders

to distribute staking rewards earned by the Trust.

The amount of any distribution, if any, will depend on the staking rewards actually

earned by the Trust during each quarter and cannot be predicted with certainty.

The amount of staking rewards earned will vary based on

factors including, but not limited to, the amount of solana held by the Trust, the percentage of the Trust’s solana that is staked,

network staking participation rates, protocol reward rates on the Solana network, and network conditions.

Accordingly, there can be no

assurance as to the amount of distributions that will be paid in any quarter, and it is possible that no distributions will be paid in

a given quarter if insufficient staking rewards are earned.

On the Solana network, in addition to staking rewards there are block

rewards that are paid to validators.

Block rewards are not newly minted solana from inflation but are composed of transaction fees, with

half the fee being burned and the other half going to the validator who produces and validates the block.

Validators also earn through

inflation rewards for securing the network and may receive additional revenue from MEV.

Validators are paid immediately upon block production,

and delegators receive their share of rewards from the validator they stake with, usually at the end of an epoch.

As such, block rewards

and transaction fees are not considered staking rewards and will not accrete to the Trust.

Critical Accounting Estimates

The financial statements and

accompanying notes are prepared in accordance with GAAP.

The preparation of these financial statements relies on estimates and assumptions

that impact the Trust’s financial position and results of operations.

These estimates and assumptions affect the Trust’s application

of accounting policies.

Below is a summary of accounting policies on cash and investment valuation.

There were no material estimates involving a significant level of estimation uncertainty that had or are reasonably likely to have had

a material impact on the Trust’s financial condition used in the preparation of the financial statements.

In addition, please refer

to Note 2 to the Financial Statements included in this report for further discussion of the Trust’s accounting policies.

includes non-interest bearing, non-restricted cash maintained with one financial institution that does exceed U.S.

federally insured

limits and with one SOL Custodian.

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

The Trust follows the provisions of ASC 820, Fair Value Measurements

ASC 820 provides guidance for determining fair value and requires increased disclosure regarding the inputs

to valuation techniques used to measure fair value.

ASC 820 determines fair value to be the price that would be received for SOL in a

current sale, which assumes an exit price resulting from an orderly transaction between market participants on the measurement date.

ASC 820-10 requires the assumption that SOL is sold in its principal market to market participants (or in the absence of a principal

market, the most advantageous market).

Trust utilizes an exchange traded price from the Trust’s principal market for SOL as of 4:00 p.m.

ET on the Trust’s financial

statement measurement date.

and Capital Resources

The Trust is not aware of any trends, demands, commitments, events, or uncertainties that are reasonably likely to result in material

changes to its liquidity needs.

The Trust’s only ordinary recurring expense is expected to be the fee paid to the Sponsor at an annual

rate of 0.21% of the Trust’s total SOL holdings.

In exchange for the Sponsor’s fee, the Sponsor has agreed to assume the ordinary fees

and expenses incurred by the Trust, including but not limited to the following:

fees charged by Administrator, the Custodians, transfer

agent and the trustee, fees payable to the marketing agent for services it provides to the Trust, the Exchange’s listing fees, typical

maintenance and transaction fees of the DTC, SEC registration fees, printing and mailing costs, website fees, tax reporting fees, audit

fees, license fees and expenses, up to $100,000 per annum in ordinary legal fees and expenses.

The Sponsor bears expenses in connection

with the Trust’s organization and initial offering costs.

Sponsor is not required to pay any extraordinary or non-routine expenses.

Extraordinary expenses are fees and expenses which are unexpected

or unusual in nature, such as legal claims and liabilities and litigation costs or indemnification or other unanticipated expenses.

Extraordinary

fees and expenses also include material expenses which are not currently anticipated obligations of the Trust.

The Trust will be responsible

for the payment of such expenses to the extent any such expenses are incurred.

Routine operational, administrative, and other ordinary

expenses are not deemed extraordinary expenses.

The Trust will sell SOL on an as-needed basis to pay the Sponsor’s fee.

Sheet Arrangements

Trust does not have any off-balance sheet arrangements.

There were no material estimates involving

a significant level of estimation uncertainty that had or are reasonably likely to have had a material impact on the Trust’s financial

condition used in the preparation of the financial statements.

In addition, please refer to Note 2 to the Financial Statements included

in this report for further discussion of the Trust’s accounting policies.

Cash includes non-interest

bearing, non-restricted cash maintained with one financial institution that does not exceed U.S.

federally insured limits.

Investment Valuation

The Trust’s policy is

to value investments held at fair value.

The Trust follows the provisions of ASC 820, Fair Value Measurements (“ASC 820”).

ASC 820 provides guidance for determining fair value and requires increased disclosure regarding the inputs to valuation techniques used

to measure fair value.

ASC 820 determines fair value to be the price that would be received for solana in a current sale, which assumes

an exit price resulting from an orderly transaction between market participants on the measurement date.

ASC 820-10 requires the assumption

that solana is sold in its principal market to market participants (or in the absence of a principal market, the most advantageous market).

The Trust utilizes an exchange

traded price from the Trust’s principal market for solana as of 4:00 p.m.

ET on the Trust’s financial statement measurement

Results of Operations

For the Three Months Ended

March 31, 2026*

The Trust’s NAV decreased from $5,735,019 on December 31, 2025

to $2,876,514 on March 31, 2026, a 33.30% decrease.

The decrease in the Trust’s NAV resulted primarily from a decrease in the price

of solana, which decreased 33.32% from $123.97 on December 31, 2025 to $82.66 on March 31, 2026.

The decrease was further amplified by

a net decrease in outstanding Shares from 460,000 on December 31, 2025 to 360,000 on March 31, 2026, as a result of 40,000 Shares (4 Baskets)

being created and 140,000 Shares (14 Baskets) being redeemed during the quarter.

During the quarter, the Trust staked an average of 42.03%

of its solana holdings, though 0.00% was staked as of March 31, 2026.

Net decrease in net assets resulting from operations for the three

months ended March 31, 2026 was $(1,306,978), resulting from a net change in unrealized depreciation on investment in solana of $(1,004,228),

a net realized loss of $(232,315) from solana sold for redemptions, a net realized loss of $(86,471) from solana sold for income distribution,

a net realized loss of $(3,801) from solana sold to pay the Sponsor Fee, and a net realized loss of $(1,943) on in-kind liabilities paid,

partially offset by net investment income of $18,991 and a net change in unrealized appreciation on Sponsor Fee payable of $2,789.

investment income comprised Staking Rewards of $23,355 less the Sponsor Fee of $2,028 and the Staking Fee of $2,336.

In addition to operations,

the Trust paid a staking income distribution of $120,180 to Shareholders during the quarter.

Other than the Sponsor Fee and Staking Fee,

the Trust had no other expenses during the quarter.

* No prior year comparative period has been provided as the Trust

did not have any operations as of March 31, 2025.

Liquidity and Capital Resources

The Trust is not aware of

any trends, demands, commitments, events, or uncertainties that are reasonably likely to result in material changes to its liquidity needs.

The Trust’s ordinary recurring expenses are the Sponsor Fee and the Staking Fee.

In exchange for the Sponsor Fee, the Sponsor has

agreed to assume the ordinary fees and expenses incurred by the Trust, including but not limited to the following:

fees charged by the

Administrator, the Custodians, the Transfer Agent and the Trustee, the Marketing Fee, the Exchange’s listing fees, typical maintenance

and transaction fees of the Depository Trust Company (“DTC”), SEC registration fees, printing and mailing costs, website fees,

tax reporting fees, audit fees, license fees and expenses, up to $100,000 per annum in ordinary legal fees and expenses.

The Sponsor bears

expenses in connection with the Trust’s organization and initial offering costs.

The Sponsor is not required

to pay any extraordinary or non-routine expenses.

Extraordinary expenses are fees and expenses which are unexpected or unusual in nature,

such as legal claims and liabilities and litigation costs or indemnification or other unanticipated expenses.

Extraordinary fees and expenses

also include material expenses which are not currently anticipated obligations of the Trust.

The Trust will be responsible for the payment

of such expenses to the extent any such expenses are incurred.

Routine operational, administrative, and other ordinary expenses are not

deemed extraordinary expenses.

The Trust will sell solana on an as-needed basis to pay the Sponsor Fee.

Off-Balance Sheet Arrangements

The Trust does not have any

off-balance sheet arrangements.

Quantitative and Qualitative Disclosures

about Market Risks

The Trust is a smaller reporting company as defined by Rule 12b-2

of the Exchange Act and is not required to provide the information otherwise required under this item.

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 2. Management’s Discussion and Analysis