What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-12 compared with 2026-05-15 · 140 added, 119 removed, 112 unchanged (70% of the section changed)

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

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.

Management’s Discussion and Analysis of Financial

Condition and Results of Operations

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

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 laws.

Organization and Trust Overview

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

June 30, 2026, the Sponsor provided notice to the Pricing Benchmark Provider of the termination, effective August 31, 2026, of the licensing

agreement between the Sponsor and the Pricing Benchmark Provider relating to the use of the Pricing Benchmark.

The Sponsor intends to

enter into a licensing agreement with FTSE on or about August 24, 2026, whereby FTSE will provide each of the Sponsor, the Trust, and

their affiliates a non-exclusive, non-transferable, non-sub-licensable, worldwide license to access, view and use FTSE index data to develop,

create, calculate, settle, maintain or support and market the Trust.

Accordingly, the change in pricing benchmark provider is not expected

to have a material impact on the Trust's net asset value, the fair value measurement of the Trust's solana, or the Trust's results of

operations, and does not represent a change in accounting principle.

The change will be applied prospectively from the date the successor

benchmark becomes effective.

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.

Creation Baskets are issued and redeemed in exchange for cash or in-kind for solana.

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 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

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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.

The NAV is calculated on each 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.

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

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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

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

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

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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.

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 time.

The precise percentage to be staked is based on the estimated liquidity needs of the

Trust and other factors, as determined by the Sponsor.

The rewards owed or paid to the Staking Services Provider reduce the

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

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.

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

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

Validators also earn through inflation rewards for securing the network and may receive additional revenue from MEV.

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

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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.

June 30, 2026*

The Trust’s NAV decreased

from $2,876,514 on March 31, 2026 to $2,847,364 on June 30, 2026, a 1.01% decrease.

The decrease resulted primarily from a 10.95% decline

in the price of solana, which fell from $82.66 on March 31, 2026 to $73.61 on June 30, 2026, partially offset by a net increase in outstanding

Shares from 360,000 on March 31, 2026 to 400,000 on June 30, 2026, as a result of 40,000 Shares (4 Baskets) being created and 0 Shares

(0 Baskets) being redeemed during the quarter.

The Trust had 90.80% of its solana holdings staked as of June 30, 2026, with an average

of 43.15% staked on a daily basis during the quarter.

Net decrease in net assets

resulting from operations for the three months ended June 30, 2026 was $(293,613), resulting from a net change in unrealized depreciation

on investment in solana of $(296,506), a net realized loss of $0 from solana sold for redemptions, a net realized loss of $(10,572) from

solana sold for distributions, a net realized loss of $(1,599) from solana sold to pay the Sponsor Fee, and a net realized loss of $(420)

on in-kind liabilities paid, partially offset by a net investment income of $14,792 and a net change in unrealized appreciation on Sponsor

Fee payable of $692.

Net investment income comprised Staking Rewards of $18,105 less the Sponsor Fee of $1,503 and the Staking Fee of

In addition to net assets resulting from operations, the Trust paid total staking income distributions of $14,379 ($0.035949 per

Share on June 29, 2026) to Shareholders during the quarter.

Except for 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 June 30, 2025.

For the Six Months Ended

June 30, 2026*

The Trust’s NAV decreased

from $5,735,019 on December 31, 2025 to $2,847,364 on June 30, 2026, a 50.35% decrease.

The decrease resulted primarily from a 40.62%

decline in the price of solana, which fell from $123.97 on December 31, 2025 to $73.61 on June 30, 2026.

The decrease was amplified by

a net decrease in outstanding Shares from 460,000 on December 31, 2025 to 400,000 on June 30, 2026, as a result of 80,000 Shares (8 Baskets)

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

The Trust had 90.80% of its solana holdings staked as

of June 30, 2026, with an average of 41.96% staked on a daily basis during the period.

Net decrease in net assets

resulting from operations for the six months ended June 30, 2026 was $(1,600,591), resulting from a net change in unrealized depreciation

on investment in solana of $(1,300,734), a net realized loss of $(232,315) from solana sold for redemptions, a net realized loss of $(97,043)

from solana sold for distributions, a net realized loss of $(5,401) from solana sold to pay the Sponsor Fee, and a net realized loss of

$(2,370) on in-kind liabilities paid, partially offset by a net investment income of $33,783 and a net change in unrealized appreciation

on Sponsor Fee payable of $3,489.

Net investment income comprised Staking Rewards of $41,460 less the Sponsor Fee of $3,531 and the Staking

Fee of $4,146.

In addition to net assets resulting from operations, the Trust paid total staking income distributions of $134,559 ($0.316871

per Share on February 13, 2026, $0.016962 per Share on March 30, 2026, and $0.035949 per Share on June 29, 2026) to Shareholders during

Except for the Sponsor Fee and Staking Fee, the Trust had no other expenses during the period.

No prior year comparative period has been provided as the Trust did not have any operations as of June 30, 2025.

Liquidity and Capital Resources

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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.

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:

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

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

On July 27, 2026, the Sponsor agreed to voluntarily waive the Sponsor Fee for a period of one year beginning on July 28, 2026 and ending

on July 27, 2027.

Off-Balance Sheet Arrangements

3 unchanged sentences

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.

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