Solana drop impacts Bitwise Solana Staking ETF (NYSE: BSOL) in Q1 2026
Bitwise Solana Staking ETF reported a sharp decline in value for the three months ended March 31, 2026, driven by a lower Solana price. Net assets fell from $641,326k at December 31, 2025 to $570,305k, while the Coinbase-based principal market price for Solana moved from $123.96 to $82.60 per coin.
The Trust generated $9,319k of net investment income, almost entirely from $9,886k of Staking Rewards, against $567k of net expenses. However, it recorded $(247,410k) in net realized and unrealized losses on Solana, reflecting both sales for redemptions and mark-to-market depreciation.
Solana holdings increased from 5,154,309.1029 to 6,905,640.8119 coins, supported by creations and staking, even as 4,010,000 Shares were redeemed. The ETF continues to operate as a grantor trust, charging a 0.20% annual Sponsor Fee and 6% Staking Expenses on additional Solana earned.
Positive
- None.
Negative
- None.
Insights
BSOL’s Q1 shows strong staking income but large mark-to-market losses from Solana’s price drop.
Bitwise Solana Staking ETF (BSOL) delivered meaningful staking yield, with net investment income of $9,319k on average net assets, supported by $9,886k of Staking Rewards. The reported 6.22% annualized net investment income ratio highlights the income potential of its staking strategy.
The core driver of results, however, was Solana’s price move from $123.96 to $82.60, producing net realized and unrealized losses of $(247,410k). That decline outweighed income and led to a $(238,091k) decrease in net assets from operations despite higher coin holdings.
The Trust grew Solana held to 6.9 million coins and increased shares outstanding overall, indicating continued creation activity alongside redemptions. Future outcomes will depend primarily on Solana market pricing and ongoing staking performance as disclosed in subsequent quarterly and annual reports.
Key Figures
Key Terms
Staking Rewards financial
Sponsor Fee financial
Principal Market NAV financial
CME CF Solana - Dollar Reference Rate - New York Variant financial
grantor trust regulatory
Exchange-Traded Product (ETP) financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
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Commission File Number:
(Exact name of registrant as specified in its charter)
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Bitwise Investment Advisers, LLC
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(Address, including ZIP code, and telephone number, including area code, of registrant’s primary executive offices)
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided in Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act). ☐ Yes
The registrant had
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q (the “Quarterly Report”) includes “forward-looking statements” with respect to the financial condition, results of operations, plans, objectives, future performance and business of The Bitwise Solana Staking ETF (the “Trust”). In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or the negative of these terms or other comparable terminology. All statements (other than statements of historical fact) included in this Quarterly Report that address activities, events, or developments that will or may occur in the future, including such matters as movements in the digital asset markets, the Trust’s operations, the plans of Bitwise Investment Advisers, LLC (the “Sponsor”), and references to the Trust’s future success and other similar matters, are forward-looking statements. These statements are only predictions. Actual events or results may differ materially. These statements are based upon certain assumptions and analyses the Sponsor has made based on its perception of historical trends, current conditions, and expected future developments, as well as other factors appropriate in the circumstances.
Factors which could have a material adverse effect on the Trust's business, financial condition or results of operations and future prospects or which could cause actual results to differ materially from the Trust's expectations include, but are not limited to:
All the forward-looking statements made in this Quarterly Report are qualified by these cautionary statements, and there can be no assurance that the actual results or developments the Sponsor anticipates will be realized or, even if substantially realized, that they will result in the expected consequences to, or have the expected effects on, the Trust’s operations or the value of the Shares.
Should one or more of these risks discussed in the section entitled “Risk Factors” or other uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those described in forward-looking statements. Forward-looking statements are made based on the Sponsor’s beliefs, estimates and opinions on the date the statements are made, and neither the Trust nor the Sponsor is under a duty to update any of the forward-looking statements to conform such statements to actual results or to reflect a change in the Sponsor’s expectations or predictions, other than as required by applicable laws. Investors are therefore cautioned against relying on forward-looking statements.
EMERGING GROWTH COMPANY STATUS
The Trust is an “emerging growth company” as that term is used in the Jumpstart Our Business Startups Act (the “JOBS Act”) and, as such, may elect to comply with certain reduced reporting requirements. For as long as the Trust is an emerging growth company, unlike other public companies, it will not be required to:
The Trust will cease to be an “emerging growth company” upon the earliest of (i) when it has $1.235 billion or more in total annual gross revenues during its most recently completed fiscal year; (ii) when it is deemed to be a large accelerated filer under Rule 12b-2 promulgated pursuant to the Securities Exchange Act of 1934, as amended; (iii) when it has issued more than $1.0 billion of non-convertible debt over a three-year period; or (iv) the last day of the fiscal year following the fifth anniversary of its initial public offering.
In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies; however, the Trust is choosing to “opt out” of such extended transition period, and as a result, the Trust will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. Section 107 of the JOBS Act provides that the Trust’s decision to opt out of the extended transition period for complying with new or revised accounting standards is irrevocable.
Bitwise SOLANA STAKING ETF
Table of Contents
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INDUSTRY AND MARKET DATA |
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PART I - FINANCIAL INFORMATION
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Item 1. Financial Statements (Unaudited). |
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Statements of Assets and Liabilities on March 31, 2026 (unaudited) and December 31, 2025 |
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Schedules of Investment on March 31, 2026 (unaudited) and December 31, 2025 |
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Statement of Operations (unaudited) for the three months ended March 31, 2026 |
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Statement of Changes in Net Assets (unaudited) for the three months ended March 31, 2026 |
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Statement of Cash Flows (unaudited) for the three months ended March 31, 2026 |
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Notes to Financial Statements (Unaudited) |
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
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Item 3. Quantitative and Qualitative Disclosures About Market Risk. |
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Item 4. Controls and Procedures.
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PART II - OTHER INFORMATION
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Item 1. Legal Proceedings. |
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Item 1A. Risk Factors. |
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. |
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Item 3. Defaults Upon Senior Securities. |
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Item 4. Mine Safety Disclosures. |
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Item 5. Other Information. |
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Item 6. Exhibits. |
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GLOSSARY OF DEFINED TERMS |
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SIGNATURES |
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Industry and Market Data
Although we are responsible for all disclosure contained in this Quarterly Report on Form 10-Q, in some cases we have relied on certain market and industry data obtained from third-party sources that we believe to be reliable. Market estimates are calculated by using independent industry publications in conjunction with our assumptions regarding the solana industry and market. While we are not aware of any misstatements regarding any market, industry or similar data presented herein, such data involves risks and uncertainties and is subject to change based on various factors, including those discussed under the heading “Statement Regarding Forward-Looking Statements.”
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PART I-FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited).
Bitwise Solana Staking ETF
Statements of Assets and Liabilities
(Amounts in thousands, except Share and per-share amounts)
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March 31, 2026 |
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December 31, 2025 |
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(unaudited) |
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Assets |
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Investment in solana, at fair value (cost $ |
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Receivable for Staking Rewards |
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Receivable for solana sold |
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Receivable for In-Kind Creations |
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Total assets |
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Liabilities |
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Payable for redemptions |
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Sponsor Fee payable |
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Staking Fee payable |
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Total liabilities |
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Net Assets |
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Shares issued and outstanding, |
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Principal Market NAV per Share |
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(1)
The accompanying notes are an integral part of the Financial Statements.
1
Bitwise Solana Staking ETF
Schedules of Investment
(Amounts in thousands, except quantity of solana and percentages)
March 31, 2026 (unaudited) |
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Investment in solana^ |
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Total investment |
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Liabilities in excess of other assets |
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Net Assets |
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December 31, 2025 |
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Quantity of |
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Investment in solana^ |
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Total investment |
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Assets in excess of liabilities |
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Net Assets |
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(2)
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The accompanying notes are an integral part of the Financial Statements.
2
Bitwise Solana Staking ETF
Statement of Operations
(Amounts in thousands)
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For the three months ended March 31, 2026* |
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(unaudited) |
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Investment income |
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Staking Rewards |
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Expenses |
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Sponsor Fee |
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Staking Fee |
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Total expenses |
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Less: waivers and reimbursement |
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Net expenses |
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Net investment income |
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Net realized and unrealized gain (loss) |
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Net realized gain (loss) on investment in solana transferred to pay Sponsor Fee |
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Net realized gain (loss) on In-Kind Redemptions of solana |
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Net realized gain (loss) on solana transferred for staking activities |
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Net realized gain (loss) on investment in solana sold for redemptions |
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Net change in unrealized appreciation (depreciation) on investment in solana |
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Net realized and unrealized gain (loss) |
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Net increase (decrease) in net assets resulting from operations |
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The accompanying notes are an integral part of the Financial Statements.
3
Bitwise Solana Staking ETF
Statement of Changes in Net Assets
(Amounts in thousands, except Shares issued and redeemed)
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For the three months ended March 31, 2026* |
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(unaudited) |
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Increase (decrease) in net assets resulting from operations |
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Net investment gain (loss) |
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Net realized gain (loss) on investment in solana transferred to pay Sponsor Fee |
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Net realized gain (loss) on In-Kind Redemptions of solana |
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Net realized gain (loss) on solana transferred for staking activities |
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Net realized gain (loss) on investment in solana sold for redemptions |
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Net change in unrealized appreciation (depreciation) on investment in solana |
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Net increase (decrease) in net assets resulting from operations |
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Increase (decrease) in net assets from capital share transactions |
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Creations for Shares issued |
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Redemptions for Shares redeemed |
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Net increase (decrease) in net assets resulting from capital share transactions |
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Total increase (decrease) in net assets from operations and capital share transactions |
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Net assets |
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Beginning of period |
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End of period |
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Shares issued and redeemed |
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Shares issued |
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Shares redeemed |
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Net increase (decrease) in Shares issued and outstanding |
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The accompanying notes are an integral part of the Financial Statements.
4
Bitwise Solana Staking ETF
Statement of Cash Flows
(Amounts in thousands)
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For the three months ended March 31, 2026* |
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(unaudited) |
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Cash flow from operating activities |
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Net increase (decrease) in net assets resulting from operations |
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Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: |
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Purchases of solana |
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Solana received for Staking Rewards |
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Proceeds from solana sold |
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Transfer of solana to pay for Sponsor Fee |
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Net realized (gain) loss from investment in solana transferred to pay Sponsor Fee |
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Net realized (gain) loss on solana transferred for staking activities |
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Net realized gain (loss) on In-Kind Redemptions of solana |
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Net realized (gain) loss from investment in solana sold for redemptions |
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Net change in unrealized (appreciation) depreciation on investment in solana |
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Changes in operating assets and liabilities: |
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(Increase) Decrease in receivable for Staking Rewards |
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Increase (Decrease) in Sponsor Fee payable |
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Increase (Decrease) in Staking Fee payable |
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Net cash provided by (used in) operating activities |
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Cash flow from financing activities |
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Creations for Shares issued |
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Redemptions for Shares redeemed |
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Net cash provided by (used in) financing activities |
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Net increase (decrease) in cash |
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Cash, beginning of period |
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Cash, end of period |
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Supplemental disclosure of noncash financing activities |
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In-Kind Creations of solana |
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In-Kind Redemptions of solana |
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*
The accompanying notes are an integral part of the Financial Statements.
5
Bitwise Solana Staking ETF
Notes To Financial Statements
March 31, 2026 (Unaudited)
1. Organization
Bitwise Solana Staking ETF (the “Trust”) is an investment trust organized on November 20, 2024 under Delaware law pursuant to a Declaration of Trust and Trust Agreement (the “Trust Agreement”). The Trust’s primary investment objective is to seek to provide exposure to the value of solana held by the Trust, less the expenses of the Trust’s operations, which is generally just the Sponsor Fee. The Trust’s secondary investment objective is to derive additional solana through staking. In seeking to achieve its primary investment objective, the Trust’s sole asset is solana. The Trust is an Exchange Traded Product (“ETP”) that issues common shares of beneficial interest (“Shares”) that are listed on the NYSE Arca, Inc. (the “Exchange”) under the ticker symbol “BSOL,” providing investors with an efficient means to obtain market exposure to the value of solana.
On September 19, 2025, the Trust filed a Certificate of Amendment of the Trust Agreement with the Delaware Trust Company to amend the name of the Trust to Bitwise Solana Staking ETF from Bitwise Solana ETF.
Bitwise Investment Advisers, LLC (the "Sponsor"), a wholly-owned subsidiary of Bitwise Asset Management, Inc. ("BAM") serves as the Sponsor for the Trust. The Sponsor arranged for the creation of the Trust and is responsible for the ongoing registration of the Shares for their public offering in the U.S. and the listing of Shares on the Exchange. The Sponsor will develop a marketing plan for the Trust, will prepare marketing materials regarding the Shares, and will operate the marketing plan of the Trust on an ongoing basis. The Sponsor also oversees the additional service providers of the Trust and exercises managerial control of the Trust as permitted under the Trust Agreement. The Sponsor has agreed to pay all operating expenses (except for litigation expenses and other extraordinary expenses) out of the Sponsor’s unified management fee.
Delaware Trust Company acts as the trustee of the Trust (the “Trustee”) for the purpose of creating a Delaware statutory trust in accordance with the Delaware Statutory Trust Act (“DSTA”). The Trustee is appointed to serve as the trustee of the Trust in the State of Delaware for the sole purpose of satisfying the requirement of Section 3807(a) of the DSTA that the Trust have at least
The statement of assets and liabilities and schedule of investment as of March 31, 2026, and the statement of operations, cash flows,
and changes in net assets for the three-month period ended March 31, 2026, have been prepared on behalf of the Trust and
are unaudited. In the opinion of management of the Sponsor of the Trust, all adjustments (which include normal recurring
adjustments) necessary to present fairly the financial position and results of operations for the three-month period ended March 31,
2026, and for all interim periods presented have been made. In addition, interim period results are not necessarily indicative
of results for a full-year period.
Prior to the commencement of operations on October 23, 2025, on September 17, 2025, Bitwise Asset Management, Inc. ("BAM"), the parent company of the Sponsor, purchased
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2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements.
Basis of Presentation
The financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (“GAAP”). The Trust is an investment company and follows the specialized accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services—Investment Companies.
Use of Estimates
The preparation of the financial statements in accordance 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 these financial statements. Actual results could differ from those estimates.
Cash
Generally, the Trust does not intend to hold any cash. Cash includes non-interest-bearing unrestricted cash with one institution. 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 Revenue Recognition
The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as net change in unrealized appreciation or depreciation on investment in solana. Realized gains and losses are calculated using the specific identification method. Realized gains and losses are recognized in connection with transactions including settling obligations for the Sponsor Fee in solana.
Staked Solana and Staking Rewards
The Sponsor ensures that substantially all of the solana held by the Trust will be bonded through Bitwise Onchain Solutions, powered by Helius Blockchain Technologies Ltd. (the "Staking Validator", and together with Bitwise Onchain Solutions, the "Staking Agents"), to the Solana network ("staked") for purposes of running a node or multiple nodes on the network. Solana staked to the Solana network receives network inflation and transaction fees in the form of solana ("Staking Rewards"). Staking Rewards are variable and will accrue to the benefit of the Trust, net of transaction fees.
Under current Solana network protocols, staked solana is subject to a "cooldown" period that generally lasts between 2 and 8 days, and an additional 2-day lock-up period, known as "unbonding" and, therefore, cannot be immediately withdrawn.
Staking Rewards are earned by the Trust in solana, which is a non-cash consideration, as the validator with whom the Trust has staked its solana validates transactions on the Solana network. The Trust has concluded that the validator is the principal to the validation activities giving rise to the Staking Rewards and, therefore, the Trust recognizes only the net amount (i.e., net of the Staking Rewards retained by the validator) of solana to which it is entitled for staking its solana with the validator.
Solana Staking Rewards are measured at fair value on the date they are accrued, which does not materially differ from the fair value at contract inception.
Investment Valuation - Principal Market Net Asset Value ("NAV")
To determine which market is the Trust's principal market (or in the absence of a principal market, the most advantageous market) for purposes of calculating the Trust's net asset value in accordance with U.S. GAAP ("Principal Market NAV" and "Principal Market NAV per Share"), the Trust follows ASC Topic 820-10, Fair Value Measurement, which outlines the application of fair value accounting. ASC 820-10 determines fair value to be the price that would be received for solana in a current sale, which assumes an orderly transaction
7
between market participants on the measurement date. ASC 820-10 requires the Trust to assume that solana is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact.
The Trust only receives solana in connection with a creation order from the Authorized Participant (or a Liquidity Provider) and does not itself transact on any Digital Asset Markets. Therefore, the Trust looks to market-based volume and level of activity for Digital Asset Markets. The Authorized Participant(s), or a Liquidity Provider, may transact in a Brokered Market, a Dealer Market, Principal-to-Principal Markets and Exchange Markets (“Trading Platform Markets”), each as defined in the FASB ASC Master Glossary (collectively, “Digital Asset Markets”).
In determining which of the eligible Digital Asset Markets is the Trust's principal market, the Trust reviews these criteria in the following order:
First, the Trust reviews a list of Digital Asset Markets that are U.S. accessible, have historically provided publicly available data, and are exchanges that Bitwise normally transacts on. Specifically, the Trust utilizes a third-party valuation vendor, Lukka, Inc., to identify publicly available, well established and reputable crypto asset exchanges selected in their sole discretion.
Second, Lukka, Inc. sorts these Digital Asset Markets from high to low by market-based volume and level of activity of solana traded on each Digital Asset Market. For the three months ended March 31, 2026, this sort was performed for Digital Asset Markets for the period mid-February through mid-March 2026.
Third, Lukka, Inc. then reviews pricing fluctuations and the degree of variances in price on each Digital Asset Market during the 60 minutes prior to 4:00 pm. EST for solana to identify any material notable variances that may impact the volume or price information of a particular Digital Asset Market.
Fourth, Lukka, Inc. then selects a Digital Asset Market as its principal market based on the highest market-based volume level of activity and price stability in comparison to the other Digital Asset Markets on the list.
As of March 31, 2026, Lukka, Inc. included Binance, Bitfinex, Bitflyer, Bitstamp, Bullish, Bybit, Coinbase, Crypto.com, Gate.io, Gemini, HitBTC, Huobi, itBit, Kraken, KuCoin, LMAX, MEXC Global, OKX and Poloniex as its primary Exchange Markets in consideration.
At March 31, 2026, the principal market and the principal market price for solana, which is composed of the majority of the Trust’s assets as of March 31, 2026, was Coinbase with a price of $
The Trust determines its principal market (or in the absence of a principal market the most advantageous market) annually and conducts a quarterly analysis to determine (i) if there have been recent changes to each Digital Asset Market’s trading volume and level of activity in the trailing twelve months, (ii) if any Digital Asset Markets have developed that the Trust has access to, or (iii) if recent changes to each Digital Asset Market's price stability have occurred that would materially impact the selection of the principal market and necessitate a change in the Trust's determination of its principal market.
The cost basis of the solana received by the Trust in connection with a creation order is recorded by the Trust at the fair value of solana at 4:00 p.m., New York time, on the creation date for financial reporting purposes. The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors.
Various inputs are used to determine 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:
8
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2: Inputs 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; and
Level 3: 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 summarizes the Trust’s assets accounted for at fair value at March 31, 2026 (amounts in thousands):
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investments in solana, at fair value |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
The following summarizes the Trust’s assets accounted for at fair value at December 31, 2025 (amounts in thousands):
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investments in solana, at fair value |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Calculation of Net Asset Value (NAV) and NAV Per-Share
On each business day, as soon as practicable after 4:00 p.m. EST, the NAV of the Trust is obtained by subtracting all accrued fees and other liabilities of the Trust from the fair value of the solana and other assets held by the Trust. The Bank of New York Mellon (the “Administrator”) computes the NAV per Share by dividing the NAV of the Trust by the number of Shares outstanding on the date the computation is made.
Income Taxes
The Trust is classified as a “grantor trust” for U.S. federal income tax purposes. As a result, the Trust itself is not subject to U.S. federal income tax. Instead, the Trust’s income and expenses “flow through” to the shareholders, and the Administrator reports the Trust’s income, gains, losses, and deductions to the Internal Revenue Service on that basis. The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust, and does not believe that there are any uncertain tax positions that require recognition of a tax liability as of March 31, 2026.
The Trust is required to determine whether its tax positions are more likely than not to be sustained on examination by the applicable taxing authority, based on the technical merits of the position. Tax positions not deemed to meet a more likely than not threshold would be recorded as a tax expense in the current year. As of March 31, 2026, the Trust has determined that
Organizational and Offering Costs
The costs of the Trust’s organization and the initial offering of the Shares are borne directly by the Sponsor. The Trust is not obligated to reimburse the Sponsor.
9
3. Fair Value of Solana
As of March 31, 2026, the Trust held a net closing balance of
The following represents the changes in quantity of solana and the respective fair value for the three-month period ended March 31, 2026:
|
|
Quantity of solana |
|
|
Fair Value |
|
||
Beginning balance as of December 31, 2025 |
|
|
|
|
$ |
|
||
Purchases |
|
|
|
|
|
|
||
In-Kind Creations |
|
|
|
|
|
|
||
Solana received from Staking Rewards1 |
|
|
|
|
|
|
||
Transfer of solana to pay for Sponsor Fee |
|
|
( |
) |
|
|
( |
) |
Sales for the redemption of Shares |
|
|
( |
) |
|
|
( |
) |
In-Kind Redemptions |
|
|
( |
) |
|
|
( |
) |
Net realized gain (loss) on investment in solana transferred to pay Sponsor Fee |
|
|
— |
|
|
|
|
|
Net realized gain (loss) on In-Kind Redemptions of solana |
|
|
— |
|
|
|
|
|
Net realized gain (loss) on solana transferred for staking activities |
|
|
— |
|
|
|
|
|
Net realized gain (loss) on investment in solana sold for redemptions |
|
|
— |
|
|
|
( |
) |
Net change in unrealized appreciation (depreciation) on investment in solana |
|
|
— |
|
|
|
( |
) |
Ending balance as of March 31, 2026 |
|
|
|
|
$ |
|
||
1
Additions during the quarter primarily represent solana purchased due to creations into the Trust and In-Kind Creations. Additions also included solana received as reward for staking activities. Dispositions during the quarter represent solana sold as a result of shareholder redemptions from the Trust and In-Kind Redemptions. In addition, solana were transferred to pay the Sponsor Fee of the Trust. For the three months ended March 31, 2026, the Trust recognized net realized losses of $
As of December 31, 2025, the Trust held a net closing balance of
The following represents the changes in quantity of solana and the respective fair value for the period from October 23, 2025 (commencement of operations) through December 31, 2025:
|
|
Quantity of solana |
|
|
Fair Value |
|
||
Beginning balance as of October 23, 2025 (commencement of operations) |
|
|
|
$ |
|
|||
Purchases |
|
|
|
|
|
|
||
In-Kind Creations |
|
|
|
|
|
|
||
Solana received from Staking Rewards1 |
|
|
|
|
|
|
||
Sales for the redemption of Shares |
|
|
( |
) |
|
|
( |
) |
Net realized gain (loss) on investment in solana transferred to pay Sponsor Fee |
|
|
— |
|
|
|
— |
|
Net realized gain (loss) on investment in solana sold for redemptions |
|
|
— |
|
|
|
( |
) |
Change in unrealized appreciation (depreciation) on investment in solana |
|
|
— |
|
|
|
( |
) |
Ending balance as of December 31, 2025 |
|
|
|
|
$ |
|
||
10
1
4. Related Party Transactions and Agreements
The Trust pays a Sponsor Fee of
The Sponsor Fee is paid by the Trust to the Sponsor as compensation for services performed under the Trust Agreement and Sponsor Agreement. After the period during which all or a portion of the Sponsor Fee is waived, the Sponsor Fee will begin accruing daily, and will be payable in solana monthly in arrears. The Administrator calculates the Sponsor Fee on a daily basis by applying a
The additional Solana generated by the Trust’s staking program is subject to fees shared among the Staking
Agents and the Sponsor. The amounts owed or paid to the Staking Agents and the Sponsor are collectively referred to as the “Staking Expenses”. The Staking Expenses are equal to
The Trust may incur certain extraordinary, non-recurring expenses that are not assumed by the Sponsor, including but not limited to, taxes and governmental charges, any applicable brokerage commissions, financing fees, Solana network fees and similar transaction fees, 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 or the Shareholders (including, for example, in connection with any fork of the Solana blockchain, any Incidental Rights and any IR Asset, any indemnification of the Cash Custodian, Solana Custodian, Prime Execution Agent, Transfer Agent, Administrator 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.
5. Creation and Redemption of Shares
The Trust may either create and redeem Shares in-kind for solana (“In-Kind Creations” and “In-Kind Redemptions,” respectively) or for cash (“Cash Creations” and “Cash Redemptions,” respectively). When the Trust creates or redeems its Shares, it does so in blocks of
The Trust only creates and redeems Baskets in transactions with financial firms that are authorized to purchase or redeem Shares with
11
the Trust (each, an “Authorized Participant”). In the case of In-Kind Creations and In-Kind Redemptions, an Authorized Participant or an Authorized Participant’s designee deposits solana directly with the Trust or receives solana directly from the Trust. Shares initially comprising the same Basket but offered by the Authorized Participants to the public at different times may have different offering prices that 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. Authorized Participants must pay the Transfer Agent a non-refundable fee for each order they place to create or redeem one (1) or more Baskets. The transaction fee may be waived, reduced, increased or otherwise changed by the Sponsor in its sole discretion. Authorized Participants who make deposits with the Trust in exchange for Baskets receive no fees, commissions or other form of compensation or inducement of any kind from either the Trust or the Sponsor, and no such person has any obligation or responsibility to the Sponsor or the Trust to effect any sale or resale of Shares.
Each Authorized Participant is required to be registered as a broker-dealer under the Securities Exchange Act of 1934, as amended, and a member in good standing with FINRA, or exempt from being or otherwise not required to be licensed as a broker-dealer or a member of FINRA, and is qualified to act as a broker or dealer in the states or other jurisdictions where the nature of its business so requires. Certain Authorized Participants may also be regulated under federal and state banking laws and regulations. Each Authorized Participant has its own set of rules and procedures, internal controls and information barriers as it determines is appropriate in light of its own regulatory regime.
The Transfer Agent will facilitate the settlement of Shares in response to the placement of creation orders and redemption orders from Authorized Participants. The Trust has entered into the Cash Custody Agreement with BNY Mellon under which BNY Mellon acts as custodian of the Trust’s cash and cash equivalents. The Trust only creates or redeems its Shares at NAV.
Receivable for In-Kind Creations or payable for In-Kind Redemptions, as may be disclosed on the Statement of Assets and Liabilities, represents the value of solana covered by contractually binding orders for the creation, or redemption of Shares where the solana has not yet been transferred to or out of the Trust's account.
6. Concentration of Risk
Substantially all the Trust’s assets are holdings of solana, which creates a concentration risk associated with fluctuations in the price of solana. Accordingly, a decline in the price of solana will have an adverse effect on the value of the Shares of the Trust. The trading prices of solana have experienced extreme volatility in recent periods and may continue to fluctuate significantly. Extreme volatility in the future, including substantial, sustained, or rapid declines in the trading prices of solana, could have a material adverse effect on the value of the Shares and the Shares could lose all or substantially all of their value. Factors adversely impacting the value of solana and the Shares may include an increase in the global solana supply or a decrease in global solana demand; market conditions of, and overall sentiment towards, the crypto assets and blockchain technology industry; trading activity on crypto asset exchanges, which, in many cases, are largely unregulated or may be subject to manipulation; the adoption of solana as a medium of exchange, store-of-value or other consumptive asset and the maintenance and development of the open-source software protocol of the Solana network, and their ability to meet user demands; manipulative trading activity on crypto asset exchanges, which, in many cases, are largely unregulated; and forks in the Solana network, among other things.
Coinbase Custody Trust Company, LLC serves as the Trust’s custodian for solana for which qualified custody is available (the “Solana Custodian”). The Solana Custodian is subject to change in the sole discretion of the Sponsor. Temporary differences in the quantity of solana held by the Solana Custodian from the amounts reflected in the financial statements may occur. These differences are due to pending settlement of solana trades with the Solana Custodian, which generally occurs within two business days of the trade date.
Payable for solana purchased represents the quantity of solana purchased for the creation of Shares where the solana has not yet settled.
|
|
March 31, 2026 |
|
|
December 31, 2025 |
|
||
(Amounts in thousands) |
|
(unaudited) |
|
|
|
|
||
Payable for solana purchased |
|
$ |
|
|
$ |
|
||
Receivable for solana sold represents the quantity of solana sold for the redemption of Shares where the solana has not yet been settled.
|
|
March 31, 2026 |
|
|
December 31, 2025 |
|
||
(Amounts in thousands) |
|
(unaudited) |
|
|
|
|
||
Receivable for solana sold |
|
$ |
|
|
$ |
|
||
12
7. Financial Highlights
Per-Share Performance (for a Share outstanding throughout the period presented)
|
|
For the three months ended March 31, 2026* |
|
|
|
Principal Market NAV per-share, beginning of period |
|
$ |
|
|
|
Net investment income (loss) 1 |
|
|
|
|
|
Net realized and change in unrealized appreciation (depreciation) on investment in solana |
|
|
( |
) |
|
Net change in net assets from operations |
|
|
( |
) |
|
Principal Market NAV per-share, end of period |
|
$ |
|
|
|
|
|
|
|
|
|
Total return, at net asset value 2 |
|
|
( |
) |
% |
|
|
|
|
|
|
Ratios to average net assets |
|
|
|
|
|
Gross expenses |
|
|
( |
) |
%3,4,5 |
Net expenses |
|
|
( |
) |
%3,4,5 |
Net investment income (loss) |
|
|
|
%3,4 |
|
*
8. Segment Reporting
An operating segment is defined in FASB Accounting Standards Update 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures (“Topic 280”), as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity’s Chief Operating Decision Maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available. Selective members of the Executive Management Committee and other senior personnel of the Sponsor act as the Trust’s CODM. The Trust represents a single operating segment, as the CODM monitors the operating results of the Trust as a whole and the Trust’s long-term strategic asset allocation is pre-determined in accordance with the terms of its Trust agreement, based on a defined investment strategy which is executed by the Sponsor. The financial information in the form of the Trust’s assets, total returns, expense ratios and changes in net assets (i.e., changes in net assets resulting from operations, creations and redemptions), which are used by
9. Indemnifications
In the normal course of business, the Trust enters into contracts and agreements that contain a variety of representations and warranties and which provide general indemnifications. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. The Trust expects the risk of any future obligation
13
under these indemnifications to be remote.
10. Subsequent Events
The Trust has evaluated subsequent events through May 6, 2026, the date the financial statements were issued, and has determined that there are no subsequent events that require adjustments to or disclosure in the financial statements.
14
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion and analysis of the Trust’s financial condition and results of operations should be read together with, and is qualified in its entirety by reference to, the Trust’s unaudited financial statements and related notes included elsewhere in this Quarterly Report, which have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The following discussion may contain forward-looking statements based on assumptions the Trust believes to be reasonable. The Trust’s actual results could differ materially from those discussed in these forward-looking statements. See “Statement Regarding Forward-Looking Statements” above.
You should not place undue reliance on any forward-looking statements. Except as expressly required by the Federal securities laws, the Trust and the Sponsor undertake no obligation to publicly update or revise any forward-looking statements or the risks, uncertainties or other factors described in this Quarterly Report, as a result of new information, future events or changed circumstances or for any other reason after the date of this Quarterly Report.
Trust Overview
The Trust’s registration statement on Form S-1 relating to its continuous public offering of Shares was declared effective by the U.S. Securities and Exchange Commission on October 27, 2025 and the Shares of the Trust were listed on the Exchange on October 28, 2025.
Prior to the commencement of operations on October 23, 2025, on September 17, 2025, BAM purchased 8 Shares at a per-share price of $25.00 for $200.00 in a transaction exempt from registration under Section 4(a)(2) of the 1933 Act (the “Seed Shares”). On October 23, 2025, BAM redeemed the entirety of its 8 Seed Shares for $200 and Bitwise Investment Manager, LLC (“BIM”), an affiliate of the Sponsor, purchased the initial 100,000 Shares of the Trust (the “Seed Baskets”) for $2,500,000, at a per-Share price of $25.00. BIM acted as a statutory underwriter in connection with the initial purchase of the Seed Baskets.
The Trust is an exchange-traded product that issues common shares of beneficial interest (“Shares”) that are listed on NYSE Arca, Inc. (the “Exchange”) under the ticker symbol “BSOL.” The Trust’s primary investment objective is to seek to provide exposure to the value of Solana held by the Trust, less the expenses of the Trust’s operations and other liabilities. The Trust’s secondary investment objective is to derive additional Solana through staking. In seeking to achieve its primary investment objective, the Trust will hold Solana and establish its net asset value (“NAV”) by reference to the CME CF Solana – Dollar Reference Rate – New York Variant (“Pricing Benchmark”). The Trust is sponsored and managed by Bitwise Investment Advisers, LLC (the “Sponsor”).
The net assets of the Trust and its Shares are valued on a daily basis with reference to the Pricing Benchmark, a standardized reference rate published by CF Benchmarks Ltd. (the “Benchmark Provider”) that is designed to reflect the performance of Solana in U.S. dollars. The Pricing Benchmark is calculated by the Benchmark Provider based on an aggregation of executed trade flow of major Solana trading platforms (“Constituent Platforms”). The Pricing Benchmark is calculated as of 4:00 p.m. Eastern time (“ET”).
Coinbase Custody Trust Company, LLC (“Coinbase Custody” or the “Solana Custodian”) serves as the custodian for the Trust’s Solana holdings and is responsible for the secure safekeeping of the Trust’s Solana pursuant to a custody agreement (the “Solana Custody Agreement”). Coinbase Custody was appointed by the Sponsor and is tasked with establishing and maintaining segregated accounts to hold the Trust’s Solana (the “Trust Solana Accounts”). The Solana Custodian is chartered as a New York State limited liability trust company that provides custody services for digital assets. The Solana Custodian is not insured by the Federal Deposit Insurance Corporation (the “FDIC”) but carries insurance provided by private insurance carriers.
One or more of the Trust Solana Accounts, designated as the “Trust Staking Account(s),” permits the solana held therein to be staked pursuant to the Trust’s secondary investment objective. In consideration for permitting its solana to be held in the Trust Staking Account(s), the Trust will receive a portion of the additional solana earned through the staking taking place therein. The Sponsor will select one or more trusted staking agents (the “Staking Agents”). Such Staking Agents operate the validators to which the Trust’s solana has been delegated for staking.
Solana is a digital asset. Like all digital assets, buying, holding and selling Solana is very different from buying, holding and selling more conventional investments like stocks and bonds. Stocks represent ownership in a company, entitling shareholders to a portion of the company’s profits. Bonds are debt instruments issued by corporations or governments, where the bondholder is a creditor to the issuer that is generally entitled to a stream of income payments. Ownership of stocks and bonds is typically recorded through a centralized system managed by brokers, custodians or clearinghouses. Ownership of Solana does not entitle its holders to any portion of a company’s profits or any stream of income payments. Solana is a decentralized digital asset and ownership of it is reflected on a decentralized ledger.
The Trust provides investors with the opportunity to access the market for Solana through a traditional brokerage account without the potential barriers to entry or risks involved with acquiring and holding Solana directly. The Trust will not use derivatives that could subject the Trust to additional counterparty and credit risks. The Sponsor believes that the design of the Trust will enable certain investors
15
to more effectively and efficiently implement strategic and tactical asset allocation strategies that use Solana by investing in the Shares rather than purchasing, holding and trading Solana directly.
Results of Operations
For the three months ended March 31, 2026*^
|
|
For the three months ended March 31, 2026 |
|
|
|
|
(unaudited) |
|
|
Net investment income |
|
$ |
9,319 |
|
Net realized and unrealized gain (loss) |
|
$ |
(247,410 |
) |
Net increase (decrease) in net assets resulting from operations |
|
$ |
(238,091 |
) |
Net Assets1 |
|
$ |
570,305 |
|
1. Net assets in the above table are calculated in accordance with U.S. GAAP based on the principal market price for solana that the Trust considered its principal market, as of 4:00 p.m., New York time, on the valuation date.
During the three months ended March 31, 2026, the Trust's net assets decreased from $641,326 on December 31, 2025 to $570,305 on March 31, 2026. The decrease in the Trust's net assets resulted primarily from dispositions of approximately (1,053) solana to pay the Sponsor Fee, and approximately (431,896) solana for the redemption of Shares, with a value of $(39,800) from the Trust. Dispositions were partially offset by additions to the Trust of approximately 2,090,316 solana in connection with Share creations, and approximately 93,965 solana received from staking rewards, with a value of $218,601 during the period.
Net investment income for three months ended March 31, 2026 was $9,319, which included income from Staking Rewards of $9,886 and net expenses of $567. Total expenses for the three months ended March 31, 2026 were $892, which included $299 in Sponsor Fee and $593 in Staking Fees. For the three-month period starting on October 28, 2025, the day the Trust began accruing expenses, the Sponsor waived the entire Sponsor Fee on the first $1 billion of Trust assets through January 27, 2026. In addition, for the same period, the Sponsor reimbursed the Trust for all Staking Expenses incurred on the first $1 billion of Trust assets through January 27, 2026. For the period from January 1, 2026 through January 27, 2026, the Trust waived $108 in Sponsor Fee and was reimbursed $217 in Staking Fees.
Net realized and change in unrealized loss on investment in solana for the three months ended March 31, 2026 was $(247,410), which included a realized gain of $4 on the transfer of solana to pay the Sponsor Fee, a realized loss of $(42,043) on the sale of solana to meet redemptions, a realized gain of $199 from the transfer of solana to meet In-Kind Redemptions, a realized gain of $32 on the transfer of solana for staking activities, and a change in unrealized depreciation on investment in solana of $(205,602). Net realized and change in unrealized loss on investment in solana for the period resulted primarily from solana price depreciation from $123.88 on December 31, 2025 to $82.66 on March 31, 2026. Net decrease in net assets resulting from operations for the three months ended March 31, 2026 was $(238,091), which consisted of the net realized and unrealized loss on investment in solana and net investment income of $9,319.
* No comparative period presented as the Trust commenced operations October 23, 2025.
^ Amounts displayed are in the ‘000s, except for per-Share/coin references.
Net Assets
As of March 31, 2026, the Trust held a net closing balance of 6,905,640.8119 solana with a total market value of $570,787,813 based on the SOLUSD_NY price of $82.66 used to determine the Trust's NAV. The total market value of the Trust's solana held was $570,318,604 based on the price of a solana (Lukka Prime Rate) in the principal market (Coinbase) of $82.60, used to determine the Trust's Principal Market NAV.
Liquidity and Capital Resources
The Trust agreed to pay the unitary Sponsor Fee of 0.20% per annum of the Trust’s solana holdings. The Sponsor contractually waived the Sponsor Fee on the first $1 billion of Trust assets through January 27, 2025, and has been accruing at an annual rate of 0.20% of the Trust’s net assets since then. As a result, the only ordinary expense of the Trust is expected to be the Sponsor Fee. In exchange for the Sponsor Fee, the Sponsor has agreed to assume and pay the normal operating expenses of the Trust, which include the Trustee’s monthly fee and out-of-pocket expenses, the fees of the Trust’s regular service providers (Cash Custodian, Solana Custodian, Prime Execution
16
Agent, Marketing Agent, Transfer Agent and Administrator), exchange listing fees, tax reporting fees, SEC registration fees, printing and mailing costs, audit fees and up to $500,000 per annum in ordinary legal fees and expenses. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Trust in excess of $500,000 per annum. The Sponsor also agreed to pay the costs of the Trust’s organization.
The Trust may incur certain extraordinary, non-recurring expenses that are not assumed by the Sponsor, including but not limited to, taxes and governmental charges, any applicable brokerage commissions, financing fees, Solana network fees and similar transaction fees, 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 or the Shareholders (including, for example, in connection with any fork of the Solana blockchain, any Incidental Rights and any IR Asset), any indemnification of the Cash Custodian, Solana Custodian, Prime Execution Agent, Transfer Agent, Administrator 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.
The Trust does not hold a cash balance except in connection with the creation and redemption of Baskets (blocks of 10,000 Shares) or to pay expenses not assumed by the Sponsor. To pay for expenses not assumed by the Sponsor that are denominated in U.S. dollars, the Sponsor, on behalf of the Trust, may sell the Trust’s solana as necessary to pay such expenses. The cash proceeds of the sale are sent to the Sponsor to pay the expenses. Any remaining cash is distributed back to the Cash Custodian. The Sponsor expects that the Trust will have an immaterial amount of cash flow from its operations and that its cash balance will be insignificant at the end of each reporting period. The Trust’s only sources of cash are proceeds from the sale of Baskets and solana. The Trust will not borrow to meet liquidity needs. See Part I, Item I under the heading “Business - Fees and Expenses” for an additional discussion of the Trust’s fees and expenses.
The Trust is not aware of any trends, demands, conditions or events that are reasonably likely to result in material changes to its liquidity needs.
Off-Balance Sheet Arrangements and Contractual Obligations
As of March 31, 2026, the Trust has not used, nor does it expect to use in the future, special purpose entities to facilitate off-balance sheet financing arrangements and has no loan guarantee arrangements or off-balance sheet arrangements of any kind other than agreements entered into in the normal course of business, which may include indemnification provisions related to certain risks service providers undertake in performing services which are in the best interests of the Trust. While the Trust’s exposure under such indemnification provisions cannot be estimated, these general business indemnifications are not expected to have a material impact on the Trust’s financial position.
Sponsor Fee payments made to the Sponsor are calculated as a fixed percentage of the Trust’s NAV. As such, the Sponsor cannot anticipate the payment amounts that will be required under these arrangements for future periods as NAVs are not known until a future date.
No material changes have occurred during the three months ended March 31, 2026.
Critical Accounting Policies
Investment Valuation - Principal Market Net Asset Value ("NAV")
To determine which market is the Trust's principal market (or in the absence of a principal market, the most advantageous market) for purposes of calculating the Trust's net asset value in accordance with U.S. GAAP ("Principal Market NAV" and "Principal Market NAV per Share"), the Trust follows ASC Topic 820-10, Fair Value Measurement, which outlines the application of fair value accounting. ASC 820-10 determines fair value to be the price that would be received for solana in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820-10 requires the Trust to assume that solana is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact.
The Trust only receives solana in connection with a creation order from the Authorized Participant (or a Liquidity Provider) and does not itself transact on any Digital Asset Markets. Therefore, the Trust looks to market-based volume and level of activity for Digital Asset Markets. The Authorized Participant(s), or a Liquidity Provider, may transact in a Brokered Market, a Dealer Market, Principal-to-Principal Markets and Exchange Markets (“Trading Platform Markets”), each as defined in the FASB ASC Master Glossary (collectively, “Digital Asset Markets”).
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In determining which of the eligible Digital Asset Markets is the Trust's principal market, the Trust reviews these criteria in the following order:
First, the Trust reviews a list of Digital Asset Markets that are U.S. accessible, have historically provided publicly available data, and are exchanges that Bitwise normally transacts on. Specifically, the Trust utilizes a third-party valuation vendor, Lukka, Inc., to identify publicly available, well established and reputable crypto asset exchanges selected in their sole discretion.
Second, Lukka, Inc. sorts these Digital Asset Markets from high to low by market-based volume and level of activity of solana traded on each Digital Asset Market. For the three months ended March 31, 2026, this sort was performed for Digital Asset Markets for the period mid-February through mid-March 2026.
Third, Lukka, Inc. then reviews pricing fluctuations and the degree of variances in price on each Digital Asset Market during the 60 minutes prior to 4:00 pm. EST for solana to identify any material notable variances that may impact the volume or price information of a particular Digital Asset Market.
Fourth, Lukka, Inc. then selects a Digital Asset Market as its principal market based on the highest market-based volume level of activity and price stability in comparison to the other Digital Asset Markets on the list.
As of March 31, 2026, Lukka, Inc. included Binance, Bitfinex, Bitflyer, Bitstamp, Bullish, Bybit, Coinbase, Crypto.com, Gate.io, Gemini, HitBTC, Huobi, itBit, Kraken, KuCoin, LMAX, MEXC Global, OKX and Poloniex as its primary Exchange Markets in consideration.
At March 31, 2026, the principal market and the principal market price for solana, which is composed of the majority of the Trust’s assets as of March 31, 2026, was Coinbase with a price of $82.60.
The Trust determines its principal market (or in the absence of a principal market the most advantageous market) annually and conducts a quarterly analysis to determine (i) if there have been recent changes to each Digital Asset Market’s trading volume and level of activity in the trailing twelve months, (ii) if any Digital Asset Markets have developed that the Trust has access to, or (iii) if recent changes to each Digital Asset Market's price stability have occurred that would materially impact the selection of the principal market and necessitate a change in the Trust's determination of its principal market.
The cost basis of the solana received by the Trust in connection with a creation order is recorded by the Trust at the fair value of solana at 4:00 p.m., New York time, on the creation date for financial reporting purposes. The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors.
Investment Company Considerations
The Trust is an investment company for U.S. GAAP purposes and follows accounting and reporting guidance in accordance with the FASB ASC Topic 946, Financial Services – Investment Companies. The Trust uses fair value as its method of accounting for solana in accordance with its classification as an investment company for accounting purposes. The Trust is not a registered investment company under the Investment Company Act of 1940. U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates and these differences could be material.
Please refer to Note 2 to the financial statements included in this Quarterly Report for further discussion of the Trust’s Significant Accounting Policies.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
As a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934, as amended, the Trust is not required to provide the information required by this item.
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Item 4. Controls and Procedures.
Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
The Trust maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms, and that such information is accumulated and communicated to the Principal Executive Officer and Principal Financial and Accounting Officer of the Sponsor performing functions equivalent to those a principal executive officer and principal financial and accounting officer of the Trust would perform if the Trust had any officers, as appropriate to allow timely decisions regarding required disclosure.
Under the supervision and with the participation of the Principal Executive Officer and the Principal Financial and Accounting Officer of the Sponsor, the Sponsor evaluated the effectiveness of the design and operation of the Trust’s disclosure controls and procedures, as defined under Exchange Act Rule 13a-15(e). Based on this evaluation, the Principal Executive Officer and the Principal Financial and Accounting Officer of the Sponsor concluded that, as of March 31, 2026, the Trust’s disclosure controls and procedures were effective in ensuring material information relating to the Trust was recorded, processed, summarized and reported by management of the Sponsor on a timely basis and ensuring the quality and timeliness of the Trust’s public disclosures with the SEC.
There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures.
Changes in Internal Control over Financial Reporting
There were no changes in the Trust’s internal controls over financial reporting that occurred during the Trust’s most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, these internal controls.
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PART II-OTHER INFORMATION
Item 1. Legal Proceedings.
None.
Item 1A. Risk Factors.
As a smaller reporting company, the Trust is not required to provide the information required by this item.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Period |
|
Total Shares |
|
|
Average Price |
|
||
January 1, 2026 – January 31, 2026 |
|
|
140,000 |
|
|
$ |
15.4900 |
|
February 1, 2026 – February 28, 2026 |
|
|
2,020,000 |
|
|
$ |
13.0700 |
|
March 1, 2026 – March 31, 2026 |
|
|
1,850,000 |
|
|
$ |
11.0100 |
|
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
Not applicable.
Item 5. Other Information.
No executive officers or directors of the Sponsor have
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Item 6. Exhibits.
Listed below are the exhibits, which are filed as part of this quarterly report on Form 10‑Q (according to the number assigned to them in Item 601 of Regulation S-K of the 1933 Act):
Exhibit Number |
|
Description |
3.1 |
|
Trust Agreement incorporated by reference to Exhibit 3.1 of the Registration Statement on Form S-1/A (File No. 333-283391) filed by the Registrant on October 8, 2025. |
3.2 |
|
First Amended and Restated Declaration of Trust and Trust Agreement incorporated by reference to Exhibit 3.4 of the Registration Statement on Form S-1/A (File No. 333-283391) filed by the Registrant on October 8, 2025. |
3.3 |
|
Certificate of Trust incorporated by reference to Exhibit 3.2 of the Registration Statement on Form S-1/A (File No. 283391) filed by the Registrant on October 8, 2025. |
10.1 |
|
Marketing Agent Agreement. |
31.1* |
|
Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended |
31.2* |
|
Certification of Principal Financial and Accounting Officer pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended. |
32.1* |
|
Certification by Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2* |
|
Certification by Principal Financial and Accounting Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.INS |
|
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
101.SCH |
|
Inline XBRL Taxonomy Extension Schema Document |
104 |
|
Cover Page Interactive Data File (Formatted as Inline XBRL and contained in exhibit 101) |
* These exhibits are furnished with this Quarterly Report on Form 10-Q and are not deemed filed with the SEC and are not incorporated by reference in any filing of Bitwise Solana Staking ETF under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof and irrespective of any general incorporation language contained in such filings.
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GLOSSARY OF DEFINED TERMS
The following terms may be used throughout this Quarterly Report, including the consolidated financial statements and related notes.
1933 Act: The Securities Act of 1933, as amended.
1934 Act: The Securities Exchange Act of 1934, as amended.
Administration Agreement: the Trust Administration and Accounting Agreement with BNY Mellon.
Administrator: BNY Mellon.
Advisers Act: The Investment Advisers Act of 1940.
Agent Execution Model: The model whereby the Prime Execution Agent, acting in an agency capacity, conducts solana purchases and sales on behalf of the Trust with third parties through its Coinbase Prime service pursuant to the Prime Execution Agreement.
Airdrops: A method to promote the launch and use of new Crypto Assets by providing a small amount of such new Crypto Assets to the private wallets or exchange accounts that support the new Crypto Asset and that hold existing related Crypto Assets.
Auditor: KPMG LLP.
Authorized Participant: One that purchases or redeems Baskets from or to the Trust.
AUL: Authorized User List.
BAM: Bitwise Asset Management, Inc., the parent company of the Sponsor.
Basket: A block of 10,000 Shares used by the Trust to issue or redeem Shares.
Basket Amount: The quantity of solana attributable to each Share of the Trust (net of accrued but unpaid expenses and liabilities) multiplied by the number of Shares comprising a Basket (10,000)
Benchmark Provider: CF Benchmarks Ltd.
BNY Mellon: The Bank of New York Mellon, a national association bank in New York.
Business Day: Any day other than a day when the Exchange or the New York Stock Exchange is closed for regular trading.
Cash Custodian: BNY Mellon.
CFTC: U.S. Commodity Futures Trading Commission.
CLARITY Act: The Digital Asset Market Clarity Act of 2025.
CME: The Chicago Mercantile Exchange.
Code: Internal Revenue Code of 1986.
Cold Storage Account: A crypto asset custody account in which the associated private cryptographic keys are generated and stored in an offline environment that is not connected to the internet.
Constituent Platform: The major Solana trading platforms that serve as the pricing sources for the calculation of the CME CF Solana Reference Rate - New York Variant and CME CF Solana Real Time Index.
Cryptocurrency: A token such as solana that is the native asset of a crypto asset network.
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Crypto Asset: A token, such as a cryptocurrency, that is the native asset of or issued on a digital asset network and secured using public and private key cryptography or similar cryptographic credentials.
CVC: Convertible virtual currency.
dApps: Decentralized applications.
DeFi: Decentralized finance.
ERISA: Employee Retirement Income Security Act of 1974.
EST: Eastern Standard Time.
ETP: Exchange-traded product.
Exchange: NYSE Arca, Inc.
Exchange Act: The Securities Exchange Act of 1934, as amended.
FASB: Financial Accounting Standards Board.
FDIC: Federal Deposit Insurance Corporation.
FinCEN: The Financial Crimes Enforcement Network, a bureau of the U.S. Department of the Treasury with the mandate to regulate financial institutions such as money services businesses in the U.S.
Forked Asset: The crypto asset resulting from a “hard fork” that is not Solana, as determined by the Sponsor in its discretion as set forth in the Trust Agreement. The holder of Solana at the time of a Network Fork may use its Solana network private key to access the Forked Asset on the new network, typically through the use of the modified version of the Solana network software that created the Network Fork (or the legacy version of the Solana network software if the new version is determined to be Solana).
GAAP: The generally accepted accounting principles of the United States.
GENIUS Act: Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025.
Hard Fork: A backward-incompatible change to a blockchain protocol such that nodes running the prior version of the software will reject blocks produced under the new rules.
Hot Storage Account: A crypto asset custody account maintained in which the associated private cryptographic keys are generated and stored in an online environment connected to the internet.
Incidental Right: A right to receive a benefit of a fork or airdrop.
Indemnified Person: The Trustee or any officer, affiliate, director, employee, or agent of the Trustee, for the purposes of indemnification provisions of the Trust Agreement.
Indirect Participants: Banks, brokers, dealers and trust companies that clear through or maintain a custodial relationship with a DTC Participant, either directly or indirectly.
Insignificant Participation Exception: An exception to the designation of certain assets under the Plan Asset Rules, where the investment by all benefit plan investors relating to such assets is not significant or other exceptions apply.
Investment Company Act: Investment Company Act of 1940.
IR Asset: Any crypto asset acquired through an Incidental Right.
IRA: An individual retirement account that is a tax-qualified retirement plan under the Code.
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IRS: U.S. Internal Revenue Service.
ITV: Indicative Trust Value.
JOBS Act: The Jumpstart Our Business Startups Act.
Losses: The losses, claims, taxes, damages, reasonable expenses, and liabilities (including liabilities under State or federal securities laws) of any kind and nature whatsoever of an Indemnified Person or Sponsor Indemnified Party, as applicable, that are eligible for indemnification pursuant to the Trust Agreement.
Marketing Agent: Foreside Fund Services, LLC.
MiCA: Markets in Crypto-Assets Regulation.
NAV: Net asset value of the Trust, which is a Non-GAAP metric and is determined each business day by valuing the Trust’s solana using the Pricing Benchmark, less the Trust’s accrued but unpaid expenses.
Network Fork: A change to the protocol of a blockchain network that results in a divergence in the network’s transaction history or consensus rules, which may create two or more separate versions of the blockchain operating simultaneously.
OFAC: Office of Foreign Assets Control.
OTC: Over-the-counter, which refers to transactions that occur bilaterally between a purchaser and a seller, rather than through an exchange or clearing house.
PCAOB: The Public Company Accounting Oversight Board.
Plan: An “employee benefit plan” as defined in, and subject to the fiduciary responsibility provisions of, the Employee Retirement Income Security Act of 1974 or of a “plan” as defined in and subject to Section 4975 of the Code.
Plan Asset Rules: Rules promulgated pursuant to ERISA for determining when an investment by a Plan in an entity will result in the underlying assets of such entity being assets of the Plan for purposes of ERISA and Section 4975 of the Code.
Plan Fiduciaries: Fiduciaries with investment discretion over a Plan.
Prime Execution Agent: Coinbase Inc., an affiliate of the Solana Custodian.
Prime Execution Agreement: The agreement between Coinbase, Inc. and the Trust that sets forth the terms and conditions pursuant to which Coinbase, Inc., and its affiliates, agree to open and maintain a prime broker account and provide services relating to trade execution.
Pricing Benchmark: CME CF Solana Reference - Dollar Reference Rate - New York Variant, a standardized reference rate published by the CME Group that calculates the U.S. dollar price of Solana as of 4:00 p.m. New York time on each calendar day on constituent crypto asset trading platforms to reflect the performance of solana in U.S. dollars.
Principal Market NAV: The net asset value of the Trust determined on a GAAP basis.
Publicly-Offered Security Exception: An exception to the designation of certain assets under the Plan Asset Rules, where such assets are publicly-offered securities.
Purchase Order: An order to purchase one or more Baskets.
Purchase Order Cut-Off Time: The time at which Purchase Orders must be placed on a Business Day for that Business Day to constitute the Purchase Order Date.
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Purchase Order Date: The Business Day on which a Purchase Order is accepted by the Transfer Agent.
Redemption Order: An order to redeem one or more Baskets.
Redemption Order Cut-Off Time: The time at which Redemption Orders must be placed on a Business Day for that Business Day to constitute the Redemption Order Date.
Redemption Order Date: The Business Day on which a Redemption Order is accepted by the Transfer Agent.
Register: The record of all Shareholders and holders of the Shares in certificated form kept by the Transfer Agent.
SEC (or Commission): The U.S. Securities and Exchange Commission, an independent agency with the mandate to regulate securities offerings and markets in the U.S.
Seed Shares: The eight (8) Shares used to seed the Trust.
Seed Capital Investor: Bitwise Asset Management, Inc.
Shares: Common shares representing units of undivided beneficial ownership of the Trust.
Shareholders: Holders of Shares.
solana (lowercase): The native unit of account and medium of exchange on the Solana network.
Solana (uppercase): The software protocol and peer-to-peer network used for the creation, transfer and possession of solana, as recorded on the Solana blockchain.
Solana Custodian: Coinbase Custody Trust Company, LLC, a New York State limited liability trust company.
Solana Custody Agreement: The custody agreement between the Solana Custodian and the Trust pursuant to which the Trust Solana Account is established.
Solana Trading Counterparties: Falcon X (d/b/a Solios, Inc.), Nonco LLC, Virtu Financial Singapore Pte Ltd.
Sponsor: Bitwise Investment Advisers, LLC, a Delaware limited liability company, which controls the investments and other decisions of the Trust.
Sponsor Agreement: The agreement between the Sponsor and the Trust.
Sponsor Fee: The unitary management fee of 0.20% per annum of the Trust’s solana holdings that the Trust agreed to pay to the Sponsor.
Sponsor Indemnified Party: The Sponsor and its Shareholders, members, directors, officers, employees, affiliates and subsidiaries, for the purposes of indemnification under the Trust Agreement.
Sponsor Solana Account: The custody account in the name of the Sponsor held with the Solana Custodian, in which the Sponsor receives payment in Solana of its management fee from the Trust Solana Account.
Trade Credit: The Trust may borrow solana or cash as a credit on a short-term basis from the Trade Credit Lender pursuant to the Trade Financing Agreement.
Trade Credit Lender: Coinbase Credit, Inc.
Trade Financing Agreement: The Coinbase Credit Committed Trade Financing Agreement.
Transfer Agent: BNY Mellon.
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Trust: The Bitwise Solana Staking ETF.
Trust Agreement: The Amended and Restated Declaration of Trust and Trust Agreement of Bitwise Solana Staking ETF, entered into by the Sponsor and the Trustee.
Trust-Directed Trade Model: The model whereby the Sponsor purchases and sells solana through the use of a Solana Trading Counterparty.
Trust Solana Account: The custody account in the name of the Trust held with the Solana Custodian, in which the Trust’s solana assets are held.
Trustee: Delaware Trust Company, a Delaware trust company.
UBTI: Unrelated business taxable income.
UCC: Uniform Commercial Code.
U.S.: The United States of America.
Validators: Stakeholders that help process transactions and ensure that distributed ledgers that make up a proof-of-stake blockchain network stay consistent with one another.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
|
Bitwise Investment Advisers, LLC, as Sponsor of Bitwise Solana Staking ETF |
|
|
|
|
|
Date: May 6, 2026 |
By: |
/s/ Paul Fusaro |
|
|
|
Name: |
Paul Fusaro |
|
|
Title: |
Chief Operating Officer (Principal Executive Officer)* |
|
|
|
|
|
By: |
/s/ James Bebrin III |
|
|
|
Name: |
James Bebrin III |
|
|
Title: |
Vice President (Principal Financial Officer and Principal Accounting Officer)* |
* The registrant is a trust and the persons are signing in their capacities as officers of Bitwise Investment Advisers, LLC, the Sponsor of the registrant.
27