Company: OSOL
Filing Date: 2025-10-22
Form Type: S-1
Source: 0001493152-25-018952
Chunk: 181

Company: Osprey Solana Trust
Filing Date: 2025-10-22
Form: S-1
Chunk 181
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ing Shares. When purchasing a Basket in exchange for cash, the Trust will create Shares by receiving SOL from a third-party, that is not the Authorized Participant, and the Trust is responsible for selecting the third-party to deliver the SOL. Further, the third-party will not be acting as an agent of the Authorized Participant with respect to the delivery of the SOL to the Trust or acting at the direction of the Authorized Participant with respect to the delivery of the SOL to the Trust. When redeeming a Basket in exchange for cash, the Trust will redeem shares by delivering SOL to a third-party, that is not the Authorized Participant, and the Trust, not the Authorized Participant, is responsible for selecting the third-party to receive the SOL. Further, the third-party will not be acting as an agent of the Authorized Participant with respect to the receipt of the SOL from the Trust or acting at the direction of the Authorized Participant with respect to the receipt of the SOL from the Trust. The third-party will be unaffiliated with the Trust and the Sponsor.

When purchasing a Basket in-kind, in exchange for SOL, Authorized Participants deliver SOL to the SOL Custodian. Upon the SOL Custodian’s receipt of the SOL, the Transfer Agent issues a Basket to the creating Authorized Participant in satisfaction of the creation order. When redeeming Baskets in-kind, in exchange for SOL, the Transfer Agent will redeem the Shares and the SOL Custodian will distribute the resulting SOL to the redeeming Authorized Participant in satisfaction of the redemption order.

It is expected that Authorized Participants that create Shares will sell Shares to the public at varying prices to be determined by reference to, among other considerations, the price of SOL and the trading price of the Shares on the CBOE at the time of each sale.

While the arbitrage mechanism is expected to keep the value of the Shares closely linked to the Index Price, due to price volatility and differentials, trading volume, and closings of Constituent Platforms due to fraud, failure, security breaches or otherwise, there can be no assurance that the value of the Shares will reflect the value of the Trust’s SOL, less the Trust’s expenses and other liabilities, and the Shares may trade at a substantial premium over, or a substantial discount to, the value of the Trust’s SOL, less the Trust’s expenses and other liabilities. Moreover, there may be variances in the prices of SOL on the various Constituent Platforms, including as a result of differences in fee structures or administrative procedures on different Constituent Platforms, which could enhance or inhibit the