Company: OSOL
Filing Date: 2025-10-22
Form Type: S-1
Source: 0001493152-25-018952
Chunk: 90

Company: Osprey Solana Trust
Filing Date: 2025-10-22
Form: S-1
Chunk 90
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 fully realized, resulting in an inability to rapidly mitigate losses in a negative market. Even during periods when CBOE is open, large digital asset trading platforms (or a substantial number of smaller digital asset trading platforms) may be lightly traded or closed for any number of reasons, which could increase trading spreads and widen any premium or discount on the Shares.

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Shareholders may suffer a loss on their investment if the Shares trade above or below the Trust’s NAV per Share.

Historically, the Shares have traded at a premium to the NAV per Share, which at times has been substantial. If the Shares trade on CBOE in the future at a premium, investors who purchase Shares on CBOE will pay more for their Shares than investors who purchase Shares directly from Authorized Participants. In contrast, if the Shares trade on CBOE in the future at a discount, investors who purchase Shares directly from Authorized Participants will pay more for their Shares than investors who purchase Shares on CBOE. The premium at which the Shares have traded has fluctuated over time. From [●] to [●], the maximum premium of the closing price of the Shares quoted on OTCQX over the value of the Trust’s NAV per Share was [●]% and the average premium was [●]%. As of [●], the Trust’s Shares were quoted on OTCQX at a premium of [●]% to the Trust’s NAV per Share. As a result, shareholders who purchase Shares on CBOE at a premium may suffer a loss on their investment if they sell their Shares at a time when the premium has decreased from the premium at which they purchased the Shares even if the NAV per Share remains the same. Likewise, shareholders that purchase Shares directly from the Trust may suffer a loss on their investment if they sell their Shares at a time when the Shares are trading at a discount on CBOE. Furthermore, shareholders may suffer a loss on their investment even if the NAV per Share increases because the decrease in any premium or increase in any discount may offset any increase in the NAV per Share.

The inability of Authorized Participants and market makers to hedge their SOL exposure may adversely affect the liquidity of Shares and the value of an investment in the Shares.

Authorized Participants and market makers will generally want to hedge their exposure in connection with Basket purchase and redemption orders. To the extent Authorized Participants and market makers are unable to hedge their exposure due to market conditions (e.g., insufficient SOL liquidity in the market, inability to locate an appropriate hedge counterparty,