Company: OSOL
Filing Date: 2025-10-22
Form Type: S-1
Source: 0001493152-25-018952
Chunk: 120

Company: Osprey Solana Trust
Filing Date: 2025-10-22
Form: S-1
Chunk 120
---
 Shares do not have the regulatory protections provided to investors in commodity pools operated by registered commodity pool operators.

| 66 |

Valuation of SOL and Determination of NAV

Upon effectiveness of this registration statement, theTrust Administrator will calculate the NAV of the Trust by multiplying the number of SOL held by the Trust by the Index for such day, adding any additional receivables and subtracting the accrued but unpaid expenses and liabilities of the Trust. The Trust’s NAV per Share will be calculated by dividing the Trust’s NAV by the number of Shares then outstanding. The Trust Administrator will determine the price of the Trust’s SOL by reference to the Index, which is published between 4:00 p.m. and 4:30 p.m. (New York time) on every calendar day. The methodology used to calculate the Index price to value SOL in determining the NAV of the Trust may not be deemed consistent with GAAP.

ASC 820-10 determines fair value to be the price that would be received for SOL 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 SOL 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 purchases SOL directly from various counterparties, such as [Galaxy Digital, Jane Street, and Cumberland DRW LLC,] and does not itself transact in any SOL markets. The purchase price of SOL from our counterparties may vary significantly. The Trust looks to these counterparties when assessing entity-specific and market-based volume and the level of activity in the SOL markets. The Trust determines the current value of SOL by reference SOL Market Price. The SOL Market Price is determined based on the estimated fair market value price for SOL, reflecting the execution price of SOL on its principal market as determined by Lukka.

Lukka’s pricing methodology is designed in accordance with ASC 820-10, and its proprietary software dynamically designates principal market and derives fair value prices for financial reporting using this designation. Lukka is designed to provide an estimated fair market value for SOL, in a manner that aligns with U.S. GAAP and IFRS accounting guidelines regarding fair market value measurements. In this regard, Lukka seeks to identify a “principal market” for SOL, by evaluating eligible SOL exchanges across a variety of different