Company: OSOL
Filing Date: 2025-10-22
Form Type: S-1
Source: 0001493152-25-018952
Chunk: 103

Company: Osprey Solana Trust
Filing Date: 2025-10-22
Form: S-1
Chunk 103
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 futures. However, the NFA does not have regulatory oversight authority for the cash or spot market for SOL trading or transactions.

In February 2021, certain designated contract markets (“DCMs”) registered with the CFTC, including the CME, launched new contracts for SOL futures products. DCMs are boards of trades (commonly referred to as exchanges) that operate under the regulatory oversight of the CFTC, pursuant to Section 5 of the CEA. To obtain and maintain designation as a DCM, an exchange must comply on an initial and ongoing basis with twenty-three Core Principles established under Section 5(d) of the CEA. Among other things, DCMs are required to establish self-regulatory programs designed to enforce the DCM’s rules, prevent market manipulation and customer and market abuses, and ensure the recording and safe storage of trade information. The CFTC engaged in a “heightened review” of the self-certification of SOL futures, which required DCMs to enter direct or indirect information sharing agreements with spot market platforms to allow access to trade and trader data; monitor data from cash markets with respect to price settlements and other SOL prices more broadly, and identify anomalies and disproportionate moves in the cash markets compared to the futures markets; engage in inquiries, including at the trade settlement level when necessary; and agree to regular coordination with CFTC surveillance staff on trade activities, including providing the CFTC surveillance team with trade settlement data upon request.

See “Risk Factors—Risk Factors Related to the Regulation of Digital Assets, the Trust and the Shares— Regulatory changes or actions by the U.S. Congress or any U.S. federal or state agencies may affect the value of the Shares or restrict the use of SOL, validating activity or the operation of the SOL Network or the Digital Asset Markets in a manner that adversely affects the value of the Shares.”

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<div align='center'>Business OF THE TRUST</div>

The activities of the Trust are limited to (1) issuing Baskets in exchange for the SOL or cash deposited with the Cash Custodian as consideration, (2) selling SOL as necessary to cover the Management Fee, Trust expenses not assumed by the Sponsor and other liabilities, (3) buying and selling SOL through the Liquidity Provider or Prime Execution Agent, as applicable, in exchange for Baskets in connection with creation and redemption, and (4) engaging in Staking at the Sponsor’s discretion.

Overview of the Trust and the Shares

The Trust was formed as a Delaware