Company: OSOL
Filing Date: 2025-10-22
Form Type: S-1
Source: 0001493152-25-018952
Chunk: 44

Company: Osprey Solana Trust
Filing Date: 2025-10-22
Form: S-1
Chunk 44
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 markets for digital assets and related products. Until recently, the SEC had repeatedly denied such requests. In January 2018, the SEC’s Division of Investment Management outlined several questions that sponsors would be expected to address before the SEC will consider granting approval for funds holding “substantial amounts” of cryptocurrencies or “cryptocurrency-related products.” The questions, which focus on specific requirements of the Investment Company Act, generally fall into one of five key areas: valuation, liquidity, custody, arbitrage and potential manipulation. The SEC has not explicitly stated whether each of the questions set forth would also need to be addressed by entities with similar products and investment strategies that instead pursue registered offerings under the Securities Act, although such entities would need to comply with the registration and prospectus disclosure requirements of the Securities Act.

In particular, Bitcoin is the only specific, widely used digital asset that the SEC has publicly indicated it does not currently view as a security, although the SEC, by action through delegated authority approving exchange rule filings to list shares of trusts holding Ether as commodity-based ETPs, has implicitly taken the view that Ether is not a security. The Sponsor believes that the SEC is unlikely to approve a request to list the shares of a spot ETP that holds a digital asset that the SEC believes is an unregistered security. Although CFTC-regulated futures markets have recently been established for SOL, which the SEC has viewed as a relevant factor in the case of spot Bitcoin and spot Ether ETPs, investors should not assume that recent approvals of spot Bitcoin and spot Ether ETPs or the establishment of these CFTC-regulated SOL futures markets will subsequently lead to approval of spot ETPs holding other digital assets.

The exchange listing of shares of digital asset funds would create more opportunities for institutional and retail investors to invest in the digital asset market. If exchange-listing requests beyond those for funds holding SOL, Bitcoin or Ether continue to be denied by the SEC, increased investment interest by institutional or retail investors could fail to materialize, which could reduce the demand for digital assets generally and therefore adversely affect the value of the Shares.

Risk Factors Related to the Trust and the Shares

The Trust relies on third-party service providers to perform certain functions essential to the affairs of the Trust and the replacement of such service providers could pose a challenge to the safekeeping of the Trust’s SOL and to the operations of the Trust.

The Trust relies on the SOL Custodian, Cash Custodian, and the Prime Execution Agent (together, the “Custodial Entities”), the Authorized