Company: OSOL
Filing Date: 2025-10-22
Form Type: S-1
Source: 0001493152-25-018952
Chunk: 119

Company: Osprey Solana Trust
Filing Date: 2025-10-22
Form: S-1
Chunk 119
---
.m., New York time, liquidity in the market for SOL may be reduced, negatively affecting the trading volume; alternatively, developments in SOL markets (which operate around the clock), including the price volatility, declines in trading volumes, and the closing of SOL trading platforms due to fraud, failures, security breaches or otherwise that occur outside of CBOE’s trading hours will not be reflected in trading prices of the Shares until trading on CBOE opens. As a result, during this time, trading spreads, and the resulting premium or discount, on Shares may widen. However, given that Baskets can be created and redeemed in exchange for the underlying amount of SOL, and that the Trust will utilize a Basket of 10,000 shares which would equate to [$63,000] (assuming an initial NAV of [$6.30] per share compared to the average daily trading volume of SOL in excess of [$1 billion]), the Sponsor believes that the Basket size of 10,000 Shares will enable Authorized Participants and Liquidity Providers to manage inventory and facilitate an effective arbitrage mechanism for the Trust. The Sponsor believes that the arbitrage opportunities may provide a mechanism to mitigate the effect of such premium or discount.

The Trust is not registered as an investment company for purposes of U.S. federal securities laws, and is not subject to regulation by the SEC as an investment company. Consequently, the owners of Shares do not have the regulatory protections provided to investors in registered investment companies. For example, the provisions of the Investment Company Act that limit transactions with affiliates, prohibit the suspension of redemptions (except under certain limited circumstances) or limit sales loads, among others, do not apply to the Trust. The Sponsor is not registered with the SEC as an investment adviser and is not subject to regulation by the SEC as such in connection with its activities with respect to the Trust. Consequently, the owners of Shares do not have the regulatory protections provided to advisory clients of SEC-registered investment advisers.

The Trust does not hold or trade in commodity futures contracts or any other instruments regulated by the Commodity Exchange Act as administered by the CFTC. Furthermore, the Trust is not a commodity pool for purposes of the Commodity Exchange Act. Consequently, the Trustee and the Sponsor are not subject to registration as commodity pool operators or commodity trading advisors with respect to the Trust. The owners of Shares do not receive the Commodity Exchange Act disclosure document and certified annual report required to be delivered by the registered commodity pool operator with respect to a commodity pool, and the owners of