Company: OSOL
Filing Date: 2025-10-22
Form Type: S-1
Source: 0001493152-25-018952
Chunk: 41

Company: Osprey Solana Trust
Filing Date: 2025-10-22
Form: S-1
Chunk 41
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ana Network may delay purchases or sales of SOL by the Trust.

Increased transaction volume could result in delays in the recording of transactions due to congestion in the Blockchain. Moreover, unforeseen system failures, disruptions in operations, or poor connectivity may also result in delays in the recording of transactions on the Blockchain. Any delay in the Blockchain could affect an Authorized Participant’s ability to buy or sell SOL at an advantageous price resulting in decreased confidence in the Blockchain. Over the longer term, delays in confirming transactions could reduce the attractiveness to merchants and other commercial parties as a means of payment. As a result, the Solana Network and the value of the Trust would be adversely affected.

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Competing digital asset exchange-traded products could reduce demand for the Shares.

Until recently, the SEC has only approved applications under Rule 19b-4 of the Exchange Act to list spot digital asset ETPs which hold Bitcoin and Ether. However, on September 17, 2025, the SEC approved rule changes proposed by three national securities exchanges to adopt generic listing standards for ETPs that hold spot commodities, including digital assets. It is possible that the generic listing standards will result in an increase of new digital asset ETPs entering the market, which may increase competition. In addition, in July 2025, an affiliate of the Sponsor listed an exchange-traded fund (“ETF”) under Rule 6c-11 that primarily holds spot SOL, most of which is staked, and non-US ETPs that themselves hold and spot SOL. Accordingly, there can be no assurance that the Trust will be able to maintain its scale and achieve its intended competitive positioning relative to competitors, which could adversely affect the performance of the Trust and the value of the Shares.

Competition from central bank digital currencies (“CBDCs”) and emerging payments initiatives involving financial institutions could adversely affect the price of SOL and other digital assets.

Central banks in various countries have introduced digital forms of legal tender known as CBDCs. China’s CBDC project, known as Digital Currency Electronic Payment, has reportedly been tested in a live pilot program conducted in multiple cities in China. Central banks representing at least 130 countries have published retail or wholesale CBDC work ranging from research to pilot projects. Whether or not they incorporate blockchain or similar technology, CBDCs, as legal tender in the issuing jurisdiction, could have an advantage in competing with, or replace, SOL and other cryptocurrencies as a medium of exchange or store of value. Central banks and other governmental entities have also announced cooperative