<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="font-family: Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
filed with the Securities and Exchange Commission on November 21, 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">Registration
No. 333-_________</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Rule-Page --><DIV STYLE="font-family: Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><DIV STYLE="font: 1pt Times New Roman, Times, Serif; border-top: Black 2pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>UNITED
STATES</B><BR>
<B>SECURITIES AND EXCHANGE COMMISSION</B><BR>
<B>Washington, D.C. 20549</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>FORM
S-1</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">REGISTRATION
STATEMENT<BR>
UNDER<BR>
THE SECURITIES ACT OF 1933</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Bitwise
Solana ETF</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Exact
name of registrant as specified in its charter)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; width: 49%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; width: 2%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; padding-bottom: 1.5pt; width: 49%; text-align: center"></TD></TR>
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(State
                                            or other jurisdiction of</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">incorporation
    or organization)</FONT></P></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(I.R.S.
    Employer <BR>
    Identification No.)</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>c/o
Bitwise Investment Advisers, LLC</B><BR>
<B>250 Montgomery Street, Suite 200</B><BR>
<B>San Francisco, California 94104</B><BR>
<B>(415) 707-3663</B><BR>
(Address, including zip code, and telephone number, including<BR>
area code, of registrant&rsquo;s principal executive offices and for service of process purposes)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Copies
to:</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Richard Coyle, Esq.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>James
Audette, Esq.</B><BR>
<B>Chapman and Cutler LLP</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>320
South Canal Street, 27<SUP>th</SUP> Floor</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Chicago,
Illinois 60606</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(312)
845-3724</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Katherine
Dowling, Esq.</B><BR>
<B>Bitwise Investment Advisers, LLC</B><BR>
<B>250 Montgomery Street, Suite 200</B><BR>
<B>San Francisco, California 94104</B><BR>
<B>(415) 707-3663</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Approximate
date of commencement of proposed sale to the public: As soon as practicable after the effective date of this Registration Statement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933 check the following box: &#9746;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the
following box and list the Securities Act registration statement number of the earlier effective registration statement for the same
offering: &#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. &#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. &#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Indicate
by check mark whether the registrant is a large, accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or an emerging growth company. See the definitions of &ldquo;large, accelerated filer,&rdquo; &ldquo;accelerated filer,&rdquo;
&ldquo;smaller reporting company,&rdquo; and &ldquo;emerging growth company&rdquo; in Rule 12b-2 of the Exchange Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font-family: Times New Roman, Times, Serif; width: 22%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Large
    accelerated filer &#9744;</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; width: 48%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; width: 30%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Accelerated
    filer &#9744;</FONT></TD></TR>
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Non-accelerated filer
    &#9746;</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Smaller reporting
    company &#9746;</FONT></TD></TR>
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Emerging growth company
    &#9746;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. &#9746;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>The
registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the
registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective
in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date
as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Rule-Page --><DIV STYLE="font-family: Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><DIV STYLE="font: 1pt Times New Roman, Times, Serif; border-top: Black 1pt solid; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>


<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Red">The
information in this Prospectus is not complete and may be changed. We may not sell these securities until the registration statement
filed with the Securities and Exchange Commission is effective. This Prospectus is not an offer to sell these securities and it is not
soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Red"><B>Subject
to Completion</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Red"><B>Preliminary
Prospectus dated November 21, 2024</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><B>PROSPECTUS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Shares</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Bitwise
Solana ETF</B></FONT></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Bitwise Solana ETF (the &ldquo;Trust&rdquo;) is an exchange-traded product that issues common shares of beneficial interest (&ldquo;Shares&rdquo;)
that are anticipated to be listed on Cboe BZX Exchange, Inc. (the &ldquo;Exchange&rdquo;) under the ticker symbol &ldquo;_____.&rdquo;
The Trust&rsquo;s investment objective is to seek to provide exposure to the value of Solana held by the Trust, less the expenses of
the Trust&rsquo;s operations and other liabilities. In seeking to achieve its investment objective, the Trust will hold Solana and establish
its net asset value (&ldquo;NAV&rdquo;) by reference to the CME CF Solana &ndash; Dollar Reference Rate &ndash; New York Variant (&ldquo;Pricing
Benchmark&rdquo;). The Pricing Benchmark is calculated by CF Benchmarks Ltd. (the &ldquo;Benchmark Provider&rdquo;) based on an aggregation
of executed trade flow of major Solana trading platforms (&ldquo;Constituent Platforms&rdquo;). The Trust is sponsored and managed by
Bitwise Investment Advisers, LLC (the &ldquo;Sponsor&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust will pay to the Sponsor a unitary management fee of 0.____% per annum of the Trust&rsquo;s Solana holdings (the &ldquo;Sponsor
Fee&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">When
the Trust creates or redeems its Shares, it will do so in blocks of 10,000 Shares (each, a &ldquo;Basket&rdquo;) based on the quantity
of Solana attributable to each Share of the Trust (net of accrued but unpaid expenses and liabilities) multiplied by the number of Shares
(10,000) comprising a Basket (the &ldquo;Basket Amount&rdquo;). For an order to create (purchase) a Basket, the purchase shall be in
the amount of U.S. dollars needed to purchase the Basket Amount (plus a per-order transaction fee), as calculated by the Administrator
(as defined below). For an order to redeem a Basket, the Sponsor shall arrange for the Basket Amount of Solana to be sold and the cash
proceeds (minus a per-order transaction fee) distributed. The Trust only creates and redeems Baskets in transactions with financial firms
that are authorized to purchase or redeem Shares with the Trust (each, an &ldquo;Authorized Participant&rdquo;). Shares initially comprising
the same Basket but offered by the Authorized Participants to the public at different times may have different offering prices that depend
on various factors, including the supply and demand for Shares, the value of the Trust&rsquo;s assets, and market conditions at the time
of a transaction. Investors who buy or sell Shares during the day from their broker may do so at a premium or discount relative to the
NAV of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Bitwise
Asset Management, Inc., the parent of the Sponsor, served as seed capital investor to the Trust (the &ldquo;Seed Capital Investor&rdquo;).
The Seed Capital Investor agreed to purchase $________ in Shares on ________, and on ________ took delivery of __ Shares at a per-Share
price of $___ (the &ldquo;Seed Shares&rdquo;). The $_____ the Trust received in consideration for the sale of the Seed Shares served
as the basis of the audit described in the sections entitled &ldquo;REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM&rdquo; and
&ldquo;STATEMENT OF FINANCIAL CONDITION.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Bitwise
Investment Manager, LLC, an affiliate of the Sponsor, is expected to purchase the initial Baskets of Shares for $____________, at a per-Share
price of $__ for these ________ Shares (the &ldquo;Seed Baskets&rdquo;). Such proceeds are expected to be used by the Trust to purchase
Solana at or prior to the listing of Shares on the Exchange. Bitwise Investment Manager, LLC will act as a statutory underwriter in connection
with the initial purchase of the Seed Baskets.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Neither
the Trust, nor the Sponsor, nor the Solana Custodian (defined below), nor any other person associated with the Trust will, directly or
indirectly, engage in actions where any portion of the Trust&rsquo;s Solana is used to earn additional Solana or generate income or other
earnings.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Investors
who decide to buy or sell Shares of the Trust will place their trade orders through their brokers and may incur customary brokerage commissions
and charges. Prior to this offering, there has been no public market for the Shares. Investing in the Trust involves risks similar to
those involved with an investment directly in Solana and other significant risks. <B>See &ldquo;RISK FACTORS&rdquo; beginning on page
10</B>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
offering of the Shares is registered with the U.S. Securities and Exchange Commission (&ldquo;SEC&rdquo;) in accordance with the Securities
Act of 1933 (the &ldquo;1933 Act&rdquo;). The Trust intends to issue Shares on a continuous basis and is registering an indeterminate
number of Shares. The offering is intended to be a continuous offering and is not expected to terminate until three years from the date
of the original offering, unless extended as permitted by applicable rules under the 1933 Act. The Trust is not a fund registered or
subject to regulation under the Investment Company Act of 1940. The Trust is not a commodity pool for purposes of the Commodity Exchange
Act of 1936, and the Sponsor is not subject to regulation by the Commodity Futures Trading Commission as a commodity pool operator or
a commodity trading adviser.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>AN
INVESTMENT IN THE TRUST MAY NOT BE SUITABLE FOR INVESTORS THAT ARE NOT IN A POSITION TO ACCEPT MORE RISK THAN MAY BE INVOLVED WITH OTHER
EXCHANGE-TRADED PRODUCTS THAT DO NOT HOLD Solana OR INTERESTS RELATED TO SOLANA. THE SHARES ARE SPECULATIVE SECURITIES. THEIR PURCHASE
INVOLVES A HIGH DEGREE OF RISK AND YOU COULD LOSE YOUR ENTIRE INVESTMENT. YOU SHOULD CONSIDER ALL RISK FACTORS BEFORE INVESTING IN THE
TRUST. PLEASE REFER TO &ldquo;RISK FACTORS&rdquo; BEGINNING ON PAGE 10.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>NEITHER
THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THE SECURITIES OFFERED IN THIS
PROSPECTUS, OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>The
date of this Prospectus is _____________, 2024</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>


<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>TABLE
OF CONTENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font-family: Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 1.5pt; padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-variant: normal"><B>Page</B></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; width: 95%; text-align: left; padding-top: 0in; padding-bottom: 0pt; padding-left: 0in"><A HREF="#B_022"><FONT STYLE="font-family: Times New Roman, Times, Serif">Prospectus
    Summary</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; width: 5%; text-align: center; padding-top: 0in; padding-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">1</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_023"><FONT STYLE="font-family: Times New Roman, Times, Serif">Risk
    Factors</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">10</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_024"><FONT STYLE="font-family: Times New Roman, Times, Serif">Solana,
    Solana MARKET AND REGULATION OF Solana</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">69</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_025"><FONT STYLE="font-family: Times New Roman, Times, Serif">THE
    TRUST AND Solana PRICES</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">76</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_026"><FONT STYLE="font-family: Times New Roman, Times, Serif">Calculation
    of NAV</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">82</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_027"><FONT STYLE="font-family: Times New Roman, Times, Serif">ADDITIONAL
    INFORMATION ABOUT THE TRUST</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">84</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_028"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
    Trust&rsquo;s Service Providers</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">89</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_029"><FONT STYLE="font-family: Times New Roman, Times, Serif">Custody
    of the Trust&rsquo;s Assets</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">91</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_030"><FONT STYLE="font-family: Times New Roman, Times, Serif">THE
    PRIME EXECUTION AGENT AND the TRADE CREDIT LENDER</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">93</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_031"><FONT STYLE="font-family: Times New Roman, Times, Serif">Form
    of Shares</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">99</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_032"><FONT STYLE="font-family: Times New Roman, Times, Serif">Transfer
    of Shares</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">100</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_033"><FONT STYLE="font-family: Times New Roman, Times, Serif">SEED
    CAPITAL INVESTOR</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">100</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_034"><FONT STYLE="font-family: Times New Roman, Times, Serif">Plan
    of Distribution</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">101</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_035"><FONT STYLE="font-family: Times New Roman, Times, Serif">Creation
    and Redemption of Shares</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">102</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_036"><FONT STYLE="font-family: Times New Roman, Times, Serif">Use
    of Proceeds</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">107</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_037"><FONT STYLE="font-family: Times New Roman, Times, Serif">OWNERSHIP
    OR BENEFICIAL INTEREST IN THE TRUST</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">107</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_038"><FONT STYLE="font-family: Times New Roman, Times, Serif">Conflicts
    of Interest</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">107</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_039"><FONT STYLE="font-family: Times New Roman, Times, Serif">FIDUCIARY
    AND REGULATORY DUTIES AND OBLIGATIONS OF THE SPONSOR</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">108</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_040"><FONT STYLE="font-family: Times New Roman, Times, Serif">Liability
    and Indemnification</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">110</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_041"><FONT STYLE="font-family: Times New Roman, Times, Serif">Provisions
    of Law</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">112</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_042"><FONT STYLE="font-family: Times New Roman, Times, Serif">Management;
    Voting by Shareholders</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">112</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_043"><FONT STYLE="font-family: Times New Roman, Times, Serif">Meetings</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">112</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_044"><FONT STYLE="font-family: Times New Roman, Times, Serif">Books
    and Records</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">113</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_045"><FONT STYLE="font-family: Times New Roman, Times, Serif">STATEMENTS,
    FILINGS, AND REPORTS TO SHAREHOLDERS</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">113</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_046"><FONT STYLE="font-family: Times New Roman, Times, Serif">Fiscal
    Year</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">113</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_047"><FONT STYLE="font-family: Times New Roman, Times, Serif">GOVERNING
    LAW; CONSENT TO DELAWARE JURISDICTION</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">113</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_048"><FONT STYLE="font-family: Times New Roman, Times, Serif">Legal
    Matters</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">113</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_049"><FONT STYLE="font-family: Times New Roman, Times, Serif">Experts</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">114</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_050"><FONT STYLE="font-family: Times New Roman, Times, Serif">Material
    Contracts</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">114</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_051"><FONT STYLE="font-family: Times New Roman, Times, Serif">UNITED
    STATES FEDERAL INCOME TAX CONSEQUENCES</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">120</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_052"><FONT STYLE="font-family: Times New Roman, Times, Serif">Purchases
    By Employee Benefit Plans</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">125</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_053"><FONT STYLE="font-family: Times New Roman, Times, Serif">Information
    You Should Know</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">127</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_054"><FONT STYLE="font-family: Times New Roman, Times, Serif">SUMMARY
    OF PROMOTIONAL AND SALES MATERIAL</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">127</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_055"><FONT STYLE="font-family: Times New Roman, Times, Serif">Intellectual
    Property</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">127</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_056"><FONT STYLE="font-family: Times New Roman, Times, Serif">Where
    You Can Find More Information</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">128</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_057"><FONT STYLE="font-family: Times New Roman, Times, Serif">Privacy
    Policy</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">128</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_058"><FONT STYLE="font-family: Times New Roman, Times, Serif">REPORT
    OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in">F-1</TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-top: 0in; padding-bottom: 0in; padding-left: 0in"><A HREF="#B_059"><FONT STYLE="font-family: Times New Roman, Times, Serif">Statement
    of financial condition</FONT></A></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-top: 0in; padding-bottom: 0in">F-2</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
Prospectus contains information you should consider when making an investment decision about the Shares. You may rely on the information
contained in this Prospectus. The Trust and the Sponsor have not authorized any person to provide you with different information and,
if anyone provides you with different or inconsistent information, you should not rely on it. This Prospectus is not an offer to sell
the Shares in any jurisdiction where the offer or sale of the Shares is not permitted.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Until
__________, 2024 (25 days after the date of this Prospectus), all dealers effecting transactions in the Shares, whether or not participating
in this distribution, may be required to deliver a prospectus. This requirement is in addition to the obligations of dealers to deliver
a prospectus when acting as underwriters and with respect to unsold allotments or subscriptions. The Sponsor first intends to use this
Prospectus on ___________, 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Shares are not registered for public sale in any jurisdiction other than the United States.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>


<!-- Field: Page; Sequence: 3; Options: NewSection; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->i<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->



<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">STATEMENT
REGARDING FORWARD-LOOKING STATEMENTS</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
Prospectus includes &ldquo;forward-looking statements&rdquo; that generally relate to future events or future performance. In some cases,
you can identify forward-looking statements by terminology such as &ldquo;may,&rdquo; &ldquo;will,&rdquo; &ldquo;should,&rdquo; &ldquo;expect,&rdquo;
&ldquo;plan,&rdquo; &ldquo;anticipate,&rdquo; &ldquo;believe,&rdquo; &ldquo;estimate,&rdquo; &ldquo;predict,&rdquo; &ldquo;potential,&rdquo;
or the negative of these terms or other comparable terminology. All statements (other than statements of historical fact) included in
this Prospectus that address activities, events, or developments that will or may occur in the future, including such matters as movements
in the digital asset markets, the Trust&rsquo;s operations, the Sponsor&rsquo;s plans, and references to the Trust&rsquo;s future success
and other similar matters, are forward-looking statements. These statements are only predictions. Actual events or results may differ
materially. These statements are based upon certain assumptions and analyses the Sponsor has made based on its perception of historical
trends, current conditions, and expected future developments, as well as other factors appropriate in the circumstances.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Whether
or not actual results and developments will conform to the Sponsor&rsquo;s expectations and predictions is subject to a number of risks
and uncertainties, including:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            special considerations discussed in this Prospectus;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">general
                                            economic, market and business conditions;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">technology
                                            developments regarding the use of Solana and other digital assets, including the systems
                                            used by the Sponsor and the Trust&rsquo;s custodian in their provision of services to the
                                            Trust;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">changes
                                            in laws or regulations, including those concerning taxes, made by governmental authorities
                                            or regulatory bodies; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">other
                                            world economic and political developments, including, without limitation, global pandemics
                                            and the societal and government responses thereto.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">See
&ldquo;RISK FACTORS.&rdquo; Consequently, all the forward-looking statements made in this prospectus are qualified by these cautionary
statements, and there can be no assurance that the actual results or developments the Sponsor anticipates will be realized or, even if
substantially realized, that they will result in the expected consequences to, or have the expected effects on, the Trust&rsquo;s operations
or the value of the Shares. Neither the Trust nor the Sponsor is under a duty to update any of the forward-looking statements to conform
such statements to actual results or to reflect a change in the Sponsor&rsquo;s expectations or predictions.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; background-color: white">EMERGING
GROWTH COMPANY STATUS</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust is an <FONT STYLE="text-transform: uppercase">"</FONT>emerging growth company<FONT STYLE="text-transform: uppercase">"
</FONT>as that term is used in the Jumpstart Our Business Startups Act (the <FONT STYLE="text-transform: uppercase">"</FONT>JOBS
Act<FONT STYLE="text-transform: uppercase">")</FONT> and, as such, may elect to comply with certain reduced reporting requirements.
For as long as the Trust is an emerging growth company, unlike other public companies, it will not be required to:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">provide
                                            an auditor&rsquo;s attestation report on management&rsquo;s assessment of the effectiveness
                                            of its system of internal control over financial reporting pursuant to Section 404(b) of
                                            the Sarbanes-Oxley Act of 2002;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">comply
                                            with any new requirements adopted by the Public Company Accounting Oversight Board (&ldquo;PCAOB&rdquo;)
                                            requiring mandatory auditor rotation or a supplement to the auditor&rsquo;s report in which
                                            the auditor would be required to provide additional information about the audit and the financial
                                            statements of the issuer;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">comply
                                            with any new audit rules adopted by the PCAOB after April 5, 2012, unless the Securities
                                            and Exchange Commission determines otherwise;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">provide
                                            certain disclosure regarding executive compensation required of larger public companies;
                                            or</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">obtain
                                            shareholder approval of any golden parachute payments not previously approved.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust will cease to be an &ldquo;emerging growth company&rdquo; upon the earliest of (i) when it has $1.0 billion or more in annual revenues;
(ii) when it is deemed to be a large accelerated filer under Rule 12b-2 promulgated pursuant to the Securities Exchange Act of 1934;
(iii) when it issues more than $1.0 billion of non-convertible debt over a three-year period; or (iv) the last day of the fiscal year
following the fifth anniversary of its initial public offering.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided
in Section 7(a)(2)(B) of the Securities Act of 1933 for complying with new or revised accounting standards. In other words, an emerging
growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies;
however, the Trust is choosing to &ldquo;opt out&rdquo; of such extended transition period, and as a result, the Trust will comply with
new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies.
Section 107 of the JOBS Act provides that the Trust&rsquo;s decision to opt out of the extended transition period for complying with
new or revised accounting standards is irrevocable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>


<!-- Field: Page; Sequence: 4; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->ii<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->



<DIV STYLE="padding: 5pt; border: Black 1.5pt solid">

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_022"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Prospectus
Summary</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>This
is only a summary of the Prospectus and, while it contains material information about the Trust and its Shares, it does not contain or
summarize all of the information about the Trust and the Shares contained in this Prospectus that is material and/or which may be important
to you. You should read this entire Prospectus before making an investment decision about the Shares.</I></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Overview
of the Trust</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Bitwise Solana ETF (the &ldquo;Trust&rdquo;) is an exchange-traded product that issues common shares of beneficial interest (&ldquo;Shares&rdquo;)
that are anticipated to be listed on Cboe BZX Exchange, Inc. (the &ldquo;Exchange&rdquo;) under the ticker symbol &ldquo;____.&rdquo;
The Trust&rsquo;s investment objective is to seek to provide exposure to the value of Solana held by the Trust, less the expenses of
the Trust&rsquo;s operations and other liabilities. In seeking to achieve its investment objective, the Trust will hold Solana and establish
its net asset value (&ldquo;NAV&rdquo;) by reference to the CME CF Solana &ndash; Dollar Reference Rate &ndash; New York Variant (&ldquo;Pricing
Benchmark&rdquo;). The Trust is sponsored and managed by Bitwise Investment Advisers, LLC (the &ldquo;Sponsor&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust intends to provide direct exposure to the value of Solana held by the Trust with <FONT STYLE="background-color: white">_____ (&ldquo;_____&rdquo;
or </FONT>the &ldquo;Solana Custodian&rdquo;). The Solana Custodian is chartered as a New York State limited liability trust company
that provides custody services for digital assets. The Solana Custodian is not insured by the Federal Deposit Insurance Corporation (the
&ldquo;FDIC&rdquo;)-insured but carries insurance provided by private insurance carriers. The net assets of the Trust and its Shares
are valued on a daily basis with reference to the Pricing Benchmark, a standardized reference rate published by CF Benchmarks Ltd. (the
&ldquo;Benchmark Provider&rdquo;) that is designed to reflect the performance of Solana in U.S. dollars. The Pricing Benchmark is calculated
by the Benchmark Provider based on an aggregation of executed trade flow of major Solana trading platforms (&ldquo;Constituent Platforms&rdquo;).
The Pricing Benchmark is calculated as of 4:00 p.m. Eastern time (&ldquo;ET&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Solana
is a digital asset. Like all digital assets, buying, holding and selling Solana is very different from buying, holding and selling more
conventional investments like stocks and bonds. Stocks represent ownership in a company, entitling shareholders to a portion of the company&rsquo;s
profits. Bonds are debt instruments issued by corporations or governments, where the bondholder is a creditor to the issuer that is generally
entitled to a stream of income payments. Ownership of stocks and bonds is typically recorded through a centralized system managed by
brokers, custodians or clearinghouses. Ownership of Solana does not entitle its holders to any portion of a company&rsquo;s profits or
any stream of income payments. Solana is a decentralized digital asset and ownership of it is reflected on a decentralized ledger. Additionally,
Solana is not a security, and is thus not subject to the protections of the U.S. federal securities laws.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust provides investors with the opportunity to access the market for Solana through a traditional brokerage account without the potential
barriers to entry or risks involved with acquiring and holding Solana directly. The Trust will not use derivatives that could subject
the Trust to additional counterparty and credit risks. The Sponsor believes that the design of the Trust will enable certain investors
to more effectively and efficiently implement strategic and tactical asset allocation strategies that use Solana by investing in the
Shares rather than purchasing, holding and trading Solana directly.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Solana
and the Solana Network</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Solana
is a digital asset that is created and transmitted through the operations of a peer-to-peer, decentralized network of computers that
operates on cryptographic protocols (the &ldquo;Solana Network&rdquo;). No single entity is known to own or operate the Solana Network,
the infrastructure of which is understood to be collectively maintained by a decentralized user base. The Solana Network allows people
to exchange tokens of value, called Solana, which are recorded on a public transaction ledger known as a blockchain. Solana can be used
to pay for goods and services, including computational power on the Solana Network, or it can be converted to fiat currencies, such as
the U.S. dollar, at rates determined on digital asset trading platforms or in individual end-user-to-end-user transactions under a barter
system. Furthermore, the Solana Network was designed to allow users to write and implement smart contracts&mdash;that is, general-purpose
code that executes on every computer in the network and can instruct the transmission of information and value based on a sophisticated
set of logical conditions. Using smart contracts, users can create markets, store registries of debts or promises, represent the ownership
of property, move funds in accordance with conditional instructions and create digital assets other than Solana on the Solana Network.
Smart contract operations are executed on the Solana blockchain in exchange for payment of Solana. Like the Ethereum network, the Solana
Network is one of a number of projects intended to expand blockchain use beyond just a peer-to-peer money system.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 5; Options: NewSection; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<DIV STYLE="padding: 5pt; border: Black 1.5pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Solana protocol introduced the Proof-of-History (&ldquo;PoH&rdquo;) timestamping mechanism. PoH automatically orders on-chain transactions
by creating a historical record that proves an event has occurred at a specific moment in time. PoH is intended to provide a transaction
processing speed and capacity advantage over other blockchain networks like Bitcoin and Ethereum, which rely on sequential production
of blocks and can lead to delays caused by validator confirmations. PoH is a new blockchain technology that is not widely used. PoH may
not function as intended. For example, it may require more specialized equipment to participate in the network and fail to attract a
significant number of users, or may be subject to outages or fail to function as intended. In addition, there may be flaws in the cryptography
underlying PoH, including flaws that affect functionality of the Solana Network or make the network vulnerable to attack.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition to the PoH mechanism described above, the Solana Network uses a proof-of-stake consensus mechanism to incentivize Solana holders
to validate transactions. Unlike proof-of-work, in which miners expend computational resources to compete to validate transactions and
are rewarded coins in proportion to the amount of computational resources expended, in proof-of-stake, validators risk or &ldquo;stake&rdquo;
coins to compete to be randomly selected to validate transactions and are rewarded coins in proportion to the amount of coins staked.
Any malicious activity, such as disagreeing with the eventual consensus or otherwise violating protocol rules, results in the forfeiture
or &ldquo;slashing&rdquo; of a portion of the staked coins. Proof-of-stake is viewed as more energy efficient and scalable than proof-of-work
and is sometimes referred to as &ldquo;virtual mining.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Solana protocol was first conceived by Anatoly Yakovenko in a 2017 whitepaper. Development of the Solana Network is overseen by the Solana
Foundation, a Swiss non-profit organization, and Solana Labs, Inc. (&ldquo;Solana Labs&rdquo;), a Delaware corporation, which administered
the original network launch and token distribution.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Although
Solana Labs and the Solana Foundation continue to exert significant influence over the direction of the development of Solana, the Solana
Network, like the Ethereum network, is believed to be decentralized and does not require governmental authorities or financial institution
intermediaries to create, transmit or determine the value of Solana.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor believes that certain factors have combined to improve the efficiency of the Solana market, creating a dynamic, institutional-quality,
two-sided market.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">For
more information on Solana and the Solana Network, see &ldquo;SOLANA, SOLANA MARKET AND REGULATION OF SOLANA&rdquo; below.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust&rsquo;s Investment Objective and Strategies</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust&rsquo;s investment objective is to seek to provide exposure to the value of Solana held by the Trust, less the expenses of the
Trust&rsquo;s operations. In seeking to achieve its investment objective, the Trust will hold Solana and accrue the Sponsor&rsquo;s management
fee (the &ldquo;Sponsor Fee&rdquo;) in U.S. dollars. The Trust will value its Solana holdings, net assets and the Shares daily based
on the Pricing Benchmark. The Trust is passively managed and does not pursue active management investment strategies, and the Sponsor
does not actively manage the Solana held by the Trust. This means that the Sponsor does not sell Solana at times when its price is high
or acquire Solana at low prices in the expectation of future price increases. It also means that the Sponsor does not make use of any
of the hedging techniques available to professional Solana investors to attempt to reduce the risks of losses resulting from price decreases.
The Trust will not utilize leverage or any similar arrangements in seeking to meet its investment objective. Solana will be the only
digital asset held by the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Although
the Shares are not the exact equivalent of a direct investment in Solana, they provide investors with an alternative that constitutes
a relatively cost-effective way to obtain Solana exposure through the securities market.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">When
the Trust creates or redeems its Shares, it will do so in blocks of 10,000 Shares (each, a &ldquo;Basket&rdquo;) based on the quantity
of Solana attributable to each Share of the Trust (net of accrued but unpaid expenses and liabilities) multiplied by the number of Shares
(10,000) comprising a Basket (the &ldquo;Basket Amount&rdquo;). For an order to create (purchase) a Basket, the purchase shall be in
the amount of U.S. dollars needed to purchase the Basket Amount (plus a per-order transaction fee), as calculated by the Administrator
(as defined below). For an order to redeem a Basket, the Sponsor shall arrange for the Basket Amount to be sold and the cash proceeds
(minus a per-order transaction fee) distributed. The Trust only creates and redeems Baskets in transactions with financial firms that
are authorized to purchase or redeem Shares with the Trust (each, an &ldquo;Authorized Participant&rdquo;). Shares initially comprising
the same Basket but offered by the Authorized Participants to the public at different times may have different offering prices that depend
on various factors, including the supply and demand for Shares, the value of the Trust&rsquo;s assets, and market conditions at the time
of a transaction.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 6; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<DIV STYLE="padding: 5pt; border: Black 1.5pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Basket Amount required to create each Basket changes from day to day. On each day that the Exchange is open for regular trading, the
Administrator adjusts the quantity of Solana constituting the Basket Amount as appropriate to reflect accrued expenses and any loss of
Solana that may occur. The computation is made by the Administrator each business day prior to the commencement of trading on the Exchange.
The Administrator determines the Basket Amount for a given day by dividing the number of Solana held by the Trust as of the opening of
business on that business day, adjusted for the amount of Solana constituting estimated accrued but unpaid fees and expenses of the Trust
as of the opening of business on that business day, by the quotient of the number of Shares outstanding at the opening of business divided
by 10,000. Fractions of Solana smaller than [___________] are disregarded for purposes of the computation of the Basket Amount. The Basket
Amount so determined is communicated via electronic mail message to all Authorized Participants and made available on the Sponsor&rsquo;s
website for the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
of the date of this prospectus, the Trust only creates and redeems Shares in exchange for cash. If the Trust were to create or redeem
Shares in exchange for Solana, the Trust would first need to seek certain regulatory approvals, including an amendment to Exchange&rsquo;s
listing rules and an amendment to the Trust&rsquo;s registration statement, of which this prospectus forms a part. There can be no guarantee
that the Trust will be successful in obtaining such regulatory approvals, and the timing of any such approvals is unknown. If the Trust
is successful in obtaining the necessary regulatory approvals to allow for creations and redemptions in-kind, the Trust will notify Shareholders
in a prospectus supplement and/or a current report on Form 8-K or in its annual or quarterly reports.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Purchases
and Sales of Solana</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Because
the Trust will conduct creations and redemptions of Shares for cash, it will be responsible for purchasing and selling Solana in connection
with those creation and redemption orders. The Trust may also be required to sell Solana to pay certain extraordinary, non-recurring
expenses that are not assumed by the Sponsor. The Sponsor, on behalf of the Trust, will typically seek to buy and sell Solana at a price
as close to the Pricing Benchmark as practical. Such purchase and sale transactions may be conducted pursuant to two models: (i) the
&ldquo;Trust-Directed Trade Model&rdquo;; and (ii)&nbsp;the &ldquo;Agent Execution Model.&rdquo; The Trust intends to utilize the Trust-Directed
Trade Model for all purchases and sales of Solana and will only utilize the Agent Execution Model in the event that no Solana Trading
Counterparty (as defined below) is willing or able to effectuate the Trust&rsquo;s purchase or sale of Solana.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Under
the Trust-Directed Trade Model, the Sponsor, on behalf of the Trust, is responsible for acquiring Solana from a Solana trading counterparty
that has been approved by the Sponsor (each, a &ldquo;Solana Trading Counterparty&rdquo;). As of _________, _______________________________________
have been approved as Solana Trading Counterparties. The Sponsor has entered into contractual agreements with the Solana Trading Counterparties,
and these agreements set forth the general parameters under which a transaction in Solana will be effectuated, should any transaction
with a Solana Trading Counterparty occur. These agreements do not require the Sponsor to utilize any particular Solana Trading Counterparty,
and do not create any contractual obligations on the part of any Solana Trading Counterparty to participate in cash orders for creations
or redemptions. All transactions between the Sponsor, on behalf of the Trust, and a Solana Trading Counterparty will be done on an arm&rsquo;s-length
basis.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Under
the Agent Execution Model, ___________ ("_________&rdquo; or the &ldquo;Prime Execution Agent,&rdquo; which is an affiliate of
the Solana Custodian), acting in an agency capacity, conducts Solana purchases and sales on behalf of the Trust with third parties through
its ____________ service pursuant to an agreement (the &ldquo;Prime Execution Agreement&rdquo;). To utilize the Agent Execution Model,
the Trust may maintain some Solana or cash in a trading account (the &ldquo;Trading Balance&rdquo;) with the Prime Execution Agent. To
avoid having to pre-fund purchases or sales of Solana in connection with cash creations and redemptions and sales of Solana to pay Trust
expenses not assumed by the Sponsor, to the extent applicable, the Trust may borrow Solana or cash as trade credit (&ldquo;Trade Credit&rdquo;)
from _____ (the &ldquo;Trade Credit Lender&rdquo;) on a short-term basis pursuant to the _____(the &ldquo;Trade Financing Agreement&rdquo;).</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 7; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<DIV STYLE="padding: 5pt; border: Black 1.5pt solid">

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
CME CF Solana &ndash; Dollar Reference Rate &ndash; New York Variant</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Pricing Benchmark was designed to provide a daily, 4:00 p.m. ET reference rate of the U.S. dollar price of one Solana that may be used
to develop financial products. The Pricing Benchmark uses the same methodology as the CME CF Solana &ndash; Dollar Reference Rate (&ldquo;SRR&rdquo;).
The only material difference between the Pricing Benchmark and the SRR is that the SRR measures the U.S. dollar price of one Solana as
of 4:00 p.m. London time and the Pricing Benchmark measures the U.S. dollar price of one Solana as of 4:00 p.m. ET. The CME Group also
publishes the CME CF Solana Real Time Index (the &ldquo;CME Solana Real Time Price&rdquo;), which is a continuous measure of the U.S.
dollar price of one Solana calculated once per second. Each of the Pricing Benchmark, the SRR and the CME Solana Real Time Price is representative
of the Solana trading activity on the Constituent Platforms, which include, as of the date of this Prospectus, Bitstamp, Coinbase, Gemini,
itBit, LMAX and Kraken. For more information on the Pricing Benchmark, the ERR and the CME Solana Real Time Price, see &ldquo;THE TRUST
AND SOLANA PRICES&rdquo; below.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust uses the Pricing Benchmark to calculate its daily NAV and utilizes the CME Solana Real Time Price to calculate an Indicative Trust
Value (the &ldquo;ITV&rdquo;). The ITV is intended to provide additional information not otherwise available to the public that may be
useful to investors and market professionals in connection with the trading of the Shares on the Exchange. It is calculated by using
the prior day&rsquo;s holdings at close of business and the most recently reported price level of the CME Solana Real Time Price. The
ITV will be disseminated on a per-Share basis every 15 seconds during regular Exchange trading hours of 9:30 a.m. to 4:00 p.m. ET.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust&rsquo;s Legal Structure</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust is a Delaware statutory trust, formed pursuant to the Delaware Statutory Trust Act (the &ldquo;DSTA&rdquo;). The Trust continuously
issues common shares representing units of undivided beneficial ownership of the Trust that may be purchased and sold on the Exchange.
The Trust operates pursuant to the First Amended and Restated Declaration of Trust and Trust Agreement (the &ldquo;Trust Agreement&rdquo;),
dated as of _________. Delaware Trust Company, a Delaware trust company, is the Delaware trustee of the Trust (the &ldquo;Trustee&rdquo;).
The Trust is managed and controlled by the Sponsor pursuant to the terms of the Trust Agreement and the Sponsor Agreement, dated as of
____________, between the Trust and the Sponsor. The Sponsor is a limited liability company formed in the State of Delaware on June 4,
2018. Except as required under applicable federal law or under the rules or regulations of the Exchange, shareholders of the Trust (&ldquo;Shareholders&rdquo;)
do not have any voting rights and take no part in the management or control of, and have no voice in, the Trust&rsquo;s operations or
business.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust&rsquo;s Service Providers</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Bitwise
Investment Advisers, LLC serves as the Sponsor for the Trust. The Sponsor arranged for the creation of the Trust and is responsible for
the ongoing registration of the Shares for their public offering in the United States and the listing of the Shares on the Exchange.
The Sponsor will develop a marketing plan for the Trust, will prepare marketing materials regarding the Shares, and will operate the
marketing plan of the Trust on an ongoing basis. The Sponsor also oversees the additional service providers of the Trust and exercises
managerial control of the Trust as permitted under the Trust Agreement.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trustee</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Delaware
Trust Company serves as the Trustee, as required to create a Delaware statutory trust in accordance with the Trust Agreement and the
DSTA.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Administrator</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
__________________ ("__________") serves as the Trust&rsquo;s administrator (in such capacity, the &ldquo;Administrator&rdquo;).
Under the Trust Administration and Accounting Agreement, the Administrator provides necessary administrative, tax and accounting services
and financial reporting for the maintenance and operations of the Trust. In addition, the Administrator makes available the office space,
equipment, personnel and facilities required to provide such services. The Administrator&rsquo;s principal address is ______________________.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

</DIV>

<!-- Field: Page; Sequence: 8; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<DIV STYLE="padding: 5pt; border: Black 1.5pt solid">

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Transfer Agent</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">_____________
serves as the transfer agent for the Trust (in such capacity, the &ldquo;Transfer Agent&rdquo;). The Transfer Agent: (1) issues and redeems
Shares of the Trust; (2) responds to correspondence by Shareholders and others relating to its duties; (3) maintains Shareholder accounts;
and (4) makes periodic reports to the Trust.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Solana Custodian</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; background-color: white">_____________________
</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">serves as the Trust&rsquo;s Solana Custodian pursuant to an agreement
between it and the Trust (the &ldquo;Solana Custody Agreement&rdquo;). The Solana Custodian is a fiduciary under &sect; 100 of the New
York Banking Law. Under the Solana Custody Agreement, the Solana Custodian is responsible for safekeeping the Solana owned by the Trust.
The Solana Custodian was selected by the Sponsor. The Solana Custodian has responsibility for opening a special account that holds the
Trust&rsquo;s Solana (the &ldquo;Trust Solana Account&rdquo;) and implementing the controls designed by the Sponsor for the account,
as well as facilitating the transfer of Solana required for the operation of the Trust. The Solana Custodian will also enter into an
agreement with the Sponsor to open a custody account to receive payment of the Sponsor Fee (the &ldquo;Sponsor Solana Account&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Solana Custodian is a third-party limited-purpose trust company that was chartered in 2018 upon receiving a trust charter from the New
York Department of Financial Services. The Solana Custodian has one of the longest track records in the industry of providing custodial
services for digital asset private keys. The Sponsor believes that the Solana Custodian&rsquo;s policies, procedures, and controls for
safekeeping, exclusively possessing, and controlling the Trust&rsquo;s Solana holdings are consistent with industry best practices to
protect against theft, loss, and unauthorized and accidental use of the private keys. The Trust Solana Account and Sponsor Solana Account
are segregated accounts and are therefore not commingled with corporate or other customer assets.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust may retain additional Solana custodians from time to time pursuant to a Solana custodian agreement to perform certain services
that are typical of a Solana custodian. The Sponsor may, in its sole discretion, add or terminate Solana custodians at any time.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Cash Custodian</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
_______________ also serves as the Cash Custodian pursuant to an agreement between it and the Trust (the &ldquo;Cash Custody Agreement&rdquo;).
The Cash Custodian is the custodian of the Trust&rsquo;s cash holdings. The Trust may retain additional cash custodians from time to
time pursuant to a cash custodian agreement to perform certain services that are typical of a cash custodian. The Sponsor may, in its
sole discretion, add or terminate cash custodians at any time.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Marketing Agent</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">______________
(the &ldquo;Marketing Agent&rdquo;) is responsible for: (1) working with the Transfer Agent to review and approve, or reject, purchase
and redemption orders of Shares placed by Authorized Participants with the Transfer Agent; and (2) reviewing and approving the marketing
materials prepared by the Trust for compliance with applicable U.S. Securities and Exchange Commission (&ldquo;SEC&rdquo;) and Financial
Industry Regulatory Authority (&ldquo;FINRA&rdquo;) advertising laws, rules, and regulations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Except
for the specific, limited circumstance and time in which the Trust is using the Agent Execution Model, the Trust, the Sponsor and the
service providers will not loan or pledge the Trust&rsquo;s assets, nor will the Trust&rsquo;s assets serve as collateral for any loan
or similar arrangement. During the specific, limited circumstance and time when the Trust is using the Agent Execution Model, the Trust&rsquo;s
Solana may be subject to a lien to secure outstanding Trade Credits in favor of the Trade Credit Lender, as is discussed in further detail
below.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust&rsquo;s Fees and Expenses</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust will pay the unitary Sponsor Fee of 0.___% per annum of the Trust&rsquo;s Solana holdings.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor Fee is paid by the Trust to the Sponsor as compensation for services performed under the Trust Agreement and Sponsor Agreement.
Except during periods in which all or a portion of the Sponsor Fee is being waived, the Sponsor Fee will accrue daily and will be payable
in Solana monthly in arrears. The Administrator will calculate the Sponsor Fee on a daily basis by applying a 0.__% annualized rate to
the Trust&rsquo;s total Solana holdings, and the amount of Solana payable in respect of each daily accrual shall be determined by reference
to the Pricing Benchmark.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

</DIV>

<!-- Field: Page; Sequence: 9; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<DIV STYLE="padding: 5pt; border: Black 1.5pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
NAV of the Trust is reduced each day by the amount of the Sponsor Fee calculated each day. On or about the last day of each month, an
amount of Solana will be transferred from the Trust Solana Account to the Sponsor Solana Account equal to the sum of all daily Sponsor
Fees accrued for the month in U.S. dollars divided by the Pricing Benchmark on the last day of the month. The Trust is not responsible
for paying any fees or costs associated with the transfer of Solana to the Sponsor. The Sponsor, from time to time, may temporarily waive
all or a portion of the Sponsor Fee in its sole discretion. To the extent not already disclosed in the Prospectus, the Sponsor may notify
Shareholders of its intent to commence, or cease, waiving the Sponsor Fee on the Trust&rsquo;s website, in a prospectus supplement, through
a current report on Form 8-K and/or in the Trust&rsquo;s annual or quarterly reports.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
exchange for the Sponsor Fee, the Sponsor has agreed to assume and pay the normal operating expenses of the Trust, which include the
Trustee&rsquo;s monthly fee and out-of-pocket expenses, the fees of the Trust&rsquo;s regular service providers (Cash Custodian, Solana
Custodian, Prime Execution Agent, Marketing Agent, Transfer Agent and Administrator), exchange listing fees, tax reporting fees, SEC
registration fees, printing and mailing costs, audit fees and up to $500,000 per annum in ordinary legal fees and expenses. The Sponsor
may determine in its sole discretion to assume legal fees and expenses of the Trust in excess of $500,000 per annum. The Sponsor will
also pay the costs of the Trust&rsquo;s organization.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust may incur certain extraordinary, non-recurring expenses that are not assumed by the Sponsor, including, but not limited to, taxes
and governmental charges, any applicable brokerage commissions, financing fees, Solana Network fees and similar transaction fees, expenses
and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Trust to protect the
Trust or the Shareholders (including, for example, in connection with any fork of the Solana Network, any Incidental Rights (as defined
below) and any IR Asset (as defined below)), any indemnification of the Cash Custodian, Solana Custodian, Prime Execution Agent, Transfer
Agent, Administrator or other agents, service providers or counterparties of the Trust, and extraordinary legal fees and expenses, including
any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters. The Administrator
and/or the Sponsor will direct the Solana Custodian to transfer Solana from the Trust Solana Account to the Sponsor Solana Account to
pay the Sponsor Fee and any other Trust expenses not assumed by the Sponsor. To pay for expenses not assumed by the Sponsor that are
denominated in U.S. dollars, the Sponsor, on behalf of the Trust, may sell the Trust&rsquo;s Solana as necessary to pay such expenses.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Custody
of the Trust&rsquo;s Assets</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust&rsquo;s Solana Custodian will maintain custody of all of the Trust&rsquo;s Solana, other than that which is maintained in a trading
account (the &ldquo;Trading Balance&rdquo;) with _____________ ("_________&rdquo; or the &ldquo;Prime Execution Agent,&rdquo; which
is an affiliate of the Solana Custodian), in the Trust Solana Account. The Trading Balance will only be used in the limited circumstances
in which the Trust is using the Agent Execution Model to effectuate the purchases and sales of Solana. The Solana Custodian provides
safekeeping of digital assets using a multi-layer cold storage security platform designed to provide offline security of the digital
assets held by the Solana Custodian. However, the Solana Custodian is not a banking institution or otherwise a member of the FDIC and,
therefore, deposits held with or assets held by the Solana Custodian are not insured by the FDIC. In addition, neither the Trust nor
the Sponsor insures the Trust&rsquo;s Solana. The Solana Custodian has insurance coverage as a subsidiary under its parent company, _______________,
which procures fidelity (e.g., crime) insurance to protect the organization from risks such as theft of funds. Specifically, the fidelity
program provides coverage for the theft of funds held in hot or cold storage. The insurance program is provided by a syndicate of industry-leading
insurers. The insurance program does not cover, insure or guarantee the performance of the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Solana in the Trust Solana Account may be held across multiple wallets, any of which will feature the following safety and security measures
to be implemented by the Solana Custodian:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Cold
                                            Storage</I>: Cold storage in the context of Solana means keeping the reserve of Solana offline,
                                            which is a widely used security precaution, especially when dealing with a large amount of
                                            Solana. Solana held under custodianship with the Solana Custodian will be kept in high-security,
                                            offline, multi-layer cold storage vaults. This means that the private keys, the cryptographic
                                            component that allows a user to access Solana, are stored offline on hardware that has never
                                            been connected to the internet. Storing the private key offline minimizes the risk of the
                                            Solana being stolen. The Sponsor expects that all of the Trust&rsquo;s Solana will be held
                                            in cold storage of the Solana Custodian on an ongoing basis. In connection with creations
                                            or redemptions, the Trust will, under most circumstances, process redemptions by selling
                                            Solana from the portion of its Solana held in cold storage.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 10; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<DIV STYLE="padding: 5pt; border: Black 1.5pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Private
                                            Keys</I>: All private keys are securely stored using multiple layers of high-quality encryption
                                            and in Solana Custodian-owned offline hardware vaults in secure environments. No customers
                                            or third parties are given access to the Solana Custodian&rsquo;s private keys.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Whitelisting</I>:
                                            Transactions are only sent to vetted, known addresses. The Solana Custodian&rsquo;s platform
                                            supports pre-approval and test transactions. The Solana Custodian requires authentication
                                            when adding or removing addresses for whitelisting. All instructions to initiate a whitelist
                                            addition or removal must be submitted via the _____________ platform. When a whitelist addition
                                            or removal request is initiated, the initiating user will be prompted to authenticate its
                                            request using a two-factor authentication key. A consensus mechanism on the _____________
                                            platform dictates how many approvals are required in order for the consensus to be achieved
                                            to add or remove a whitelisted address. Only when the consensus is met is the underlying
                                            transaction considered officially approved. An account&rsquo;s roster and user roles are
                                            maintained by the Solana Custodian in a separate log, an Authorized User List (&ldquo;AUL&rdquo;).
                                            Any changes to the account&rsquo;s roster must be reflected on an updated AUL first and executed
                                            by an authorized signatory.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Audit
                                            Trails</I>: Audit trails exist for all movement of Solana within Solana Custodian-controlled
                                            Solana wallets and are audited annually for accuracy and completeness by an independent external
                                            audit firm.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition to the above measures, in accordance with the Solana Custody Agreement, Solana held in custody with the Solana Custodian will
be segregated from both the proprietary property of the Solana Custodian and the assets of any other customer in accounts that clearly
identify the Trust as the owner of the accounts.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Under
the rare and limited circumstances when the Trust is utilizing the Agent Execution Model to acquire Solana, a portion of the Trust&rsquo;s
Solana holdings and cash holdings may be held with the Prime Execution Agent in the Trading Balance. The Trust will only utilize the
Agent Execution Model when the Trust-Directed Trading Model is unavailable. Within the Trust&rsquo;s Trading Balance, the Prime Execution
Agreement provides that the Trust does not have an identifiable claim to any particular Solana (and cash). Instead, the Trust&rsquo;s
Trading Balance represents an entitlement to a pro rata share of the Solana (and cash) the Prime Execution Agent holds on behalf of customers
who hold similar entitlements against the Prime Execution Agent. In this way, the Trust&rsquo;s Trading Balance represents an omnibus
claim on the Prime Execution Agent&rsquo;s Solana (and cash) held on behalf of the Prime Execution Agent&rsquo;s customers. The Prime
Execution Agent holds the Solana associated with customer entitlements across a combination of omnibus cold wallets, omnibus &ldquo;hot&rdquo;
wallets (meaning wallets whose private keys are generated and stored online, in internet-connected computers or devices) or in omnibus
accounts in the Prime Execution Agent&rsquo;s name on a trading venue (including third-party venues and the Prime Execution Agent&rsquo;s
own execution venue) where the Prime Execution Agent executes orders to buy and sell Solana on behalf of its clients. Within such omnibus
hot and cold wallets and accounts, the Prime Execution Agent has represented to the Sponsor that it keeps the majority of assets in cold
wallets, to promote security, while the balance of assets is kept in hot wallets to facilitate rapid withdrawals. However, the Sponsor
has no control over, and for security reasons the Prime Execution Agent does not disclose to the Sponsor, the percentage of Solana that
the Prime Execution Agent holds for customers holding similar entitlements as the Trust, which are kept in omnibus cold wallets, as compared
to omnibus hot wallets or omnibus accounts in the Prime Execution Agent&rsquo;s name on a trading venue. The Prime Execution Agent has
represented to the Sponsor that the percentage of assets maintained in cold versus hot storage is determined by ongoing risk analysis
and market dynamics, in which the Prime Execution Agent attempts to balance anticipated liquidity needs for its customers as a class
against the anticipated greater security of cold storage.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
the extent that the Trust engages an additional Solana Custodian in the future (a &ldquo;Future Solana Custodian,&rdquo; and with ______________,
the &ldquo;Solana Custodians&rdquo;), other than the Solana held with the Prime Execution Agent in the Trust&rsquo;s Trading Balance,
the Sponsor will allocate the Trust&rsquo;s Solana between the Trust Solana Account at [Solana Custodian] and the special account that
holds the Trust&rsquo;s Solana at the Future Solana Custodian (the &ldquo;Future Trust Solana Account,&rdquo; and with the Trust Solana
Account, the &ldquo;Trust Solana Accounts&rdquo;). In determining the amount and percentage of the Trust&rsquo;s Solana to allocate to
each Trust Solana Account, the Sponsor will consider (i) the concentration of the Trust&rsquo;s Solana at each Solana Custodian, (ii)
the Sponsor&rsquo;s assessment of the safety and security policies and procedures of each Solana Custodian, (iii) the insurance policies
of each Solana Custodian, (iv) the fees and expenses associated with the storage of the Trust&rsquo;s Solana at each Solana Custodian,
(v) the fees and expenses associated with the transfer to or from the Trust Solana Account at each Solana Custodian, and (vi) any other
factor the Sponsor deems relevant in making the allocation determination. The Sponsor does not intend to disclose the amount or percentage
of the Trust&rsquo;s Solana held at either [Solana Custodian] or the Future Solana Custodian, and the Sponsor may change the allocation
between the Solana Custodians at any time and without notice to Shareholders. The fees and expenses associated with the transfer of Solana
between the Trust Solana Account at each Solana Custodian will be borne by the Sponsor, not the Trust or the Shareholders. Any transfer
of Solana between the Trust Solana Accounts at each Solana Custodian will occur &ldquo;on-chain&rdquo; over the Solana Network. On-chain
transactions are subject to all of the risks of the Solana Network, including the risk that transactions will be made erroneously and
are generally irreversible.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 11; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<DIV STYLE="padding: 5pt; border: Black 1.5pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust relies on the Cash Custodian to hold any cash related to the creation and redemption of Shares, purchase or sale of Solana or held
for payment of expenses not assumed by the Sponsor.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Transfer Agent will facilitate the settlement of Shares in response to the placement of purchase and redemption orders from Authorized
Participants.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Plan
of Distribution</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">When
the Trust sells or redeems its Shares, it will do so in Baskets. The Trust only creates and redeems Baskets in transactions with Authorized
Participants. In connection with an order to purchase Shares, an Authorized Participant shall deliver to the Transfer Agent the amount
of U.S. dollars needed to purchase the Basket Amount of Solana, as well as the per-order transaction fee. In connection with an order
to redeem Shares, an Authorized Participant shall deliver to the Trust&rsquo;s account at DTC the Basket(s) to be redeemed and the Sponsor
shall arrange for the Basket Amount of Solana to be sold and the resulting U.S. dollars to be distributed to the Authorized Participant.
BNY Mellon will facilitate the processing of purchase and redemption orders in Baskets from the Trust in its capacity as Transfer Agent
and will custody the Trust&rsquo;s cash holdings in its capacity as Cash Custodian.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Authorized
Participants may then offer Shares to the public at prices that depend on various factors, including the supply and demand for Shares,
the value of the Trust&rsquo;s assets, and market conditions at the time of a transaction. Investors who buy or sell Shares during the
day from their broker may do so at a premium or discount relative to the NAV of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Investors
who decide to buy or sell Shares will place their trade orders through their brokers and may incur customary brokerage commissions and
charges. Prior to this offering, there has been no public market for the Shares. The Shares are expected to be listed for trading, subject
to notice of issuance, on the Exchange under the ticker symbol &ldquo;____.&rdquo;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Federal
Income Tax Considerations</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Owners
of Shares are treated, for U.S. federal income tax purposes, as if they owned a proportionate share of the assets of the Trust. They
are also viewed as if they directly received a proportionate share of any income of the Trust, or as if they had incurred a proportionate
share of the expenses of the Trust. Consequently, each sale of Solana by the Trust (which includes under current Internal Revenue Service
(&ldquo;IRS&rdquo;) guidance using Solana to pay expenses of the Trust) constitutes a taxable event to Shareholders. See &ldquo;UNITED
STATES FEDERAL INCOME TAX CONSEQUENCES&mdash;Taxation of U.S. Shareholders.&rdquo;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Use
of Proceeds</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Proceeds
received by the Trust from Purchase Orders of Baskets will be used to acquire Solana. Such deposits of cash are held by the Cash Custodian
on behalf of the Trust until (i) used to acquire Solana, (ii) accrued and distributed to pay Trust expenses and liabilities not assumed
by the Sponsor, (iii) distributed to Authorized Participants in connection with redemptions of Baskets, or (iv) disposed of in a liquidation
of the Trust.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Principal
Investment Risks of an Investment in the Trust</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">An
investment in the Trust involves risks. Investors may choose to use the Trust as a means of investing indirectly in Solana. Because the
value of the Shares is correlated with the value of the Solana held by the Trust, it is important to understand the investment attributes
of, and the market for, Solana. As noted, there are significant risks and hazards inherent in the Solana market that may cause the price
of Solana to widely fluctuate. Investors considering a purchase of Shares should carefully consider how much of their total assets should
be exposed to the Solana market, and should fully understand, be willing to assume, and have the financial resources necessary to withstand,
the risks involved in the Trust&rsquo;s investment strategy, and be in a position to bear the potential loss of their entire investment
in the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 12; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<DIV STYLE="padding: 5pt; border: Black 1.5pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Solana
is a relatively new technological innovation with a limited history. There is no assurance that usage of the Solana Network or Solana
will continue to grow. A contraction in the use or adoption of Solana may result in increased volatility or a reduction in the price
of Solana, which could adversely impact the value of the Shares. Sales of Solana that have been newly released from escrow may cause
the price of Solana to decline, which could negatively affect an investment in the Shares. Solana markets have a limited history, Solana
trading prices have exhibited high levels of volatility, and in some cases such volatility has been sudden and extreme. Because of such
volatility, Shareholders could lose all or substantially all of their investment in the Trust. Regulation of the use of Solana and the
Solana Network continues to evolve both in the United States and in foreign jurisdictions, which may restrict the use of Solana or otherwise
impact the demand for Solana. Disruptions at digital asset trading platforms could adversely affect the availability of Solana and the
ability of Authorized Participants to purchase or sell Solana and, therefore, their ability to create and redeem Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Spot
markets on which Solana trades are relatively new and largely unregulated or may not be complying with existing regulations and, therefore,
may be more exposed to fraud and security breaches than established, regulated exchanges for other financial assets or instruments, which
could have a negative impact on the performance of the Trust. Disruptions at Solana spot markets, futures markets and in the over-the-counter
(&ldquo;OTC&rdquo;) markets could adversely affect the availability of Solana and the ability of Authorized Participants (as defined
below) to purchase or sell Solana or Solana derivatives (or provide cash in relation thereto) and therefore their ability to create and
redeem Shares of the Trust. The loss or destruction of certain &ldquo;private keys,&rdquo; including by the Custodian, could prevent
the Trust from accessing its Solana. Loss of these private keys may be irreversible and could result in the loss of all or substantially
all of an investment in the Trust. Loss of private keys may also impede the Trust&rsquo;s ability to operate, including by limiting the
Trust&rsquo;s ability to transfer Solana in the face of a redemption request and forcing the Trust to consider liquidation.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Custody
of digital assets such as Solana includes unique risks of loss. The loss or destruction of private keys could prevent the Trust from
accessing its Solana. Loss of these private keys may be irreversible and could result in the loss of all or substantially all of an investment
in the Trust. Similarly, transactions on the Solana Network generally may not be reversed or corrected, meaning that errors in transactions
from the Trust Solana Account could result in the loss of all or substantially all of an investment in the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">There
is no assurance as to whether the Trust will be profitable or whether the Trust will meet its expenses and liabilities. Any investment
made in the Trust may result in a total loss of the investment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust&rsquo;s return may not match the performance of the Pricing Benchmark because the Trust incurs operating expenses. The NAV of the
Trust may not always correspond to the market price of its Shares for a number of reasons, including price volatility, trading activity,
normal trading hours for the Trust, the calculation methodology of the NAV, and/or the closing of digital asset trading platforms due
to fraud, failure, security breaches or otherwise. As a result, Baskets may be created or redeemed at a U.S. dollar value that differs
from the market price of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

</DIV>


<!-- Field: Page; Sequence: 13; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->


<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_023"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Risk
Factors</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>You
should consider carefully the risks described below before making an investment decision. You should also refer to the other information
included in this Prospectus, as well as information found in documents incorporated by reference in this Prospectus, before you decide
to purchase any Shares. These risk factors may be amended, supplemented or superseded from time to time by risk factors contained in
any periodic report, prospectus supplement, post-effective amendment or in other reports filed with the SEC in the future.</I></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Risks
Related to Digital Assets</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>A
determination that Solana or any other digital asset is a &ldquo;security&rdquo; may adversely affect the price of Solana and the value
of the Shares, and result in potentially extraordinary, nonrecurring expenses to, or termination of, the Trust.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">Depending
on its characteristics, a digital asset, including Solana, may be considered a &ldquo;security&rdquo; under U.S. federal securities laws.
The test for determining whether a particular digital asset is a &ldquo;security&rdquo; is complex and difficult to apply, and the outcome
is difficult to predict. Public, though non-binding, statements by senior officials at the SEC have indicated that the SEC does not currently
consider bitcoin to be a security. While publicly non-committal on ether&rsquo;s status a security, there is reason to believe that the
SEC has also concluded that ether is not a security. The SEC staff has also provided informal assurances via no-action letter to a handful
of promoters that their digital assets are not securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">On
the other hand, the SEC has brought enforcement actions against the issuers and promoters of several other digital assets on the basis
that the digital assets in question are securities. More recently, the SEC has also brought enforcement actions against digital asset
trading platforms for allegedly operating unregistered securities exchanges on the basis that certain of the digital assets traded on
their platforms are securities. For example, in June 2023, the SEC brought suit against two of the largest operators of digital asset
trading platforms in Securities and Exchange Commission v. Binance Holdings Ltd., et al (the &ldquo;Binance Complaint&rdquo;) and Securities
and Exchange Commission v. Coinbase, Inc., and Coinbase Global, Inc. (the &ldquo;Coinbase Complaint&rdquo;), alleging that Binance and
Coinbase had solicited U.S. investors to buy, sell, and trade &ldquo;crypto asset securities&rdquo; through their unregistered trading
platforms and operated unregistered securities exchanges, brokerages and clearing agencies. The Binance Complaint and the Coinbase Complaint
have led, and may in the future lead, to further volatility in digital asset prices.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">Whether
a digital asset is a security under the U.S. federal securities laws depends on whether it is included in the lists of instruments making
up the definition of &ldquo;security&rdquo; in the Securities Act, the Securities Exchange Act of 1934 (the &ldquo;Exchange Act&rdquo;)
and the Investment Company Act. Digital assets do not appear in any of these lists, although each list includes the terms &ldquo;investment
contract&rdquo; and &ldquo;note,&rdquo; and the SEC has typically analyzed whether a particular digital asset is a security by reference
to whether it meets the tests developed by the federal courts interpreting these terms, known as the &ldquo;Howey&rdquo; and &ldquo;Reves&rdquo;
tests, respectively. For many digital assets, whether or not the Howey or Reves tests are met is difficult to resolve definitively, and
substantial legal arguments can often be made both in favor of and against a particular digital asset qualifying as a security under
one or both of the Howey and Reves tests. Adding to the complexity, the SEC staff has indicated that the security status of a particular
digital asset can change over time as the relevant facts evolve.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">If
the Sponsor determines that Solana is a security under the U.S. federal securities laws, whether that determination is initially made
by the Sponsor itself, or because a federal court upholds an allegation that Solana is a security, the Sponsor does not intend to permit
the Trust to continue holding Solana in a way that would violate the federal securities laws (and therefore would either dissolve the
Trust or potentially seek to operate the Trust in a manner that complies with the federal securities laws, including the Investment Company
Act). </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">Any
enforcement action by the SEC or a state securities regulator asserting that Solana is a security, or a court decision to that effect,
would be expected to have an immediate material adverse impact on the trading price of Solana, as well as the Shares. This is because
the business models behind most digital assets are incompatible with regulations applying to transactions in securities. If a digital
asset is determined to be a security, it is likely to become difficult or impossible for the digital asset to be traded, cleared or custodied
in the United States through the same channels used by non-security digital assets, which in addition to materially and adversely affecting
the trading value of the digital asset is likely to significantly impact its liquidity and market participants&rsquo; ability to convert
the digital asset into U.S. dollars. Any assertion that a digital asset is a security by the SEC or another regulatory authority may
have similar effects.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal"></FONT></P>

<!-- Field: Page; Sequence: 14; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">If
Solana is found by a court or other regulatory body to be a security, the Trust could be considered an unregistered &ldquo;investment
company&rdquo; under the Investment Company Act of 1940, which could necessitate the Trust&rsquo;s liquidation under the terms of the
Trust Agreement. Furthermore, the Trust could be considered to be engaged in a distribution (i.e., a public offering) of unregistered
securities in violation of Section 5 of the Securities Act, which could impose significant civil and criminal liability on the Trust.
There is no guarantee that a court of regulatory body will agree with the Trust&rsquo;s assessment of Solana as a non-security.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">Moreover,
whether or not the Sponsor or the Trust were subject to additional regulatory requirements as a result of any determination that its
assets include securities, the Sponsor may nevertheless decide to terminate the Trust, in order, if possible, to liquidate the Trust&rsquo;s
assets while a liquid market still exists. If the SEC or a federal court were to determine that Solana is a security, it is likely that
the value of the Shares of the Trust would decline significantly. Furthermore, if a federal court upholds an allegation that Solana is
a security, the Trust itself may be terminated and, if practical, its assets liquidated.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>The
trading prices of many digital assets, including Solana, have experienced extreme volatility in recent periods and may continue to do
so. Extreme volatility in the future, including further declines in the trading price of Solana, could have a material adverse effect
on the value of the Shares and the Shares could lose all or substantially all of their value.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
price of Solana as determined by the Solana market has experienced periods of extreme volatility and may be influenced by a wide variety
of factors. Speculators and investors who seek to profit from trading and holding Solana generate a significant portion of Solana demand.
Such speculation regarding the potential future appreciation in the value of Solana may cause the price of Solana to increase.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Conversely,
a decrease in demand for or speculative interest regarding Solana may cause the price to decline. The volatility of the price of Solana,
particularly arising from speculative activity, may have a negative impact on the performance of the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Many
digital assets, including Solana, were only introduced within the past decade, and the medium-to-long-term value of the Shares is subject
to a number of factors relating to the capabilities and development of blockchain technologies and to the fundamental investment characteristics
of digital assets.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">Many
digital assets, including Solana, were only introduced within the past decade, and the medium-to-long-term value of the Shares is subject
to a number of factors relating to the capabilities and development of blockchain technologies, such as the recentness of their development;
their dependence on the internet and other technologies; their dependence on the role played by users, developers and validators; and
the potential for malicious activity. For example, the realization of one or more of the following risks could materially adversely affect
the value of the Shares:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 42pt; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Digital
asset networks, including networks and networks utilizing the Solana Network, and the software used to operate them are in the early
stages of development. Given the recentness of the development of digital asset networks, digital assets may not function as intended
and parties may be unwilling to use digital assets, which would dampen the growth, if any, of digital asset networks. Because Solana
is a digital asset, the value of the Shares is subject to a number of factors relating to the fundamental investment characteristics
of digital assets, including the fact that digital assets are bearer instruments and loss, theft, compromise, or destruction of the associated
private keys could result in permanent loss of the asset.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Digital
                                            asset networks are dependent upon the internet. A disruption of the internet or a digital
                                            asset network, such as the Solana Network, would affect the ability to transfer digital assets,
                                            including Solana, and, consequently, a disruption may impact their value.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Although
                                            unlikely, the acceptance of software patches or upgrades by a significant, but not overwhelming,
                                            percentage of the users and validators in a digital asset network, such as the Solana Network,
                                            could theoretically result in a &ldquo;fork&rdquo; in such network&rsquo;s blockchain, including
                                            the Solana Network, resulting in the operation of multiple separate networks.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Governance
                                            of the Solana Network is by voluntary consensus. As a result, there may be a lack of consensus
                                            or clarity on the governance of the Solana Network, which may stymie the Solana Network&rsquo;s
                                            utility and ability to grow and face challenges. In particular, it may be difficult to find
                                            solutions or marshal sufficient effort to overcome any future problems on the Solana Network,
                                            especially long-term problems.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<!-- Field: Page; Sequence: 15; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Unlike
                                            many other blockchain networks, validators on the Solana Network are not directly compensated
                                            for their participation in the consensus process. Running a validator on the Solana Network
                                            is generally considered a voluntary contribution to the health and decentralization of the
                                            network. Participants run validators for reasons other than direct financial gain, such as
                                            supporting the network&rsquo;s decentralization, ensuring its security, or for reputational
                                            benefits within the Solana community. However, because there is no financial incentive for
                                            entities or individuals to maintain validators, there is no guarantee that such entities
                                            or individuals will continue to run validators. To the extent that a significant number of
                                            entities or individuals stop running validators, there would be serious negative consequences
                                            to the Solana Network&rsquo;s functionality, security and overall existence.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Many
                                            digital asset networks, including the Solana, face significant scaling challenges and are
                                            being upgraded with various features designed to increase the speed of digital asset transactions
                                            and the number of transactions that can be processed in a given period (known as &ldquo;throughput&rdquo;).
                                            These attempts to increase the volume of transactions may not be effective, and such upgrades
                                            may fail, resulting in potentially irreparable damage to the Solana Network and the price
                                            of Solana.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
                                            the past, flaws in the source code for digital assets have been exposed and exploited, including
                                            flaws that disabled some functionality for users, exposed users&rsquo; personal information
                                            and/or resulted in the theft of users&rsquo; digital assets. The cryptography underlying
                                            the Solana Network could prove to be flawed or ineffective, or developments in mathematics
                                            and/or technology, including advances in digital computing, algebraic geometry and quantum
                                            computing, could result in such cryptography becoming ineffective. In any of these circumstances,
                                            a malicious actor may be able to compromise the security of the Solana Network or take the
                                            Trust&rsquo;s Solana, which would adversely affect the value of the Shares. Moreover, functionality
                                            of the Solana Network may be negatively affected such that it is no longer attractive to
                                            users, thereby dampening demand for Solana. Even if another digital asset other than Solana
                                            were affected by similar circumstances, any reduction in confidence in the source code or
                                            cryptography underlying digital assets generally could negatively affect the demand for digital
                                            assets and therefore adversely affect the value of the Shares.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">Moreover,
because digital assets, including Solana, have been in existence for a relatively short period of time and are continuing to develop,
there may be additional risks in the future that are impossible to predict as of the date of this Prospectus.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Digital
assets represent a new and rapidly evolving industry, and the value of the Shares depends on the acceptance of Solana.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">The
first major blockchain-based digital asset, bitcoin, was launched in 2009. The Solana Network launched in 2020. In general, digital asset
networks, including the Solana Network and other cryptographic and algorithmic protocols governing the issuance of digital assets represent
a new and rapidly evolving industry that is subject to a variety of factors that are difficult to evaluate. For example, the realization
of one or more of the following risks could materially adversely affect the value of the Shares:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Banks
                                            and other established financial institutions may refuse to process funds for Solana transactions;
                                            process wire transfers to or from digital asset trading platforms, Solana-related companies
                                            or service providers; or maintain accounts for persons or entities transacting in Solana.
                                            As a result, the prices of Solana are largely determined by speculators and validators, thus
                                            contributing to price volatility that makes retailers less likely to accept Solana in the
                                            future.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Banks
                                            may not provide banking services, or may cut off banking services, to businesses that provide
                                            digital asset related services or that accept digital assets as payment, which could dampen
                                            liquidity in the market and damage the public perception of digital assets generally or any
                                            one digital asset in particular, such as Solana, and their or its utility as a payment system,
                                            which could decrease the price of digital assets generally or individually.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Certain
                                            privacy-preserving features have been or are expected to be introduced to a number of digital
                                            asset networks. If any such features are introduced to the Solana Network, any trading platforms
                                            or businesses that facilitate transactions in Solana may be at an increased risk of criminal
                                            or civil lawsuits, or of having banking services cut off if there is a concern that these
                                            features interfere with the performance of anti-money laundering duties and economic sanctions
                                            checks.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Users,
                                            developers and validators may otherwise switch to or adopt certain digital assets at the
                                            expense of their engagement.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 16; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">The
Trust is not actively managed and will not have any formal strategy relating to the development of the Solana Network and will not attempt
to avoid or mitigate losses caused by declines in the price of Solana.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Recent
developments in the digital asset economy have led to extreme volatility and disruption in digital asset markets, a loss of confidence
in participants of the digital asset ecosystem, significant negative publicity surrounding digital assets broadly and market-wide declines
in liquidity.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
trading prices of many digital assets, including Solana, have experienced extreme volatility in recent periods and may continue to do
so. For instance, there were steep increases in the value of certain digital assets, including Solana, over the course of 2021, and multiple
market observers asserted that digital assets were experiencing a &ldquo;bubble.&rdquo; These increases were followed by steep drawdowns
throughout 2022 in digital asset trading prices, including for Solana. These episodes of rapid price appreciation followed by steep drawdowns
have occurred multiple times throughout Solana&rsquo;s history. Over the course of 2023, Solana prices have continued to exhibit extreme
volatility.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Extreme
volatility may persist and the value of the Shares may significantly decline in the future without recovery. The digital asset markets
may still be experiencing a bubble or may experience a bubble again in the future. For example, in the first half of 2022, each of Celsius
Network, Voyager Digital Ltd., and Three Arrows Capital declared bankruptcy, resulting in a loss of confidence in participants of the
digital asset ecosystem and negative publicity surrounding digital assets more broadly. In November 2022, FTX Trading Ltd. (&ldquo;FTX&rdquo;),
one of the largest digital asset exchanges by volume at the time, halted customer withdrawals amid rumors of the company&rsquo;s liquidity
issues and likely insolvency, which were subsequently corroborated by its CEO. Shortly thereafter, FTX&rsquo;s CEO resigned and FTX and
many of its affiliates filed for bankruptcy in the United States, while other affiliates have entered insolvency, liquidation, or similar
proceedings around the globe, following which the U.S. Department of Justice brought criminal fraud and other charges, and the SEC and
CFTC brought civil securities and commodities fraud charges, against certain of FTX&rsquo;s and its affiliates&rsquo; senior executives,
including its former CEO. In addition, several other entities in the digital asset industry filed for bankruptcy following FTX&rsquo;s
bankruptcy filing, such as BlockFi Inc. and Genesis Global Capital, LLC (&ldquo;Genesis&rdquo;). In response to these events (collectively,
the &ldquo;2022 Events&rdquo;), the digital asset markets have experienced extreme price volatility and other entities in the digital
asset industry have been, and may continue to be, negatively affected, further undermining confidence in the digital asset markets.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Some
sources report the price of Solana declined 94% overall in 2022, including over 50% in the two months following FTX&rsquo;s declaration
of bankruptcy. The 2022 events have also negatively impacted the liquidity of the digital asset markets as certain entities affiliated
with FTX engaged in significant trading activity. If the liquidity of the digital asset markets continues to be negatively impacted by
these events, digital asset prices, including Solana, may continue to experience significant volatility or price declines and confidence
in the digital asset markets may be further undermined. In addition, regulatory and enforcement scrutiny has increased, including from,
among others, the Department of Justice, the SEC, the CFTC, the White House and Congress, as well as state regulators and authorities.
These events are continuing to develop, and the full facts are continuing to emerge. It is not possible to predict at this time all of
the risks that they may pose to the Trust, its service providers or to the digital asset industry as a whole.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Extreme
volatility in the future, including further declines in the trading prices of Solana, could have a material adverse effect on the value
of the Shares and the Shares could lose all or substantially all of their value. Furthermore, negative perception, a lack of stability
and standardized regulation in the digital asset economy may reduce confidence in the digital asset economy and may result in greater
volatility in the price of Solana and other digital assets, including a depreciation in value. The Trust is not actively managed and
will not take any actions to take advantage, or mitigate the impacts, of volatility in the price of Solana.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Proof-of-stake
blockchains are a relatively recent innovation and have not been subject to as widespread use or adoption over as long of a period of
time as traditional proof-of-work blockchains.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">Certain
digital assets, such as bitcoin, use a &ldquo;proof-of-work&rdquo; consensus algorithm. The genesis block on the Bitcoin blockchain was
mined in 2009, and Bitcoin&rsquo;s blockchain has been in operation since then. Many newer blockchains enabling smart contract functionality,
including the current Ethereum network following the completion of the Merge in 2022, use a newer consensus algorithm known as &ldquo;proof-of-stake.&rdquo;
While their proponents believe that they may have certain advantages, the &ldquo;proof-of-stake&rdquo; consensus mechanisms and governance
systems underlying many newer blockchain protocols, including the Solana Network, and their associated digital assets &ndash; including
the Solana held by the Trust &ndash; have not been tested at scale over as long of a period of time or subject to as widespread use or
adoption as, for example, Bitcoin&rsquo;s proof-of-work consensus mechanism has. This could lead to these blockchains, and their associated
digital assets, having undetected vulnerabilities, structural design flaws, suboptimal incentive structures for network participants
(e.g., validators), technical disruptions, or a wide variety of other problems, any of which could cause these blockchains not to function
as intended, lead to outright failure to function entirely causing a total outage or disruption of network activity, or to suffer other
operational problems or reputational damage, leading to a loss of users or adoption or a loss in value of the associated digital assets,
including the Trust&rsquo;s assets. Over the long term, there can be no assurance that the proof-of-stake blockchain on which the Trust&rsquo;s
assets rely will achieve widespread scale or adoption or perform successfully; any failure to do so could negatively impact the value
of the Trust&rsquo;s assets.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 17; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Solana Protocol was only conceived in 2017 and the Solana Protocol or its proof-of-history timestamping mechanism may not function as
intended, which could have an adverse impact on the value of Solana and an investment in the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">The
Solana protocol was first conceived by Anatoly Yakovenko in a 2017 whitepaper, and introduced the Proof-of-History (&ldquo;PoH&rdquo;)
timestamping mechanism. PoH is a timestamping mechanism that automatically orders on-chain transactions by creating a historical record
that proves an event has occurred at a specific moment in time. PoH is intended to provide a transaction processing speed and capacity
advantage over other blockchain networks like Bitcoin and Ethereum, which rely on sequential production of blocks and can lead to delays
caused by validator confirmations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">PoH
is a new blockchain technology that is not widely used, and may not function as intended. For example, it may require more specialized
equipment to participate in the network and fail to attract a significant number of users. In addition, there may be flaws in the cryptography
underlying PoH or the Solana protocol, including flaws that affect functionality of the Solana Network or make the network vulnerable
to attack.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">For
example, on September 14, 2021, the Solana Network experienced a significant disruption, later attributed to a type of denial of service
attack, and was offline for 17 hours, only returning to full functionality 24 hours later. The development of the Solana Network is ongoing
and any further disruption could have a material adverse effect on the value of Solana and an investment in the Shares.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Digital
asset networks face significant scaling challenges and efforts to increase the volume and speed of transactions may not be successful.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">Many
digital asset networks, including the Solana Network, face significant scaling challenges due to the fact that public blockchains generally
face a tradeoff between security and scalability. One means through which public blockchains achieve security is decentralization, meaning
that no intermediary is responsible for securing and maintaining these systems. For example, a greater degree of decentralization generally
means a given digital asset network is less susceptible to manipulation or capture. Achieving decentralization may mean that every single
node on a given digital asset network is responsible for securing the system by processing every transaction and every single full node
is responsible for maintaining a copy of the entire state of the network. However, this may involve tradeoffs from an efficiency perspective,
and impose constraints on throughput. A digital asset network may be limited in the number of transactions it can process by the fact
that all validators participate in validating in each block and the capabilities of each single fully participating node. Many developers
are actively researching and testing scalability solutions for public blockchains that do not necessarily result in lower levels of security
or decentralization, such as off-chain payment channels. Off-chain payment channels would allow parties to transact without requiring
the full processing power of a blockchain.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">As
of ________, 20__, the Solana Network handled approximately [3,000] transactions per second. In an effort to increase the volume of transactions
that can be processed on a given digital asset network, many digital assets are being upgraded with various features to increase the
speed and throughput of digital asset transactions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">As
corresponding increases in throughput lag behind growth in the use of digital asset networks, average fees and settlement times may increase
considerably. Since inception, Solana transaction fees have stood at a fixed rate of 0.000005 Solana per transaction. Increased fees
and decreased settlement speeds could preclude certain uses for Solana (e.g., micropayments) and could reduce demand for, and the price
of, Solana, which could adversely impact the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">There
is no guarantee that any of the mechanisms in place or being explored for increasing the scale of settlement of Solana Network transactions
will be effective, or how long these mechanisms will take to become effective, which could adversely impact the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal"></FONT></P>

<!-- Field: Page; Sequence: 18; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">The
rapid development of other competing scalability solutions, such as those which would rely on handling the bulk of computational work
relating to transactions or smart contracts and DApps outside of the main Solana Network and Solana blockchain, has caused alternatives
to sharding to emerge. &ldquo;Layer 2&rdquo; is a collective term for solutions which are designed to help increase throughput and reduce
transaction fees by handling or validating transactions off the main Solana Network (known as &ldquo;Layer 1") and then attempting
to take advantage of the perceived security and integrity advantages of the Layer 1 Solana Network by uploading the transactions validated
on the Layer 2 protocol back to the Layer 1 Solana Network. The details of how this is done vary significantly between different Layer
2 technologies and implementations. For example, &ldquo;rollups&rdquo; perform transaction execution outside the Layer 1 Solana Network
and then post the data, typically in batches, back to the Layer 1 Solana Network where consensus is reached. &ldquo;Zero knowledge rollups&rdquo;
are generally designed to run the computation needed to validate the transactions off-chain, on the Layer 2 protocol, and submit a proof
of validity of a batch of transactions (not the entire transactions themselves) that is recorded on the Layer 1 Solana Network. By contrast,
&ldquo;optimistic rollups&rdquo; assume transactions are valid by default and only run computation, via a fraud proof, in the event of
a challenge. Other proposed Layer 2 scaling solutions include, among others, &ldquo;state channels&rdquo;, which are designed to allow
participants to run a large number of transactions on the Layer 2 side channel protocol and only submit two transactions to the main
Layer 1 Solana Network (the transaction opening the state channel, and the transaction closing the channel), &ldquo;side chains&rdquo;,
in which an entire Layer 2 blockchain network with similar capabilities to the existing Layer 1 Solana Network runs in parallel with
the existing Layer 1 Solana Network and allows smart contracts and DApps to run on the Layer 2 side chain without burdening the main
Layer 1 network, and others. To date, the Solana Network community has not coalesced overwhelmingly around any particular Layer 2 solution,
though this could change.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal">Many
developers are actively researching and testing scalability solutions for public blockchains. However, there is no guarantee that any
of the mechanisms in place or being explored for increasing speed and throughput of settlement of the Solana Network transactions will
be effective, which could cause the Solana Network to not adequately resolve scaling challenges and adversely impact the adoption of
Solana and the Solana Network and the value of the Shares. There is no guarantee that any potential scaling solution, whether a change
to the Layer 1 Solana Network like sharding or the introduction of a Layer 2 solution like rollups, state channels or side chains, will
achieve widespread adoption. It is possible that proposed changes to the Layer 1 Solana Network could divide the community, potentially
even causing a hard fork, or that the decentralized governance of the Solana Network causes network participants to fail to coalesce
overwhelmingly around any particular solution, causing the Solana Network to suffer reduced adoption or causing users or validators to
migrate to other blockchain networks. It is also possible that scaling solutions could fail to work as intended, could suffer from centralization
concerns, or could introduce bugs, coding defects or flaws, security risks, or other problems that could cause them to suffer operational
disruptions. Alternatively, if a widely-used Layer 2 network were to fail, it could reduce demand for Solana because it would eliminate
a source of demand for using Solana to record transactions from the Layer 2 onto the Layer 1 Solana Network. Any of the foregoing could
adversely affect the price of Solana or the value of the Shares of the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Failure
of funds that hold digital assets to receive SEC approval to list their shares on exchanges could adversely affect the value of the Shares.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">There
have been a growing a number of attempts to list on national securities exchanges the shares of funds that hold digital assets. These
investment vehicles attempt to provide institutional and retail investors exposure to markets for digital assets and related products.
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. However, the SEC has repeatedly denied such requests. If exchange-listing requests 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 19; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Risks
Associated with Solana and the Solana Network</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
value of the Shares relates directly to the price of Solana, which may be highly volatile and subject to fluctuations due to a number
of factors.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">The
value of the Shares relates directly to the value of the Solana held by the Trust and fluctuations in the price of Solana could adversely
affect the value of the Shares. The market price of Solana may be highly volatile, and subject to a number of factors, including:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">an
                                            increase in the global Solana supply or a decrease in global Solana demand;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">market
                                            conditions of, and overall sentiment towards, the digital assets and blockchain technology
                                            industry;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">trading
                                            activity on digital asset trading platforms, which, in many cases, are largely unregulated
                                            or may be subject to manipulation;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            adoption of Solana as a medium of exchange, store-of-value or other consumptive asset and
                                            the maintenance and development of the open-source software protocol of the Solana Network,
                                            and their ability to meet user demands;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">manipulative
                                            trading activity on digital asset exchanges, which, in many cases, are largely unregulated;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            needs of decentralized applications, smart contracts, their users, and users of the Solana
                                            Network generally for Solana to pay gas fees to execute transactions;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">forks
                                            in the Solana Network, particularly where changes to the Solana Network source code are either
                                            not well-received by key constituencies within the Solana community or are not successfully
                                            executed or implemented and fail to achieve the functionality such changes were intended
                                            to bring about;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">governmental
                                            or regulatory actions by, or investigations or litigation in, countries around the world
                                            targeting well-known decentralized applications or smart contracts that are built on the
                                            Solana Network, or other developments or problems, and associated publicity, involving or
                                            affecting such decentralized applications or smart contracts;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">increased
                                            competition from other forms of digital assets or payment services, including digital currencies
                                            constituting legal tender that may be issued in the future by central banks, or digital assets
                                            meant to serve as a medium of exchange by major private companies or other institutions;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">increased
                                            competition from other blockchain networks combining smart contracts, programmable scripting
                                            languages, and an associated runtime environment, with blockchain-based recordkeeping, particularly
                                            where such other blockchain networks are able to offer users access to a larger consumer
                                            user base, greater efficiency, reliability, or processing speed, or more economical transaction
                                            processing fees than the Solana Network;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">investors&rsquo;
                                            expectations with respect to interest rates, the rates of inflation of fiat currencies or
                                            Solana, and digital asset exchange rates;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">consumer
                                            preferences and perceptions of Solana specifically and digital assets generally, the Solana
                                            Network relative to competing blockchain protocols, and Solana relative to competing digital
                                            assets;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">negative
                                            events, publicity, and social media coverage relating to the digital assets and blockchain
                                            technology industry;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">fiat
                                            currency withdrawal and deposit policies on digital asset trading platforms;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            liquidity of digital asset markets and any increase or decrease in trading volume or market
                                            making on digital asset markets;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">business
                                            failures, bankruptcies, hacking, fraud, crime, government investigations, or other negative
                                            developments affecting digital asset businesses, including digital asset trading platforms,
                                            or banks or other financial institutions and service providers which provide services to
                                            the digital assets industry;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            use of leverage in digital asset markets, including the unwinding of positions, &ldquo;margin
                                            calls&rdquo;, collateral liquidations and similar events;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 20; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">investment
                                            and trading activities of large or active consumer and institutional users, speculators,
                                            miners, and investors in Solana;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">a
                                            &ldquo;short squeeze&rdquo; resulting from speculation on the price of Solana, if aggregate
                                            short exposure exceeds the number of shares available for purchase;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">an
                                            active derivatives market for Solana or for digital assets generally;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">monetary
                                            policies of governments, legislation or regulation, trade restrictions, currency devaluations
                                            and revaluations and regulatory measures or enforcement actions, if any, that restrict the
                                            use of Solana as a form of payment or the purchase of Solana on the digital asset markets;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">global
                                            or regional political, economic or financial conditions, events and situations, such as the
                                            novel coronavirus outbreak;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">fees
                                            associated with processing a Solana transaction and the speed at which Solana transactions
                                            are settled;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            maintenance, troubleshooting, and development of the Solana Network including by miners and
                                            developers worldwide;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            ability for the Solana Network to attract and retain miners to secure and confirm transactions
                                            accurately and efficiently;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">ongoing
                                            technological viability and security of the Solana Network and Solana transactions, including
                                            vulnerabilities against hacks and scalability;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">financial
                                            strength of market participants;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            availability and cost of funding and capital;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            liquidity and credit risk of digital asset trading platforms;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">interruptions
                                            in service from or closures or failures of major digital asset trading platforms or their
                                            banking partners, or outages or system failures affecting the Solana Network;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">decreased
                                            confidence in digital assets and digital assets trading platforms;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">poor
                                            risk management or fraud by entities in the digital assets ecosystem;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">increased
                                            competition from other forms of digital assets or payment services; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            Trust&rsquo;s own acquisitions or dispositions of Solana, since there is no limit on the
                                            number of Solana that the Trust may acquire.</FONT></TD></TR></TABLE>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">Although
returns from investing in Solana have at times diverged from those associated with other asset classes to a greater or lesser extent,
there can be no assurance that there will be any such divergence in the future, either generally or with respect to any particular asset
class, or that price movements will not be correlated. In addition, there is no assurance that Solana will maintain its value in the
long, intermediate, short, or any other term. In the event that the price of Solana declines, the Sponsor expects the value of the Shares
to decline proportionately. </FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">The
price of the Shares of the Trust is represented by the Pricing Benchmark that may also be subject to momentum pricing due to speculation
regarding future appreciation in value of Solana, leading to greater volatility that could adversely affect the value of the Shares.
Momentum pricing typically is associated with growth stocks and other assets whose valuation, as determined by the investing public,
accounts for future appreciation in value, if any. The Sponsor believes that momentum pricing of Solana has resulted, and may continue
to result, in speculation regarding future appreciation in the value of Solana, inflating and making the Pricing Benchmark more volatile.
As a result, Solana may be more likely to fluctuate in value due to changing investor confidence, which could impact future appreciation
or depreciation in the Pricing Benchmark and could adversely affect the value of the Trust. </FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">The
Trust is not actively managed and does not and will not have any strategy relating to the development of the Solana Network, nor will
the Trust seek to avoid or mitigate losses from declines in the Solana price. Furthermore, the impact of the expansion of the Trust&rsquo;s
Solana holdings on the digital asset industry and the Solana Network is uncertain. A decline in the popularity or acceptance of the Solana
Network, or the value of Solana, would harm the value of the Trust.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 21; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Solana
is a relatively new technological innovation with a limited operating history.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Solana
has a relatively limited history of existence and operations. There is a limited established performance record for the price of Solana
and, in turn, a limited basis for evaluating an investment in Solana. Although past performance is not necessarily indicative of future
results, if Solana had a more established history, such history might (or might not) provide investors with more information on which
to evaluate an investment in the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Blockchain
technologies are based on theoretical conjectures as to the impossibility of solving certain cryptographical puzzles quickly. These premises
may be incorrect or may become incorrect due to technological advances.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Blockchain
technologies are premised on theoretical conjectures as to the impossibility, in practice, of solving certain mathematical problems quickly.
Those conjectures remain unproven, however, and mathematical or technological advances could conceivably prove them to be incorrect.
Blockchain technology companies may also be negatively affected by cryptography or other technological or mathematical advances, such
as the development of quantum computers with significantly more power than computers presently available, that undermine or vitiate the
cryptographic consensus mechanism underpinning the Solana blockchain and other distributed ledger protocols. If either of these events
were to happen, markets that rely on blockchain technologies, such as the Solana Network, could quickly collapse, and an investment in
the Trust may be adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
value of the Shares depends on the development and acceptance of the Solana Network. The slowing or stopping of the development or acceptance
of the Solana Network may adversely affect an investment in the trust.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Digital
assets such as Solana were only introduced within the past 15 years, and the medium to long term value of the Shares is subject to a
number of factors over time relating to the capabilities and development of blockchain technologies, such as the recentness of their
development, their dependence on the internet and other technologies, their dependence on the role played by users, developers validators
and the potential for malicious activity. Solana itself was conceived only in 2017, and first sold in 2018. For example, the realization
of one or more of the following risks could materially adversely affect the value of the Shares: digital asset networks, including the
Solana peer-to-peer network and associated blockchain ledger (such blockchain, the &ldquo;Solana blockchain&rdquo; and together with
the peer-to-peer network, the &ldquo;Solana Network&rdquo; or &ldquo;Layer 1 Solana Network&rdquo;), and the software used to operate
them are in the early stages of development. Given the recentness of the development of digital asset networks, digital assets may not
function as intended and parties may be unwilling to use digital assets, which would dampen the growth, if any, of digital asset networks.
Because Solana is a digital asset, the value of the Shares is subject to a number of factors relating to the fundamental investment characteristics
of digital assets, including the fact that digital assets are bearer instruments and loss, theft, compromise, or destruction of the associated
private keys could result in permanent loss of the asset.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Solana Network, including the cryptographic and algorithmic protocols associated with the operation of the Solana blockchain, has only
been in existence since 2017, and Solana markets have a limited performance record, making them part of a new and rapidly evolving industry
that is subject to a variety of factors that are difficult to evaluate. For example, the following are some of the risks could materially
adversely affect the value of the Shares:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Digital
                                            assets, including Solana, are controllable only by the possessor of both the unique public
                                            key and private key or keys relating to the Solana Network address, or &ldquo;wallet&rdquo;,
                                            at which the digital asset is held. Private keys must be safeguarded and kept private in
                                            order to prevent a third party from accessing the digital asset held in such wallet. The
                                            loss, theft, compromise or destruction of a private key required to access a digital asset
                                            may be irreversible. If a private key is lost, stolen, destroyed or otherwise compromised
                                            and no backup of the private key is accessible, the owner would be unable to access the digital
                                            asset corresponding to that private key and the private key will not be capable of being
                                            restored by the digital asset network resulting in the total loss of the value of the digital
                                            asset linked to the private key.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Digital
                                            asset networks are dependent upon the internet. A disruption of the internet or a digital
                                            asset network, such as the Solana Network, would affect the ability to transfer digital assets,
                                            including Solana, and, consequently, their value.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 22; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Governance
                                            of the Solana Network is by voluntary consensus and open competition. As a result, there
                                            may be a lack of consensus or clarity on the governance of the Solana Network, which may
                                            stymie the Solana Network&rsquo;s utility and ability to grow and face challenges. In particular,
                                            it may be difficult to find solutions or martial sufficient effort to overcome any future
                                            problems on the Solana Network, especially long-term problems.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            foregoing notwithstanding, the Solana Network&rsquo;s protocol is informally overseen by
                                            a collective of core developers who propose amendments to the relevant network&rsquo;s source
                                            code. Core developers&rsquo; roles evolve over time, largely based on self-determined participation.
                                            If a significant majority of users and validators were to adopt amendments to the Solana
                                            Network based on the proposals of such core developers, the Solana Network would be subject
                                            to new protocols that may adversely affect the value of Solana.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            the extent that any validators cease to record transactions that do not include the payment
                                            of a transaction fee in solved blocks or do not record a transaction because the transaction
                                            fee is too low, such transactions will not be recorded on the Solana blockchain until a block
                                            is validated by a validator who does not require the payment of transaction fees or is willing
                                            to accept a lower fee. Any widespread delays in the recording of transactions could result
                                            in a loss of confidence in a digital asset network.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
                                            the Solana Network continues to develop and grow, certain technical issues might be uncovered
                                            and the trouble shooting and resolution of such issues requires the attention and efforts
                                            of Solana&rsquo;s global development community. Like all software, the Solana Network is
                                            at risk of vulnerabilities and bugs that can potentially be exploited by malicious actors.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Many
                                            digital asset networks, including the Solana Network, face significant scaling challenges
                                            and are being upgraded with various features designed to increase the speed of digital asset
                                            transactions and the number of transactions that can processed in a given period (known as
                                            &ldquo;throughput&rdquo;). These attempts to increase the volume of transactions may not
                                            be effective, and such upgrades may fail, resulting in potentially irreparable damage to
                                            the Solana Network and the value of Solana.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Moreover,
                                            in the past, bugs, defects and flaws in the source code for digital assets have been exposed
                                            and exploited, including flaws that disrupted normal Solana Network, Solana Client, or DApp
                                            and smart contract operations or disabled related functionality for users, exposed users&rsquo;
                                            personal information and/or resulted in the theft of users&rsquo; digital assets. The cryptography
                                            underlying the Solana Network or Solana as an asset could prove to be flawed or ineffective,
                                            or developments in mathematics and/or technology, including advances in digital computing,
                                            algebraic geometry and quantum computing, could result in such cryptography becoming ineffective.
                                            In any of these circumstances, a malicious actor may be able to compromise the security of
                                            the Solana Network or take the Trust&rsquo;s Solana, which would adversely affect the value
                                            of the Shares. Moreover, normal operations and functionality of the Solana Network may be
                                            negatively affected Such losses of functionality could lead to the Solana Network losing
                                            attractiveness to users, nodes, validators, or other stakeholders, thereby dampening demand
                                            for Solana. Even if another digital asset other than Solana were affected by similar circumstances,
                                            any reduction in confidence in the source code or cryptography underlying digital assets
                                            generally could negatively affect the demand for digital assets and therefore adversely affect
                                            the value of the Shares.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            Solana Network is still in the process of developing and making significant decisions that
                                            will affect policies that govern the supply and issuance of Solana as well as other Solana
                                            Network protocols. The open-source nature of many digital asset network protocols, such as
                                            the protocol for the Solana Network, means that developers and other contributors are generally
                                            not directly compensated for their contributions in maintaining and developing such protocols.
                                            As a result, the developers and other contributors of a particular digital asset may lack
                                            a financial incentive to maintain or develop the network, or may lack the resources to adequately
                                            address emerging issues. Alternatively, some developers may be funded by companies whose
                                            interests are at odds with other participants in a particular digital asset network. If the
                                            Solana Network does not successfully develop its policies on supply and issuance, and other
                                            major design decisions or does so in a manner that is not attractive to network participants
                                            it could lead to a decline in adoption of the Solana Network and price of Solana.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 23; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Software
                                            applications running on top of the Solana Network (often referred to as &ldquo;decentralized
                                            applications&rdquo; or &ldquo;DApps&rdquo;, whether or not decentralized in fact) and smart
                                            contract developers depend on being able to obtain Solana to be able to run their programs
                                            and operate their businesses. In particular, decentralized applications and smart contracts
                                            require Solana in order to pay the gas fees needed to power such applications and smart contracts
                                            and execute transactions. As such, they represent a significant source of demand for Solana.
                                            Solana&rsquo;s price volatility (particularly where Solana prices increase), or the Solana
                                            Network&rsquo;s wider inability to meet the demands of decentralized applications and smart
                                            contracts in terms of inexpensive, reliable, and prompt transaction execution (including
                                            during congested periods), or to solve its scaling challenges or increase its throughput,
                                            may discourage such decentralized application and smart contract developers from using the
                                            Solana Network as the foundational infrastructure layer for building their applications and
                                            smart contracts. If decentralized application and smart contract developers abandon the Solana
                                            blockchain for other blockchain or digital asset networks or protocols for whatever reason,
                                            the value of Solana could be negatively affected.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Moreover,
because digital assets, including Solana, have been in existence for a short period of time and are continuing to develop, there may
be additional risks in the future that are impossible to predict as of the date of this Prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Smart
contracts, including those relating to DeFi applications, are a new technology and their ongoing development and operation may result
in problems, which could reduce the demand for Solana or cause a wider loss of confidence in the Solana Network, either of which could
have an adverse impact on the value of sol.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Smart
contracts are programs that run on the Solana blockchain that execute automatically when certain conditions are met. Since smart contracts
typically cannot be stopped or reversed, vulnerabilities in their programming can have damaging effects. For example, in June 2016, a
vulnerability in the smart contracts underlying the DAO, a distributed autonomous organization for venture capital funding on the Ethereum
network, allowed an attack by a hacker to syphon approximately $60 million worth of ETH from The DAO&rsquo;s accounts into a segregated
account. In the aftermath of the theft, certain core developers and contributors pursued a &ldquo;hard fork&rdquo; of the Ethereum Network
in order to erase any record of the theft. Despite these efforts, the price of ETH reportedly dropped approximately 35% in the aftermath
of the attack and subsequent hard fork. In addition, in July 2017, a vulnerability in a smart contract for a multi-signature wallet software
developed by Parity led to a reportedly $30 million theft of ETH, and in November 2017, a new vulnerability in Parity&rsquo;s wallet
software reportedly led to roughly $160 million worth of ETH being indefinitely frozen in an account. Furthermore, in April 2018, a batch
overflow bug was found in many Ethereum-based ERC20-compatible smart contract tokens that allows hackers to create a large number of
smart contract tokens, causing multiple crypto asset platforms worldwide to shut down ERC20-compatible token trading. Similarly, in March
2020, a design flaw in the MakerDAO smart contract caused forced liquidations of crypto assets at significantly discounted prices, resulting
in millions of dollars of losses to users who had deposited crypto assets into the smart contract. In another example, in February 2022,
a vulnerability in a smart contract for Wormhole, a bridge between the Ethereum and Solana Networks led to a $320 million theft of Ethereum.
While persons associated with Solana Labs and/or the Solana Foundation are understood to have played a key role in bringing the network
back online, the broader community also played a key role, as Solana validators coordinated to upgrade and restart the network. Other
smart contracts, such as bridges between blockchain networks and decentralized finance (&ldquo;DeFi&rdquo;) protocols have also been
manipulated, exploited or used in ways that were not intended or envisioned by their creators such that attackers syphoned over $3.8
billion worth of digital assets from smart contracts in 2022. Problems with the development, deployment, and operation of smart contracts
may have an adverse effect on the value of Solana, just as they have for other digital assets like Ethereum.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
some cases, smart contracts can be controlled by one or more &ldquo;admin keys&rdquo; or users with special privileges, or &ldquo;super
users&rdquo;. These users may have the ability to unilaterally make changes to the smart contract, enable or disable features on the
smart contract, change how the smart contract receives external inputs and data, and make other changes to the smart contract. Furthermore,
in some cases inadequate public information may be available information asymmetries may exist, even with respect to open-source smart
contracts or applications; certain participants may have hidden informational or technological advantages, making for an uneven playing
field. There may be opportunities for bad actors to perpetrate fraudulent schemes and engage in illicit activities and other misconduct,
such as exit scams and rug pulls (orchestrated by developers and/or influencers who promote a smart contract or application and, ultimately,
escape with the money at an agreed time), or Ponzi or similar fraud schemes.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 24; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Many
DeFi applications are currently deployed on the Solana Network, and smart contracts relating to DeFi applications currently represent
a significant source of demand for Solana. DeFi applications may achieve their investment purposes through self-executing smart contracts
that may allow users to invest digital assets in a pool from which other users can borrow without requiring an intermediate party to
facilitate these transactions. These investments may earn interest to the investor based on the rates at which borrowers repay the loan,
and can generally be withdrawn by the investor. For smart contracts that hold a pool of digital asset reserves, smart contract super
users or admin key holders may be able to extract funds from the pool, liquidate assets held in the pool, or take other actions that
decrease the value of the digital assets held by the smart contract in reserves. Even for digital assets that have adopted a decentralized
governance mechanism, such as smart contracts that are governed by the holders of a governance token, such governance tokens can be concentrated
in the hands of a small group of core community members, who would be able to make similar changes unilaterally to the smart contract.
If any such super user or group of core members unilaterally make adverse changes to a smart contract, the design, functionality, features
and value of the smart contract, its related digital assets may be harmed. In addition, assets held by the smart contract in reserves
may be stolen, misused, burnt, locked up or otherwise become unusable and irrecoverable. Super users can also become targets of hackers
and malicious attackers. If an attacker is able to access or obtain the super user privileges of a smart contract, or if a smart contract&rsquo;s
super users or core community members take actions that adversely affect the smart contract, users who transact with the smart contract
may experience decreased functionality of the smart contract or may suffer a partial or total loss of any digital assets they have used
to transact with the smart contract. Furthermore, the underlying smart contracts may be insecure, contain bugs or other vulnerabilities,
or otherwise may not work as intended. Any of the foregoing could cause users of the DeFi application to be negatively affected, or could
cause the DeFi application to be the subject of negative publicity. Because DeFi applications may be built on the Solana Network and
represent a significant source of demand for Solana, public confidence in the Solana Network itself could be negatively affected, such
sources of demand could diminish and the value of Solana could decrease. Similar risks apply to any smart contract or decentralized application,
not just DeFi applications.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Digital
assets may have concentrated ownership and large sales or distributions by holders of such digital assets, or any ability to participate
in or otherwise influence a digital asset&rsquo;s underlying network, could have an adverse effect on the market price of such digital
asset.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">As
of September 2024, the largest 100 Solana wallets held approximately 22% of the Solana in circulation. Moreover, it is possible that
other persons or entities control multiple wallets that collectively hold a significant number of Solana, even if they individually only
hold a small amount, and it is possible that some of these wallets are controlled by the same person or entity. As a result of this concentration
of ownership, large sales or distributions by such holders could have an adverse effect on the market price of Solana. Competition from
other consortia or private blockchains could have a negative impact on the price of Solana and adversely affect an investment in the
Shares.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Any
name change and any associated rebranding initiative by the core developers of Solana may not be favorably received by the digital asset
community, which could negatively impact the value of Solana and the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">From
time to time, digital assets may undergo name changes and associated rebranding initiatives. For example, Bitcoin Cash may sometimes
be referred to as Bitcoin ABC in an effort to differentiate itself from any Bitcoin Cash hard forks, such as Bitcoin Satoshi&rsquo;s
Vision, and in the third quarter of 2018, the team behind ZEN rebranded and changed the name of ZenCash to &ldquo;Horizen.&rdquo; We
cannot predict the impact of any name change and any associated rebranding initiative on Solana. After a name change and an associated
rebranding initiative, a digital asset may not be able to achieve or maintain brand name recognition or status that is comparable to
the recognition and status previously enjoyed by such digital asset. The failure of any name change and any associated rebranding initiative
by a digital asset may result in such digital asset not realizing some or all of the anticipated benefits contemplated by the name change
and associated rebranding initiative, and could negatively impact the value of Solana and the value of the Shares.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
loss or destruction of a private key required to access Solana may be irreversible. The Solana Custodian&rsquo;s loss of access to a
private key associated with the Trust&rsquo;s Solana could adversely affect an investment in the Shares.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">Transfers
of Solana among users are accomplished via Solana transactions (i.e., sending Solana from one user to another). The creation of an Solana
transaction requires the use of a unique numerical code known as a &ldquo;private key.&rdquo; In the absence of the correct private key
corresponding to a holder&rsquo;s particular Solana, the Solana is inaccessible. The custody of the Trust&rsquo;s Solana is handled by
the Solana Custodian, and the transfer of Solana to and from Authorized Participants is directed by the Sponsor. The Sponsor has evaluated
the procedures and internal controls of the Trust&rsquo;s Solana Custodian to safeguard the Trust&rsquo;s Solana holdings. If the Solana
Custodian&rsquo;s internal procedures and controls are inadequate to safeguard the Trust&rsquo;s Solana holdings, and the Trust&rsquo;s
private key(s) is(are) lost, destroyed or otherwise compromised and no backup of the private key(s) is(are) accessible, the Trust will
be unable to access its Solana, which could adversely affect an investment in the Shares. In addition, if the Trust&rsquo;s private key(s)
is(are) misappropriated and the Trust&rsquo;s Solana holdings are stolen, the Trust could lose some or all of its Solana holdings, which
could adversely impact an investment in the Shares.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 25; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">New
competing digital assets may result in a reduction in demand for Solana, which could have a negative impact on the price of Solana and
may have a negative impact on the performance of the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Solana
faces significant competition from other digital assets, as well as from other technologies or payment forms, such as SWIFT, ACH, remittance
networks, credit cards and cash. There is no guarantee that Solana will become a dominant form of cross-border payments, store of value
or method of exchange.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Competition
From central bank digital currencies and emerging payments initiatives involving financial institutions could adversely affect the value
of Solana and other digital assets.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Central
banks in various countries have introduced digital forms of legal tender (&ldquo;CBDCs&rdquo;). 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, Solana
and other cryptocurrencies as a medium of exchange or store of value. Central banks and other governmental entities have also announced
cooperative initiatives and consortia with private sector entities, with the goal of leveraging blockchain and other technology to reduce
friction in cross-border and interbank payments and settlement, and commercial banks and other financial institutions have also recently
announced a number of initiatives of their own to incorporate new technologies, including blockchain and similar technologies, into their
payments and settlement activities, which could compete with, or reduce the demand for, Solana. As a result of any of the foregoing factors,
the value of Solana could decrease, which could adversely affect an investment in the Trust.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
price of Solana may be affected due to stablecoins (including Tether and USDC), the activities of stablecoin issuers and their regulatory
treatment.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">While
the Trust does not invest in and will not hold stablecoins, it may nonetheless be exposed to risks that stablecoins pose for the Solana
market and other digital asset markets. Stablecoins are digital assets designed to have a stable value over time as compared to typically
volatile digital assets, and are typically marketed as being pegged to a fiat currency, such as the U.S. dollar, at a certain value.
Although the prices of stablecoins are intended to be stable, their market value may fluctuate. This volatility has in the past apparently
impacted the price of Solana. Stablecoins are a relatively new phenomenon, and it is impossible to know all of the risks that they could
pose to participants in the Solana market. In addition, some have argued that some stablecoins, particularly Tether, are improperly issued
without sufficient backing in a way that, when the stablecoin is used to pay for Solana, could cause artificial rather than genuine demand
for Solana, artificially inflating the price of Solana, and also argue that those associated with certain stablecoins may be involved
in laundering money. On February 17, 2021 the New York Attorney General entered into an agreement with Tether&rsquo;s operators, including
Bitfinex, requiring them to cease any further trading activity with New York persons and pay $18.5 million in penalties for false and
misleading statements made regarding the assets backing Tether. On October 15, 2021, the CFTC announced a settlement with Tether&rsquo;s
operators, Tether Holdings Limited, Tether Operations Limited, Tether Limited, and Tether International Limited, in which they agreed
to pay $42.5 million in fines to settle charges that, among others, Tether&rsquo;s claims that it maintained sufficient U.S. dollar reserves
to back every Tether stablecoin in circulation with the &ldquo;equivalent amount of corresponding fiat currency&rdquo; held by Tether
were untrue.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">Bitfinex
also agreed to pay the CFTC a $1.5 million fine to settle charges that Bitfinex offered off-exchange leveraged, margined, or financed
transactions involving cryptocurrencies, including Solana, with U.S. customers who were not eligible contract participants and accepted
funds (including in the form of Tether stablecoins) and orders in connection with such illegal off-exchange transactions, triggering
an obligation to register with the CFTC, which the CFTC order asserts it violated. The CFTC previously fined Bitfinex in 2016 on similar
charges.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal"></FONT></P>

<!-- Field: Page; Sequence: 26; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->22<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">USDC
is a reserve-backed stablecoin issued by Circle Internet Financial that is commonly used as a method of payment in digital asset markets,
including the Solana market. While USDC is designed to maintain a stable value at 1U.S. dollar at all times, on March 10, 2023, the value
of USDC fell below $1.00 for multiple days after Circle Internet Financial disclosed that US$3.3 billion of the USDC reserves were held
at Silicon Valley Bank, which had entered FDIC receivership earlier that day. Stablecoins are reliant on the U.S. banking system and
U.S. treasuries, and the failure of either to function normally could impede the function of stablecoins, and therefore could adversely
affect the value of the Shares.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">Given
the foundational role that stablecoins play in global digital asset markets, their fundamental liquidity can have a dramatic impact on
the broader digital asset market, including the market for Solana. Because a large portion of the digital asset market still depends
on stablecoins such as Tether and USDC, there is a risk that a disorderly de-pegging or a run on Tether or USDC could lead to dramatic
market volatility in digital assets more broadly. Volatility in stablecoins, operational issues with stablecoins (for example, technical
issues that prevent settlement), concerns about the sufficiency of any reserves that support stablecoins or potential manipulative activity
when unbacked stablecoins are used to pay for other digital assets (including Solana), or regulatory concerns about stablecoin issuers
or intermediaries, such as exchanges, that support stablecoins, or the removal or migration of prominent stablecoins away from the Solana
Network, could impact individuals&rsquo; willingness to trade on trading venues that rely on stablecoins, reduce liquidity in the Solana
market, and affect the value of Solana, and in turn impact an investment in the Shares. [Given Bitfinex has in the past been, and is
currently, a component of the Pricing Benchmark and Bitfinex and Tether are understood to be under common ownership and management, problems
with Tether specifically could potentially affect pricing of transactions on Bitfinex or otherwise disrupt Bitfinex&rsquo;s operations.]</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
the digital asset award or transaction fees for recording transactions on the Solana Network are not sufficiently high to incentivize
validators, or if certain jurisdictions continue to limit or otherwise regulate validating activities, validators may cease expanding
validating power or demand high transaction fees, which could negatively impact the value of Solana and the value of the shares.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">If
the digital asset awards for validating blocks or the transaction fees for recording transactions on the Solana Network are not sufficiently
high to incentivize validators, or if certain jurisdictions continue to limit or otherwise regulate validating activities, validators
may cease expending validating power to validate blocks and confirmations of transactions on the Solana blockchain could be slowed. For
example, the realization of one or more of the following risks could materially adversely affect the value of the Shares:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">A
                                            reduction in the processing power expended by validators on the Solana Network could increase
                                            the likelihood of a malicious actor or botnet (a volunteer or hacked collection of computers
                                            controlled by networked software coordinating the actions of the computers) obtaining control.
                                            See &ldquo;RISK FACTORS&mdash;Risks Associated with Solana and the Solana Network&mdash;The
                                            Solana Network.&rdquo; The Solana Network could be vulnerable to attacks on transaction finality
                                            and consensus processes, which could adversely affect an investment in the trust or the ability
                                            of the trust to operate.&rdquo;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">Validators
                                            have historically accepted relatively low transaction confirmation fees on most digital asset
                                            networks. If validators demand higher transaction fees for recording transactions in the
                                            Solana blockchain or a software upgrade automatically charges fees for all transactions on
                                            the Solana Network, the cost of using Solana may increase and the marketplace may be reluctant
                                            to accept Solana as a means of payment. Alternatively, validators could collude in an anti-competitive
                                            manner to reject low transaction fees on the Solana Network and force users to pay higher
                                            fees, thus reducing the attractiveness of the Solana Network. Higher transaction confirmation
                                            fees resulting through collusion or otherwise may adversely affect the attractiveness of
                                            the Solana Network, the value of Solana and the value of the Shares.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            the extent that any validators cease to record transactions that do not include the payment
                                            of a transaction fee in blocks or do not record a transaction because the transaction fee
                                            is too low, such transactions will not be recorded on the Solana blockchain until a block
                                            is validated by a validator who does not require the payment of transaction fees or is willing
                                            to accept a lower fee. Any widespread delays or disruptions in the recording of transactions
                                            could result in a loss of confidence in the Solana Network and could prevent the Trust from
                                            completing transactions associated with the day-to-day operations of the Trust, including
                                            creations and redemptions of the Shares in exchange for Solana with Authorized Participants.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 27; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->23<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">During
                                            the course of ordering transactions and validating blocks, validators may be able to prioritize
                                            certain transactions in return for increased transaction fees, an incentive system known
                                            as &ldquo;Maximal Extractable Value&rdquo; or MEV. For example, in blockchain networks that
                                            facilitate DeFi protocols in particular, such as the Solana Network, users may attempt to
                                            gain an advantage over other users by increasing offered transaction fees. Certain software
                                            solutions, such as Flashbots, have been developed which facilitate validators in capturing
                                            MEV produced by these increased fees. The MEV incentive system may lead to an increase in
                                            transaction fees on the Solana Network, which may diminish its use. Users or other stakeholders
                                            on the Solana Network could also view the existence of MEV as unfair manipulation of decentralized
                                            digital asset networks, and refrain from using DeFi protocols or the Solana Network generally.
                                            In addition, it&rsquo;s possible regulators or legislators could enact rules which restrict
                                            the use of MEV, which could diminish the popularity of the Solana Network among users and
                                            validators. Any of these or other outcomes related to MEV may adversely affect the value
                                            of Solana and the value of the Shares.</FONT></TD></TR></TABLE>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Validators
may suffer losses due to staking, or staking may prove unattractive to validators, which could make the Solana Network less attractive.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">Validation
on the Solana Network requires Solana to be transferred into smart contracts on the underlying blockchain networks not under the Trust&rsquo;s
or anyone else&rsquo;s control. If the Solana Network source code or protocol fail to behave as expected, suffer cybersecurity attacks
or hacks, experience security issues, or encounter other problems, such assets may be irretrievably lost. In addition, the Solana Networks
dictate requirements for participation in validation activity, and may impose penalties, if the relevant activities are not performed
correctly. The Solana Network sanction (i.e., &ldquo;slashing&rdquo;) is imposed if a validator commits malicious acts related to the
validation of blocks with invalid transactions. On the Solana Network, slashing generally operates by social consensus, rather than being
automatically hardwired into the protocol&rsquo;s code. The Solana community generally aspires to slash 100% of staked assets in cases
where a Solana node is maliciously trying to violate safety rules and 0% during routine operation. There is currently no automatic slashing
in the Solana Network. Rather, for regular consensus, after a safety violation, the Solana Network will halt. The validators will analyze
the data prior to the halt and figure out who was responsible and propose that the stake of the malicious actors responsible for the
safety violation should be slashed after restart, typically 100%. Separately, as part of the &ldquo;activating&rdquo; and &ldquo;de-activating&rdquo;
or &ldquo;cooling down&rdquo; processes of staking, staked Solana will be inaccessible for a variable period of time determined by a
range of factors, resulting in potential inaccessibility during those periods. &ldquo;Activation&rdquo; is the funding of a validator
to be included in the active set, thereby allowing the validator to participate in the Solana Network&rsquo;s proof-of-stake consensus
protocol. &ldquo;De-activating&rdquo; is the request to exit from the active set and no longer participate in the Solana Network&rsquo;s
proof-of-stake consensus protocol. As part of these &ldquo;activating&rdquo; and &ldquo;de-activating&rdquo; processes of staking on
the Solana Network, any staked Solana will be inaccessible for a period of time. The duration of activating and exiting periods are dependent
on a range of factors. However, depending on demand, un-staking can take between one to several epochs to complete. An Epoch is approximately
two days long on the Solana Network.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">The
Solana Network requires the payment of base fees and the practice of paying prioritization fees is common, and such fees can become significant
as the amount and complexity of the transaction grows, depending on the degree of network congestion and the price of Solana. Any cybersecurity
attacks, security issues, hacks, penalties, slashing events, or other problems could damage validators&rsquo; willingness to participate
in validation, discourage existing and future validators from serving as such, and adversely impact the Solana Network&rsquo;s adoption
or the price of Solana. Any disruption of validation on the Solana Network could interfere with network operations and cause the Solana
Network to be less attractive to users and application developers than competing blockchain networks, which could cause the price of
Solana to decrease. The limited liquidity during the &ldquo;activation&rdquo; or &ldquo;de-activation&rdquo; processes could dissuade
potential validators from participating, which could interfere with network operations or security and cause the Solana Network to be
less attractive to users and application developers than competing blockchain networks, which could cause the price of Solana to decrease.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Operational
cost may exceed the award for validating transaction, and increased transaction fees may adversely affect the usage of the Solana Network.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">If
transaction confirmation fees become too high, the marketplace may be reluctant to use the Solana Network. This may result in decreased
usage and limit expansion of the Solana Network in the retail, commercial and payments space, adversely impacting investment in the Trust.
Conversely, if the reward for validators or the value of the transaction fees is insufficient to motivate validators, they may cease
to validate transactions.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal"></FONT></P>

<!-- Field: Page; Sequence: 28; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->24<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">Ultimately,
if the awards of new Solana costs of validating transactions grow disproportionately, miners may operate at a loss, transition to other
networks, or cease operations altogether. Each of these outcomes could, in turn, slow transaction validation and usage, which could have
a negative impact on the Solana Network and could adversely affect the value of the Solana held by the Trust.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">As
a result of Solana&rsquo;s fee burning mechanism, the incentives for validators to validate transactions with higher gas fees are reduced,
since those validators would not receive those gas fees.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">An
acute cessation of validator operations would reduce the collective processing power on the Solana Network, which would adversely affect
the transaction verification process by temporarily decreasing the speed at which blocks are added to the blockchain and make the blockchain
more vulnerable to a malicious actor obtaining control in excess of the relevant threshold of the processing power on the blockchain.
Reductions in processing power could result in material, though temporary, delays in transaction confirmation time. Any reduction in
confidence in the transaction verification process or may adversely impact the value of Shares of the Trust or the ability of the Sponsor
to operate.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Anonymity
and illicit financing risk.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Although
transaction details of peer-to-peer transactions are recorded on the Solana Network, a buyer or seller of digital assets on a peer-to-peer
basis directly on the Solana Network may never know to whom the public key belongs or the true identity of the party with whom it is
transacting. Public key addresses are randomized sequences of alphanumeric characters that, standing alone, do not provide sufficient
information to identify users. In addition, certain technologies may obscure the origin or chain of custody of digital assets. The opaque
nature of the market poses asset verification challenges for market participants, regulators and auditors and gives rise to an increased
risk of manipulation and fraud, including the potential for Ponzi schemes, bucket shops and pump-and-dump schemes. Digital assets have
in the past been used to facilitate illicit activities. If a digital asset were used to facilitate illicit activities, businesses that
facilitate transactions in such digital assets could be at increased risk of potential criminal or civil liability or lawsuits, or of
having banking or other services cut off, and such digital asset could be removed from digital asset platforms. Any of the aforementioned
occurrences could adversely affect the price of the relevant digital asset, the attractiveness of the respective blockchain network and
an investment in the Shares. If the Trust or the Sponsor were to transact with a sanctioned entity, the Trust or the Sponsor would be
at risk of potential criminal or civil lawsuits or liability.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust takes measures with the objective of reducing illicit financing risks in connection with the Trust&rsquo;s activities. However,
illicit financing risks are present in the digital asset markets, including markets for Solana. There can be no assurance that the measures
employed by the Trust will prove successful in reducing illicit financing risks, and the Trust is subject to the complex illicit financing
risks and vulnerabilities present in the digital asset markets. If such risks eventuate, the Trust, the Sponsor or their respective affiliates
could face civil or criminal liability, fines, penalties, or other punishments; be subject to investigation; have their assets frozen;
lose access to banking services or services provided by other service providers; or suffer disruptions to their operations, any of which
could negatively affect the Trust&rsquo;s ability to operate or could cause losses in value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust and the Sponsor have adopted and implemented policies and procedures that are designed to comply with applicable anti-money laundering
laws and sanctions laws and regulations, including applicable know-your-customer (&ldquo;KYC&rdquo;) laws and regulations. The Sponsor
and the Trust will only interact with known third-party service providers with respect to whom the Sponsor or its affiliates have engaged
in a thorough due diligence process and/or a thorough KYC process, such as the Authorized Participants, Solana Trading Counterparties,
Prime Execution Agent and Solana Custodian. The Prime Execution Agent and Solana Custodian must undergo counterparty due diligence by
the Sponsor. Each Authorized Participant must undergo onboarding by the Sponsor prior to placing creation or redemption orders with respect
to the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Furthermore,
Authorized Participants, as broker-dealers, and the Prime Execution Agent and Solana Custodian, as entities licensed to conduct virtual
currency business activity by the New York Department of Financial Services and as limited-purpose trust companies subject to New York
Banking Law, respectively, are &ldquo;financial institutions&rdquo; subject to the U.S. Bank Secrecy Act, as amended (&ldquo;BSA&rdquo;),
and U.S. economic sanctions laws. The Trust will only accept creation and redemption requests from Authorized Participants who have represented
to the Trust that they have implemented compliance programs that are designed to ensure compliance with applicable sanctions and anti-money
laundering laws. The Trust will not hold any Solana except that which has been delivered by approved Solana Trading Counterparties or
by execution through the Prime Execution Agent, in connection with Authorized Participant creation requests. Moreover, the Prime Execution
Agent has represented to the Trust that it has implemented and will maintain and follow compliance programs that are designed to comply
with applicable sanctions and anti-money laundering laws and that it performs both initial and ongoing due diligence on each of its customers
as well as ongoing transaction monitoring that is designed to identify and report suspicious activity conducted through customer accounts,
including those opened by the Authorized Participants or their agents/partners for purposes of facilitating Solana deposits to, and withdrawals
from, the Trust&rsquo;s Trading Balance, as required by law.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 29; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->25<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Prime Execution Agent and Solana Custodian have adopted and implemented anti-money laundering and sanctions compliance programs that
provide additional protections to ensure that the Sponsor and the Trust do not transact with a sanctioned party. Notably, the Prime Execution
Agent and Solana Custodian perform screening using blockchain analytics to identify, detect, and mitigate the risk of transacting with
a sanctioned or other unlawful actor. Pursuant to the Solana Custodian&rsquo;s and Prime Execution Agent&rsquo;s blockchain analytics
screening programs, any Solana that is delivered to the Trust Solana Account or the Trust&rsquo;s Trading Balance will undergo screening
designed to assess whether the origins of that Solana are illicit.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Prime Execution Agreement provides, among others, that if the Prime Execution Agent conducts blockchain analytics screening on a Solana
transaction deposited by an Authorized Participant and such screening results in the Solana transaction being suspected or determined
to be in violation of certain applicable sanctions laws, the Prime Execution Agent and its affiliates, including the Solana Custodian,
will (a) block or reject the deposit of such Solana into the Trust&rsquo;s Trading Account, where required by applicable sanctions laws,
and (b) agree to promptly inform the Trust if any fund movement between an Authorized Participant&rsquo;s account at the Prime Execution
Agent and the Trust&rsquo;s account(s) involves such Solana, so long as permitted by applicable law.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">However,
there is no guarantee that such procedures will always prove to be effective or that the Prime Execution Agent and its affiliates will
always perform their obligations. Such screening may also result in the Solana identified by such screening being blocked or frozen by
the Prime Execution Agent, and thus made unavailable to the Trust. Moreover, the Prime Execution Agreement and Solana Custody Agreement
require the Trust to attest that it has performed its own due diligence on the Solana Trading Counterparties it has contracted with to
source Solana from and has confirmed that the Solana Trading Counterparties have implemented policies, procedures and controls designed
to comply with applicable anti-money laundering and applicable sanctions laws. Although the Sponsor arranges for such diligence to be
performed, including by the Trust&rsquo;s service providers, there is no guarantee such diligence will prove effective in identifying
all possible sources of illicit financing risks. Solana Trading Counterparties represent to the Sponsor that they conduct due diligence
on their own counterparties from whom they source the Solana they deposit with the Trust, and that they have formed a reasonable belief
that such Solana being transferred by the Solana Trading Counterparty to the Trust was not derived from, or associated with, unlawful
or criminal activity. However, there is the risk that Solana Trading Counterparties may not conduct sufficient due diligence processes
on the sources of their Solana or that their representations to the Sponsor may turn out to be inaccurate, which could cause the Trust
to suffer a loss. If the Authorized Participants or Solana Trading Counterparties have inadequate policies, procedures and controls for
complying with applicable anti-money laundering and applicable sanctions laws or the Trust&rsquo;s procedures or diligence proves to
be ineffective, violations of such laws could result, which could result in regulatory liability for the Trust or the Sponsor under such
laws, including governmental fines, penalties, and other punishments, as well as potential liability to or cessation of services by the
Prime Execution Agent and its affiliates, including the Solana Custodian, under the Prime Execution Agreement and Solana Custody Agreement.
Any of the foregoing could result in losses to the Shareholders or negatively affect the Trust&rsquo;s ability to operate.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">A
temporary or permanent &ldquo;fork&rdquo; or a &ldquo;clone&rdquo; of the Solana Network could adversely affect the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Solana Network operates using open-source protocols, meaning that any user can download the software, modify it and then propose that
the users and validators of Solana adopt the modification. When a modification is introduced and a substantial majority of users and
validators&rsquo; consent to the modification, the change is implemented and the network remains uninterrupted. However, if less than
a substantial majority of users and validators&rsquo; consent to the proposed modification, and the modification is not compatible with
the software prior to its modification, the consequence would be what is known as a &ldquo;hard fork&rdquo; of the Solana Network, with
one group running the pre-modified software and the other running the modified software. The effect of such a fork would be the existence
of two versions of Solana running in parallel, yet lacking interchangeability. For example, in September&nbsp;2022, the Ethereum Network
transitioned to a proof-of-stake model, in an upgrade referred to as the &ldquo;Merge.&rdquo; Following the Merge, a hard fork of the
Ethereum Network occurred, as certain Ethereum miners and network participants planned to maintain the proof-of-work consensus mechanism
that was removed as part of the Merge. This version of the network was rebranded as &ldquo;Ethereum Proof-of-Work.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 30; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->26<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Forks
may also occur as a network community&rsquo;s response to a significant security breach. For example, in July 2016, Ethereum &ldquo;forked&rdquo;
into Ethereum and a new digital asset, Ethereum Classic, as a result of the Ethereum Network community&rsquo;s response to a significant
security breach. In June 2016, an anonymous hacker exploited a smart contract running on the Ethereum Network to syphon approximately
$60 million of ETH held by The DAO, a distributed autonomous organization, into a segregated account. In response to the hack, most participants
in the Ethereum community elected to adopt a &ldquo;fork&rdquo; that effectively reversed the hack. However, a minority of users continued
to develop the original blockchain, referred to as &ldquo;Ethereum Classic&rdquo; with the digital asset on that blockchain now referred
to as ETC. ETC now trades on several Digital asset trading platforms. A fork may also occur as a result of an unintentional or unanticipated
software flaw in the various versions of otherwise compatible software that users run. Such a fork could lead to users and validators
abandoning the digital asset with the flawed software. It is possible, however, that a substantial number of users and validators could
adopt an incompatible version of the digital asset while resisting community-led efforts to merge the two chains. This could result in
a permanent fork, as in the case of Ethereum and Ethereum Classic.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Furthermore,
a hard fork can lead to new security concerns. For example, when the Ethereum and Ethereum Classic networks, two other digital asset
networks, split in July 2016, replay attacks, in which transactions from one network were rebroadcast to nefarious effect on the other
network, plagued Ethereum trading platforms through at least October 2016. An Ethereum trading platform announced in July 2016 that it
had lost 40,000 Ethereum Classic, worth about $100,000 at that time, as a result of replay attacks. Similar replay attack concerns occurred
in connection with the Bitcoin Cash and Bitcoin Satoshi&rsquo;s Vision networks split in November 2018. Another possible result of a
hard fork is an inherent decrease in the level of security due to significant amounts of validating power remaining on one network or
migrating instead to the new forked network. After a hard fork, it may become easier for an individual validator or validating pool&rsquo;s
validating power to exceed 50% of the validating power of a digital asset network that retained or attracted less validating power, thereby
making digital asset networks that rely on proof-of-stake more susceptible to attack.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Protocols
may also be cloned. Unlike a fork, which modifies an existing blockchain, and results in two competing networks, each with the same genesis
block, a &ldquo;clone&rdquo; is a copy of a protocol&rsquo;s codebase, but results in an entirely new blockchain and new genesis block.
Tokens are created solely from the new &ldquo;clone&rdquo; network and, in contrast to forks, holders of tokens of the existing network
that was cloned do not receive any tokens of the new network. A &ldquo;clone&rdquo; results in a competing network that has characteristics
substantially similar to the network it was based on, subject to any changes as determined by the developer(s) that initiated the clone.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">A
hard fork may adversely affect the price of Solana at the time of announcement or adoption. For example, the announcement of a hard fork
could lead to increased demand for the pre-fork digital asset, in anticipation that ownership of the pre-fork digital asset would entitle
holders to a new digital asset following the fork. The increased demand for the pre-fork digital asset may cause the price of the digital
asset to rise. After the hard fork, it is possible the aggregate price of the two versions of the digital asset running in parallel would
be less than the price of the digital asset immediately prior to the fork. Furthermore, while the Trust would be entitled to both versions
of the digital asset running in parallel, the Sponsor will, as permitted by the terms of the Trust Agreement, determine which version
of the digital asset is generally accepted as the Solana Network and should therefore be considered the appropriate network for the Trust&rsquo;s
purposes, and there is no guarantee that the Sponsor will choose the digital asset that is ultimately the most valuable fork.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Either
of these events could therefore adversely impact the value of the Shares. As an illustrative example of a digital asset hard fork, following
the DAO hack in July 2016, holders of Ethereum voted on-chain to reverse the hack, effectively causing a hard fork. For the days following
the vote, the price of Ethereum rose from $11.65 on July 15, 2016 to $14.66 on July 21, 2016, the day after the first Ethereum Classic
block was mined. A clone may also adversely affect the price of Solana at the time of announcement or adoption. For example, on November
6, 2016, Rhett Creighton, a Zcash developer, cloned the Zcash Network to launch Zclassic, a substantially identical version of the Zcash
Network that eliminated the Founders&rsquo; Reward. For the days following the date the first Zclassic block was mined, the price of
ZEC fell from $504.57 on November 5, 2016 to $236.01 on November 7, 2016 in the midst of a broader sell off of ZEC beginning immediately
after the Zcash Network launch on October 28, 2016. A clone may also adversely affect the price of Solana at the time of announcement
or adoption. A future fork in or clone of the Solana Network could adversely affect the value of the Shares or the ability of the Trust
to operate.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 31; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->27<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
the event of a hard fork of the Solana Network, the Sponsor will, if permitted by the terms of the Trust Agreement, use its discretion
to determine which network should be considered the appropriate network for the Trust&rsquo;s purposes, and in doing so may adversely
affect the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
the event of a hard fork of the Solana Network, the Sponsor will, if permitted by the terms of the Trust Agreement, use its discretion
to determine, in good faith, which peer-to-peer network, among a group of incompatible forks of the Solana Network, is generally accepted
as the Solana Network and should therefore be considered the appropriate network for the Trust&rsquo;s purposes. The Sponsor will base
its determination on a variety of then relevant factors, including, but not limited to, the Sponsor&rsquo;s beliefs regarding expectations
of the core developers of Solana, users, service providers, businesses, miners and other constituencies, as well as the actual continued
acceptance of, mining power on, and community engagement with, the Solana Network. There is no guarantee that the Sponsor will choose
the digital asset that is ultimately the most valuable fork, and the Sponsor&rsquo;s decision may adversely affect the value of the Shares
as a result. The Sponsor may also disagree with Shareholders and security vendors on what is generally accepted as Solana and should
therefore be considered &ldquo;Solana&rdquo; for the Trust&rsquo;s purposes, which may also adversely affect the value of the Shares
as a result.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
the event of a hard fork of the Solana Network, the Solana Custodian&rsquo;s operations may be interrupted or subject to additional security
risks that could disrupt the Trust&rsquo;s ability to process creations and redemptions of Shares or otherwise threaten the security
of the Trust&rsquo;s Solana holdings.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
the event of a hard fork of the Solana Ledger, the Solana Custodian may temporarily halt the ability of customers (including the Trust)
to deposit, withdraw or transfer Solana on the Solana Custodian&rsquo;s platform. Such a delay may be intended to permit the Solana Custodian
to assess the resulting versions of the Solana Network, to determine how best to securely &ldquo;split&rdquo; the Solana from the Forked
Asset, and to prevent malicious users from conducting &ldquo;replay attacks&rdquo; (<I>i.e.</I>, broadcasting transactions on both versions
of the forked networks to put Solana Custodian assets at risk). As a result, the Trust is likely to suspend creations and redemptions
during a period in which the Solana Custodian&rsquo;s operations are halted.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, any losses experienced by the Solana Custodian due to a hard fork, including due to replay attacks or technological errors
in assessing the fork, could have a materially adverse impact on an investment in the Shares.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shareholders
may not receive the benefits of any forks or &ldquo;airdrops.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
refer to the right to receive any benefits arising from a fork, airdrop (defined below), or similar event as an &ldquo;Incidental Right&rdquo;
and any such virtual currency acquired through an Incidental Right as &ldquo;IR Virtual Currency.&rdquo; The only crypto asset to be
held by the Trust will be Solana. The Trust has adopted the following procedures to address situations involving any fork, airdrop or
similar event that results in the issuance of Incidental Rights or IR Virtual Currency that the Trust may receive. The Trust Agreement
stipulates that if a fork occurs, the Sponsor shall determine which asset constitutes Solana and which network constitutes the Solana
Network, and the Sponsor will as soon as possible cause the Trust to irrevocably abandon the Incidental Rights or IR Virtual Currency.
Because the Trust will abandon any Incidental Rights and IR Virtual Currency, the Trust would not receive any direct or indirect consideration
for the Incidental Rights or IR Virtual Currency and thus the value of the Shares will not reflect the value of the Incidental Rights
or IR Virtual Currency. Such Incidental Rights or IR Virtual Currency will not be taken into account for purposes of determining NAV.
In the event the Trust seeks to change this position, an application would need to be filed with the SEC by the Exchange seeking approval
to amend its listing rules to permit the Trust to distribute the Incidental Rights or IR Virtual Currency that is not Solana in-kind
to the Sponsor, as agent for the Shareholders, and the Sponsor would arrange to sell or otherwise dispose of the Incidental Rights or
IR Virtual Currency and for the proceeds (if any) to be distributed to the Shareholders. There can be no assurance as to whether or when
the Sponsor would make such a decision, or when the Exchange will seek or obtain this approval, if at all.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 32; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->28<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition to forks, a digital asset may become subject to a similar occurrence known as an &ldquo;airdrop.&rdquo; In an airdrop, the promotors
of a new digital asset announce to holders of another digital asset that such holders will be entitled to claim a certain amount of the
new digital asset for free, based on the fact that they hold such other digital asset. Neither the Trust nor the Sponsor shall be under
any obligation to claim or attempt to secure or realize any economic benefit from &ldquo;airdropped&rdquo; assets, and the Sponsor will
cause the Trust to irrevocably and permanently abandon, for no consideration, such Incidental Rights or IR Virtual Currency. In the event
the Trust seeks to change this position, an application would need to be filed with the SEC by the Exchange seeking approval to amend
its listing rules to permit the Trust to distribute the Incidental Rights or IR Virtual Currency associated with the airdropped assets
in-kind to the Sponsor, as agent for the Shareholders, and the Sponsor would arrange to sell or otherwise dispose of the Incidental Rights
or IR Virtual Currency and for the proceeds (if any) to be distributed to the Shareholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
respect to any fork, airdrop or similar event, the Sponsor will cause the Trust to irrevocably abandon the Incidental Rights and any
IR Virtual Currency associated with such event. As such, Shareholders will not receive the benefits of any forks, and the Trust is not
able to participate in any airdrop. In the event the Trust seeks to change this position, an application would need to be filed with
the SEC by the Exchange seeking approval to amend its listing rules to permit the Trust to change this policy.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Even
if required regulatory approval is sought and obtained, Shareholders may not receive the benefits of any forks, airdrops, or similar
events, the Trust may not choose, or be able, to participate in an airdrop, and the timing of receiving any benefits from a fork, airdrop
or similar event is uncertain. Any inability to recognize the economic benefit of a hard fork or airdrop could adversely affect the value
of the Shares.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Solana Network could be vulnerable to attacks on transaction finality and consensus processes, which could adversely affect an investment
in the Trust or the ability of the Trust to operate.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Solana Network is currently vulnerable to several types of attacks, including:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">"33%
                                            attack&rdquo; where, if a validator or group of validators were to gain control of more than
                                            33% of the total staked Solana on the Solana Network, a malicious actor could temporarily
                                            impede or delay block confirmation or even cause a temporary fork in the blockchain.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify">"<FONT STYLE="font-family: Times New Roman, Times, Serif">50%
attack&rdquo; where, if a validator or group of validators acting in concert were to gain control of more than 50% of the total staked
Solana on the Solana Network, a malicious actor would be able to gain full control of the Solana Network and the ability to manipulate
the blockchain on a forward-looking basis, including censoring transactions following the achievement of threshold, double-spending and
fraudulent block propagation, while the attacker maintains the threshold. In theory, the minority non-attackers might reach social consensus
to reject blocks proposed by the malicious majority attacker, reducing the attacker&rsquo;s ability to engage in malicious activity,
but there can be no assurance this would happen or that non-attackers would be able to coordinate effectively.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify">"<FONT STYLE="font-family: Times New Roman, Times, Serif">&gt;66%
attack&rdquo; where, if a validator or group of validators acting in concert were to gain control of more than 66% of the total staked
Solana on the Solana Network, a malicious actor could permanently and irreversibly manipulate the blockchain, including censorship, double-spending
and fraudulent block propagation, both on a forward-and backward-looking basis. The attacker could unilaterally finalize their preferred
chain without the votes of any other stakers, and could also reverse past finalized blocks.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
a malicious actor, group or botnet (a volunteer or hacked collection of computers controlled by networked software coordinating the actions
of the computers) obtains certain percentages of the validating power dedicated to validation on the Solana Network is controlled by
a bad actor (often referred to as a &ldquo;51% attack&rdquo;, though the numerical thresholds vary in the proof-of-stake consensus mechanism
of the Solana Network), it may be able to alter the Solana blockchain on which the Solana Network and Solana transactions rely. The Solana
Network&rsquo;s proof-of-stake consensus mechanism requires a 2/3 supermajority of validators who have staked Solana to vote in favor
in order to finalize transactions and add blocks to the Solana blockchain. If the bad actor were to obtain 2/3 of the total Solana staked
in validation processes, it is widely believed that the bad actor could construct fraudulent blocks, &ldquo;double-spend&rdquo; its own
Solana (i.e., spend the same Solana in more than one transaction), or censor other users&rsquo; transactions by preventing them from
being confirmed while continuing to validate and confirm its own transactions and earn the associated block reward, thereby enriching
itself while also entrenching its own control of the Solana blockchain. If the bad actor were to obtain 1/3 of the total Solana staked
in validation processes, the bad actor could prevent certain transactions from completing in a timely manner, or at all, and prevent
the confirmation of other users&rsquo; transactions, though this would likely be temporary (since it would likely be penalized for inactivity
leakage, resulting in the bad actor&rsquo;s staked Solana being slashed, as defined below) and it likely could not double spend or propagate
fraudulent blocks without the 66% supermajority of staked assets. With control of the respective threshold of total staked assets on
the Solana Network, it could be possible for the malicious actor to control, exclude or modify the ordering of transactions on the Solana
blockchain and prevent the confirmation of other users&rsquo; transactions, while continuing to mine new Solana and confirm its own blocks,
for so long as it maintained control. To the extent that such malicious actor or botnet did not yield its control of the validating power
on the Solana Network or the Solana community did not reject the fraudulent blocks as malicious or to the extent that such bad actor
did not yield its control of processing power, reversing any changes made to the Solana blockchain may be difficult or impossible. Further,
a malicious actor or botnet could create a flood of transactions in order to slow down the Solana Network.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 33; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->29<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">For
example, in August 2020, the Ethereum Classic network was the target of two double-spend attacks by an unknown actor or actors that gained
more than 50% of the processing power of the Ethereum Classic network. The attacks resulted in reorganizations of the Ethereum Classic
blockchain that allowed the attacker or attackers to reverse previously recorded transactions in excess of $5.0 million and $1.0 million.
Any similar attacks on the Solana Network could negatively impact the value of Solana and the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, in May 2019, the Bitcoin Cash network experienced a 51% attack when two large mining pools reversed a series of transactions
in order to stop an unknown miner from taking advantage of a flaw in a recent Bitcoin Cash protocol upgrade. Although this particular
attack was arguably benevolent, the fact that such coordinated activity was able to occur may negatively impact perceptions of the Bitcoin
Cash network. Although the two attacks described above took place on proof-of-work-based networks, it is possible that a similar attack
may occur on the Solana Network, which could negatively impact the value of Solana and the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Although
there are no known reports of malicious control of the Solana Network, if groups of coordinating or connected Solana holders that together
have more than 50% of outstanding Solana, were to stake that Solana and run validators, they could exert authority over the validation
of Solana transactions. This risk is heightened if over 50% of the validating power on the network falls within the jurisdiction of a
single governmental authority. If network participants, including the core developers and the administrators of validating pools, do
not act to ensure greater decentralization of Solana, the feasibility of a malicious actor obtaining control of the validating power
on the Solana Network will increase, which may adversely affect the value Solana and the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">A
malicious actor may also obtain control over the Solana Network through its influence over core developers by gaining direct control
over a core developer or an otherwise influential programmer. To the extent that users and miners accept amendments to the source code
proposed by the controlled core developer, other core developers do not counter such amendments, and such amendments enable the malicious
exploitation of the Solana Network, the risk that a malicious actor may be able to obtain control of the Solana Network in this manner
exists. Moreover, it is possible that a group of Solana holders that together control more than 50% of outstanding Solana are in fact
part of the initial or core developer group, or are otherwise influential members of the Solana community. To the extent that the initial
or existing core developer groups also control more than the relevant thresholds of outstanding Solana, as some believe, the risk of
and arising from this particular group of users obtaining control of the validating power on the Solana Network will be even greater,
and should this materialize, it may adversely affect the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>If
validators exit the Solana Network, it could increase the likelihood of a malicious actor obtaining control.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Validators
exiting the network could make the Solana Network more vulnerable to a malicious actor obtaining control of a large percentage of staked
Solana, which might enable them to manipulate the Solana blockchain by censoring or manipulating specific transactions, as discussed
previously. If the Solana blockchain suffers such an attack, the price of Solana could be negatively affected, and a loss of confidence
in the Solana Network could result. Any reduction in confidence in the transaction confirmation process or staking power of the Solana
Network may adversely affect an investment in the Trust.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 34; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->30<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
digital asset trading platforms on which Solana trades are relatively new and largely unregulated or may not be complying with existing
regulations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Digital
asset trading platforms are relatively new and, in some cases, unregulated. Many operate outside the United States.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Furthermore,
while many prominent digital asset trading platforms provide the public with significant information regarding their ownership structure,
management teams, corporate practices and regulatory compliance, many digital asset trading platforms do not provide this information.
Digital asset trading platforms may not be subject to, or may not comply with, regulation in a similar manner as other regulated trading
platforms, such as national securities exchanges or designated contract markets. As a result, the marketplace may lose confidence in
digital asset trading platforms, including prominent trading platforms that handle a significant volume of Solana trading.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Many
digital asset trading platforms are unlicensed, unregulated, operate without extensive supervision by governmental authorities, and do
not provide the public with significant information regarding their ownership structure, management team, corporate practices, cybersecurity,
and regulatory compliance. In particular, those located outside the United States may be subject to significantly less stringent regulatory
and compliance requirements in their local jurisdictions, and may take the position that they are not subject to laws and regulations
that would apply to a national securities exchange or designated contract market in the United States, or may, as a practical matter,
be beyond the ambit of U.S. regulators. As a result, trading activity on or reported by these digital asset trading platforms is generally
significantly less regulated than trading in regulated U.S. securities and commodities markets, and may reflect behavior that would be
prohibited in regulated U.S. trading venues. For example, in 2019 there were reports claiming that 80.95% of bitcoin trading volume on
digital asset trading platforms was false or noneconomic in nature, with specific focus on unregulated trading platforms located outside
of the United States. Such reports alleged that certain overseas trading platforms have displayed suspicious trading activity suggestive
of a variety of manipulative or fraudulent practices, such as fake or artificial trading volume or trading volume based on non-economic
&ldquo;wash trading&rdquo; (where offsetting trades are entered into for other than bona fide reasons, such as the desire to inflate
reported trading volumes), and attributed such manipulative or fraudulent behavior to motives like the incentive to attract listing fees
from token issuers who seek the most liquid and high-volume trading platforms on which to list their coins. Although these reports concerned
bitcoin, it is possible that similar concerns are present for Solana markets as well.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Other
academics and market observers have put forth evidence to support claims that manipulative trading activity has occurred on certain digital
asset trading platforms. For example, in a 2017 paper titled &ldquo;Price Manipulation in the Bitcoin Ecosystem&rdquo; sponsored by the
Interdisciplinary Cyber Research Center at Tel Aviv University, a group of researchers used publicly available trading data, as well
as leaked transaction data from a 2014 Mt. Gox security breach, to identify and analyze the impact of &ldquo;suspicious trading activity&rdquo;
on Mt. Gox between February and November 2013, which, according to the authors, caused the price of bitcoin to increase from around $150
to more than $1,000 over a two-month period.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
August 2017, it was reported that a trader or group of traders nicknamed &ldquo;Spoofy&rdquo; was placing large orders on Bitfinex without
actually executing them, presumably in order to influence other investors into buying or selling by creating a false appearance that
greater demand existed in the market. In December 2017, an anonymous blogger (publishing under the pseudonym Bitfinex&rsquo;d) cited
publicly available trading data to support his or her claim that a trading bot nicknamed &ldquo;Picasso&rdquo; was pursuing a paint-the-tape-style
manipulation strategy by buying and selling bitcoin and bitcoin cash between affiliated accounts in order to create the appearance of
substantial trading activity and thereby influence the price of such assets. Although bitcoin and Solana are different assets, Solana
prices may be subject to similar activity. Even in the United States, there have been allegations of wash trading even on regulated venues.
Any actual or perceived false trading in the digital asset exchange market, and any other fraudulent or manipulative acts and practices,
could adversely affect the value of digital assets and/or negatively affect the market perception of digital assets.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 35; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->31<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Solana market globally and in the United States is not subject to comparable regulatory guardrails as exist in regulated securities markets.
Furthermore, many Solana trading venues lack certain safeguards put in place by exchanges for more traditional assets to enhance the
stability of trading on the exchanges and prevent &ldquo;flash crashes,&rdquo; such as limit-down circuit breakers. As a result, the
prices of Solana on trading venues may be subject to larger and/or more frequent sudden declines than assets traded on more traditional
exchanges. Tools to detect and deter fraudulent or manipulative trading activities such as market manipulation, front-running of trades,
and wash-trading may not be available to or employed by digital asset trading platforms, or may not exist at all.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Digital
asset trading platforms may be exposed to security breaches.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
nature of the assets held at Solana trading platforms makes them appealing targets for hackers and a number of digital asset trading
platforms have been victims of cybercrimes. Over the past several years, some digital asset trading platforms have been closed due to
security breaches. In many of these instances, the customers of such digital asset trading platforms were not compensated or made whole
for the partial or complete losses of their account balances in such digital asset trading platforms. While, generally speaking, smaller
digital asset trading platforms are less likely to have the infrastructure and capitalization that make larger digital asset trading
platforms more stable, larger digital asset trading platforms are more likely to be appealing targets for hackers and malware. For example,
the collapse of Mt. Gox, which filed for bankruptcy protection in Japan in late February 2014, demonstrated that even the largest digital
asset trading platforms could be subject to abrupt failure with consequences both for users of digital asset trading platforms and for
the digital asset industry as a whole. In particular, in the two weeks that followed the February 7, 2014, halt of bitcoin withdrawals
from Mt. Gox, the value of one bitcoin fell on other exchanges from around $795 on February 6, 2014, to $578 on February 20, 2014. Additionally,
in January 2015, Bitstamp announced that approximately 19,000 bitcoin had been stolen from its operational or &ldquo;hot&rdquo; wallets.
Further, in August 2016, it was reported that almost 120,000 bitcoins worth around $78 million were stolen from Bitfinex, a large digital
asset exchange. The value of bitcoin and other digital assets immediately decreased by more than 10% following reports of the theft at
Bitfinex. In July 2017, FinCEN assessed a $110 million fine against BTC-e, a now-defunct digital asset exchange, for facilitating crimes
such as drug sales and ransomware attacks. In December 2017, Yapian, the operator of Seoul-based cryptocurrency exchange Youbit, suspended
digital asset trading and filed for bankruptcy following a hack that resulted in a loss of 17% of Yapian&rsquo;s assets. Following the
hack, Youbit users were allowed to withdraw approximately 75% of the digital assets in their exchange accounts, with any potential further
distributions to be made following Yapian&rsquo;s pending bankruptcy proceedings. In January 2018, the Japanese digital asset trading
platform, Coincheck was hacked, resulting in losses of approximately $535 million, and in February 2018, the Italian digital asset trading
platform Bitgrail was hacked, resulting in approximately $170 million in losses. In May 2019, one of the world&rsquo;s largest digital
asset trading platforms, Binance, was hacked, resulting in losses of approximately $40 million.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Digital
asset trading platforms may be exposed to fraud and market manipulation.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
blockchain infrastructure could be used by certain market participants to exploit arbitrage opportunities through schemes such as front-running,
spoofing, pump-and-dump and fraud across different systems, platforms or geographic locations. As a result of reduced oversight, these
schemes may be more prevalent in digital asset markets than in the general market for financial products.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
SEC has identified possible sources of fraud and manipulation in the Solana market generally, including, among others (1) &ldquo;wash
trading&rdquo;; (2) persons with a dominant position in Solana manipulating Solana pricing; (3) hacking of the Solana Network and trading
platforms; (4) malicious control of the Solana Network; (5) trading based on material, non-public information (for example, plans of
market participants to significantly increase or decrease their holdings in Solana, new sources of demand for Solana) or based on the
dissemination of false and misleading information; (6) manipulative activity involving purported &ldquo;stablecoins,&rdquo; including
Tether (for more information, see &ldquo;RISK FACTORS&mdash;Risk Factors Related to Digital Assets&mdash;Prices of Solana may be affected
due to stablecoins (including Tether and US Dollar Coin (&ldquo;USDC&rdquo;)), the activities of stablecoin issuers and their regulatory
treatment&rdquo;); and (7) fraud and manipulation at Solana trading platforms. The effect of potential market manipulation, front-running,
wash-trading, and other fraudulent or manipulative trading practices may inflate the volumes actually present in crypto market and/or
cause distortions in price, which could adversely affect the Trust or cause losses to Shareholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 36; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->32<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Over
the past several years, some digital asset trading platforms have been closed due to fraud and manipulative activity, business failure
or security breaches. In many of these instances, the customers of such digital asset trading platforms were not compensated or made
whole for the partial or complete losses of their account balances in such digital asset trading platforms. While, generally speaking,
smaller digital asset trading platforms are less likely to have the infrastructure and capitalization that make larger digital asset
trading platforms more stable, larger digital asset trading platforms are more likely to be appealing targets for hackers and malware
and their shortcomings or ultimate failures are more likely to have contagion effects on the digital asset ecosystem, and may be more
likely to be targets of regulatory enforcement action. For example, the collapse of Mt. Gox, which filed for bankruptcy protection in
Japan in late February 2014, demonstrated that even the largest digital asset trading platforms could be subject to abrupt failure with
consequences for both users of digital asset exchanges and the digital asset industry as a whole. In particular, in the two weeks that
followed the February 7, 2014 halt of bitcoin withdrawals from Mt. Gox, the value of one bitcoin fell on other trading platforms from
around $795 on February 6, 2014 to $578 on February 20, 2014. Additionally, in January 2015, Bitstamp announced that approximately 19,000
bitcoin had been stolen from its operational or &ldquo;hot&rdquo; wallets. Further, in August 2016, it was reported that almost 120,000
bitcoins worth around $78 million were stolen from Bitfinex. The value of bitcoin and other digital assets immediately decreased over
10% following reports of the theft at Bitfinex. In July 2017, FinCEN assessed a $110 million fine against BTC-E, a now defunct digital
asset trading platform, for facilitating crimes such as drug sales and ransomware attacks. In addition, in December 2017, Yapian, the
operator of Seoul-based cryptocurrency trading platform Youbit, suspended digital asset trading and filed for bankruptcy following a
hack that resulted in a loss of 17% of Yapian&rsquo;s assets. Following the hack, Youbit users were allowed to withdraw approximately
75% of the digital assets in their platform accounts, with any potential further distributions to be made following Yapian&rsquo;s pending
bankruptcy proceedings. In addition, in January 2018, the Japanese digital asset trading platform, Coincheck, was hacked, resulting in
losses of approximately $535 million, and in February 2018, the Italian digital asset trading platform, Bitgrail, was hacked, resulting
in approximately $170 million in losses. In May 2019, one of the world&rsquo;s largest digital asset trading platform, Binance, was hacked,
resulting in losses of approximately $40 million. In November 2022, FTX Trading Ltd. (&ldquo;FTX&rdquo;), one of the largest digital
asset trading platform by volume at the time, halted customer withdrawals amid rumors of the company&rsquo;s liquidity issues and likely
insolvency, which were subsequently corroborated by its CEO. Shortly thereafter, FTX&rsquo;s CEO resigned and FTX and many of its affiliates
filed for bankruptcy in the United States, while other affiliates have entered insolvency, liquidation, or similar proceedings around
the globe. The U.S. Department of Justice brought criminal fraud and other charges, and the SEC and CFTC brought civil securities and
commodities fraud charges, against certain of FTX&rsquo;s and its affiliates&rsquo; senior executives, including its former CEO. Around
the same time, there were reports that approximately $300-600 million of digital assets were removed from FTX and the full facts remain
unknown, including whether such removal was the result of a hack, theft, insider activity, or other improper behavior.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
potential consequences of a digital asset trading platform failure or failure to prevent market manipulation could adversely affect the
value of the Shares. Manipulative trading or market abuse could create artificial or distorted prices, cause a loss of investor confidence
in Solana, adversely impact pricing trends in Solana markets broadly, and cause losses from an investment in Shares of the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, negative perception, a lack of stability and standardized regulation in the digital asset markets and the closure or temporary
shutdown of digital asset trading platforms due to fraud, business failure, security breaches or government mandated regulation, and
associated losses by customers, may reduce confidence in the Solana Network and result in greater volatility or decreases in the prices
of Solana. Furthermore, the closure or temporary shutdown of a digital asset exchange used in calculating the Pricing Benchmark may result
in a loss of confidence in the Trust&rsquo;s ability to determine its NAV on a daily basis. The potential consequences of a digital asset
exchange&rsquo;s failure could adversely affect the value of the Shares.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Digital
asset trading platforms may be exposed to wash trading.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Solana
trading platforms on which Solana trades may be susceptible to wash trading. Wash trading occurs when offsetting trades are entered into
for other than bona fide reasons, such as the desire to inflate reported trading volumes. Wash trading may be motivated by non-economic
reasons, such as a desire for increased visibility on popular websites that monitor markets for digital assets so as to improve their
attractiveness to investors who look for maximum liquidity, or it may be motivated by the ability to attract listing fees from token
issuers who seek the most liquid and high-volume exchanges on which to list their coins. Results of wash trading may include unexpected
obstacles to trade and erroneous investment decisions based on false information. Even in the United States, there have been allegations
of wash trading even on regulated venues. Any actual or perceived false trading in the global digital asset trading market, and any other
fraudulent or manipulative acts and practices, could adversely affect the value of Solana and/or negatively affect the market perception
of Solana. If they were to affect trading at a trading platform which is used to calculate the CME CF Solana &ndash; Dollar Reference
Rate &ndash; New York Variant, they could cause the Trust&rsquo;s NAV to be calculated incorrectly and cause Shareholders to suffer losses.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
the extent that wash trading either occurs or appears to occur in Solana trading platforms on which Solana trades, investors may develop
negative perceptions about Solana and the digital assets industry more broadly, which could adversely impact the price of Solana and,
therefore, the price of Shares. Wash trading also may place more legitimate digital asset trading platforms at a relative competitive
disadvantage.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 37; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->33<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>


<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Digital
asset trading platforms may be exposed to front-running.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Solana
trading platforms on which Solana trades may be susceptible to &ldquo;front-running,&rdquo; which refers to the process when someone
uses access to confidential information, or technology or market advantage to get prior knowledge of upcoming transactions. Front-running
is a frequent activity on centralized as well as decentralized exchanges. By using bots functioning on a millisecond-scale timeframe,
bad actors are able to take advantage of the forthcoming price movement and make economic gains at the cost of those who had introduced
these transactions. The objective of a front runner is to buy a chunk of tokens at a low price and later sell them at a higher price
while simultaneously exiting the position. Front-running can occur via manipulation of transaction validation and mining processes, or
the theft or misappropriation of confidential information by insiders. To extent that front-running occurs in Solana markets, it may
result in concerns as to the price integrity of digital asset exchanges and digital assets more generally.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Momentum
pricing.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
market price of Solana is not based on any kind of claim, nor is it backed by any physical asset. Instead, the market value depends in
part on the expectation of being usable in future transactions and continued interest from investors. This strong correlation between
an expectation and market value is the basis for the current (and probable future) volatility of the market price of Solana and may increase
the likelihood of momentum pricing.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Momentum
pricing typically is associated with growth stocks and other assets whose valuation, as determined by the investing public, is impacted
by appreciation in value. Momentum pricing may result in speculation regarding future appreciation in the value of digital assets, which
inflates prices and leads to increased volatility. As a result, Solana may be more likely to fluctuate in value due to changing investor
confidence in future appreciation or depreciation in prices, which could adversely affect the price of Solana and, in turn, an investment
in the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
value of Solana as represented by the Pricing Benchmark may also be subject to momentum pricing due to speculation regarding future appreciation
in value, leading to greater volatility that could adversely affect the value of the Shares. Momentum pricing of Solana has previously
resulted, and may continue to result, in speculation regarding future appreciation or depreciation in the price of Solana, further contributing
to volatility and potentially inflating prices at any given time. These dynamics may impact the value of an investment in Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Some
market observers have asserted that in time, the value of digital assets will fall to a fraction of their current value, or even to zero.
Solana has not been in existence long enough for market participants to assess these predictions with any precision, but if these observers
are even partially correct, an investment in the Shares may turn out to be substantially worthless.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Political
or economic crises may motivate large-scale sales of Solana, which could result in a reduction in the price of Solana and adversely affect
an investment in the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
an alternative to fiat currencies that are backed by central governments, Solana is subject to supply and demand forces based upon the
desirability of an alternative, decentralized means of buying and selling goods and services, and it is unclear how such supply and demand
will be impacted by geopolitical events. Nevertheless, political or economic crises may motivate large-scale acquisitions or sales of
Solana, either globally or locally. Large-scale sales of Solana would result in a reduction in its price and adversely affect an investment
in the Shares.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Ownership
of Solana is pseudonymous, and the supply of accessible Solana is unknown. Entities with substantial holdings in Solana may engage in
large-scale sales or distributions, either on nonmarket terms or in the ordinary course, which could result in a reduction in the price
of Solana and adversely affect an investment in the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">There
is no registry showing which individuals or entities own Solana or the quantity of Solana that is owned by any particular person or entity.
It is possible, and in fact, reasonably likely, that a small group of early Solana adopters hold a significant proportion of the Solana
that has been created to date. There are no regulations in place that would prevent a large holder of Solana from selling Solana it holds.
To the extent such large holders of Solana engage in large-scale sales or distributions, either on nonmarket terms or in the ordinary
course, it could result in a reduction in the price of Solana and adversely affect an investment in the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I></I></B></FONT></P>

<!-- Field: Page; Sequence: 38; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->34<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Due
to the nature of private keys, Solana transactions are irrevocable and stolen or incorrectly transferred Solana may be irretrievable.
As a result, any incorrectly executed Solana transactions could adversely affect an investment in the trust.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Solana
transactions are typically not reversible without the consent and active participation of the recipient of the transaction. Once a transaction
has been signed with private keys, verified and recorded in a block that is added to the Solana blockchain, an incorrect transfer of
cryptocurrency, such as Solana, or a theft of Solana generally will not be reversible and the Trust may not be capable of seeking compensation
for any such transfer or theft. Although the Trust&rsquo;s transfers of Solana will regularly be made to or from the Trust&rsquo;s accounts
at the Solana Custodian or the Additional Solana Custodian, it is possible that, through computer or human error, or through theft or
criminal action, the Trust&rsquo;s Solana could be transferred from the Trust&rsquo;s account at the Solana Custodian or the Additional
Solana Custodian in incorrect amounts or to unauthorized third parties, or to uncontrolled accounts. To the extent that the Trust is
unable to successfully seek redress for such error or theft, such loss could adversely affect an investment in the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
custody of the Trust&rsquo;s Solana is handled by the Solana Custodian or the Additional Solana Custodian, and the transfer of Solana
to and from Liquidity Providers normally takes place through the Solana Custodian&rsquo;s Clearing Services and is directed by the Administrator
and the Transfer Agent. The Sponsor has evaluated the procedures and internal controls of the Trust&rsquo;s Solana Custodian and the
Additional Solana Custodian to safeguard the Trust&rsquo;s Solana holdings, as well as the procedures and internal controls of the Trust&rsquo;s
Administrator.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">However,
it is possible that, through computer or human error, or through theft or criminal action, the Trust&rsquo;s Solana could be transferred
from the Trust&rsquo;s Solana Account or Clearing Account at the Solana Custodian or the Additional Solana Account at the Additional
Solana Custodian in incorrect amounts or to unauthorized third parties, or to incorrect destination addresses on the Solana blockchain.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Alternatively,
if the Solana Custodian&rsquo;s and the Additional Solana Custodian&rsquo;s internal procedures and controls are inadequate to safeguard
the Trust&rsquo;s Solana holdings, and the Trust&rsquo;s private key(s) is (are) lost, destroyed or otherwise compromised and no backup
of the private key(s) is (are) accessible, the Trust will be unable to access its Solana, which could adversely affect an investment
in the Shares of the Trust. In addition, if the Trust&rsquo;s private key(s) is (are) misappropriated and the Trust&rsquo;s Solana holdings
are stolen, including from or by the Solana Custodian or the Additional Solana Custodian, the Trust could lose some or all of its Solana
holdings, which could adversely impact an investment in the Shares of the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Such
events have occurred in connection with digital assets in the past. For example, in September 2014, the Chinese digital asset exchange
Huobi announced that it had sent approximately 900 bitcoins and 8,000 Litecoins (worth approximately $400,000 at the prevailing market
prices at the time) to the wrong customers. To the extent that the Trust is unable to seek a corrective transaction with such third party
or is incapable of identifying the third party which has received the Trust&rsquo;s Solana through error or theft, the Trust will be
unable to revert or otherwise recover incorrectly transferred Solana. The Trust will also be unable to convert or recover its Solana
transferred to uncontrolled accounts. To the extent that the Trust is unable to seek redress for such error or theft, such loss could
adversely affect the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>A
disruption of the internet may affect Solana Network operations, which may adversely affect the Solana industry and an investment in
the Trust.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Solana Network relies on the Internet. A significant disruption of Internet connectivity (i.e., one that affects large numbers of users
or geographic regions) could disrupt the Solana Network&rsquo;s functionality and operations until the disruption of the Internet is
resolved. A disruption of the Internet could adversely affect an investment in the Trust or the ability of the Trust to operate.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I></I></B></FONT></P>

<!-- Field: Page; Sequence: 39; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->35<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Decentralized
governance of the Solana Network could have a negative impact on the performance of the Trust.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
governance of decentralized networks, such as the Solana Network, is by voluntary consensus and open competition. In other words, the
Solana Network has no central decision-making body or clear manner in which participants can come to an agreement other than through
voluntary, widespread consensus. As a result, a lack of widespread consensus in the governance of the Solana Network may adversely affect
the network&rsquo;s utility and ability to adapt and face challenges, including technical and scaling challenges. Historically the development
of the source code of the Solana Network has been overseen by Solana Labs, the Solana Foundation, and other core developers. Core developers&rsquo;
roles evolve over time, largely based on self-determined participation. If a significant majority of users and validators adopt amendments
to a decentralized network based on the proposals of such core developers, such network will be subject to new protocols that may adversely
affect the value of the relevant digital asset. However, the Solana Network would cease to operate successfully without both validators
and users, and the core developers cannot formally compel them to adopt the changes to the source code desired by core developers, or
to continue to render services or participate in the Solana Network. As a general matter, the governance of the Solana Network generally
depends on most of members of the Solana community ultimately reaching some form of voluntary agreement on significant changes.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
decentralized governance of the Solana Network may make it difficult to find or implement solutions or marshal sufficient effort to overcome
existing or future problems, especially protracted ones requiring substantial directed effort and resource commitment over a long period
of time, such as scaling challenges. The Solana Network&rsquo;s failure to overcome governance challenges could exacerbate problems experienced
by the network or cause the network to fail to meet the needs of its users, and could cause users, miners, and developer talent to abandon
the Solana Network or to choose competing blockchain protocols, or lead to a drop in speculative interest, which could cause the value
of Solana to decline. If the Solana community is unable to reach consensus in the future, it could have adverse consequences for the
network or lead to a fork, which could affect the value of Solana.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
open-source structure of the Solana Network protocol means that the core developers and other contributors are generally not directly
compensated for their contributions in maintaining and developing the Solana Network protocol. A failure to properly monitor and upgrade
the Solana Network protocol could damage the Solana Network and an investment in the trust.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Solana Network operates based on an open-source protocol maintained by the core developers and other contributors, largely on the GitHub
resource section dedicated to Solana development. As new Solana are rewarded solely for validator activity (other than the 500 million
minted in 2018 upon launch of the Solana testnet) and are not sold on an ongoing basis to generate revenue to support development activity,
and the Solana Network protocol itself is made available for free rather than sold or made available subject to licensing or subscription
fees and its use does not generate revenues for its development team, the core developers are generally not compensated for maintaining
and updating the source code for the Solana Network protocol. Consequently, there is a lack of financial incentive for developers to
maintain or develop the Solana Network and the core developers may lack the resources to adequately address emerging issues with the
Solana Network protocol. Although the Solana Network is currently supported by the core developers, there can be no guarantee that such
support will continue or be sufficient in the future. The perception that high-profile contributors may no longer contribute to the network
may have an adverse effect on the market price of any related digital assets. For example, in June 2017, an unfounded rumor circulated
that Ethereum core developer Vitalik Buterin had died. Following the rumor, the price of ETH decreased approximately 20% before recovering
after Buterin himself dispelled the rumor. Some have speculated that the rumor led to the decrease in the price of ETH. In the event
a high-profile contributor to the Solana Network is perceived as no longer able to contribute to the Solana Network due to death, retirement,
withdrawal, incapacity, or otherwise, whether or not such perception is valid, it could negatively affect the price of Solana, which
could adversely impact the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
another example, FTX, one of the largest Digital asset trading platforms at the time, experienced a high-profile collapse in November
2022. Along with its CEO Sam Bankman-Fried and Alameda Research (a digital asset trading firm also owned by Bankman-Fried), FTX had provided
substantial financial and developmental support to the Solana project. Bankman-Fried was also a strong and vocal supporter of Solana
and the Solana Network. It does not appear, however, that FTX, Alameda Research, or any other Bankman-Fried-affiliated entity had a formal
relationship with Solana Labs or the Solana Foundation, or that Solana Labs or the Solana Foundation were involved in any of FTX, Alameda
Research or Bankman-Fried&rsquo;s alleged misconduct. Based on public information it does not appear that FTX or Alameda Research operated
a validator node on the Solana Network. The price of Solana fell severely immediately following the news of FTX&rsquo;s insolvency (although
it has since recovered substantially).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 40; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->36<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
the event a high-profile contributor to the Solana Network, such as Anatoly Yakovenko, is perceived as no longer contributing to the
Solana Network due to death, retirement, withdrawal, incapacity, or otherwise, whether or not such perception is valid, it could negatively
affect the price of Solana, which could adversely impact the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Alternatively,
some developers may be funded by entities whose interests are at odds with other participants in the Solana Network.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, a bad actor could also attempt to interfere with the operation of the Solana Network by attempting to exercise a malign influence
over a core developer. To the extent that material issues arise with the Solana Network protocol and the core developers and open-source
contributors are unable to address the issues adequately or in a timely manner, the Solana Network and an investment in the Trust may
be adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Flaws
in source code.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
the past, flaws in the source code for digital asset networks have been exposed and exploited, including flaws that disabled some functionality
for users, exposed users&rsquo; personal information and/or resulted in the theft of users&rsquo; digital assets. Discovery of flaws
in or exploitations of the source code that allow malicious actors to take or create money in contravention of known network rules have
occurred. The cryptography underlying Solana could prove to be flawed or ineffective, or developments in mathematics and/or technology,
such as advances in digital computing, algebraic geometry and quantum computing, could make cryptography ineffective. In any of these
circumstances, a malicious actor may be able to steal Solana held by others, which could adversely affect the demand for Solana and therefore
adversely impact the price of Solana and the value of the Shares. Even if a digital asset other than Solana were affected by similar
circumstances, any reduction in confidence in the robustness of the source code or cryptography underlying digital assets generally could
negatively affect the demand for all digital assets, including Solana, and therefore adversely affect the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Competition
from the emergence or growth of other digital assets or methods of investing in Solana could have a negative impact on the price of Solana
and adversely affect the value of the Shares.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
of November 1, 2024, Solana was the 5th largest digital asset by market capitalization, as tracked by CoinMarketCap.com. As of ________,
20__, the alternative digital assets tracked by CoinMarketCap.com had a total market capitalization of approximately $____ billion (including
the approximately $____ billion market cap of Solana), as calculated using market prices and total available supply of each digital asset,
excluding tokens pegged to other assets. Solana faces competition from a wide range of digital assets, including Bitcoin and Ethereum.
Solana is also supported by fewer regulated trading platforms than more established digital assets, such as Bitcoin and Ethereum, which
could impact its liquidity. In addition, Solana is in direct competition to other smart contract platforms, such as Ethereum, Polkadot,
Avalanche and Cardano. Competition from the emergence or growth of alternative digital assets and smart contracts platforms, such as
EOS, Tezos, Tron, and numerous others, could have a negative impact on the demand for, and price of, Solana and thereby adversely affect
the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, some digital asset networks, including the Solana Network, may be the target of ill will from users of other digital asset
networks. For example, in July 2016, the Solana Network underwent a contentious hard fork that resulted in the creation of a new digital
asset network called Solana Classic. As a result, some users of the Solana Classic network may harbor ill will toward the Solana Network.
These users may attempt to negatively impact the use or adoption of the Solana Network.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Investors
may invest in Solana through means other than the Shares, including through direct investments in Solana and other potential financial
vehicles, possibly including securities backed by or linked to Solana and digital asset financial vehicles similar to the Trust, or other
futures-based products. Market and financial conditions, and other conditions beyond the Sponsor&rsquo;s control, may make it more attractive
to invest in other financial vehicles or to invest in Solana directly, which could limit the market for, and reduce the liquidity of,
the Shares. In addition, to the extent digital asset financial vehicles other than the Trust tracking the price of Solana are formed
and represent a significant proportion of the demand for Solana, large purchases or redemptions of the securities of these digital asset
financial vehicles, or private funds holding Solana, could negatively affect the Pricing Benchmark, the Trust&rsquo;s Solana holdings,
the price of the Shares, the net asset value of the Trust and the NAV.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I></I></B></FONT></P>

<!-- Field: Page; Sequence: 41; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->37<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Congestion
or delay in the Solana Network may delay purchases or sales of Solana by the Trust.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Increased
transaction volume could result in delays in the recording of transactions due to congestion in the Solana Network. Moreover, unforeseen
system failures, disruptions in operations, or poor connectivity may also result in delays in the recording of transactions on the Solana
Network. Any delay in the Solana Network could affect an Authorized Participant&rsquo;s ability to buy or sell Solana Network at an advantageous
price resulting in decreased confidence in the Solana Network. 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.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Risks
Associated with the Pricing Benchmark, SRR and CME Solana Real Time Price</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Pricing Benchmark, SRR and CME Solana Real Time Price each have a limited history.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Pricing Benchmark, which was introduced on September 16, 2024, is based on materially the same methodology (except calculation time)
as the SRR, which was first introduced on April 25, 2022. The Pricing Benchmark and the SRR have a limited history and their value is
an average composite reference rate calculated using volume-weighted trading price data from the Constituent Platforms. A longer history
of actual performance through various economic and market conditions would provide greater and more reliable information for an investor
to assess Pricing Benchmark&rsquo;s performance. The Benchmark Provider has substantial discretion at any time to change the methodology
used to calculate the Pricing Benchmark, including the Constituent Platforms that contribute prices to the Trust&rsquo;s NAV. The Benchmark
Provider does not have any obligation to take into consideration the needs of the Trust, the Shareholders, or anyone else in connection
with such changes. There is no guarantee that the methodology currently used in calculating the Pricing Benchmark will appropriately
track the price of Solana in the future. Neither the CME Group nor the Benchmark Provider has any obligation to take into consideration
the needs of the Trust or the Shareholders in determining, composing, or calculating the Pricing Benchmark or in the selection of the
Constituent Platforms used. The Constituent Platforms are chosen by the Benchmark Provider, under the oversight of the CME CF Cryptocurrency
Pricing Products Oversight Committee.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Although
the Pricing Benchmark is intended to accurately capture the market price of Solana, third parties may be able to purchase and sell Solana
on public or private markets not included among the Constituent Platforms, and such transactions may take place at prices materially
higher or lower than the Pricing Benchmark price. Moreover, there may be variances in the price of Solana on the various Constituent
Platforms, including as a result of differences in fee structures or administrative procedures on different Constituent Platforms. While
the Pricing Benchmark provides a U.S. dollar-denominated price of Solana based on the volume-weighted price of Solana on certain Constituent
Platforms, at any given time, the prices on each such Constituent Platform may not be equal to the price of Solana as represented by
the Pricing Benchmark. It is possible that the price of Solana on the Constituent Platforms could be materially higher or lower than
the Pricing Benchmark price. To the extent the Pricing Benchmark price differs materially from the actual prices available on a Constituent
Platform, or from the global market price of Solana, the price of the Shares may no longer track, whether temporarily or over time, the
global market price of Solana, which could adversely affect an investment in the Trust by reducing investors&rsquo; confidence in the
Shares&rsquo; ability to track the market price of Solana. To the extent such prices differ materially from the Pricing Benchmark price,
investors may lose confidence in the Shares&rsquo; ability to track the market price of Solana, which could adversely affect the value
of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
pricing sources (Constituent Platforms) used by the Pricing Benchmark are digital asset trading venues that facilitate the buying and
selling of Solana and other digital assets. Although many pricing sources refer to themselves as &ldquo;exchanges,&rdquo; they are not
registered with, or supervised by, the SEC or the CFTC and they do not meet the regulatory standards of a national securities exchange
or designated contract market. For these reasons, among others, purchases and sales of Solana may be subject to temporary distortions
or other disruptions due to various factors, including the lack of liquidity in the markets and government regulation and intervention.
These circumstances could affect the price of Solana used in Pricing Benchmark calculations and, therefore, could adversely affect the
Solana price as reflected by the Pricing Benchmark.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 42; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->38<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Constituent Platforms have changed over time. For example, on January 25, 2019, itBit was suspended from the Pricing Benchmark due to
data quality issues, which suspension was lifted on February 1, 2019 after the Benchmark Provider confirmed that data quality assurance
measures were in place to identify the errors that the itBit data contained through a full match of parameters. On August 30, 2019, Gemini
was added to the Pricing Benchmark. On October 28, 2019, Coinbase was added to the Pricing Benchmark. On May 3, 2022, LMAX Digital was
added to the Pricing Benchmark. The Benchmark Provider, under the oversight of the CME CF Cryptocurrency Pricing Products Oversight Committee,
may remove or add Constituent Platforms in the future at its discretion. For more information on the inclusion criteria for Constituent
Platforms in the Pricing Benchmark, see &ldquo;THE TRUST AND SOLANA PRICES&mdash;The CME CF Solana &ndash; Dollar Reference Rate &ndash;
New York Variant.<B>"</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Pricing Benchmark is based on various inputs which may include price data from various third-party digital asset trading platforms. Neither
the CME Group nor the Benchmark Provider guarantees the validity of any of these inputs, which may be subject to technological error,
manipulative activity, or fraudulent reporting from their initial source.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust utilizes the Pricing Benchmark to establish its NAV and NAV per Share. In the event that the Pricing Benchmark is incorrectly calculated,
is not timely calculated or changes its calculation methodology in the future, such an occurrence may adversely impact an investment
in the Shares or the Trust&rsquo;s operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
CME Solana Real Time Price also has a limited history and shares some of the same structural and methodological features and risks as
the Pricing Benchmark. The Trust utilizes the CME Solana Real Time Price to establish its ITV. While investors are capable of assessing
the intra-day movement of the price of the Shares and the Solana market price of Solana, Shareholders may use the ITV as a data point
in their assessment of the value of the Shares. In the event that the CME Solana Real Time Price is incorrectly calculated, is not timely
calculated or changes its calculation methodology in the future, such an occurrence may adversely impact the utility of the ITV to Shareholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Although
the Pricing Benchmark and CME Solana Real Time Price are designed to accurately capture the market price of Solana, third parties may
be able to purchase and sell Solana on public or private markets not included among the Constituent Platforms of the Pricing Benchmark
and CME Solana Real Time Price, and such transactions may take place at prices materially higher or lower than the level of the Pricing
Benchmark used to establish the NAV. To the extent such prices differ materially from the level of the Pricing Benchmark used to establish
the NAV, investors may lose confidence in the Shares&rsquo; ability to track the market price of Solana, which could adversely affect
an investment in the Shares.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Benchmark Provider could experience systems failures or errors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
the computers or other facilities of the Benchmark Provider, data providers and/or relevant stock exchange malfunction for any reason,
calculation and dissemination of the Pricing Benchmark may be delayed. Errors in Pricing Benchmark data, the Pricing Benchmark computations
and/or construction may occur from time to time and may not be identified and/or corrected for a period of time or at all, which may
have an adverse impact on the Trust and the Shareholders. Any of the foregoing may lead to errors in the Pricing Benchmark, which may
lead to a different investment outcome for the Trust and its Shareholders than would have been the case had such events not occurred.
The Pricing Benchmark is the reference price for calculating the Trust&rsquo;s NAV. Consequently, losses or costs associated with the
Pricing Benchmark&rsquo;s errors or other risks described above will generally be borne by the Trust and the Shareholders and neither
the Sponsor nor its affiliates or agents make any representations or warranties regarding the foregoing.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
the Pricing Benchmark is not available, the Trust&rsquo;s holdings may be fair valued in accordance with the policy approved by the Sponsor.
If the Pricing Benchmark is not available, or if the Sponsor determines, in its sole discretion, that the Pricing Benchmark does not
reflect an accurate Solana price, the Trust&rsquo;s holdings may be &ldquo;fair valued&rdquo; in accordance with the valuation policies
approved by the Sponsor. Those valuation policies stipulate that when seeking to fair value Solana, the Sponsor may apply all available
factors the Sponsor deems relevant at the time of the determination, and may be based on analytical values determined by the Sponsor
using third-party valuation models. Pursuant thereto, the Sponsor expects to utilize a volume-weighted average price or volume-weighted
median price of Solana provided by a secondary pricing source (&ldquo;Secondary Source&rdquo;). If a Secondary Source is not available
or the Sponsor in its sole discretion determines the Secondary Sources are unreliable, the price set by the Trust&rsquo;s principal market
as of 4:00 p.m. ET, on the valuation date would be considered for utilization. In the event the principal market price is not available
or the Sponsor in its sole discretion determines the principal market valuation is unreliable the Sponsor will use its best judgment
to determine a good faith estimate of fair value based upon all available factors. The Sponsor does not anticipate that the need to &ldquo;fair
value&rdquo; Solana will be a common occurrence.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 43; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->39<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
the extent the valuation determined in accordance with the policy approved by the Sponsor differs materially from the actual market price
of Solana, the price of the Shares may no longer track, whether temporarily or over time, the global market price of Solana, which could
adversely affect an investment in the Trust by reducing investors&rsquo; confidence in the Shares&rsquo; ability to track the global
market price of Solana. To the extent such prices differ materially from the market price for Solana, investors may lose confidence in
the Shares&rsquo; ability to track the market price of Solana, which could adversely affect the value of the Shares. The Sponsor does
not anticipate that the need to &ldquo;fair value&rdquo; Solana will be a common occurrence.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Pricing Benchmark could fail to track the global Solana price, and a failure of the Pricing Benchmark could adversely affect the value
of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Although
the Pricing Benchmark is intended to accurately capture the market price of Solana, third parties may be able to purchase and sell Solana
on public or private markets not included among the Constituent Platforms, and such transactions may take place at prices materially
higher or lower than the Pricing Benchmark price. Moreover, there may be variances in the price of Solana on the various Constituent
Platforms, including as a result of differences in fee structures or administrative procedures on different Constituent Platforms. While
the Pricing Benchmark provides a U.S. dollar-denominated composite for the price of Solana based on the volume-weighted price of Solana
on certain Constituent Platforms, at any given time, the prices on each such Constituent Platform or pricing source may not be equal
to the price of Solana as represented by the Pricing Benchmark. It is possible that the price of Solana on the Constituent Platforms
could be materially higher or lower than the Pricing Benchmark price. To the extent the Pricing Benchmark price differs materially from
the actual prices available on a Constituent Platform, or from the global market price of Solana, the price of the Shares may no longer
track, whether temporarily or over time, the global market price of Solana, which could adversely affect an investment in the Trust by
reducing investors&rsquo; confidence in the Shares&rsquo; ability to track the market price of Solana. To the extent such prices differ
materially from the Pricing Benchmark price, investors may lose confidence in the Shares&rsquo; ability to track the market price of
Solana, which could adversely affect the value of the Shares.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor can discontinue using the Pricing Benchmark and use a different pricing or valuation methodology instead.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor, in its sole discretion, may cause the Trust to price its portfolio based upon an index, benchmark or standard other than the
Pricing Benchmark at any time, with prior notice to the Shareholders, if investment conditions change or the Sponsor believes that another
index, benchmark or standard better aligns with the Trust&rsquo;s investment objective and strategy. The Sponsor may make this decision
for a number of reasons, including, but not limited to, a determination that the Pricing Benchmark price of Solana differs materially
from the global market price of Solana and/or that third parties are able to purchase and sell Solana on public or private markets not
included among the Constituent Platforms, and such transactions may take place at prices materially higher or lower than the Pricing
Benchmark price. The Sponsor, however, is under no obligation whatsoever to make such changes in any circumstance. In the event that
the Sponsor intends to establish the Trust&rsquo;s NAV by reference to an index, benchmark or standard other than the Pricing Benchmark,
it will provide Shareholders with notice in a prospectus supplement and/or through a current report on Form 8-K or in the Trust&rsquo;s
annual or quarterly reports.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Pricing Benchmark price used to calculate the value of the Trust&rsquo;s Solana may be volatile, adversely affecting the value of the
Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
price of Solana on public digital asset trading platforms has a limited history, and during this history, Solana prices on the digital
asset markets more generally, and on digital asset trading platforms individually, have been volatile and subject to influence by many
factors, including operational interruptions. While the Pricing Benchmark is designed to limit exposure to the interruption of individual
digital asset trading platforms, the Pricing Benchmark price, and the price of Solana generally, remains subject to volatility experienced
by digital asset exchanges, and such volatility could adversely affect the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 44; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->40<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Furthermore,
because the number of liquid and credible digital asset trading platforms is limited, the Pricing Benchmark will necessarily be composed
of a limited number of digital asset trading platforms. If a digital asset trading platform were subjected to regulatory, volatility
or other pricing issues, the Benchmark Provider would have limited ability to remove such digital asset trading platform from the Pricing
Benchmark, which could skew the price of Solana as represented by the Pricing Benchmark. Trading on a limited number of digital asset
trading platforms may result in less favorable prices and decreased liquidity of Solana and, therefore, could have an adverse effect
on the value of the Shares.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Pricing Benchmark price being used to determine the NAV of the Trust may not be consistent with GAAP. To the extent that the Trust&rsquo;s
financial statements are determined using a different pricing source that is consistent with GAAP, the NAV reported in the Trust&rsquo;s
periodic financial statements may differ, in some cases significantly, from the Trust&rsquo;s NAV determined using the Pricing Benchmark
pricing.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust will determine the NAV of the Trust on each business day based on the value of Solana as reflected by the Pricing Benchmark. The
methodology used to calculate the Pricing Benchmark price to value Solana in determining the NAV of the Trust may not be deemed consistent
with GAAP. To the extent the methodology used to calculate the Pricing Benchmark is deemed inconsistent with GAAP, the Trust will utilize
an alternative GAAP-consistent pricing source for purposes of the Trust&rsquo;s periodic financial statements. Creation and redemption
of Baskets, the Sponsor Fee and other expenses borne by the Trust will be determined using the Trust&rsquo;s NAV determined daily based
on the Pricing Benchmark. Such NAV of the Trust determined using the Pricing Benchmark price may differ, in some cases significantly,
from the NAV reported in the Trust&rsquo;s periodic financial statements.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Risks
Related to Pricing.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust&rsquo;s portfolio will be priced, including for purposes of determining the NAV, based upon the Pricing Benchmark. The price of
Solana in U.S. dollars or in other currencies available from other data sources may not be equal to the prices used to calculate the
NAV.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
NAV of the Trust will change as fluctuations occur in the market price of the Trust&rsquo;s Solana holdings as reflected in the Pricing
Benchmark. Shareholders should be aware that the public trading price per Share may be different from the NAV for a number of reasons,
including price volatility; trading activity; the closing of Solana trading platforms due to fraud, failure, security breaches or otherwise;
and the fact that supply-and-demand forces at work in the secondary trading market for Shares are related, but not identical, to the
supply-and-demand forces influencing the market price of Solana.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shareholders
also should note that the size of the Trust in terms of total Solana held may change substantially over time and as Baskets are created
and redeemed.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
the event that the value of the Trust&rsquo;s Solana holdings or Solana holdings per Share is incorrectly calculated, neither the Sponsor
nor the Administrator will be liable for any error and such misreporting of valuation data could adversely affect the value of the Shares.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Risks
Associated with Investing in the Trust</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Investment-Related
Risks</I>.</B></FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">Investing
in Solana and, consequently, the Trust, is speculative. The price of Solana is volatile, and market movements of Solana are difficult
to predict. Supply-and-demand changes rapidly are affected by a variety of factors, including regulation and general economic trends,
such as interest rates, availability of credit, credit defaults, inflation rates and economic uncertainty. All investments made by the
Trust will risk the loss of capital. Therefore, an investment in the Trust involves a high degree of risk, including the risk that the
entire amount invested may be lost. No guarantee or representation is made that the Trust&rsquo;s investment program will be successful,
that the Trust will achieve its investment objective or that there will be any return of capital invested to investors in the Trust,
and investment results may vary.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust is subject to market risk.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Market
risk refers to the risk that the market price of Solana held by the Trust will rise or fall, sometimes rapidly or unpredictably. An investment
in the Shares is subject to market risk, including the possible loss of the entire principal of the investment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I></I></B></FONT></P>

<!-- Field: Page; Sequence: 45; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->41<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Different
from directly owning Solana</I>.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
performance of the Trust will not reflect the specific return an investor would realize if the investor actually held or purchased Solana
directly. The differences in performance may be due to factors such as fees and transaction costs. Investors will also forgo certain
rights conferred by owning Solana directly, such as the right to claim airdrops. See &ldquo;RISK FACTORS&mdash;Risks Associated with
Investing in the Trust&mdash;Shareholders may not receive the benefits of any forks or &ldquo;airdrops.&rdquo;"</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust is a passive investment vehicle. The Trust is not actively managed and will be affected by a general decline in the price of Solana.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor does not actively manage the Solana held by the Trust. This means that the Sponsor does not sell Solana at times when its price
is high, or acquire Solana at low prices in the expectation of future price increases. It also means that the Sponsor does not make use
of any of the hedging techniques available to professional Solana investors to attempt to reduce the risks of losses resulting from price
decreases. Any losses sustained by the Trust will adversely affect the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
value of the Shares may be influenced by a variety of factors unrelated to the price of Solana.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
value of the Shares may be influenced by a variety of factors unrelated to the price of Solana that may have an adverse effect on the
price of the Shares. These factors include, but are not limited to, the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Unanticipated
                                            problems or issues with respect to the mechanics of the Trust&rsquo;s operations and the
                                            trading of the Shares may arise, in particular due to the fact that the mechanisms and procedures
                                            governing the creation and offering of the Shares and storage of Solana have been developed
                                            specifically for this product;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            Trust could experience difficulties in operating and maintaining its technical infrastructure,
                                            including in connection with expansions or updates to such infrastructure, which are likely
                                            to be complex and could lead to unanticipated delays, unforeseen expenses and security vulnerabilities;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            Trust could experience unforeseen issues relating to the performance and effectiveness of
                                            the security procedures used to protect the Trust&rsquo;s account with the Solana Custodian,
                                            or the security procedures may not protect against all errors, software flaws or other vulnerabilities
                                            in the Trust&rsquo;s technical infrastructure, which could result in theft, loss or damage
                                            of its assets; or</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font-family: Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Service
                                            providers may decide to terminate their relationships with the Trust due to concerns that
                                            the introduction of privacy-enhancing features to the Solana Network may increase the potential
                                            for Solana to be used to facilitate crime, exposing such service providers to potential reputational
                                            harm.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Any
of these factors could affect the value of the Shares, either directly or indirectly through their effect on the Trust&rsquo;s assets.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Liquidity
risk.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">The
Trust&rsquo;s and the Authorized Participants&rsquo; ability to buy or sell Solana may be adversely affected by limited trading volume,
lack of a market maker, or legal restrictions. It is also possible that a Solana spot market or governmental authority may suspend or
restrict trading in Solana altogether. Therefore, it may not always be possible to execute a buy or sell order at the desired price or
to liquidate an open position due to market conditions on spot markets, regulatory issues affecting Solana or other issues affecting
counterparties. Solana is a new asset with a very limited trading history. Therefore, the markets for Solana may be less liquid and more
volatile than other markets for more established products.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
NAV may not always correspond to the market price of Solana and, as a result, Baskets may be created or redeemed at a value that is different
from the market price of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
NAV of the Trust will change as fluctuations occur in the market price of the Trust&rsquo;s Solana holdings. Shareholders should be aware
that the public trading price per Share may be different from the NAV for a number of reasons, including price volatility; trading activity;
the closing of digital asset trading platforms due to fraud, failure, security breaches or otherwise; and the fact that supply-and-demand
forces at work in the secondary trading market for Shares are related, but not identical, to the supply-and-demand forces influencing
the market price of Solana.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 46; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->42<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">An Authorized Participant may
be able to create or redeem a Basket at a discount or a premium to the public trading price per Share, and the Trust will therefore maintain
its intended fractional exposure to a specific amount of Solana per Share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Shareholders also should note
that the size of the Trust in terms of total Solana held may change substantially over time and as Baskets are created and redeemed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">When acquiring Solana, it is possible
that the Trust will pay a higher price for Solana than the value ascribed to Solana by the Pricing Benchmark, the rate used to calculate
the Trust&rsquo;s NAV. This is known as &ldquo;slippage.&rdquo; While transactions in any asset are subject to the risk of slippage, it
is possible that transactions in digital assets may be more susceptible. The Trust seeks to minimize the risk of slippage by basing the
amount of cash an Authorized Participant is required to deposit to consummate a creation order for Baskets on the price the Trust actually
paid for the Solana rather than on the value of Solana ascribed by the Pricing Benchmark. Nonetheless, there can be no guarantee that
the Trust will not be negatively affected by slippage from time to time.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Shares may trade
at a discount or premium in the trading price relative to the NAV as a result of non-concurrent trading hours between the Exchange and
digital asset trading platforms. Non-concurrent trading hours may also result in the Shares gapping at the open of trading on the Exchange.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The value of a Share may be influenced
by non-concurrent trading hours between the Exchange and various digital asset trading platforms, including the Constituent Platforms
of the Pricing Benchmark. Additionally, Shares may be traded at other times and in other venues. While U.S. equity markets are open for
trading in the Shares for a limited period each day, the Solana market is a 24-hour marketplace; however, trading volume and liquidity
on the Solana market are not consistent throughout the day and digital asset trading platforms, including the larger-volume markets, have
been known to shut down temporarily or permanently due to security concerns, directed denial-of-service attacks and other reasons. As
a result, during periods when U.S. equity markets are open but large portions of the Solana market are either lightly traded or are closed,
trading spreads and the resulting premium or discount on the Shares may widen and, therefore, increase the difference between the price
of the Shares and the NAV. Premiums or discounts may have an adverse effect on an investment in the Shares if a Shareholder sells or acquires
its Shares during a period of discount or premium, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">During periods when U.S. equity
markets are closed but digital asset trading platforms are open, significant changes in the price of Solana could result in a difference
in performance between the price of Solana and the most recent Share price. To the extent that the price of Solana moves significantly
in a negative direction after the close of U.S. equity markets, the trading price of the Shares may &ldquo;gap&rdquo; down to the full
extent of such negative price shift when U.S. equity markets reopen. To the extent that the price of Solana drops significantly during
hours in which U.S. equity markets are closed, investors may not be able to sell their Shares until after the &ldquo;gap&rdquo; down has
been fully realized, resulting in an inability to mitigate losses in a rapidly negative market.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Buying and selling
activity associated with the purchase and redemption of Baskets may adversely affect an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Sponsor&rsquo;s purchase of
Solana in connection with Basket purchase orders may cause the price of Solana to increase, which will result in higher prices for the
Shares. Increases in the Solana prices may also occur as a result of Solana purchases by other market participants who attempt to benefit
from an increase in the market price of Solana when Baskets are created. The market price of Solana may therefore decline immediately
after Baskets are created.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Selling activity associated with
sales of Solana by the Sponsor in connection with redemption orders may decrease the Solana prices, which will result in lower prices
for the Shares. Decreases in Solana prices may also occur as a result of selling activity by other market participants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In addition to the effect that
purchases and sales of Solana by the Sponsor and other market participants may have on the price of Solana, other exchange-traded products
or large private investment vehicles with similar investment objectives (if developed) could represent a substantial portion of demand
for Solana at any given time and the sales and purchases by such investment vehicles may impact the price of Solana. If the price of Solana
declines, the trading price of the Shares will generally also decline.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 47; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->43<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The inability of Authorized
Participants and market makers to hedge their Solana exposure may adversely affect the liquidity of Shares and the value of an investment
in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Authorized Participants and market
makers will generally want to hedge their exposure in connection with Basket purchase and redemption orders. To the extent Authorized
Participants and market makers are unable to hedge their exposure due to market conditions (e.g., insufficient Solana liquidity in the
market, inability to locate an appropriate hedge counterparty, extreme volatility in the price of Solana, wide spreads between prices
quoted on different Solana trading platforms, the closing of Solana trading platforms due to fraud, failures, security breaches or otherwise
etc.), such conditions may make it difficult to purchase or redeem Baskets or cause them to not create or redeem Baskets. In addition,
the hedging mechanisms employed by Authorized Participants and market makers to hedge their exposure to Solana may not function as intended,
which may make it more difficult for them to enter into such transactions. Such events could negatively impact the market price of Shares
and the spread at which Shares trade on the open market.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Arbitrage transactions
intended to keep the price of Shares closely linked to the price of Solana may be problematic if the process for the purchase and redemption
of Baskets encounters difficulties, which may adversely affect an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If the processes of creation and
redemption of Shares (which depend on timely transfers of Solana to and by the Solana Custodian) encounter any unanticipated difficulties
due to, for example, the price volatility of Solana, the insolvency, business failure or interruption, default, failure to perform, security
breach, or other problems affecting the Prime Execution Agent or Solana Custodian, the closing of Solana trading platforms due to fraud,
failures, security breaches or otherwise, or network outages or congestion, spikes in transaction fees demanded by validators, or other
problems or disruptions affecting the Solana Network, then potential market participants, such as the Authorized Participants and their
customers, who would otherwise be willing to purchase or redeem Baskets to take advantage of any arbitrage opportunity arising from discrepancies
between the price of the Shares and the price of the underlying Solana may not take the risk that, as a result of those difficulties,
they may not be able to realize the profit they expect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Alternatively, in the case of
a network outage or other problems affecting the Solana Network, the processing of transactions on the Solana Network may be disrupted,
which in turn may prevent Solana Trading Counterparties from depositing or withdrawing Solana from their custody accounts, which in turn
could affect the creation or redemption of Baskets. If this is the case, the liquidity of the Shares may decline and the price of the
Shares may fluctuate independently of the price of Solana and may fall or otherwise diverge from NAV. Furthermore, in the event that the
market for Solana should become relatively illiquid and thereby materially restrict opportunities for arbitraging by delivering Solana
in return for Baskets, the price of Shares may diverge from the price of Solana.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Investors may be adversely
affected by purchase or redemption orders that are subject to postponement, suspension or rejection under certain circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Trust may, in its discretion,
suspend the right of purchase or redemption or may postpone the redemption or purchase settlement date, for (1) for any period during
which the Exchange is closed other than customary weekend or holiday closings, or trading on the Exchange is suspended or restricted,
(2) any period during which an emergency exists as a result of which the fulfillment of a purchase order or the redemption distribution
is not reasonably practicable (for example, as a result of an interruption in services or availability of the Prime Execution Agent, Solana
Custodian, Cash Custodian, Administrator, or other service providers to the Trust, act of God, catastrophe, civil disturbance, government
prohibition, war, terrorism, strike or other labor dispute, fire, force majeure, interruption in telecommunications, internet services,
or network provider services, unavailability of Fedwire, SWIFT or banks&rsquo; payment processes, significant technical failure, bug,
error, disruption or fork of the Solana Network, hacking, cybersecurity breach, or power, internet, or Solana Network outage, or similar
event), or (3) such other period as the Sponsor determines to be necessary for the protection of the Shareholders of the Trust (for example,
where acceptance of the U.S. dollars needed to create each Basket would have certain adverse tax consequences to the Trust or its Shareholders).
In addition, the Trust may reject a redemption order if the order is not in proper form as described in the Authorized Participant Agreement
or if the fulfillment of the order might be unlawful. Any such postponement, suspension or rejection could adversely affect a redeeming
Authorized Participant. Suspension of creation privileges may adversely impact how the Shares are traded and arbitraged in the secondary
market, which could cause Shares to trade at levels materially different (premiums and discounts) from the value of their underlying Solana.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 48; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->44<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Investors may be adversely
affected by an overstatement or understatement of the NAV calculation of the Trust due to the valuation method employed on the date of
the NAV calculation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In certain circumstances, the
Trust&rsquo;s Solana investments may be valued using techniques other than reliance on the price established by the Pricing Benchmark.
The value established by using the Pricing Benchmark may be different from what would be produced through the use of another methodology.
The value of Solana or other digital asset investments valued using techniques other than those employed by the Pricing Benchmark, including
&ldquo;fair valuation measures,&rdquo; may differ from the value of Solana determined by reference to the Pricing Benchmark.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If the Pricing Benchmark is not
available, or if the Sponsor determines, in its sole discretion, that the Pricing Benchmark does not reflect an accurate Solana price,
the Trust&rsquo;s holdings may be &ldquo;fair valued&rdquo; in accordance with the valuation policies approved by the Sponsor. Those valuation
policies stipulate that when seeking to fair value Solana, the Sponsor may apply all available factors the Sponsor deems relevant at the
time of the determination, and may be based on analytical values determined by the Sponsor using third-party valuation models. Pursuant
thereto, the Sponsor expects to utilize a volume-weighted average price or volume-weighted median price of Solana provided by a Secondary
Source. If a Secondary Source is not available or the Sponsor in its sole discretion determines the Secondary Sources are unreliable,
the price set by the Trust&rsquo;s principal market as of 4:00 p.m. ET, on the valuation date would be considered for utilization. In
the event the principal market price is not available or the Sponsor in its sole discretion determines the principal market valuation
is unreliable the Sponsor will use its best judgment to determine a good faith estimate of fair value based upon all available factors.
The Sponsor does not anticipate that the need to &ldquo;fair value&rdquo; Solana will be a common occurrence.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As an owner of Shares,
you will not have the rights normally associated with ownership of other types of shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Shares are not entitled to the
same rights as shares issued by a corporation. By acquiring Shares, you are not acquiring the right to elect directors, to receive dividends,
to vote on certain matters regarding the issuer of the Shares or to take other actions normally associated with the ownership of shares.
You will only have the limited rights described under &ldquo;MANAGEMENT; VOTING BY SHAREHOLDERS.&rdquo;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Sponsor and the
Trustee may agree to amend the Trust Agreement or Sponsor Agreement without the consent of the Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Sponsor and the Trustee may
agree to amend the Trust Agreement or Sponsor Agreement without Shareholder consent. The Sponsor shall determine the contents and manner
of delivery of any notice of any Trust Agreement amendment. Such notice may be provided on the Trust&rsquo;s website, in a prospectus
supplement, through a current report on Form 8-K and/or in the Trust&rsquo;s annual or quarterly reports. If an amendment to the Trust
Agreement or Sponsor Agreement imposes new fees and charges or increases existing fees or charges, including the Sponsor Fee (except for
taxes and other governmental charges, registration fees or other such expenses), or prejudices a substantial right of Shareholders, it
will become effective for outstanding Shares 30 days after notice of such amendment is given to registered owners. Shareholders that are
not registered owners (which most Shareholders will not be) may not receive specific notice of a fee increase other than through an amendment
to the Prospectus. Moreover, at the time an amendment becomes effective, by continuing to hold Shares, Shareholders are deemed to agree
to the amendment and to be bound by the Trust Agreement and Sponsor Agreement as amended without specific agreement to such increase.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Trust is subject
to risks due to its concentration of investments in a single asset class.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Unlike other funds that may invest
in diversified assets, the Trust&rsquo;s investment strategy is concentrated in a single asset class: Solana. This concentration maximizes
the degree of the Trust&rsquo;s exposure to a variety of market risks associated with Solana. By concentrating its investment strategy
solely on Solana, any losses suffered as a result of a decrease in the price of Solana can be expected to reduce the value of an interest
in the Trust and will not be offset by other gains if the Trust were to invest in underlying assets that were diversified.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">A possible &ldquo;short
squeeze&rdquo; due to a sudden increase in demand for the Shares that largely exceeds supply may lead to price volatility in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Investors may purchase Shares
to hedge existing Solana or other digital asset, commodity or currency exposure or to speculate on the price of Solana. Speculation on
the price of Solana may involve long and short exposures. To the extent that aggregate short exposure exceeds the number of Shares available
for purchase (for example, in the event that large redemption requests by Authorized Participants dramatically affect Share liquidity),
investors with short exposure may have to pay a premium to repurchase Shares for delivery to Share lenders. Those repurchases may, in
turn, dramatically increase the price of the Shares until additional Shares are created through the creation process. This is often referred
to as a &ldquo;short squeeze.&rdquo; A short squeeze could lead to volatile price movements in the Shares that are not directly correlated
to the price of Solana.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 49; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->45<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As the Sponsor and
its management have a limited history of operating an investment vehicle like the Trust, their experience may be inadequate or unsuitable
to manage the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Sponsor has no history of
past performance in managing a Solana exchange-traded product, which is a novel type of investment product. In addition, the Sponsor is
not, and the Sponsor believes it is not required to be, registered as an investment adviser under the Investment Advisers Act of 1940
(the &ldquo;Advisers Act&rdquo;) or a commodity pool operator or commodity trading adviser under the Commodity Exchange Act. The past
performances of the Sponsor&rsquo;s management in other positions, including their experiences in private funds that hold Solana and traditional
exchange-traded funds investing in securities, are an imperfect indication of their ability to manage an investment vehicle such as the
Trust. If the experience of the Sponsor and its management is inadequate or unsuitable to manage an investment vehicle such as the Trust,
the operations of the Trust may be adversely affected.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Security threats and
cyber-attacks could result in the halting of Trust operations and a loss of Trust assets or damage to the reputation of the Trust, each
of which could result in a reduction in the price of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Security breaches, cyber-attacks,
computer malware and computer hacking attacks have been a prevalent concern in relation to digital assets. Multiple thefts of Solana and
other digital assets from other holders have occurred in the past. Because of the pseudonymous nature of the Solana Network, thefts can
be difficult to trace, which may make Solana a particularly attractive target for theft. Cyber security failures or breaches of one or
more of the Trust&rsquo;s service providers (including, but not limited to, the Transfer Agent, the Marketing Agent, the Administrator,
the Cash Custodian or the Solana Custodian) have the ability to cause disruptions and impact business operations, potentially resulting
in financial losses, violations of applicable privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement
or other compensation costs, and/or additional compliance costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Trust and its service providers&rsquo;
use of the internet, technology and information systems (including mobile devices and cloud-based service offerings) may expose the Trust
to potential risks linked to cyber-security breaches of those technological or information systems. The Sponsor believes that the Trust&rsquo;s
Solana held in the Trust Solana Account at the Solana Custodian or Trading Balance held with the Prime Execution Agent will be an appealing
target to hackers or malware distributors seeking to destroy, damage or steal the Trust&rsquo;s Solana and will only become more appealing
as the Trust&rsquo;s assets grow. To the extent that the Trust, Sponsor, Solana Custodian or Prime Execution Agent is unable to identify
and mitigate or stop new security threats or otherwise adapt to technological changes in the digital asset industry, the Trust&rsquo;s
Solana may be subject to theft, loss, destruction or other attack.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Sponsor believes that the
security procedures in place for the Trust, including, but not limited to, offline storage, or cold storage, multiple encrypted private
key &ldquo;shards,&rdquo; and other measures, are reasonably designed to safeguard the Trust&rsquo;s Solana. Nevertheless, the security
procedures cannot guarantee the prevention of any loss due to a security breach, software defect or act of God that may be borne by the
Trust and the security procedures may not protect against all errors, software flaws or other vulnerabilities in the Trust&rsquo;s technical
infrastructure, which could result in theft, loss or damage of its assets. The Sponsor does not control the Solana Custodian&rsquo;s or
Prime Execution Agent&rsquo;s operations or implementation of such security procedures and there can be no assurance that such security
procedures will actually work as designed or prove to be successful in safeguarding the Trust&rsquo;s assets against all possible sources
of theft, loss or damage. Assets not held in cold storage, such as assets held in a trading account, may be more vulnerable to security
breach, hacking or loss than assets held in cold storage. Furthermore, assets held in a trading account, including the Trust&rsquo;s Trading
Balance at the Prime Execution Agent, are held on an omnibus, rather than segregated basis, which creates greater risk of loss.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The security procedures and operational
infrastructure may be breached due to the actions of outside parties, error or malfeasance of an employee of the Sponsor, Prime Execution
Agent, Solana Custodian, or otherwise, and, as a result, an unauthorized party may obtain access to the Trust Solana Account with the
Solana Custodian or the Trust&rsquo;s Trading Balance with the Prime Execution Agent, the private keys (and therefore Solana) or other
data of the Trust. Additionally, outside parties may attempt to fraudulently induce employees of the Sponsor, Solana Custodian, Prime
Execution Agent or the Trust&rsquo;s other service providers to disclose sensitive information in order to gain access to the Trust&rsquo;s
infrastructure. As the techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently,
or may be designed to remain dormant until a predetermined event and often are not recognized until launched against a target, the Sponsor,
Solana Custodian or Prime Execution Agent may be unable to anticipate these techniques or implement adequate preventative measures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 50; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->46<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">An actual or perceived breach
of the Trust Solana Account with the Solana Custodian or the Trust&rsquo;s Trading Balance with the Prime Execution Agent could harm the
Trust&rsquo;s operations, result in partial or total loss of the Trust&rsquo;s assets, damage the Trust&rsquo;s reputation and negatively
affect the market perception of the effectiveness of the Trust, all of which could in turn reduce demand for the Shares, resulting in
a reduction in the price of the Shares. The Trust may also cease operations, the occurrence of which could similarly result in a reduction
in the price of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">While the Sponsor and the Trust&rsquo;s
service providers have established business continuity plans and systems that they respectively believe are reasonably designed to prevent
cyber attacks, there are inherent limitations in such plans and systems including the possibility that certain risks have not been, or
cannot be, identified. Service providers may have limited indemnification obligations to the Trust, which could be negatively impacted
as a result.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If the Trust&rsquo;s holdings
of Solana are lost, stolen or destroyed under circumstances rendering a party liable to the Trust, the responsible party may not have
the financial resources sufficient to satisfy the Trust&rsquo;s claim. For example, as to a particular event of loss, the only source
of recovery for the Trust may be limited to the relevant custodian or, to the extent identifiable, other responsible third parties (for
example, a thief or terrorist), any of which may not have the financial resources (including liability insurance coverage) to satisfy
a valid claim of the Trust. Similarly, as noted below, the Solana Custodian and Prime Execution Agent have limited liability to the Trust,
which could adversely affect the Trust&rsquo;s ability to seek recovery from them, even when the Solana Custodian&rsquo;s or Prime Execution
Agent&rsquo;s actions or failure to act are the cause of the Trust&rsquo;s loss.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">It may not be possible, either
because of a lack of available policies or because of prohibitive cost, for the Trust to obtain insurance that would cover losses of the
Trust&rsquo;s Solana. If an uninsured loss occurs or a loss exceeds policy limits, the Trust could lose all of its assets.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s
risk management processes and policies may prove to not be adequate to prevent any loss of the Trust&rsquo;s Solana.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Sponsor is continuing to monitor
and evaluate the Trust&rsquo;s risk management processes and policies and believes that the current risk management processes and procedures
are reasonably designed and effective. The Sponsor believes that the security procedures that the Sponsor, Solana Custodian and Prime
Execution Agent utilize, such as hardware redundancy, segregation and offline data storage (i.e., the maintenance of data on computers
and/or storage media that is not directly connected to or accessible from the internet and/or networked with other computers, also known
as &ldquo;cold storage&rdquo;) protocols are reasonably designed to safeguard the Trust&rsquo;s Solana from theft, loss, destruction or
other issues relating to hackers and technological attack. Despite the number of security procedures that the Sponsor, Solana Custodian
and Prime Execution Agent employ, it is impossible to guarantee the prevention of any loss due to a security breach, software defect,
act of God, pandemic or riot that may be borne by the Trust. Notwithstanding the above, the Sponsor, Solana Custodian and Prime Execution
Agent are responsible for their own gross negligence, willful misconduct or bad faith. In the event that the Trust&rsquo;s risk management
processes and policies prove to not be adequate to prevent any loss of the Trust&rsquo;s Solana and such loss is not covered by insurance
or is otherwise recoverable, the value of the Shares will decrease as a result and investors would experience a decrease in the value
of their investment.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The development and
commercialization of the Trust is subject to competitive pressures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Trust and the Sponsor face
competition with respect to the creation of competing products. The Sponsor&rsquo;s competitors may have greater financial, technical
and human resources than the Sponsor. These competitors may also compete with the Sponsor in recruiting and retaining qualified personnel.
Smaller or early-stage companies may also prove to be effective competitors, particularly through collaborative arrangements with large
and established companies. If the SEC were to approve many or all of the currently pending applications for such exchange-traded Solana
products, many or all of such products, including the Trust, could fail to acquire substantial assets, initially or at all. The Trust&rsquo;s
competitors may also charge a substantially lower fee than the Sponsor Fee in order to achieve initial market acceptance and scale. Accordingly,
the Sponsor&rsquo;s competitors may commercialize a competing product more rapidly or effectively than the Sponsor is able to, which could
adversely affect the Sponsor&rsquo;s competitive position and the likelihood that the Trust will achieve initial market acceptance, and
could have a detrimental effect on the scale and sustainability of the Trust. For exchange-traded products similar to the Trust, there
have been significant &ldquo;first-mover&rdquo; advantages in terms of asset gathering, trading volume and media coverage. In many cases,
the first mover in an asset class has been able to maintain these advantages for extended periods. In the event that the SEC were to approve
other exchange-traded Solana products prior to approving the Trust, the Trust could be significantly negatively affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 51; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->47<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If the Trust fails to achieve
sufficient scale due to competition, the Sponsor may have difficulty raising sufficient revenue to cover the costs associated with launching
and maintaining the Trust, and such shortfalls could impact the Sponsor&rsquo;s ability to properly invest in robust ongoing operations
and controls of the Trust to minimize the risk of operating events, errors, or other forms of losses to the Shareholders. In addition,
the Trust may also fail to attract adequate liquidity in the secondary market due to such competition, resulting in a sub-standard number
of Authorized Participants willing to make a market in the Shares, which in turn could result in a significant premium or discount in
the Shares for extended periods and the Trust&rsquo;s failure to reflect the performance of the price of Solana.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In addition, the Trust will compete
with direct investments in Solana, other digital assets and other potential financial vehicles, possibly including securities backed by
or linked to digital assets and other investment vehicles that focus on other digital assets. Market and financial conditions, and other
conditions beyond the Trust&rsquo;s control, may make it more attractive to invest directly or in other vehicles, which could adversely
affect the performance of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">To the extent that the Trust incurs
transaction expenses in connection with the creation and redemption process, litigation expenses, indemnification obligations under the
Trust&rsquo;s service provider agreements and other extraordinary expenses that are not borne by the Sponsor, such expenses will be borne
by the Trust. To the extent that the Trust fails to attract a sufficiently large amount of investors, the effect of such expenses on the
value of the Shares may be significantly greater than would be the case if the Trust had attracted more assets.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The lack of active
trading markets for the Shares may result in losses on investors&rsquo; investments at the time of disposition of Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Although Shares are expected to
be publicly listed and traded on the Exchange, there can be no guarantee that an active trading market for the Trust will develop or be
maintained. If investors need to sell their Shares at a time when no active market for them exists, the price investors receive for their
Shares, assuming that investors are able to sell them, likely will be lower than the price that investors would receive if an active market
did exist and, accordingly, a Shareholder may suffer losses.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Possible illiquid
markets may exacerbate losses or increase the variability between the Trust&rsquo;s NAV and its market price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Solana is a novel asset with a
very limited trading history. Therefore, the markets for Solana may be less liquid and more volatile than other markets for more established
products, such as futures contracts for traditional physical commodities. It may be difficult to execute a Solana trade at a specific
price when there is a relatively small volume of buy and sell orders in the Solana market. A market disruption can also make it more difficult
to liquidate a position or find a suitable counterparty at a reasonable cost.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Market illiquidity may cause losses
for the Trust. The large size of the positions that the Trust may acquire will increase the risk of illiquidity by both making the positions
more difficult to liquidate and increasing the losses incurred while trying to do so should the Trust need to liquidate its Solana. Any
type of disruption or illiquidity will potentially be exacerbated due to the fact that the Trust will typically invest in Solana, which
is highly concentrated.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s
Solana may be subject to loss, damage, theft or restriction on access.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">There is a risk that part or all
of the Trust&rsquo;s Solana could be lost, stolen or destroyed, potentially by the loss or theft of the private keys held by the Solana
Custodian or Prime Execution Agent associated with Trust&rsquo;s Solana. The Sponsor believes that the Solana Custodian&rsquo;s and Prime
Execution Agent&rsquo;s operations are an appealing target to hackers or malware distributors seeking to destroy, damage or steal Solana
or private keys. Although the Solana Custodian and Prime Execution Agent use multiple means and layers of security to minimize the risk
of loss, damage and theft, neither the Solana Custodian, the Prime Execution Agent nor the Sponsor can guarantee that such security will
prevent such loss, damage or theft, whether caused intentionally, accidentally or by act of God. Access to the Trust&rsquo;s Solana could
also be restricted by natural events (such as an earthquake or flood), human actions (such as a terrorist attack) or security or compliance
measures (such as in response to a hard fork). Any of these events may adversely affect the operations of the Trust and, consequently,
an investment in the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 52; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->48<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Several factors may
affect the Trust&rsquo;s ability to achieve its investment objective on a consistent basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">There is no guarantee that the
Trust will meet its investment objectives. Factors that may affect the Trust&rsquo;s ability to meet its investment objective include:
(1) the Trust&rsquo;s ability to purchase and sell Solana in an efficient manner to effectuate creation and redemption orders; (2) transaction
fees associated with the Solana Network; (3) the Solana market becoming illiquid or disrupted; (4) the Share prices being rounded to the
nearest cent and/or valuation methodologies; (5) the need to conform the Trust&rsquo;s portfolio holdings to comply with investment restrictions
or policies or regulatory or tax law requirements; (6) early or unanticipated closings of the markets on which Solana trades, resulting
in the inability of the Authorized Participants to execute intended portfolio transactions; (7) operational or methodological issues with
the Pricing Benchmark that result in the benchmark used by the Trust not accurately representing the true value of the Trust&rsquo;s Solana
holdings; and (8) accounting standards.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The amount of Solana
represented by a Share will decline over time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The amount of Solana represented
by a Share will continue to be reduced during the life of the Trust due to the transfer of the Trust&rsquo;s Solana to pay the Sponsor
Fee and to pay for extraordinary, non-recurring expenses not assumed by the Sponsor. This dynamic will occur irrespective of whether the
trading price of the Shares rises or falls in response to changes in the price of Solana. In addition, in the very rare event that Trade
Credits (as defined below) are utilized in connection with the payment of Trust expenses not assumed by the Sponsor, any interest payable
on the Trade Credits will be the responsibility of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Each outstanding Share represents
a unit of undivided beneficial ownership of the Trust. The Trust does not generate any income and transfers Solana to pay the Sponsor
Fee, and to pay for extraordinary, non-recurring expenses not assumed by the Sponsor. Therefore, the amount of Solana represented by each
Share will gradually decline over time. This is also true with respect to Shares that are issued in exchange for additional deposits of
Solana or cash used to acquire Solana over time, as the amount of Solana required to create Shares proportionally reflects the amount
of Solana represented by the Shares outstanding at the time of such Basket being created. Assuming a constant Solana price, the trading
price of the Shares is expected to gradually decline relative to the price of Solana as the amount of Solana represented by the Shares
gradually declines.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Investors should be aware that
the gradual decline in the amount of Solana represented by the Shares will occur regardless of whether the trading price of the Shares
rises or falls in response to changes in the price of Solana.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Extraordinary expenses
resulting from unanticipated events may become payable by the Trust, adversely affecting an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In consideration for the Sponsor
Fee, the Sponsor has contractually assumed certain operational and periodic expenses of the Trust. See &ldquo;ADDITIONAL INFORMATION ABOUT
THE TRUST&mdash;The Trust&rsquo;s Fees and Expenses.&rdquo; Extraordinary, non-recurring expenses that are not assumed by the Sponsor
are borne by the Trust and paid through the sale of the Trust&rsquo;s Solana. Any incurring of extraordinary expenses by the Trust could
adversely affect an investment in the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The value of the Shares
will be adversely affected if the Trust is required to indemnify the Trustee, the Administrator, the Transfer Agent, the Solana Custodian,
the Prime Execution Agent or the Cash Custodian.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Under the Trust Agreement and
the Trust&rsquo;s service provider agreements, each of the Trustee, Administrator, Transfer Agent, Solana Custodian, Prime Execution Agent,
Cash Custodian and Sponsor has a right to be indemnified by the Trust for any liability or expense it incurs, subject to certain exceptions.
Therefore, the Trustee, Administrator, Transfer Agent, Solana Custodian, Prime Execution Agent, Cash Custodian or Sponsor may require
that the assets of the Trust be sold in order to cover losses or liability suffered by it. Any sale of that kind would reduce the net
assets of the Trust and the NAV.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify; color: #231F20"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify; color: #231F20"><B><I></I></B></P>

<!-- Field: Page; Sequence: 53; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->49<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.35in; text-align: justify; color: #231F20"><B><I>&nbsp;</I></B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>Unforeseeable risks</I>.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; color: #231F20">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: #231F20">Solana
has gained commercial acceptance only within recent years and, as a result, there is little data on its long-term investment potential.</FONT>
Additionally<FONT STYLE="color: #231F20">, due to the rapidly evolving nature of the Solana market, including advancements in the underlying
technology, changes to Solana may expose investors in the Trust to additional risks that are impossible to predict.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Regulatory Risk</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Digital asset markets
in the united states exist in a state of regulatory uncertainty, and adverse legislative or regulatory developments could significantly
harm the value of Solana or the shares, such as by banning, restricting or imposing onerous conditions or prohibitions on the use of Solana,
mining activity, digital wallets, the provision of services related to trading and custodying Solana, the operation of the Solana Network,
or the digital asset markets generally.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">There
is a lack of consensus regarding the regulation of digital assets, including Solana, and their markets. As a result of the growth in the
size of the digital asset market, as well as the 2022 Events, the U.S. Congress and a number of U.S. federal and state agencies (including
FinCEN, SEC, OCC, CFTC, FINRA, the Consumer Financial Protection Bureau (&ldquo;CFPB&rdquo;), the Department of Justice, the Department
of Homeland Security, the Federal Bureau of Investigation, the IRS, state financial institution regulators, and others) have been examining
the operations of digital asset networks, digital asset users and the digital asset markets. Many of these state and federal agencies
have brought enforcement actions or issued consumer advisories regarding the risks posed by digital assets to investors.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">Ongoing
and future regulatory actions with respect to digital assets generally or Solana in particular may alter, perhaps to a materially adverse
extent, the nature of an investment in the Shares or the ability of the Trust to continue to operate.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">The
2022 Events, including among others the bankruptcy filings of FTX and its subsidiaries, Three Arrows Capital, Celsius Network, Voyager
Digital, Genesis, BlockFi and others, and other developments in the digital asset markets, have resulted in calls for heightened scrutiny
and regulation of the digital asset industry, with a specific focus on intermediaries such as digital asset exchanges, platforms, and
custodians. Federal and state legislatures and regulatory agencies may introduce and enact new laws and regulations to regulate crypto
asset intermediaries, such as digital asset exchanges and custodians. The March 2023 collapses of Silicon Valley Bank, Silvergate Bank,
and Signature Bank, which in some cases provided services to the digital assets industry, may amplify and/or accelerate these trends.
On January 3, 2023, the federal banking agencies issued a joint statement on crypto-asset risks to banking organizations following events
which exposed vulnerabilities in the crypto-asset sector, including the risk of fraud and scams, legal uncertainties, significant volatility,
and contagion risk. Although banking organizations are not prohibited from crypto-asset related activities, the agencies have expressed
significant safety and soundness concerns with business models that are concentrated in crypto-asset related activities or have concentrated
exposures to the crypto-asset sector.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">US
federal and state regulators, as well as the White House, have issued reports and releases concerning crypto assets, including Solana
and crypto asset markets. Further, in 2023 the House of Representatives formed two new subcommittees: the Digital Assets, Financial Technology
and Inclusion Subcommittee and the Commodity Markets, Digital Assets, and Rural Development Subcommittee, each of which were formed in
part to analyze issues concerning crypto assets and demonstrate a legislative intent to develop and consider the adoption of federal legislation
designed to address the perceived need for regulation of and concerns surrounding the crypto industry. However, the extent and content
of any forthcoming laws and regulations are not yet ascertainable with certainty, and it may not be ascertainable in the near future.
A divided Congress makes any prediction difficult. We cannot predict how these and other related events will affect us or the crypto asset
business.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">In
August 2021, the chair of the SEC stated that he believed investors using digital asset trading platforms are not adequately protected,
and that activities on the platforms can implicate the securities laws, commodities laws and banking laws, raising a number of issues
related to protecting investors and consumers, guarding against illicit activity, and ensuring financial stability. The chair expressed
a need for the SEC to have additional authorities to prevent transactions, products, and platforms from &ldquo;falling between regulatory
cracks,&rdquo; as well as for more resources to protect investors in &ldquo;this growing and volatile sector.&rdquo; The chair called
for federal legislation centering on digital asset trading, lending, and decentralized finance platforms, seeking &ldquo;additional plenary
authority&rdquo; to write rules for digital asset trading and lending. Moreover, President Biden&rsquo;s March 9, 2022 Executive Order,
asserting that technological advances and the rapid growth of the digital asset markets &ldquo;necessitate an evaluation and alignment
of the United States Government approach to digital assets,&rdquo; signals an ongoing focus on digital asset policy and regulation in
the United States. A number of reports issued pursuant to the Executive Order have focused on various risks related to the digital asset
ecosystem, and have recommended additional legislation and regulatory oversight. There have also been several bills introduced in Congress
that propose to establish additional regulation and oversight of the digital asset markets.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal"></FONT></P>

<!-- Field: Page; Sequence: 54; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->50<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">It
is not possible to predict whether Congress will grant additional authorities to the SEC or other regulators, what the nature of such
additional authorities might be, how they might impact the ability of digital asset markets to function or how any new regulations that
may flow from such authorities might impact the value of digital assets generally and Solana held by the Trust specifically. The consequences
of increased federal regulation of digital assets and digital asset activities could have a material adverse effect on the Trust and the
Shares.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">FinCEN
requires any administrator or exchanger of convertible digital assets to register with FinCEN as a money transmitter and comply with the
anti-money laundering regulations applicable to money transmitters. Entities which fail to comply with such regulations are subject to
fines, may be required to cease operations, and could have potential criminal liability. For example, in 2015, FinCEN assessed a $700,000
fine against a sponsor of a digital asset for violating several requirements of the Bank Secrecy Act by acting as an MSB and selling the
digital asset without registering with FinCEN, and by failing to implement and maintain an adequate anti-money laundering program. In
2017, FinCEN assessed a $110 million fine against BTC-e, a now defunct digital asset exchange, for similar violations. The requirement
that exchangers that do business in the U.S. register with FinCEN and comply with anti-money laundering regulations may increase the cost
of buying and selling Solana and therefore may adversely affect the price of Solana and an investment in the Shares.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">The
Office of Foreign Assets Control (&ldquo;OFAC&rdquo;) of the U.S. Department of the Treasury (the &ldquo;U.S. Treasury Department&rdquo;)
has added digital currency addresses, including on the Solana blockchain, to the list of Specially Designated Nationals whose assets are
blocked, and with whom U.S. persons are generally prohibited from dealing. Such actions by OFAC, or by similar organizations in other
jurisdictions, may introduce uncertainty in the market as to whether Solana that has been associated with such addresses in the past can
be easily sold. This &ldquo;tainted&rdquo; Solana may trade at a substantial discount to untainted Solana. Reduced fungibility in the
Solana markets may reduce the liquidity of Solana and therefore adversely affect their price.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">In
February 2020, then-U.S. Treasury Secretary Steven Mnuchin stated that digital assets were a &ldquo;crucial area&rdquo; on which the U.S.
Treasury Department has spent significant time. Secretary Mnuchin announced that the U.S. Treasury Department is preparing significant
new regulations governing digital asset activities to address concerns regarding the potential use for facilitating money laundering and
other illicit activities. In December 2020, FinCEN, a bureau within the U.S. Treasury Department, proposed a rule that would require financial
institutions to submit reports, keep records, and verify the identity of customers for certain transactions to or from so-called &ldquo;unhosted&rdquo;
wallets, also commonly referred to as self-hosted wallets. In January 2021, U.S. Treasury Secretary nominee Janet Yellen stated her belief
that regulators should &ldquo;look closely at how to encourage the use of digital assets for legitimate activities while curtailing their
use for malign and illegal activities.&rdquo;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">Under
regulations from the New York State Department of Financial Services (&ldquo;NYDFS&rdquo;), businesses involved in digital asset business
activity for third parties in or involving New York, excluding merchants and consumers, must apply for a license, commonly known as a
BitLicense, from the NYDFS and must comply with anti-money laundering, cyber security, consumer protection, and financial and reporting
requirements, among others. As an alternative to a BitLicense, a firm can apply for a charter to become a limited purpose trust company
under New York law qualified to engage in certain digital asset business activities. Other states have considered or approved digital
asset business activity statutes or rules, passing, for example, regulations or guidance indicating that certain digital asset business
activities constitute money transmission requiring licensure.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">The
inconsistency in applying money transmitting licensure requirements to certain businesses may make it more difficult for these businesses
to provide services, which may affect consumer adoption of Solana and its price. In an attempt to address these issues, the Uniform Law
Commission passed a model law in July 2017, the Uniform Regulation of Virtual Currency Businesses Act, which has many similarities to
the BitLicense and features a multistate reciprocity licensure feature, wherein a business licensed in one state could apply for accelerated
licensure procedures in other states. It is still unclear, however, how many states, if any, will adopt some or all of the model legislation.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal"></FONT></P>

<!-- Field: Page; Sequence: 55; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->51<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">Law
enforcement agencies have often relied on the transparency of blockchains to facilitate investigations. However, certain privacy-enhancing
features have been, or are expected to be, introduced to a number of digital asset networks. If the Solana Network were to adopt any of
these features, these features may provide law enforcement agencies with less visibility into transaction-level data. For example, &ldquo;privacy
pools,&rdquo; zero knowledge proofs, and other technologies that could enhance privacy have been discussed by participants in the Solana
Network. Europol, the European Union&rsquo;s law enforcement agency, released a report in October 2017 noting the increased use of privacy-enhancing
digital assets like Zcash and Monero in criminal activity on the internet. In August 2022, OFAC banned all U.S. citizens from using Tornado
Cash, a digital asset protocol designed to obfuscate blockchain transactions, by adding certain Solana wallet addresses associated with
the protocol to its Specially Designated Nationals list. On October 19, 2023, FinCEN published a proposed rulemaking to apply the authorities
in Section 311 of the USA PATRIOT Act to impose requirements on financial institutions that engage in convertible virtual currency (&ldquo;CVC&rdquo;)
transactions with CVC mixers. The proposed rule, if adopted, would require covered financial institutions to report to FinCEN any CVC
transactions they process that involves CVC mixing within or involving a jurisdiction outside the United States. The term &ldquo;CVC mixing&rdquo;
covers more than just transactions that involve CVC mixers like Tornado Cash, and seemingly could cover a broader range of conduct involving
technologies, services, or methods that have the effect of obfuscating the source, destination, or amount of a CVC transaction, whether
or not the obfuscation was intentional. If the rule were to be adopted as proposed and if the Solana Network were to be deemed to or were
to adopt features which come within the rule&rsquo;s ambit, it could cause covered financial institutions &ndash; such as many virtual
currency exchanges, or the Trust&rsquo;s service providers, such as the Cash Custodian &ndash; to reduce support for or cease offering
services for Solana or to the Trust, which could impair the utility of Solana, the value of the Shares and the Trust&rsquo;s ability to
operate in compliance with new laws and regulations.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Future and current
regulations by a U.S. or foreign government or quasi-governmental agency could have an adverse effect on an investment in the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The regulation of Solana and related
products and services continues to evolve, may take many different forms and will, therefore, impact the Solana Network and Solana and
their usage in a variety of manners. The inconsistent and sometimes conflicting regulatory landscape may make it more difficult for Solana
businesses to provide services, which may impede the growth of the Solana economy and have an adverse effect on consumer adoption of Solana.
There is a possibility of future regulatory change altering, perhaps to a material extent, the nature of an investment in the Shares or
the ability of the Trust to continue to operate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Changes to current regulatory
determinations of Solana&rsquo;s status under federal or state securities laws, changes to regulations surrounding Solana futures or related
products, or actions by a U.S. or foreign government or quasi-governmental agency exerting regulatory authority over Solana, the Solana
Network, Solana trading, or related activities impacting other parts of the digital asset market, may adversely impact Solana and therefore
may have an adverse effect on the value of an investment in the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Trust is not a
registered investment company and is not subject to the Commodity Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Trust is not a registered
investment company subject to the Investment Company Act. Consequently, Shareholders of the Trust do not have the regulatory protections
provided to Shareholders in registered and regulated investment companies, which, for example, require investment companies to have a
certain percentage of disinterested directors and regulate the relationship between the investment company and certain of its affiliates.
Further, the Trust will not hold or trade in commodity futures contracts regulated by the Commodity Exchange Act, as administered by the
CFTC. The Trust will not engage in &ldquo;retail commodity transactions&rdquo;&mdash; any Solana transaction entered into on a leveraged,
margined or financed basis (as described above). Such transactions are deemed to be commodity futures under the Commodity Exchange Act
and subject to CFTC jurisdiction. Furthermore, the Sponsor believes that the Trust is not a commodity pool for purposes of the Commodity
Exchange Act. Consequently, Shareholders will not have the regulatory protections provided to Shareholders in Commodity Exchange Act-regulated
instruments or commodity pools.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 56; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->52<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Trading on digital
asset trading platforms outside the United States is not subject to U.S. regulation and may be less reliable than U.S. trading platforms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">To the extent any of the Trust&rsquo;s
trading is conducted on digital asset trading platforms outside the United States, trading on such trading platforms is not regulated
by any U.S. governmental agency and may involve certain risks not applicable to trading on U.S. trading platforms. Certain foreign markets
may be more susceptible to disruption than U.S. trading platforms. These factors could adversely affect the performance of the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As Solana and the
broader digital assets ecosystem have grown, they have begun to attract more regulatory attention around the globe. The future regulatory
environment is uncertain and may vary by country or even within countries. Failure to appropriately regulate the digital assets ecosystem
could stifle innovation, which could adversely impact the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Current and future legislation,
CFTC and SEC rulemaking, and other regulatory developments may impact the manner in which Solana is treated for classification and clearing
purposes. In particular, Solana may be classified by the CFTC as a &ldquo;commodity interest&rdquo; under the Commodity Exchange Act and
certain transactions in Solana may be deemed to be commodity futures or Solana may be classified by the SEC as a &ldquo;security&rdquo;
under U.S. federal securities laws. As of the date of this Prospectus, the Sponsor is not aware of any rules that have been proposed to
regulate Solana as a commodity interest or a security. Although the federal district court in the S.D.N.Y. has recently held that under
certain transaction structures that Solana is not a security, this ruling is not yet definitive and the Sponsor and the Trust cannot be
certain as to how future regulatory developments will impact the treatment of Solana under U.S. law. In the face of such developments,
the required registrations and compliance steps may result in extraordinary, non-recurring expenses to the Trust. If the Sponsor decides
to terminate the Trust in response to the changed regulatory circumstances, the Trust may be dissolved or liquidated at a time that is
disadvantageous to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">To the extent that Solana is deemed
to fall within the definition of a &ldquo;commodity interest&rdquo; under the Commodity Exchange Act, the Trust and the Sponsor may be
subject to additional regulation under the Commodity Exchange Act and CFTC regulations. These additional requirements may result in extraordinary,
recurring and/or non-recurring expenses of the Trust, thereby materially and adversely impacting the Shares. If the Sponsor and/or the
Trust determines not to comply with such additional regulatory and registration requirements, the Sponsor may terminate the Trust. Any
such termination could result in the liquidation of the Trust&rsquo;s Solana at a time that is disadvantageous to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Further, if any other digital
asset with widespread markets is determined to be a &ldquo;commodity interest&rdquo; under the Commodity Exchange Act, it may have material
adverse consequences for Solana as a digital asset due to negative publicity or a decline in the general acceptance of digital assets.
In addition, trading platforms that feature digital assets that are determined to be commodity interests may face penalties or be required
to shut down if they do not have the licenses required to facilitate the trading and clearance of such commodity interests, which could
result in a reduction of the liquidity of Solana markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Solana and other digital assets
currently face an uncertain regulatory landscape in many foreign jurisdictions such as the European Union, China, the United Kingdom,
Australia, Russia, Israel, Poland, India and Canada. Cybersecurity attacks by state actors, particularly for the purpose of evading international
economic sanctions, are likely to attract additional regulatory scrutiny to the acquisition, ownership, sale and use of digital assets,
including Solana. The effect of any existing regulation or future regulatory change on the Trust or Solana is impossible to predict, but
such change could be substantial and adverse to the Trust and the value of the Shares. Various foreign jurisdictions have adopted, and
may continue to adopt in the near future, laws, regulations or directives that affect digital assets, particularly with respect to digital
asset exchanges, trading venues and service providers that fall within such jurisdictions&rsquo; regulatory scope. For example, on May
21, 2021, Chinese Vice Premier Liu He and the State Council issued a statement aiming to crack down on bitcoin mining in China. Over the
subsequent weeks, multiple regions began to shut down mining operations, including what was estimated to be the three largest Chinese
mining regions in Xinjiang, Sichuan, and Inner Mongolia. This resulted in a material decrease in the global bitcoin hash rate. Such laws,
regulations or directives may conflict with those of the United States and may negatively impact the acceptance of digital assets by users,
merchants and service providers outside the United States and may therefore impede the growth or sustainability of the digital assets
economy in these jurisdictions as well as in the United States and elsewhere, or otherwise negatively affect the value of digital assets,
including Solana, and, in turn, the value of the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 57; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->53<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">It may be illegal
now, or in the future, to acquire, own, hold, sell or use Solana in one or more countries, and ownership of, holding or trading in the
Shares may also be considered illegal and subject to sanction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Although currently Solana is not
regulated or is lightly regulated in most countries, including the United States, one or more countries such as China, India or Russia
may take regulatory actions in the future that severely restricts the right to acquire, own, hold, sell or use Solana or to exchange Solana
for fiat currency. Such an action may also result in the restriction of ownership, holding or trading in the Shares. Such a restriction
could result in the termination and liquidation of the Trust at a time that is disadvantageous to Shareholders, or may adversely affect
an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>Future legal or regulatory
developments may negatively affect the value of Solana or require the Trust or the Sponsor to become registered with the SEC or CFTC,
which may cause the Trust to liquidate.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Current and future legislation,
SEC and CFTC rulemaking, and other regulatory developments may impact the manner in which Solana are treated for classification and clearing
purposes. In particular, Solana itself in the future might be classified by the CFTC as a &ldquo;commodity interest&rdquo; under the CEA,
subjecting all transactions in Solana to full CFTC regulatory jurisdiction. Alternatively, in the future Solana might be classified by
a court as a &ldquo;security&rdquo; under U.S. federal securities laws. The Sponsor and the Trust cannot be certain as to how future regulatory
developments will impact the treatment of Solana under the law. In the face of such developments, the required registrations and compliance
steps may result in extraordinary, nonrecurring expenses to the Trust. If the Sponsor decides to terminate the Trust in response to the
changed regulatory circumstances, the Trust may be dissolved or liquidated at a time that is disadvantageous to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The SEC has stated that certain
digital assets may be considered &ldquo;securities&rdquo; under the federal securities laws. The test for determining whether a particular
digital asset is a &ldquo;security&rdquo; is complex and the outcome is difficult to predict. If Solana is in the future determined to
be a &ldquo;security&rdquo; under federal or state securities laws by the SEC or any other agency, or in a proceeding in a court of law
or otherwise, it would likely have material adverse consequences for the value of Solana. For example, it may become more difficult or
impossible for Solana to be traded, cleared and custodied in the United States as compared to other digital assets that are not considered
to be securities, which could in turn negatively affect the liquidity and general acceptance of Solana and cause users to migrate to other
digital assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">To the extent that Solana is determined
to be a security, the Trust and the Sponsor may also be subject to additional regulatory requirements, including under the 1940 Act, and
the Sponsor may be required to register as an investment adviser under the Investment Advisers Act of 1940, as amended (the &ldquo;Advisers
Act&rdquo;). If the Sponsor determines not to comply with such additional regulatory and registration requirements, the Sponsor will terminate
the Trust. Any such termination could result in the liquidation of the Trust&rsquo;s Solana at a time that is disadvantageous to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">To the extent that Solana is deemed
to fall within the definition of a &ldquo;commodity interest&rdquo; under the CEA, the Trust and the Sponsor may be subject to additional
regulation under the CEA and CFTC regulations. These additional requirements may result in extraordinary, recurring and/or nonrecurring
expenses of the Trust, thereby materially and adversely impacting the Shares. If the Sponsor and/or the Trust determines not to comply
with such additional regulatory and registration requirements, the Sponsor may terminate the Trust. Any such termination could result
in the liquidation of the Trust&rsquo;s Solana at a time that is disadvantageous to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The SEC has recently proposed
amendments to the custody rules under Rule 406(4)-2 of the Advisers Act. The proposed rule changes would amend the definition of a &ldquo;qualified
custodian&rdquo; under Rule 206(4)-2(d)(6) and expand the current custody rule in 406(4)-2 to cover all digital assets, including Solana,
and related advisory activities. If enacted as proposed, these rules would likely impose additional regulatory requirements with respect
to the custody and storage of digital assets, including Solana. The Sponsor is studying the impact that such amendments may have on the
Trust and its arrangements with the Solana Custodian. It is possible that such amendments, if adopted, could prevent the Solana Custodian
from serving as service providers to the Trust, or require potentially significant modifications to existing arrangements under the Custody
Agreement, which could cause the Trust to bear potentially significant increased costs. If the Sponsor is unable to make such modifications
or appoint successor service providers to fill the role that the Solana Custodian currently plays, the Trust&rsquo;s operations (including
in relation to creations and redemptions of Baskets and the holding of Solana) could be negatively affected, the Trust could dissolve
(including at a time that is potentially disadvantageous to Shareholders), and the value of the Shares or an investment in the Trust could
be affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 58; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->54<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Further, the proposed amendments
could have a severe negative impact on the price of Solana and therefore the value of the Shares if enacted, by, among other things, making
it more difficult for investors to gain access to Solana, or causing certain holders of Solana to sell their holdings.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Tax Risk</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The IRS may disagree
with or seek to challenge the Trust&rsquo;s treatment as a grantor trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Sponsor intends to take the
position that the Trust is properly treated as a grantor trust for U.S. federal income tax purposes. Assuming that the Trust is a grantor
trust, the Trust will not be subject to U.S. federal income tax. Rather, if the Trust is a grantor trust, each beneficial owner of Shares
will be treated as directly owning its pro rata share of the Trust&rsquo;s assets and a pro rata portion of the Trust&rsquo;s income,
gain, losses and deductions will &ldquo;flow through&rdquo; to each beneficial owner of Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Shareholders could
incur a tax liability without an associated distribution of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In the normal course of business,
it is possible that the Trust could incur a taxable gain in connection with the sale of Solana (including deemed sales of Solana as a
result of the Trust using Solana to pay its expenses, including the Sponsor Fee) that is otherwise not associated with a distribution
to Shareholders, or in connection with the receipt cash from the Sponsor in connection with the Sponsor&rsquo;s sale of Incidental Right(s)
and/or IR Asset(s). Shareholders may be subject to tax due to the grantor trust status of the Trust even though there is not a corresponding
distribution from the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The tax treatment
of Solana and transactions involving Solana for U.S. federal income tax purposes may change.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The tax treatment of digital assets
is still evolving and subject to change. Current IRS guidance indicates that Solana should be treated as property for federal income tax
purposes and that transactions involving the exchange of Solana in return for goods and services should be treated as barter exchanges.
Such guidance allows transactions in Solana to qualify for beneficial capital gains treatment. However, because Solana is a new technological
innovation, the U.S. federal income tax treatment of an investment in Solana or in transactions relating to investments in Solana, including
without limitation the tax treatment of a fork or airdrop, may evolve and change from those described in this Prospectus, possibly with
retroactive effect. For example, current guidance indicates that digital asset currencies are neither collectibles nor currencies for
the purposes of determining the applicable tax rate; however, the IRS has statutory authority to change its position. If the IRS were
to determine that digital assets were collectibles or a currency, the tax rate incurred by investors would be higher. Additional disclosure
requirements may also apply to an investment in digital assets. Investors should consult their individual tax advisers to determine if
such disclosure requirements apply to them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Any change in the U.S. federal
income tax treatment of Solana may have a negative effect on the price of Solana and may adversely affect the value of the Shares. Whether
any additional guidance will adversely affect the U.S. federal income tax treatment of an investment in Solana or in transactions relating
to investments in Solana is unknown. There can be no assurance that the IRS will not alter its position with respect to digital assets
in the future or that a court would uphold the treatment set forth in the Notice and the Rulings &amp; FAQs.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The tax treatment
of Solana and transactions involving Solana for state and local tax purposes is not settled.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Because Solana is a new technological
innovation, the tax treatment of Solana for state and local tax purposes, including without limitation state and local income and sales
and use taxes, is not settled. It is uncertain what guidance, if any, on the treatment of Solana for state and local tax purposes may
be issued in the future. A state or local government authority&rsquo;s treatment of Solana may have negative consequences, including the
imposition of a greater tax burden on investors in Solana or the imposition of a greater cost on the acquisition and disposition of Solana
generally. Any such treatment may have a negative effect on the price of Solana and may adversely affect the value of the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 59; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->55<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">A &ldquo;fork&rdquo;
of the Solana blockchain or an airdrop could result in Shareholders incurring a tax liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If a fork occurs in the Solana
blockchain, the Trust Agreement requires that the Sponsor analyze the transaction according to several criteria and promptly determine
which digital asset network is generally accepted as the Solana Network and should therefore be considered the appropriate network for
the Trust&rsquo;s purposes. The Sponsor will base its determination on a variety of then-relevant factors, including, but not limited
to, the Sponsor&rsquo;s beliefs regarding expectations of the core developers of Solana, users, services, businesses, validators and other
constituencies, as well as the actual continued acceptance of, validating power on, and community engagement with, the Solana Network.
The outcome of such determination shall determine which asset is &ldquo;Solana&rdquo; and which is the Forked Asset, an IR Asset. Pursuant
to the Trust Agreement, the Trust has explicitly disclaimed all Incidental Rights and IR Assets, including Forked Assets. Such assets
are not considered assets of the Trust at any point in time. Once it has been determined by the Sponsor which asset is Solana and which
is the Forked Asset, the Sponsor will, as soon as practicable, and, if possible, immediately, distribute the Forked Asset to the Sponsor.
Once acquired, the Sponsor may take any lawful action necessary or desirable in connection with its acquisition of such asset. In the
event that the Sponsor decides to sell the Forked Asset, it will seek to do so for cash. This may be a sale of the Forked Asset directly
in exchange for cash, or in exchange for another digital asset which may subsequently be exchanged for cash. The Sponsor would then contribute
that cash back to the Trust, which in turn would distribute the cash to DTC to be distributed to Shareholders in proportion to the number
of Shares owned. The receipt of cash in connection with this distribution may cause Shareholders to incur a U.S. federal, state, local,
or foreign tax liability. In addition, the IRS may not accept the Trust&rsquo;s position that disclaimed Incidental Rights or IR Assets
do not represent a taxable incident. Any tax liability could adversely impact an investment in the Shares and may require Shareholders
to prepare and file tax returns. Any tax liability could adversely impact an investment in the Shares and may require Shareholders to
prepare and file tax returns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Under the IRS guidance on digital
assets, hard forks, airdrops and similar occurrences with respect to digital assets will under certain circumstances be treated as taxable
events giving rise to ordinary income. In the absence of guidance to the contrary, it is possible that any such income recognized by a
U.S. tax-exempt Shareholder would constitute &ldquo;unrelated business taxable income&rdquo; (&ldquo;UBTI&rdquo;). A tax-exempt Shareholder
should consult its tax adviser regarding whether such Shareholder may recognize UBTI as a consequence of an investment in Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Non-U.S. Holders may
be subject to U.S. federal withholding tax on income derived from forks, airdrops and similar occurrences.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">IRS guidance on digital assets
does not address whether income recognized by a non-U.S. person as a result of a fork, airdrop or similar occurrence could be subject
to the 30% withholding tax imposed on U.S.-source &ldquo;fixed or determinable annual or periodical&rdquo; income. Non-U.S. Shareholders
should assume that, in the absence of guidance, a withholding agent (including the Sponsor) is likely to withhold 30% of any such income
recognized by a non-U.S. Shareholder in respect of its Shares, including by deducting such withheld amounts from proceeds that such non-U.S.
Shareholder would otherwise be entitled to receive in connection with a distribution of cash in connection with the Sponsor&rsquo;s sale
of an IR Right and/or IR Asset and contributing such cash back to the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>The intended tax treatment
of the Trust will limit the flexibility of the Trust&rsquo;s investment decisions.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Trust is intended to be a
grantor trust for Federal income tax purposes. A grantor trust is not permitted to change the investment of the Shareholders to take advantage
of market fluctuations. Thus, the Sponsor may allow the Trust to hold when an actively managed fund would sell. The Sponsor may distribute
proceeds when an actively managed fund would reinvest the proceeds. In addition, a fund treated as a grantor trust may not participate
in trading or lending activity without raising a risk of change in status. This means that the returns of the Trust may be less than a
successfully actively managed fund.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 60; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->56<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other Risks</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As a new fund, there
is no guarantee that an active trading market for the Shares will develop. To the extent that no active trading market develops and the
assets of the Trust do not reach a viable size, the liquidity of the Shares may be limited or the Trust may be terminated at the option
of the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As a new fund, there can be no
assurance that the Trust will grow to or maintain an economically viable size, in which case the Sponsor may elect to terminate the Trust,
which could result in the liquidation of the Trust&rsquo;s Solana at a time that is disadvantageous to an investor in the Shares. If the
Trust fails to achieve sufficient scale due to competition, the Sponsor may have difficulty raising sufficient revenue to cover the costs
associated with launching and maintaining the Trust, and such shortfalls could impact the Sponsor&rsquo;s ability to properly invest in
robust ongoing operations and controls of the Trust to minimize the risk of operating events, errors, or other forms of losses to the
Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In addition, the Trust may also
fail to attract adequate liquidity in the secondary market due to such competition, resulting in a sub-standard number of Authorized Participants
willing to make a market in the Shares, which in turn could result in a significant premium or discount in the Shares for extended periods
and the Trust&rsquo;s failure to reflect the performance of the price of Solana.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Trust may be required
to terminate and liquidate at a time that is disadvantageous to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If the Trust is required to terminate
and liquidate, such termination and liquidation could occur at a time that is disadvantageous to Shareholders, such as when the price
of Solana is lower than it was at the time when Shareholders purchased their Shares. In such a case, when the Trust&rsquo;s Solana is
sold as part of the Trust&rsquo;s liquidation, the resulting proceeds distributed to Shareholders will be less than if the price of Solana
were higher at the time of sale. See &ldquo;ADDITIONAL INFORMATION ABOUT THE TRUST&mdash;Termination of the Trust&rdquo; for more information
about the termination of the Trust, including when the termination of the Trust may be triggered by events outside the direct control
of the Sponsor, the Trustee or Shareholders.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Exchange on which
the Shares are listed may halt trading in the Shares, which would adversely impact an investor&rsquo;s ability to sell Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Shares are listed for trading
on the Exchange under the market symbol &ldquo;____.&rdquo; Trading in Shares may be halted due to market conditions or, in light of the
Exchange rules and procedures, for reasons that, in the view of the Exchange, make trading in Shares inadvisable. In addition, trading
is subject to trading halts caused by extraordinary market volatility pursuant to &ldquo;circuit breaker&rdquo; rules that require trading
to be halted for a specified period based on a specified market decline. Additionally, there can be no assurance that the requirements
necessary to maintain the listing of the Shares will continue to be met or will remain unchanged.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The liquidity of the
Shares may also be affected by the withdrawal from participation of Authorized Participants, which could adversely affect the market price
of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In the event that one or more
Authorized Participants or market makers that have substantial interests in the Shares withdraw or &ldquo;step away&rdquo; from participation
in the purchase (creation) or sale (redemption) of the Shares, the liquidity of the Shares will likely decrease, which could adversely
affect the market price of the Shares and result in investors incurring a loss on their investment.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The market infrastructure
of the Solana spot market could result in the absence of active Authorized Participants able to support the trading activity of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Solana is extremely volatile,
and concerns exist about the stability, reliability and robustness of many digital asset trading platforms where Solana trades. In a highly
volatile market, or if one or more digital asset trading platforms supporting the Solana market face an issue, it could be extremely challenging
for any Authorized Participants to provide continuous liquidity in the Shares. There can be no guarantee that the Sponsor will be able
to find an Authorized Participant to actively and continuously support the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 61; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->57<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Digital asset trading
platforms are not subject to the same regulatory oversight as traditional equity exchanges, which could negatively impact the ability
of Authorized Participants to implement arbitrage mechanisms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The trading for Solana occurs
on multiple digital asset trading platforms that have various levels and types of regulation, but are not regulated in the same manner
as traditional stock and bond exchanges. If these digital asset trading platforms do not operate smoothly or face technical, security
or regulatory issues, that could impact the ability of Authorized Participants to make markets in the Shares. In such an event, trading
in the Shares could occur at a material premium or discount against the NAV.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Authorized Participants
serve in such capacity for several competing exchange-traded Solana products, which could adversely affect the market for the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Only an Authorized Participant
may engage in creation or redemption transactions directly with the Trust. Some or all of the Trust&rsquo;s Authorized Participants are
expected to serve as authorized participants or market makers for one or more exchange-traded Solana products that compete with the Trust.
This may make it more difficult to engage or retain Authorized Participants for the Trust. Furthermore, because there is no obligation
on the part of the Authorized Participants to engage in creation and redemption or market making activities with respect to the Trust&rsquo;s
Shares, decisions by the Authorized Participants to not engage with the Trust or its Shares may result in a decline in the liquidity of
the Shares and the price of the Shares may fluctuate independently of the price of Trust&rsquo;s Solana (i.e., at a greater premium or
discount to the Trust&rsquo;s NAV).</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Shareholders that
are not Authorized Participants may only purchase or sell their Shares in secondary trading markets, and the conditions associated with
trading in secondary markets may adversely affect investors&rsquo; investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Only Authorized Participants may
purchase or redeem Baskets. All other investors that desire to purchase or sell Shares must do so through the Exchange or in other markets,
if any, in which the Shares may be traded. Shares may trade at a premium or discount to the NAV per Share.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Sponsor is leanly
staffed and relies heavily on key personnel to manage its activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Sponsor is leanly staffed
and relies heavily on key personnel to manage its activities. These key personnel intend to allocate their time managing the Trust in
a manner that they deem appropriate. If such key personnel were to leave or be unable to carry out their present responsibilities, it
may have an adverse effect on the management of the Sponsor.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Conducting creations
and redemptions for cash has drawbacks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In the near term, the Trust will
effect all of its creations and redemptions for cash, rather than in kind. The use of cash creations and redemptions may cause Shares
to trade in the market at greater bid-ask spreads or greater premiums or discounts to their NAV per Share. The use of cash for redemptions
will also limit the tax efficiency of the Trust. Additionally, the Trust&rsquo;s need to purchase Solana in connection with creation orders
introduces the possibility that the Trust will pay a higher price for Solana than the value ascribed to Solana by the Pricing Benchmark,
the rate used to calculate the Trust&rsquo;s NAV. This is known as &ldquo;slippage.&rdquo; While transactions in any asset are subject
to the risk of slippage, it is possible that transactions in digital assets may be more susceptible. The Trust seeks to minimize the risk
of slippage by basing the amount of cash an Authorized Participant is required to deposit to consummate a creation order for Baskets on
the price the Trust actually paid for the Solana rather than on the value of Solana ascribed by the Pricing Benchmark. Nonetheless, there
can be no guarantee that the Trust will not be negatively affected by slippage from time to time. The Trust will also incur transaction
costs it would not otherwise have incurred if it received and distributed Solana in kind and was not required to purchase and sell Solana
in connection with creation and redemption orders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As of the date of this prospectus,
the Trust only creates and redeems Shares in exchange for cash. If the Trust were to create or redeem Shares in exchange for Solana, the
Trust would first need to seek certain regulatory approvals, including an amendment to Exchange&rsquo;s listing rules and an amendment
to the Trust&rsquo;s registration statement of which this prospectus forms a part. There can be no guarantee that the Trust will be successful
in obtaining such regulatory approvals, and the timing of any such approvals is unknown. If the Trust is successful in obtaining the necessary
regulatory approvals to allow for creations and redemptions in-kind, the Trust will notify Shareholders in a prospectus supplement and/or
a current report on Form 8-K or in its annual or quarterly reports.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 62; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->58<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Potential conflicts
of interest may arise among the Sponsor or its affiliates and the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Trust operations will be managed
by the Sponsor. It is possible that conflicts may arise between the Sponsor, affiliates, the Trust and its Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In resolving conflicts of interest,
the Sponsor is allowed to take into account the interests of other parties. Conflicts of interest may arise as a result of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">Sponsor and its affiliates will be indemnified pursuant to the Trust Agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">The Sponsor&rsquo;s allocation of resources (including the time and attention of management and business
development) among different clients and potential future business ventures, to each of which they may owe fiduciary duties, the determination
of which is the responsibility of the Sponsor and its affiliates;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">The staff of the Sponsor may also directly or indirectly serve affiliates and clients of the Sponsor;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">The Trust Agreement does not prohibit the Sponsor, its respective affiliates and their respective officers
and employees from engaging in other businesses or activities that might be in direct competition with the Trust;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">The Sponsor and its staff may take direct positions in Solana or in other investments, or may advise other
clients to take such positions, that may be in conflict with the investment objective of the Shares or that may be of a size that could
impact the price of Solana;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">There has been no independent due diligence conducted with respect to this offering, where applicable,
and there is an absence of arm&rsquo;s-length negotiation with respect to certain terms of the Trust;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">The Sponsor decides whether to obtain third-party services for the Trust.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">By investing in the Shares, investors
agree and consent to the provisions set forth in the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">For a further discussion of the
conflicts of interest among the Sponsor, Solana Custodian, Cash Custodian, Trust and others, see &ldquo;CONFLICTS OF INTEREST.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>The Sponsor&rsquo;s policies
and procedures may not fully mitigate the risk of conflicts of interest. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Sponsor does not have operating
practices that require personnel to pre-clear personal trading activity in which Solana is the referenced asset. In general, pre-clearance
policies prohibit employees and agents from engaging in certain personal trading activity without first obtaining pre-clearance of the
transaction from the firm&rsquo;s chief compliance officer, chief financial officer, or some senior officer with similar responsibilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Without implementing pre-clearance
requirements, the Sponsor may not be able to fully mitigate the risk of conflicts of interest or avoid the appearance of impropriety in
connection with the purchase and sale of Solana. There is no guarantee that every employee, officer, director, or similar person associated
with the Sponsor, or its affiliates will refrain from engaging in insider trading in violation of their duties to the Trust and Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This risk is present in traditional
financial markets and is not unique to Solana. If such employees or others affiliated with the Sponsor engage in illegal conduct or conduct
which fails to meet applicable regulatory standards, the Sponsor and its affiliates could be the target of civil or criminal fines, penalties,
punishments, or other regulatory sanctions or lawsuits or could be the target of an investigation. Any of these outcomes could cause the
Trust and Shareholders to suffer harm.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Sponsor and its affiliates
may also participate in transactions related to Solana, either for their own account (subject to certain internal employee trading operating
practices) or for the account of others, such as clients, and such transactions may occur prior to, during, or after the commencement
of this offering. Such transactions may not serve to benefit the Shareholders of the Trust and may have a positive or negative effect
on the value of the Solana held by the Trust and, consequently, on the market value of Solana.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Trust is new,
and if it is not profitable, the Trust may terminate and liquidate at a time that is disadvantageous to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Trust is new. If the Trust
does not attract sufficient assets to remain open, then the Trust could be terminated and liquidated at the direction of the Sponsor.
Termination and liquidation of the Trust could occur at a time that is disadvantageous to Shareholders. When the Trust&rsquo;s assets
are sold as part of the Trust&rsquo;s liquidation, the resulting proceeds distributed to Shareholders may be less than those that may
be realized in a sale outside of a liquidation context. Investors may be adversely affected by redemption or creation orders that are
subject to postponement, suspension or rejection under certain circumstances.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 63; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->59<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Sponsor may discontinue
its services, which may be detrimental to the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Sponsor may be unwilling or unable
to continue to serve as sponsor to the Trust for any length of time. If the Sponsor discontinues its activities and is unable to be replaced,
the Trust may have to terminate and liquidate the Solana held by the Trust. A substitute sponsor&rsquo;s appointment will not guarantee
the Trust&rsquo;s continued operation even if a substitute sponsor is found, the appointment of a substitute sponsor may not necessarily
be beneficial to the Trust or an investment in the Shares and the Trust may terminate.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Any of the service
providers could resign or be removed by the Trust, which could trigger early termination of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Any service provider may resign
or be removed under its respective governing agreement. The Trust may dissolve in accordance with the terms of the Trust Agreement if
any service provider resigns or is removed and is unable to be replaced.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The lack of independent
advisers representing investors in the Trust may cause Shareholders to be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Counsel, accountants and other
advisers have been consulted by the Sponsor regarding the formation and operation of the Trust. Potential investors should consult their
own legal, tax and financial advisers regarding the desirability of an investment in the Shares. No counsel has been appointed to represent
an investor in connection with the offering of the Shares. Failure to consult with their own legal, tax and financial advisers may lead
to Shareholders making an undesirable investment decision with respect to investment in the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">No separate counsel;
no responsibility or independent verification.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Chapman and Cutler LLP represents
the Sponsor. The Trust does not have counsel separate and independent from counsel to the Sponsor. Chapman and Cutler LLP does not represent
Shareholders, and no independent counsel has been retained to represent Shareholders. Chapman and Cutler LLP is not responsible for any
acts or omissions of the Sponsor, the Administrator, the Trustee, the Solana Custodian, the Cash Custodian, the Prime Execution Agent,
a Solana Trading Counterparty, the Transfer Agent or the Trust (including their compliance with any guidelines, policies, restrictions
or applicable law, or the selection, suitability or advisability of their investment activities) or any administrator, accountant, custodian
or other service provider to the Sponsor, Trustee or the Trust. This Prospectus was prepared based on information provided by the Sponsor,
the Administrator, the Solana Custodian, the Cash Custodian, the Prime Execution Agent, the Transfer Agent, and the Trustee, in good faith
and based on reasonable best efforts to ensure the information is accurate as of the date of this Prospectus, and Chapman and Cutler LLP
has not independently verified such information.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Shareholders do not
have the rights enjoyed by investors in certain other vehicles and may be adversely affected by a lack of statutory rights and by limited
voting and distribution rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Shares have limited voting
and distribution rights under the Trust Agreement. For example, except as required under applicable federal law or under the rules or
regulations of the Exchange, Shareholders have no voting rights and take no part in the management or control of, and have no voice in,
the Trust&rsquo;s operations or business. The Trust may enact splits or reverse splits without Shareholder approval, and the Trust is
not required to pay regular distributions. The Trust will not have regular Shareholder meetings. The right to authorize actions, appoint
service providers or take other actions will not be held by Shareholders, unlike shareholders of other trusts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>The Trust Agreement includes
provisions that limit Shareholders&rsquo; voting rights and restrict Shareholders&rsquo; right to bring a derivative action.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Under the Trust Agreement, Shareholders
generally have no voting rights and the Trust will not have regular Shareholder meetings. Shareholders take no part in the management
or control of the Trust. Accordingly, Shareholders do not have the right to authorize actions, appoint service providers or take other
actions as may be taken by shareholders of other trusts or companies where shares carry such rights. The Sponsor may take actions in the
operation of the Trust that may be adverse to the interests of Shareholders and may adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 64; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->60<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Moreover, pursuant to the terms
of the Trust Agreement, Shareholders&rsquo; statutory right under Delaware law to bring a derivative action (i.e., to initiate a lawsuit
in the name of the Trust in order to assert a claim belonging to the Trust against a fiduciary of the Trust or against a third-party when
the Trust&rsquo;s management has refused to do so) is restricted. Under Delaware law, a shareholder may bring a derivative action if the
shareholder is a shareholder at the time the action is brought and either (i) was a shareholder at the time of the transaction at issue
or (ii) acquired the status of shareholder by operation of law or the Trust&rsquo;s governing instrument from a person who was a shareholder
at the time of the transaction at issue. Additionally, Section 3816(e) of the Delaware Statutory Trust Act specifically provides that
a &ldquo;beneficial owner&rsquo;s right to bring a derivative action may be subject to such additional standards and restrictions, if
any, as are set forth in the governing instrument of the statutory trust, including, without limitation, the requirement that beneficial
owners owning a specified beneficial interest in the statutory trust join in the bringing of the derivative action.&rdquo; In addition
to the requirements of applicable law and in accordance with Section 3816(e), the Trust Agreement provides that no Shareholder will have
the right, power or authority to bring or maintain a derivative action, suit or other proceeding on behalf of the Trust unless two or
more Shareholders who (i) are not &ldquo;Affiliates&rdquo; (as defined in the Trust Agreement) of one another and (ii) collectively hold
at least 10.0% of the outstanding Shares join in the bringing or maintaining of such action, suit or other proceeding. This provision
applies to any derivative actions brought in the name of the Trust other than claims under the federal securities laws and the rules and
regulations thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Due to this additional requirement,
a Shareholder attempting to bring or maintain a derivative action in the name of the Trust will be required to locate other Shareholders
with which it is not affiliated and that have sufficient Shares to meet the 10.0% threshold based on the number of Shares outstanding
on the date the claim is brought and thereafter throughout the duration of the action, suit or proceeding. This may be difficult and may
result in increased costs to a Shareholder attempting to seek redress in the name of the Trust in court. Moreover, if Shareholders bringing
a derivative action, suit or proceeding pursuant to this provision of the Trust Agreement do not hold 10.0% of the outstanding Shares
on the date such an action, suit or proceeding is brought, or such Shareholders are unable to maintain Share ownership meeting the 10.0%
threshold throughout the duration of the action, suit or proceeding, such Shareholders&rsquo; derivative action may be subject to dismissal.
As a result, the Trust Agreement limits the likelihood that a Shareholder will be able to successfully assert a derivative action in the
name of the Trust, even if such Shareholder believes that he or she has a valid derivative action, suit or other proceeding to bring on
behalf of the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">An investment in the
Trust may be adversely affected by competition from other investment vehicles focused on Solana or other digital assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Trust will compete with direct
investments in Solana, other digital assets and other potential financial vehicles, possibly including securities backed by or linked
to digital assets and other investment vehicles that focus on other digital assets. Market and financial conditions, and other conditions
beyond the Trust&rsquo;s control, may make it more attractive to invest in other vehicles, which could adversely affect the performance
of the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Investors cannot be
assured of the Sponsor&rsquo;s continued services, the discontinuance of which may be detrimental to the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Investors cannot be assured that
the Sponsor will be able to continue to service the Trust for any length of time. If the Sponsor discontinues its activities on behalf
of the Trust, the Trust may be adversely affected, as there may be no entity servicing the Trust for a period of time. Such an event could
result in termination of the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The liability of the
Sponsor and the Trustee is limited, and the value of the Shares will be adversely affected if the Trust is required to indemnify the Trustee
or the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Under the Trust Agreement, the
Trustee and the Sponsor are not liable, and have the right to be indemnified, for any liability or expense incurred absent gross negligence
or willful misconduct on the part of the Trustee or the Sponsor or breach by the Sponsor of the Trust Agreement, as the case may be. As
a result, the Sponsor may require the assets of the Trust to be sold in order to cover losses or liability suffered by it. Any sale of
that kind would reduce the NAV of the Trust and the value of its Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 65; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->61<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Shareholders&rsquo;
limited rights of legal recourse against the Trust, Sponsor, Administrator, Transfer Agent, Cash Custodian, Prime Execution Agent and
Solana Custodian and the Trust&rsquo;s lack of direct insurance protection expose the Trust and its Shareholders to the risk of loss of
the Trust&rsquo;s Solana for which no person is liable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Trust is not a banking institution
and is not a member of the FDIC or Securities Investor Protection Corporation (&ldquo;SIPC&rdquo;) and, therefore, investments in the
Trust are not subject to the protections enjoyed by depositors with FDIC or SIPC member institutions. Likewise, the Solana Custodian is
not a depository institution and is not a member of the FDIC or SIPC and, therefore, the Trust&rsquo;s assets held with the Solana Custodian
are not subject to FDIC or SIPC insurance coverage. In addition, neither the Trust nor the Sponsor insures the Trust&rsquo;s Solana. The
Solana Custodian&rsquo;s parent, [Solana Custodian&rsquo;s Parent] ("[Solana Custodian&rsquo;s Parent]"), maintains a commercial
crime insurance policy of up to $___ million, which is intended to cover the loss of client assets held by [Solana Custodian&rsquo;s Parent]
and all of its subsidiaries, including the Solana Custodian and the Prime Execution Agent (collectively, [Solana Custodian Entities] and
its subsidiaries are referred to as the &ldquo;[Insured Entities]"), including from employee collusion or fraud, physical loss including
theft, damage of key material, security breach or hack, and fraudulent transfer. The insurance maintained by [Solana Custodian&rsquo;s
Parent] is shared among all of [Solana Custodian Entities - Short Name]&rsquo;s customers, is not specific to the Trust or to customers
holding Solana with the Solana Custodian or Prime Execution Agent, and may not be available or sufficient to protect the Trust from all
possible losses or sources of losses. [Solana Custodian&rsquo;s Parent]&rsquo;s insurance may not cover the type of losses experienced
by the Trust. Alternatively, the Trust may be forced to share such insurance proceeds with other clients or customers of the [Insured
Entities], which could reduce the amount of such proceeds that are available to the Trust. In addition, the Solana insurance market is
limited, and the level of insurance maintained by [Solana Custodian&rsquo;s Parent] may be substantially lower than the assets of the
Trust. While the Solana Custodian maintains certain capital reserve requirements depending on the assets under custody, and such capital
reserves may provide additional means to cover client asset losses, the Trust cannot be assured that the Solana Custodian will maintain
capital reserves sufficient to cover actual or potential losses with respect to the Trust&rsquo;s digital assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Furthermore, under the Solana
Custody Agreement, the Solana Custodian&rsquo;s liability is limited as follows, among others: (i) other than with respect to claims and
losses arising from spot trading of Solana, or fraud or willful misconduct, the Mutually Capped Liabilities (defined below), the Solana
Custodian&rsquo;s aggregate liability under the Solana Custody Agreement shall not exceed the greater of (A) the greater of (x) $5 million
and (y) the aggregate fees paid by the Trust to the Solana Custodian in the 12 months prior to the event giving rise to the Solana Custodian&rsquo;s
liability, and (B) the value of the affected Solana or cash giving rise to the Solana Custodian&rsquo;s liability; (ii) in respect of
the Solana Custodian&rsquo;s obligations to indemnify the Trust and its affiliates against third-party claims and losses to the extent
arising out of or relating to, among others, the Solana Custodian&rsquo;s gross negligence, violation of its confidentiality, data protection
and/or information security obligations, or violation of any law, rule or regulation with respect to the provision of its services (the
&ldquo;Mutually Capped Liabilities&rdquo;), the Solana Custodian&rsquo;s liability shall not exceed the greater of (A) $5 million and
(B) the aggregate fees paid by the Trust to the Solana Custodian in the 12 months prior to the event giving rise to the Solana Custodian&rsquo;s
liability; and (iii) in respect of any incidental, indirect, special, punitive, consequential or similar losses, the Solana Custodian
is not liable, even if the Solana Custodian has been advised of or knew or should have known of the possibility thereof. In general, the
Solana Custodian is not liable under the Solana Custody Agreement unless in the event of its negligence, fraud, material violation of
applicable law or willful misconduct. The Solana Custodian is not liable for delays, suspension of operations, failure in performance,
or interruption of service to the extent it is directly due to a cause or condition beyond the reasonable control of the Solana Custodian.
In the event of potential losses incurred by the Trust as a result of the Solana Custodian losing control of the Trust&rsquo;s Solana
or failing to properly execute instructions on behalf of the Trust, the Solana Custodian&rsquo;s liability with respect to the Trust will
be subject to certain limitations which may allow it to avoid liability for potential losses or may be insufficient to cover the value
of such potential losses, even if the Solana Custodian directly caused such losses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 66; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->62<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Similarly, under the Prime Execution
Agreement, the Prime Execution Agent&rsquo;s liability is limited as follows, among others: (i) other than with respect to claims and
losses arising from spot trading of Solana, or fraud or willful misconduct, or the PB Mutually Capped Liabilities (defined below), the
Prime Execution Agent&rsquo;s aggregate liability shall not exceed the greater of (A) the greater of (x) $5 million and (y) the aggregate
fees paid by the Trust to the Prime Execution Agent in the 12 months prior to the event giving rise to the Prime Execution Agent&rsquo;s
liability, and (B) the value of the cash or affected Solana giving rise to the Prime Execution Agent&rsquo;s liability; (ii) in respect
of the Prime Execution Agent&rsquo;s obligations to indemnify the Trust and its affiliates against third-party claims and losses to the
extent arising out of or relating to, among others, the Prime Execution Agent&rsquo;s gross negligence, violation of its confidentiality,
data protection and/or information security obligations, violation of any law, rule or regulation with respect to the provision of its
services, or the full amount of the Trust&rsquo;s assets lost due to the insolvency of or security event at a Connected Trading Venue
(as defined below) (the &ldquo;PB Mutually Capped Liabilities&rdquo;), the Prime Execution Agent&rsquo;s liability shall not exceed the
greater of (A) $5 million and (B) the aggregate fees paid by the Trust to the Prime Execution Agent in the 12 months prior to the event
giving rise to the Prime Execution Agent&rsquo;s liability; and (iii) in respect of any incidental, indirect, special, punitive, consequential
or similar losses, the Prime Execution Agent is not liable, even if the Prime Execution Agent has been advised of or knew or should have
known of the possibility thereof. In general, with limited exceptions (such as for failing to execute an order), the Prime Execution Agent
is not liable under the Prime Execution Agreement unless in the event of its gross negligence, fraud, material violation of applicable
law or willful misconduct. The Prime Execution Agent is not liable for delays, suspension of operations, failure in performance, or interruption
of service to the extent it is directly due to a cause or condition beyond the reasonable control of the Prime Execution Agent. These
and the other limitations on the Prime Execution Agent&rsquo;s liability may allow it to avoid liability for potential losses or may be
insufficient to cover the value of such potential losses, even if the Prime Execution Agent directly caused such losses. Both the Trust
and the Prime Execution Agent and its affiliates (including the Solana Custodian) are required to indemnify each other under certain circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Moreover, in the event of an insolvency
or bankruptcy of the Prime Execution Agent (in the case of the Trading Balance) or the Solana Custodian (in the case of the Trust Solana
Account) in the future, given that the contractual protections and legal rights of customers with respect to digital assets held on their
behalf by third parties are relatively untested in a bankruptcy of an entity such as the Solana Custodian or Prime Execution Agent in
the virtual currency industry, there is a risk that customers&rsquo; assets&mdash;including the Trust&rsquo;s assets&mdash;may be considered
the property of the bankruptcy estate of the Prime Execution Agent (in the case of the Trading Balance) or the Solana Custodian (in the
case of the Trust Solana Account), and customers&mdash;including the Trust&mdash;may be at risk of being treated as general unsecured
creditors of such entities and subject to the risk of total loss or markdowns on value of such assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Solana Custody Agreement contains
an agreement by the parties to treat the Solana credited to the Trust Solana Account as financial assets under Article 8 of the New York
Uniform Commercial Code (&ldquo;Article 8"), in addition to stating that the Solana Custodian will serve as fiduciary and custodian
on the Trust&rsquo;s behalf. The Solana Custodian&rsquo;s parent, _____, has stated in its most recent public securities filings that
in light of the inclusion in its custody agreements of provisions relating to Article 8 it believes that a court would not treat custodied
digital assets as part of its general estate in the event the Solana Custodian were to experience insolvency. However, due to the novelty
of digital asset custodial arrangements courts have not yet considered this type of treatment for custodied digital assets and it is not
possible to predict with certainty how they would rule in such a scenario. If the Solana Custodian became subject to insolvency proceedings
and a court were to rule that the custodied Solana were part of the Solana Custodian&rsquo;s general estate and not the property of the
Trust, then the Trust would be treated as a general unsecured creditor in the Solana Custodian&rsquo;s insolvency proceedings and the
Trust could be subject to the loss of all or a significant portion of its assets. Moreover, in the event of the bankruptcy of the Solana
Custodian, an automatic stay could go into effect and protracted litigation could be required in order to recover the assets held with
the Solana Custodian, all of which could significantly and negatively impact the Trust&rsquo;s operations and the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">With respect to the Prime Execution
Agreement, there is a risk that the Trading Balance, in which the Trust&rsquo;s Solana and cash is held in omnibus accounts by the Prime
Execution Agent (in the latter case, as described below in &ldquo;RISK FACTORS&mdash;Loss of a critical banking relationship for, or the
failure of a bank used by, the Prime Execution Agent could adversely impact the Trust&rsquo;s ability to create or redeem Baskets, or
could cause losses to the Trust&rdquo;), could be considered part of the Prime Execution Agent&rsquo;s bankruptcy estate in the event
of the Prime Execution Agent&rsquo;s bankruptcy. The Prime Execution Agreement contains an Article 8 opt-in clause with respect to the
Trust&rsquo;s assets held in the Trading Balance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 67; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->63<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Prime Execution Agent is not
required to hold any of the Solana or cash in the Trust&rsquo;s Trading Balance in segregation. Within the Trading Balance, the Prime
Execution Agreement provides that the Trust does not have an identifiable claim to any particular Solana (and cash). Instead, the Trust&rsquo;s
Trading Balance represents an entitlement to a pro rata share of the Solana (and cash) the Prime Execution Agent has allocated to the
omnibus wallets the Prime Execution Agent holds, as well as the accounts in the Prime Execution Agent&rsquo;s name that the Prime Execution
Agent maintains at Connected Trading Venues (the &ldquo;Connected Trading Venue&rdquo;) (which are typically held on an omnibus, rather
than segregated, basis). If the Prime Execution Agent suffers an insolvency event, there is a risk that the Trust&rsquo;s assets held
in the Trading Balance could be considered part of the Prime Execution Agent&rsquo;s bankruptcy estate and the Trust could be treated
as a general unsecured creditor of the Prime Execution Agent, which could result in losses for the Trust and Shareholders. Moreover, in
the event of the bankruptcy of the Prime Execution Agent, an automatic stay could go into effect and protracted litigation could be required
in order to recover the assets held with the Prime Execution Agent, all of which could significantly and negatively impact the Trust&rsquo;s
operations and the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Under the Trust Agreement, the
Sponsor will not be liable for any liability or expense incurred, including, without limitation, as a result of any loss of Solana by
the Solana Custodian or Prime Execution Agent, absent gross negligence, bad faith or willful misconduct on the part of the Sponsor. As
a result, the recourse of the Trust or the Shareholders to the Sponsor, including in the event of a loss of Solana by the Solana Custodian
or Prime Execution Agent, is limited.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Shareholders&rsquo; recourse
against the Sponsor and the Trust&rsquo;s other service providers for the services they provide to the Trust, including, without limitation,
those relating to the holding of Solana or the provision of instructions relating to the movement of Solana, is limited. For the avoidance
of doubt, neither the Sponsor, the Trustee, nor any of their affiliates nor any other party has guaranteed the assets or liabilities,
or otherwise assumed the liabilities, of the Trust, or the obligations or liabilities of any service provider to the Trust, including,
without limitation, the Solana Custodian and Prime Execution Agent. The Prime Execution Agreement and Solana Custody Agreement provide
that neither the Sponsor nor its affiliates shall have any obligation of any kind or nature whatsoever, by guaranty, enforcement or otherwise,
with respect to the performance of any of the Trust&rsquo;s obligations, agreements, representations or warranties under the Prime Execution
Agreement or Solana Custody Agreement or any transaction thereunder. Consequently, a loss may be suffered with respect to the Trust&rsquo;s
Solana that is not covered by _____&rsquo;s insurance and for which no person is liable in damages. As a result, the recourse of the Trust
or the Shareholders, under applicable law, is limited.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">During the rare and
limited circumstances when the Trust utilizes the Agent Execution Model, it may utilize Trade Credits. If the Trade Credits are not available
or become exhausted, the Trust may face delays in buying or selling Solana that may adversely impact Shareholders; if the Trust does not
repay the Trade Credits on time, its assets may be liquidated by the Trade Credit Lender and its affiliates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">During the rare and limited circumstances
when the Trust utilizes the Agent Execution Model, it may utilize Trade Credits (defined below). To avoid having to pre-fund purchases
or sales of Solana, the Trust may borrow Solana or cash as trade credit (&ldquo;Trade Credit&rdquo;) from _____ (the &ldquo;Trade Credit
Lender&rdquo;) on a short-term basis pursuant to the _____(the &ldquo;Trade Financing Agreement&rdquo;). The Trade Credit Lender is only
required to extend Trade Credits to the Trust to the extent such Solana or cash is actually available to the Trade Credit Lender. To the
extent that Trade Credits are not available or become exhausted, (1) there may be delays in the buying and selling of Solana related to
cash creations and redemptions or the selling of Solana related to paying Trust expenses not assumed by the Sponsor, to the extent applicable,
(2) Trust assets may be in held the Trading Balance for a longer duration than if Trade Credits were available, and (3) the execution
price associated with such trades may deviate significantly from the Pricing Benchmark price used to determine the NAV of the Trust. To
the extent that the execution price for purchases and sales of Solana deviate significantly from the Pricing Benchmark price used to determine
the Trust&rsquo;s NAV, Shareholders may be negatively impacted because the added costs of such price deviations would be incurred by the
Authorized Participants and may be passed onto the Shareholders in the secondary market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I></I></B></P>

<!-- Field: Page; Sequence: 68; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->64<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>To the extent the Trust
utilizes Trade Credits when using the Agent Execution Model, such Trade Credits are secured by the Trust&rsquo;s assets, including any
cash and Solana held in the Trading Balance with the Prime Execution Agent and the Trust Solana Account held with the Solana Custodian,
and such assets may be liquidated by the Trade Credit Lender to repay Trade Credit debt owed by the Trust in the event the Trust fails
to repay the Trade Credit debt.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">During the rare and limited circumstances
when the Trust utilizes the Agent Execution Model, it may utilize Trade Credits. The Trust generally must repay Trade Credits by 6:00
p.m. ET on the calendar day immediately following the day the Trade Credit was extended by the Trade Credit Lender to the Trust (or, if
such day is not a business day, on the next business day). Pursuant to the Trade Financing Agreement, the Trust has granted a security
interest, lien on, and right of set off against all of the Trust&rsquo;s right, title and interest, in the Trust&rsquo;s Trading Balance
and Trust Solana Account established pursuant to the Prime Execution Agreement and Solana Custody Agreement, in order to secure the repayment
by the Trust of the Trade Credits and financing fees to the Trade Credit Lender. Upon a Termination for Cause, as defined in the Prime
Execution Agreement, which includes a failure by the Trust to pay and settle in full its obligations to the Trade Credit Lender in respect
of the financing it provides to the Trust in the form of Trade Credits, the Solana Custodian and the Prime Execution Agent have agreed
to comply with instructions from the Trade Credit Lender with respect to the disposition of the assets in the Trust Solana Account and
Trading Balance respectively without further consent by the Trust. If the Trust fails to repay the Trade Credits to the Trade Credit Lender
on time and in full, the Trade Credit Lender can take control of the Trust&rsquo;s assets and liquidate them to repay the Trade Credit
debt owed by the Trust to the Trade Credit Lender.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Loss of a critical
banking relationship for, or the failure of a bank used by, the Prime Execution Agent could adversely impact the Trust&rsquo;s ability
to create or redeem Baskets, or could cause losses to the Trust, in the limited circumstances when the Trust utilizes the Agent Execution
Model.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Prime Execution Agent relies
on bank accounts to provide its trading platform services and including temporarily holding any cash related to a customer&rsquo;s purchase
or sale of Solana. In particular, the Prime Execution Agent has disclosed that customer cash held by the Prime Execution Agent, including
the cash associated with the Trust&rsquo;s Trading Balance, is held in one or more banks&rsquo; accounts for the benefit of the Prime
Execution Agent&rsquo;s customers, or in money market funds in compliance with Rule 2a-7 under the Investment Company Act and rated &ldquo;AAA&rdquo;
by S&amp;P (or the equivalent from any eligible rating service), provided that such investments are held in accounts in [Solana Custodian
Entities &ndash; Short Name]&rsquo;s name for the benefit of customers and are permitted and held in accordance with state money transmitter
laws (&ldquo;Money Market Funds&rdquo;). The Prime Execution Agent has represented to the Sponsor that it has implemented the following
policy with respect to the cash associated with the Trust&rsquo;s Trading Balance. First, any cash related to the Trust&rsquo;s purchase
or sale of Solana will be held in an omnibus account in the Prime Execution Agent&rsquo;s name for the benefit of (&ldquo;FBO&rdquo;)
its customers at each of multiple FDIC-insured banks (an &ldquo;FBO Account&rdquo;), or in a Money Market Fund. The amount of Trust cash
held at each FBO Account shall be in an amount at each bank that is the lower of (i) the FDIC insurance limit for deposit insurance and
(ii) any bank-specific limit set by the Prime Execution Agent for the applicable bank. Deposit insurance does not apply to cash held in
a Money Market Fund. The Prime Execution Agent has agreed to title the accounts in a manner designed to enable receipt of FDIC deposit
insurance where applicable on a pass-through basis, but does not guarantee that pass-through insurance will apply since such insurance
is dependent on the compliance of the bank. Second, to the extent the Trust&rsquo;s cash in the Trading Balance in aggregate exceeds the
amounts that can be maintained at the banks on the foregoing basis, the Prime Execution Agent has represented that it currently conducts
an overnight sweep of the excess into U.S. government money market funds. The Sponsor has not independently verified the Prime Execution
Agent&rsquo;s representations. To the extent that the Prime Execution Agent faces difficulty establishing or maintaining banking relationships,
the loss of the Prime Execution Agent&rsquo;s banking partners or the imposition of operational restrictions by these banking partners
and the inability of the Prime Execution Agent to utilize other financial institutions may result in a disruption of creation and redemption
activity of the Trust, or cause other operational disruptions or adverse effects for the Trust. In the future, it is possible that the
Prime Execution Agent could be unable to establish accounts at new banking partners or establish new banking relationships, or that the
banks with which the Prime Execution Agent is able to establish relationships may not be as large or well-capitalized or subject to the
same degree of prudential supervision as the existing providers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Trust could also suffer losses
in the event that a bank in which the Prime Execution Agent holds customer cash, including the cash associated with the Trust&rsquo;s
Trading Balance (which is used by the Prime Execution Agent to move cash flows associated with the Trust&rsquo;s orders to sell Solana
in connection with payment of Trust expenses not assumed by the Sponsor), fails, becomes insolvent, enters receivership, is taken over
by regulators, enters financial distress, or otherwise suffers adverse effects to its financial condition or operational status. Recently,
some banks have experienced financial distress. For example, on March 8, 2023, the California Department of Financial Protection and Innovation
(&ldquo;DFPI&rdquo;) announced that Silvergate Bank had entered voluntary liquidation, and on March 10, 2023, Silicon Valley Bank (&ldquo;SVB&rdquo;)
was closed by the DFPI, which appointed the FDIC as receiver. Similarly, on March 12, 2023, the New York Department of Financial Services
took possession of Signature Bank and appointed the FDIC as receiver. A joint statement by the Department of the Treasury, the Federal
Reserve and the FDIC on March 12, 2023, stated that depositors in Signature and SVB will have access to all of their funds, including
funds held in deposit accounts, in excess of the insured amount. On May 1, 2023, First Republic Bank was closed by the California Department
of Financial Protection and Innovation, which appointed the FDIC as receiver. Following a bidding process, the FDIC entered into a purchase
and assumption agreement with JPMorgan Chase Bank, National Association, to acquire the substantial majority of the assets and assume
certain liabilities of First Republic Bank from the FDIC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 69; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->65<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Prime Execution Agent has
historically maintained banking relationships with Silvergate Bank and Signature Bank. While the Sponsor does not believe there is a direct
risk to the Trust&rsquo;s assets from the failures of Silvergate Bank or Signature Bank, in the future, changing circumstances and market
conditions, some of which may be beyond the Trust&rsquo;s or the Sponsor&rsquo;s control, could impair the Trust&rsquo;s ability to access
the Trust&rsquo;s cash held with the Prime Execution Agent in the Trust&rsquo;s Trading Balance or associated with the Trust&rsquo;s orders
to sell Solana in connection with payment of Trust expenses not assumed by the Sponsor. If the Prime Execution Agent were to experience
financial distress or its financial condition is otherwise affected by the failure of its banking partners, the Prime Execution Agent&rsquo;s
ability to provide services to the Trust could be affected. Moreover, the future failure of a bank at which the Prime Execution Agent
maintains customer cash, in the Trust&rsquo;s Trading Balance associated with the Trust&rsquo;s orders to sell Solana in connection with
payment of Trust expenses not assumed by the Sponsor, could result in losses to the Trust, to the extent the balances are not subject
to deposit insurance, notwithstanding the regulatory requirements to which the Prime Execution Agent is subject or other potential protections.
Although the Prime Execution Agent has made certain representations to the Sponsor regarding the Prime Execution Agent&rsquo;s maintenance
of records in a manner reasonably designed to qualify for FDIC insurance on a pass-through basis in connection with the accounts in which
the Prime Execution Agent maintains cash on behalf of its customers (including the Trust), there can be no assurance that such pass-through
insurance will ultimately be made available. In addition, the Trust may maintain cash balances with the Prime Execution Agent that are
not insured or are in excess of the FDIC&rsquo;s insurance limits, or which are maintained by the Prime Execution Agent at Money Market
Funds and subject to the attendant risks (e.g., &ldquo;breaking the buck&rdquo;). As a result, the Trust could suffer losses.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Prime Execution
Agent routes orders through Connected Trading Venues in connection with trading services under the Prime Execution Agreement. The loss
or failure of any such Connected Trading Venues may adversely affect the Prime Execution Agent&rsquo;s business and cause losses for the
Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In connection with trading services
under the Prime Execution Agreement, the Prime Execution Agent routinely routes customer orders to Connected Trading Venues, which are
third-party platforms or other trading venues (including the trading venue operated by the Prime Execution Agent). In connection with
these activities, the Prime Execution Agent may hold Solana with such Connected Trading Venues in order to effect customer orders, including
the Trust&rsquo;s orders. However, the Prime Execution Agent has represented to the Sponsor that no customer cash is held at Connected
Trading Venues. If the Prime Execution Agent were to experience a disruption in the Prime Execution Agent&rsquo;s access to these Connected
Trading Venues, the Prime Execution Agent&rsquo;s trading services under the Prime Execution Agreement could be adversely affected to
the extent that the Prime Execution Agent is limited in its ability to execute order flow for its customers, including the Trust. In addition,
while the Prime Execution Agent has policies and procedures to help mitigate the Prime Execution Agent&rsquo;s risks related to routing
orders through third-party trading venues, if any of these third-party trading venues experience any technical, legal, regulatory or other
adverse events, such as shutdowns, delays, system failures, suspension of withdrawals, illiquidity, insolvency, or loss of customer assets,
the Prime Execution Agent might not be able to fully recover the customer&rsquo;s Solana that the Prime Execution Agent has deposited
with these third parties. As a result, the Prime Execution Agent&rsquo;s business, operating results and financial condition could be
adversely affected, potentially resulting in its failure to provide services to the Trust or perform its obligations under the Prime Execution
Agreement, and the Trust could suffer resulting losses or disruptions to its operations. The failure of a Connected Trading Venue at which
the Prime Execution Agent maintains customer Solana, including Solana associated with the Trust, could result in losses to the Trust,
notwithstanding the regulatory requirements to which the Prime Execution Agent is subject or other potential protections.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">A loss of confidence
or breach of the Solana Custodian may adversely affect the Trust and the value of an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Custody and security services
for the Trust&rsquo;s Solana are provided by [Solana Custodian], although the Trust may retain one or more additional custodians at a
later date. Solana held by the Trust may be custodied or secured in different ways (for example, a portion of the Trust&rsquo;s Solana
holdings may be custodied by [Solana Custodian] and another portion by another third-party custodian). Over time, the Trust may change
the custody or security arrangement for all or a portion of its holdings. The Sponsor will decide the appropriate custody and arrangements
based on, among other factors, the availability of experienced custodians and the Trust&rsquo;s ability to securely safeguard the Solana.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 70; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->66<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If the Solana Custody
Agreement or Prime Execution Agreement is terminated or the Solana Custodian or Prime Execution Agent fails to provide services as required,
the Sponsor may need to find and appoint a replacement custodian or prime broker, which could pose a challenge to the safekeeping of the
Trust&rsquo;s Solana, and the Trust&rsquo;s ability to continue to operate may be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Trust is dependent on the
Solana Custodian, which is [Solana Custodian], and to a lesser extent, the Prime Execution Agent, [Prime Execution Agent] to operate.
[Solana Custodian] performs essential functions in terms of safekeeping the Trust&rsquo;s Solana in the Trust Solana Account, and its
affiliate, [Prime Execution Agent], in its capacity as Prime Execution Agent under the Agent Execution Model. If [Solana Custodian] or
[Prime Execution Agent] fails to perform the functions they perform for the Trust, the Trust may be unable to operate or create or redeem
Baskets, which could force the Trust to liquidate or adversely affect the price of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Sponsor may not be able to
find a party willing to serve as the custodian of the Trust&rsquo;s Solana or as the Trust&rsquo;s prime execution agent under the same
terms as the current Solana Custody Agreement or Prime Execution Agreement or at all. To the extent that Sponsor is not able to find a
suitable party willing to serve as the custodian or prime execution agent, the Sponsor may be required to terminate the Trust and liquidate
the Trust&rsquo;s Solana. In addition, to the extent that the Sponsor finds a suitable party but must enter into a modified Solana Custody
Agreement or Prime Execution Agreement that is less favorable for the Trust, the value of the Shares could be adversely affected. If the
Trust is unable to find a replacement prime execution agent, its operations could be adversely affected.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Sponsor may need
to find and appoint a replacement Solana Custodian or Cash Custodian quickly, which could pose a challenge to the safekeeping of the Trust&rsquo;s
Solana and cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Sponsor may need to replace
[Solana Custodian] as the Solana custodian of the Trust&rsquo;s Solana or BNY Mellon as the cash custodian of the Trust&rsquo;s cash and
cash equivalents as a result of the insolvency, business failure or interruption, default, failure to perform, security breach or other
problems. Transferring maintenance responsibilities of the Trust&rsquo;s accounts with the Solana Custodian and/or Cash Custodian to another
party will likely be complex and could subject the Trust&rsquo;s Solana to the risk of loss during the transfer, which could have a negative
impact on the performance of the Shares or result in loss of the Trust&rsquo;s assets. The Sponsor may not be able to find a party willing
to serve as the Solana Custodian or Cash Custodian under the same terms as the current Solana Custody Agreement or Cash Custody Agreement,
respectively. To the extent that Sponsor is not able to find a suitable party willing to serve as the Solana Custodian or Cash Custodian,
as applicable, the Sponsor may be required to terminate the Trust and liquidate the Trust&rsquo;s Solana. In addition, to the extent that
the Sponsor finds a suitable party but must enter into modified custodial services agreements that cost more, the value of the Shares
could be adversely affected.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Solana Custodian
could become insolvent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s assets will
be held in one or more accounts maintained for the Trust by the Solana Custodian and Cash Custodian. The Solana Custodian is not a depository
institution as it is not insured by the FDIC. The insolvency of the Solana Custodian or of any broker, custodian bank or clearing corporation
used by the Solana Custodian, may result in the loss of all or a substantial portion of the Trust&rsquo;s assets or in a significant delay
in the Trust having access to those assets. Additionally, custody of digital assets presents inherent and unique risks relating to access,
loss, theft and means of recourse in such scenarios. These risks are applicable to the Trust&rsquo;s use of [Solana Custodian].</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Solana held by the
Trust is not subject to FDIC or SIPC protections.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Trust is not a banking institution
or otherwise a member of the FDIC or SIPC and, therefore, deposits held with or assets held by the Trust are not subject to the protections
enjoyed by depositors with FDIC or SIPC member institutions. The undivided interests in the Trust&rsquo;s Solana represented by the Shares
in the Trust are not insured.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 71; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->67<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<p style="text-align: justify; margin: 0">&nbsp;</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Third parties
may infringe upon or otherwise violate intellectual property rights or assert that the Sponsor has infringed or otherwise violated their
intellectual property rights, which may result in significant costs and diverted attention.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">It is possible that third
parties might utilize the Trust&rsquo;s intellectual property or technology, including the use of its business methods and trademarks,
without permission. However, the Trust may not have adequate resources to implement procedures for monitoring unauthorized uses of their
trademarks, proprietary software and other technology. Also, third parties may independently develop business methods, trademarks or proprietary
software and other technology similar to that of the Trust or claim that the Trust has violated their intellectual property rights, including
their copyrights, trademark rights, trade names, trade secrets and patent rights. As a result, the Trust may have to litigate in the future
to protect its trade secrets, determine the validity and scope of other parties&rsquo; proprietary rights, defend itself against claims
that it has infringed or otherwise violated other parties&rsquo; rights, or defend itself against claims that its rights are invalid.
Any litigation of this type, even if the Trust is successful and regardless of the merits, may result in significant costs, divert its
resources from the Trust, or require it to change its proprietary software and other technology or enter into royalty or licensing agreements.</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Due to the increased
use of technologies, intentional and unintentional cyber-attacks pose operational and information security risks.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With the increased use of
technologies such as the internet and the dependence on computer systems to perform necessary business functions, the Trust is susceptible
to operational and information security risks. In general, cyber incidents can result from deliberate attacks or unintentional events.
Cyber-attacks include, but are not limited to, gaining unauthorized access to digital systems for purposes of misappropriating assets
or sensitive information, corrupting data, or causing operational disruption. Cyber-attacks may also be carried out in a manner that does
not require gaining unauthorized access, such as causing denial-of-service attacks on websites. Cyber security failures or breaches of
one or more of the Trust&rsquo;s third-party service providers (including, but not limited to, the Administrator, Transfer Agent, the
Sponsor, the Solana Custodian and the Cash Custodian) have the ability to cause disruptions and impact business operations, potentially
resulting in financial losses, the inability of the Shareholders to transact business, violations of applicable privacy and other laws,
regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, and/or additional compliance costs.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, substantial costs
may be incurred in order to prevent any cyber incidents in the future. The Trust and its Shareholders could be negatively impacted as
a result. While the Trust has established business continuity plans, there are inherent limitations in such plans.</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust faces
risks related to the novel coronavirus (COVID-19) outbreak, which could negatively impact the value of the Trust&rsquo;s holdings and
significantly disrupt its operations.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Health crises caused by the
outbreak of infectious diseases or other public health issues, may exacerbate other pre-existing political, social, economic, market and
financial risks. The impact of any such events, could negatively affect the global economy, as well as the economies of individual countries
or regions, the financial performance of individual companies, sectors and industries, and the markets in general in significant and unforeseen
ways. Any such impact could adversely affect the prices and liquidity of the Shares.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For example, an outbreak of
a respiratory disease designated as COVID-19 was first detected in China in December 2019 and subsequently spread internationally. The
transmission of COVID-19 and efforts to contain its spread resulted in international, national and local border closings and other significant
travel restrictions and disruptions, significant disruptions to business operations, supply chains and customer activity, event cancellations
and restrictions, service cancellations, reductions and other changes, significant challenges in healthcare service preparation and delivery,
and quarantines, as well as general concern and uncertainty that negatively affected the economic environment. These impacts also caused
significant volatility and declines in global financial markets, including increased volatility and uncertainty in crypto markets, which
have caused losses for investors. The emergence of new COVID variants or other infectious diseases could result in a substantial economic
downturn or recession.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, the operations
of the Trust, the Sponsor and other service providers may be significantly impacted, or even temporarily or permanently halted, as a result
of government quarantine measures, voluntary and precautionary restrictions on travel or meetings and other factors related to a public
health emergency, including its potential adverse impact on the health of any such entity&rsquo;s personnel. Any disruption of operations
could adversely impact the price and liquidity of the Shares, including, without limitation, the Trust&rsquo;s ability to process orders
for Baskets.</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: justify">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"></p>

<!-- Field: Page; Sequence: 72; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->68<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_024"></A>Solana, Solana
MARKET AND REGULATION OF Solana</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Solana and the Solana Network</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Solana is a digital asset
that is created and transmitted through the operations of a peer-to-peer, decentralized network of computers that operates on cryptographic
protocols (the Solana Network). No single entity is known to own or operate the Solana Network, the infrastructure of which is collectively
maintained by what is understood to be a decentralized user base. The Solana Network allows people to exchange tokens of value, called
Solana, which are recorded on a public transaction ledger known as a blockchain. Solana can be used to pay for goods and services, including
computational power on the Solana Network, or it can be converted to fiat currencies, such as the U.S. dollar, at rates determined on
digital asset trading platforms or in individual end-user-to-end-user transactions under a barter system. Furthermore, the Solana Network
was designed to allow users to write and implement smart contracts&mdash;that is, general-purpose code that executes on every computer
in the network and can instruct the transmission of information and value based on a sophisticated set of logical conditions. Using smart
contracts, users can create markets, store registries of debts or promises, represent the ownership of property, move funds in accordance
with conditional instructions and create digital assets other than Solana on the Solana Network. Smart contract operations are executed
on the Solana blockchain in exchange for payment of Solana. Like the Ethereum network, the Solana Network is one of a number of projects
intended to expand blockchain use beyond just a peer-to-peer money system.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Solana protocol introduced
the Proof-of-History (PoH) timestamping mechanism. PoH automatically orders on-chain transactions by creating a historical record that
proves an event has occurred at a specific moment in time. PoH is intended to provide a transaction processing speed and capacity advantage
over other blockchain networks like Bitcoin and Ethereum, which rely on sequential production of blocks and can lead to delays caused
by validator confirmations. PoH is a new blockchain technology that is not widely used. PoH may not function as intended. For example,
it may require more specialized equipment to participate in the network and fail to attract a significant number of users, or may be subject
to outages or fail to function as intended. In addition, there may be flaws in the cryptography underlying PoH, including flaws that affect
functionality of the Solana Network or make the network vulnerable to attack.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to the PoH mechanism
described above, the Solana Network uses a proof-of-stake consensus mechanism to incentivize Solana holders to validate transactions.
Unlike proof-of-work, in which miners expend computational resources to compete to validate transactions and are rewarded coins in proportion
to the amount of computational resources expended, in proof-of-stake, validators risk or &ldquo;stake&rdquo; coins to compete to be randomly
selected to validate transactions and are rewarded coins in proportion to the amount of coins staked. Any malicious activity, such as
disagreeing with the eventual consensus or otherwise violating protocol rules, results in the forfeiture or &ldquo;slashing&rdquo; of
a portion of the staked coins. Proof-of-stake is viewed as more energy efficient and scalable than proof-of-work and is sometimes referred
to as &ldquo;virtual mining.&rdquo;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Solana protocol was first
conceived by Anatoly Yakovenko in a 2017 whitepaper. Development of the Solana Network is overseen by the Solana Foundation, a Swiss non-profit
organization, and Solana Labs, Inc. (Solana Labs), a Delaware corporation, which administered the original network launch and token distribution.
Although Solana Labs and the Solana Foundation continue to exert significant influence over the direction of the development of Solana,
the Solana Network, like the Ethereum network, is understood to be decentralized and does not require governmental authorities or financial
institution intermediaries to create, transmit or determine the value of Solana.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In order to own, transfer
or use Solana directly on the Solana Network (as opposed to through an intermediary, such as a custodian), a person generally must have
internet access to connect to the Solana Network. Solana transactions may be made directly between end-users without the need for a third-party
intermediary. To prevent the possibility of double-spending Solana, a user must notify the Solana Network of the transaction by broadcasting
the transaction data to its network peers. The Solana Network provides confirmation against double-spending by memorializing every transaction
in the Solana blockchain, which is publicly accessible and transparent. This memorialization and verification against double-spending
is accomplished through the Solana Network validation process, which adds &ldquo;blocks&rdquo; of data, including recent transaction information,
to the Solana blockchain. Unlike other blockchains that rely solely on sequential production of blocks through proof-of-work or proof-of-stake
mechanisms, however, the Solana Network introduces PoH, which creates a historical record that proves an event has occurred at a specific
moment in time.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><b><i>&nbsp;</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><b><i></i></b></p>

<!-- Field: Page; Sequence: 73; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->69<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><b><i>&nbsp;</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><b><i>Smart Contracts and Development
on the Solana Network</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Smart contracts are programs
that run on a blockchain that can execute automatically when certain conditions are met. Smart contracts facilitate the exchange of anything
representative of value, such as money, information, property, or voting rights.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Using smart contracts, users
can send or receive digital assets, create markets, store registries of debts or promises, represent ownership of property or a company,
move funds in accordance with conditional instructions and create new digital assets.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Development on the Solana
Network involves building more complex tools on top of smart contracts, such as decentralized apps (&ldquo;DApps&rdquo;) and organizations
that are autonomous, known as decentralized autonomous organizations (&ldquo;DAOs&rdquo;). For example, a company that distributes charitable
donations on behalf of users could hold donated funds in smart contracts that are paid to charities only if the charity satisfies certain
pre-defined conditions.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In total, as of November 1,
2024, more than 400 DApps are currently built on the Solana Network, including DApps in the collectible non-fungible token, gaming, music
streaming, and decentralized finance categories.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Additionally, the Solana Network
has been used for decentralized finance (&ldquo;DeFi&rdquo;), or open finance platforms, which seek to democratize access to financial
services, such as borrowing, lending, custody, trading, derivatives and insurance, by removing third-party intermediaries. DeFi can allow
users to lend and earn interest on their digital assets, exchange one digital asset for another and create derivative digital assets such
as stablecoins, which are digital assets pegged to a reserve asset such as fiat currency.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, the Solana Network
and other smart contract platforms have been used for creating non-fungible tokens (&ldquo;NFTs&rdquo;).</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Unlike digital assets native
to smart contract platforms which are fungible and enable the payment of fees for smart contract execution. Instead, NFTs allow for digital
ownership of assets that convey certain rights to other digital or real world assets. This new paradigm allows users to own rights to
other assets through NFTs, which enable users to trade them with others on the Solana Network. For example, an NFT may convey rights to
a digital asset that exists in an online game or a DApp, and users can trade their NFT in the DApp or game, and carry them to other digital
experiences, creating an entirely new free-market internet-native economy that can be monetized in the physical world.</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Summary of a Solana Transaction</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Prior to engaging in Solana
transactions directly on the Solana Network, a user generally must first install on its computer or mobile device a Solana Network software
program that will allow the user to generate a private and public key pair associated with a Solana address. The Solana Network software
program and the Solana address also enable the user to connect to the Solana Network and transfer Solana to, and receive Solana from,
other users.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each Solana Network address,
or wallet, is associated with a unique &ldquo;public key&rdquo; and &ldquo;private key&rdquo; pair. To receive Solana, the Solana recipient
must provide its public key to the party initiating the transfer. This activity is analogous to a recipient for a transaction in U.S.
dollars providing a routing address in wire instructions to the payor so that cash may be wired to the recipient&rsquo;s account. The
payor approves the transfer to the address provided by the recipient by &ldquo;signing&rdquo; a transaction that consists of the recipient&rsquo;s
public key with the private key of the address from where the payor is transferring the Solana. The recipient, however, does not make
public or provide to the sender its related private key.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Neither the recipient nor
the sender reveal their private keys in a transaction, because the private key authorizes transfer of the funds in that address to other
users. Therefore, if a user loses his or her private key, the user may permanently lose access to the Solana contained in the associated
address. Likewise, Solana is irretrievably lost if the private key associated with them is deleted and no backup has been made. When sending
Solana, a user&rsquo;s Solana Network software program must validate the transaction with the associated private key. In addition, since
every computation on the Solana Network requires processing power, there is a transaction fee involved with the transfer that is paid
by the payor the resulting digitally validated transaction is sent by the user&rsquo;s Solana Network software program to the Solana Network
validators to allow transaction confirmation.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p>

<!-- Field: Page; Sequence: 74; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->70<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Solana Network validators
record and confirm transactions when they validate and add blocks of information to the Solana blockchain. When a validator is selected
to validate a block, it creates that block, which includes data relating to (i) the verification of newly submitted and accepted transactions
and (ii) a reference to the prior block in the Solana blockchain to which the new block is being added. The validator becomes aware of
outstanding, unrecorded transactions through the data packet transmission and distribution discussed above.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon the addition of a block
of Solana transactions, the Solana Network software program of both the spending party and the receiving party will show confirmation
of the transaction on the Solana blockchain and reflect an adjustment to the Solana balance in each party&rsquo;s Solana Network public
key, completing the Solana transaction. Once a transaction is confirmed on the Solana blockchain, it is irreversible.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Some Solana transactions are
conducted &ldquo;off-blockchain&rdquo; and are therefore not recorded in the Solana blockchain. These &ldquo;off-blockchain transactions&rdquo;
involve the transfer of control over, or ownership of, a specific digital wallet holding Solana or the reallocation of ownership of certain
Solana in a pooled-ownership digital wallet, such as a digital wallet owned by a digital asset trading platform. In contrast to on-blockchain
transactions, which are publicly recorded on the Solana blockchain, information and data regarding off-blockchain transactions are generally
not publicly available. Therefore, off-blockchain transactions are not truly Solana transactions in that they do not involve the transfer
of transaction data on the Solana Network and do not reflect a movement of Solana between addresses recorded in the Solana blockchain.
For these reasons, off-blockchain transactions are subject to risks as any such transfer of Solana ownership is not protected by the protocol
behind the Solana Network or recorded in, and validated through, the blockchain mechanism.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&nbsp;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Solana Market and Solana Digital Asset Trading
Platforms</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Solana can be transferred
in direct peer-to-peer transactions through the direct sending of Solana over the Solana blockchain from one Solana address to another.
Among end-users, Solana can be used to pay other members of the Solana Network for goods and services under what resembles a barter system.
Consumers can also pay merchants and other commercial businesses for goods or services through direct peer-to-peer transactions on the
Solana blockchain or through third-party service providers.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to using Solana
to engage in transactions, investors may purchase and sell Solana to speculate as to the value of Solana in the Solana market, or as a
long-term investment to diversify their portfolio. The value of Solana within the market is determined, in part, by the supply of and
demand for Solana in the global Solana market, market expectations for the adoption of Solana as a store of value, the number of merchants
that accept Solana as a form of payment, and the volume of peer-to-peer transactions, among other factors.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Solana spot markets provide
investors with a website that permits investors to open accounts with the spot market and then purchase and sell Solana. Prices for trades
on Solana spot markets are typically reported publicly. An investor opening a trading account must deposit an accepted government-issued
currency into their account with the spot market, or a previously acquired digital asset, before they can purchase or sell assets on the
spot market. The process of establishing an account with a Solana spot market and trading Solana is different from, and should not be
confused with, the process of users sending Solana from one Solana address to another Solana address on the Solana blockchain. This latter
process is an activity that occurs on the Solana Network, while the former is an activity that occurs entirely on the private website
operated by the spot market. The spot market typically records the investor&rsquo;s ownership of Solana in its internal books and records,
rather than on the Solana blockchain. The spot market ordinarily does not transfer Solana to the investor on the Solana blockchain unless
the investor makes a request to the spot market to withdraw the Solana in their exchange account to an off-exchange Solana wallet.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Outside of spot markets, Solana
can be traded OTC in transactions that are not publicly reported. The OTC market is largely institutional in nature, and OTC market participants
generally consist of institutional entities, such as firms that offer two-sided liquidity for Solana, investment managers, proprietary
trading firms, high-net-worth individuals that trade Solana on a proprietary basis, entities with sizeable Solana holdings, and family
offices. The OTC market provides a relatively flexible market in terms of quotes, price, quantity, and other factors, although it tends
to involve large blocks of Solana. The OTC market has no formal structure and no open-outcry meeting place. Parties engaging in OTC transactions
will agree upon a price&mdash;often via phone or email&mdash;and then one of the two parties will then initiate the transaction. For example,
a seller of Solana could initiate the transaction by sending the Solana to the buyer&rsquo;s Solana address. The buyer would then wire
U.S. dollars to the seller&rsquo;s bank account. OTC trades are sometimes hedged and eventually settled with concomitant trades on Solana
spot markets.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p>

<!-- Field: Page; Sequence: 75; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->71<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Authorized Participants will
deliver, or facilitate the delivery of, Solana or cash to the Trust&rsquo;s account with the Solana Custodian in exchange for Shares of
the Trust, and the Trust, through the Solana Custodian, will deliver Solana or cash when such Authorized Participants redeem Shares of
the Trust. See <font style="text-transform: uppercase">&ldquo;The Trust and SOLANA Prices&rdquo;</font> for more information.</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Creation of New Solana</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b><i>&nbsp;</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b><i>Initial Creation of
Solana</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Unlike other digital assets
such as bitcoin, which are solely created through a progressive mining process, 500 million Solana were created in connection with the
launch of the Solana Network. The initial 500 million Solana were distributed as follows:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in"><u>Investors</u>:
189 million Solana, or 37.8% of the supply, was sold in private sales to venture capital and other investors conducted between 2018 to
2021.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in"><u>Solana Foundation</u>:
52 million Solana, or 10.4% of the supply, was distributed to the Solana Foundation for operational costs incurred in the development
of the Solana Network.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in"><u>Solana Labs, Inc.</u>:
64 million Solana, or 12.8% of the supply, was retained by Solana Labs to be used, at least in part, to compensate the employees of Solana
Labs.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in"><font style="font-family: Sans-Serif; font-size: 9pt; color: Red"><b></b></font><u>Community</u>: 195 million Solana, or 39.0% of the supply, was distributed to the Solana Foundation to be deployed
as bounties, incentive programs, marketing and grants.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Following the launch of the
Solana Network, Solana supply increases through a progressive minting process<b>.</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b><i>&nbsp;</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b><i>Proof-of-Stake Process</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Unlike proof-of-work, in which
validators expend computational resources to compete to validate transactions and are rewarded coins in proportion to the amount of computational
resources expended, in proof-of-stake, validators risk or &ldquo;stake&rdquo; coins to compete to be randomly selected to validate transactions
and are rewarded coins in proportion to the amount of coins staked. Any malicious activity, such as validating multiple blocks, disagreeing
with the eventual consensus or otherwise violating protocol rules, results in the forfeiture or &ldquo;slashing&rdquo; of a portion of
the staked coins. Proof-of-stake is believed by some to be more energy efficient and scalable than proof-of-work. Every 12 seconds, approximately,
a new block is added to the Solana blockchain with the latest transactions processed by the network, and the validator that generated
this block is awarded Solana.</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Limits on Solana Supply</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The rate at which new Solana
supply has been minted and put into circulation has varied since network launch. Additionally, the Solana protocol reduces the Solana
supply by eliminating 50% of transaction fees paid to the network. As a result, net changes in Solana supply are expected to vary in the
future.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At network launch, the Solana
circulating supply was 8 million Solana. Between network launch and December 31, 2023, the circulating supply of Solana increased by roughly
5,266% to approximately 429 million Solana.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><font style="font-weight: normal">&nbsp;</font></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><font style="font-weight: normal">In
February 2021, the Solana supply inflation rate was changed from 0.1% to a new initial inflation rate of 8%. The 8% initial inflation
rate is scheduled to decline in 15% increments until a long-term inflation rate of 1.5% is reached. As of November 1, 2024, the Solana
supply issuance rate was approximately 4.978% on an annual basis before any offsets for eliminated transaction fees.</font></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Solana Protocol Development and Modifications</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Historically the Solana Network&rsquo;s
development has been overseen by Solana Labs, the Solana Foundation and other core developers. The Solana Foundation and core developers
are able to access and alter the Solana Network source code and, as a result, they are responsible for quasi-official releases of updates
and other changes to the Solana Network&rsquo;s source code.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p>

<!-- Field: Page; Sequence: 76; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->72<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For example, in March 2020,
the Solana Network launched the Mainnet Beta version of the Solana Network, one month after launching the testnet, Tour de SOL. Solana
Labs led the development of these reference implementations.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The release of updates to
the Solana Network&rsquo;s source code does not guarantee that the updates will be automatically adopted. Users and nodes must accept
any changes made to the Solana source code by downloading the proposed modification of the Solana Network&rsquo;s source code. A modification
of the Solana Network&rsquo;s source code is only effective with respect to the Solana users that download it. If a modification is accepted
only by a percentage of users and validators, a division in the Solana Network will occur such that one network will run the pre-modification
source code and the other network will run the modified source code. Such a division is known as a &ldquo;fork.&rdquo; See &ldquo;RISK
FACTORS&mdash;Risks Associated with Solana and the Solana Network &mdash; A temporary or permanent &ldquo;fork&rdquo; or a &ldquo;clone&rdquo;
of the Solana Network could adversely affect the value of the Shares.&rdquo; Consequently, as a practical matter, a modification to the
source code become part of the Solana Network only if accepted by participants collectively having a majority of the processing power
on the Solana Network.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Core development of the Solana
source code has increasingly focused on modifications of the Solana protocol to increase speed and scalability and also allow for financial
and non-financial next generation uses. The Trust&rsquo;s activities will not directly relate to such projects, though such projects may
utilize Solana as tokens for the facilitation of their non-financial uses, thereby potentially increasing demand for Solana and the utility
of the Solana Network as a whole. Conversely, projects that operate and are built within the Solana blockchain may increase the data flow
on the Solana Network and could either &ldquo;bloat&rdquo; the size of the Solana blockchain or slow confirmation times.</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Forms of Attack Against the Solana Network</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All networked systems are
vulnerable to various kinds of attacks. As with any computer network, the Solana Network contains certain flaws. For example, the Solana
Network is currently vulnerable to a &ldquo;51% attack&rdquo; (though the numerical thresholds vary in proof-of-stake) where, if a party
or group were to gain control of more than the relevant threshold of the staked Solana, a malicious actor would be able to gain full control
of the network and the ability to manipulate the Solana blockchain. As of November 1, 2024, the top three largest staking pools controlled
approximately 68% of the Solana staked on the Solana Network.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, many digital
asset networks have been subjected to a number of denial of service attacks, which has led to temporary delays in block creation and in
the transfer of Solana.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For example, on September
14, 2021, the Solana Network experienced a significant disruption, later attributed to a type of denial of service attack, and was offline
for 17 hours, only returning to full functionality 24 hours later. While persons associated with Solana Labs and/or the Solana Foundation
are understood to have played a key role in bringing the network back online, the broader community also played a key role, as Solana
validators coordinated to upgrade and restart the network. Any similar attacks on the Solana Network that impact the ability to transfer
Solana could have a material adverse effect on the price of Solana and the value of the Shares.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><font style="font-weight: normal">&nbsp;</font></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><font style="font-weight: normal">This
is not intended as an exhaustive list of all forms of attack against the Solana Network. For additional information, see the &ldquo;RISK
FACTORS&rdquo; section of this Prospectus.</font></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Market Participants</p>

<p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b>&nbsp;</b></p>

<p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b>Validators</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Validators range from Solana
enthusiasts to professional operations that design and build dedicated machines and data centers, including &ldquo;clusters,&rdquo; which
are groups of validators that act cohesively and combine their processing to confirm transactions. When a validator confirms a transaction,
the validator and any associated stakers receive a fee. During the course of ordering transactions and validating blocks, validators may
be able to prioritize certain transactions in return for increased transaction fees, an incentive system known as &ldquo;Maximal Extractable
Value&rdquo; or MEV. For example, in blockchain networks that facilitate DeFi protocols in particular, such as the Ethereum Network, users
may attempt to gain an advantage over other users by offering greater transaction fees. Validators less commonly capture MEV in the Solana
Network because, unlike the Ethereum Network, it does not publicly expose transactions before they are accepted by a validator. However,
some efforts are underway to help Solana Validators consistently capture MEV. See &ldquo;SOLANA, SOLANA MARKET AND REGULATION OF SOLANA&mdash;Summary
of a Solana Transaction&rdquo; below.</p>

<p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b>&nbsp;</b></p>

<p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b></b></p>

<!-- Field: Page; Sequence: 77; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->73<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b>&nbsp;</b></p>

<p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b>Investment and Speculative
Sector</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This sector includes the investment
and trading activities of both private and professional investors and speculators. Historically, larger financial services institutions
are publicly reported to have limited involvement in investment and trading in digital assets, although the participation landscape is
beginning to change. Currently, there is relatively limited use of digital assets in the retail and commercial marketplace in comparison
to relatively extensive use by speculators, and a significant portion of demand for digital assets is generated by speculators and investors
seeking to profit from the short- or long-term holding of digital assets.</p>

<p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b>&nbsp;</b></p>

<p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b>Retail Sector</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The retail sector includes
users transacting in direct peer-to-peer Solana transactions through the direct sending of Solana over the Solana Network. The retail
sector also includes transactions in which consumers purchase goods and services from commercial or service businesses through direct
transactions or third-party service providers, although the use of Solana as a means of payment is still developing and has not yet been
accepted in the same manner as Bitcoin or Ethereum due to its infancy and because Solana has a different purpose than Bitcoin and Ethereum.</p>

<p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b>&nbsp;</b></p>

<p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b>Service Sector</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This sector includes companies
that provide a variety of services including the buying, selling, payment processing and storing of Solana. As Solana continues to grow
in acceptance, it is anticipated that service providers will expand the currently available range of services and that additional parties
will enter the service sector for Solana.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><b>&nbsp;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><b>Competition</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of November 1, 2024, more
than 8,000 other digital assets, as tracked by CoinMarketCap.com, have been developed since the inception of bitcoin, which is currently
the most developed digital asset because of the length of time it has been in existence, the investment in the infrastructure that supports
it, and the network of individuals and entities that are using bitcoin in transactions. While Solana has enjoyed some success in its limited
history, the aggregate value of outstanding Solana is smaller than that of bitcoin and may be eclipsed by the more rapid development of
other digital assets.</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Regulation of Solana and Government Oversight</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As digital assets have grown
in both popularity and market size, the U.S. Congress and a number of U.S. federal and state agencies (including FinCEN, SEC, CFTC, FINRA,
the Consumer Financial Protection Bureau (&ldquo;CFPB&rdquo;), of Investigation, the IRS, the Office of the Comptroller of the Currency,
the Federal Deposit Insurance Corporation, the Federal Reserve and state financial institution and securities regulators) have been examining
the operations of digital asset networks, digital asset users and the digital asset exchange markets, with particular focus on the extent
to which digital assets can be used to launder the proceeds of illegal activities or fund criminal or terrorist enterprises and the safety
and soundness of exchanges or other service-providers that hold or custody digital assets for users. Many of these state and federal agencies
have issued consumer advisories regarding the risks posed by digital assets to investors. In addition, federal and state agencies, and
other countries have issued rules or guidance about the treatment of digital asset transactions or requirements for businesses engaged
in digital asset activity. President Biden&rsquo;s March 9, 2022 Executive Order, asserting that technological advances and the rapid
growth of the digital asset markets &ldquo;necessitate an evaluation and alignment of the United States Government approach to digital
assets,&rdquo; signals an ongoing focus on digital asset policy and regulation in the United States. A number of reports issued pursuant
to the Executive Order have focused on various risks related to the digital asset ecosystem, and have recommended additional legislation
and regulatory oversight. In addition, federal and state agencies, and other countries and international bodies have issued rules or guidance
about the treatment of digital asset transactions or requirements for businesses engaged in digital asset activity. Moreover, the failure
of FTX Trading Ltd. (&ldquo;FTX&rdquo;) in November 2022 and the resulting market turmoil substantially increased regulatory scrutiny
in the United States and globally and led to SEC and criminal investigations, enforcement actions and other regulatory activity across
the digital asset ecosystem.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p>

<!-- Field: Page; Sequence: 78; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->74<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, the SEC, U.S.
state securities regulators and several foreign governments have issued warnings and instituted legal proceedings in which they argue
that certain digital assets may be classified as securities and that both those digital assets and any related initial coin offerings
or other primary and secondary market transactions are subject to securities regulations. For example, in June 2023, the SEC brought charges
against Binance and Coinbase, and in November 2023, the SEC brought charges against Kraken, alleging that they operated unregistered securities
exchanges, brokerages and clearing agencies. In its complaints, the SEC asserted that several digital assets are securities under the
federal securities laws, including Solana. The outcomes of these proceedings, as well as ongoing and future regulatory actions, have had
a material adverse effect on the digital asset industry as a whole and on the price of Solana, and may alter, perhaps to a materially
adverse extent, the nature of an investment in the Shares and/or the ability of the Trust to continue to operate. Additionally, U.S. state
and federal, and foreign regulators and legislatures have taken action against virtual currency businesses or enacted restrictive regimes
in response to adverse publicity arising from hacks, consumer harm, or criminal activity stemming from virtual currency activity.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In August 2021, the chair
of the SEC stated that he believed investors using digital asset trading platforms are not adequately protected, and that activities on
the platforms can implicate the securities laws, commodities laws and banking laws, raising a number of issues related to protecting investors
and consumers, guarding against illicit activity, and ensuring financial stability. The chair expressed a need for the SEC to have additional
authorities to prevent transactions, products, and platforms from &ldquo;falling between regulatory cracks,&rdquo; as well as for more
resources to protect investors in &ldquo;this growing and volatile sector.&rdquo; The chair called for federal legislation centering on
digital asset trading, lending, and decentralized finance platforms, seeking &ldquo;additional plenary authority&rdquo; to write rules
for digital asset trading and lending. At the same time, the chair has also stated that the SEC has authority under existing laws to regulate
the digital asset sector and several enforcement actions were filed against digital asset trading platforms during the first half of 2023.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The SEC has also recently
proposed amendments to the custody rules under Rule 406(4)-2 of the Investment Advisers Act. The proposed rule changes would amend the
definition of a &ldquo;qualified custodian&rdquo; under Rule 206(4)-2(d)(6) and expand the current custody rule under Rule 406(4)-2 to
cover digital assets and related advisory activities. If enacted as proposed, these rules would likely impose additional regulatory requirements
with respect to the custody and storage of digital assets and could lead to additional regulatory oversight of the digital asset ecosystem
more broadly.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Various foreign jurisdictions
have, and may continue to, in the near future, adopt laws, regulations or directives that affect a digital asset network, the Digital
Asset Markets, and their users, particularly digital asset trading platforms and service providers that fall within such jurisdictions&rsquo;
regulatory scope. For example:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 42.7pt; text-indent: -24.7pt">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify">China has made transacting in cryptocurrencies illegal for Chinese citizens in mainland China, and additional restrictions may follow.
China has banned initial coin offerings and there have been reports that Chinese regulators have taken action to shut down a number of
China-based digital asset trading platforms.</td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 42.7pt; text-indent: -24.7pt">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify">South Korea determined to amend its Financial Information Act in March 2020 to require virtual asset service providers to register
and comply with its AML and counter-terrorism funding framework. These measures also provide the government with the authority to close
digital asset trading platforms that do not comply with specified processes. South Korea has also banned initial coin offerings.</td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 42.7pt; text-indent: -24.7pt">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify">The Reserve Bank of India in April 2018 banned the entities it regulates from providing services to any individuals or business entities
dealing with or settling digital assets. In March 2020, this ban was overturned in the Indian Supreme Court, although the Reserve Bank
of India is currently challenging this ruling.</td></tr></table>

<p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 42.7pt; text-indent: -24.7pt">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify">The United Kingdom&rsquo;s Financial Conduct Authority published final rules in October 2020 banning the sale of derivatives and exchange-traded
notes that reference certain types of digital assets, contending that they are &ldquo;ill-suited&rdquo; to retail investors citing extreme
volatility, valuation challenges and association with financial crime. A new law, the Financial Services and Markets Act 2023 (&ldquo;FSMA&rdquo;),
received royal assent in June 2023. The FSMA brings digital asset activities within the scope of existing laws governing financial institutions,
markets and assets.</td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 42.7pt; text-indent: -24.7pt">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify">The Parliament of the European Union approved the text of the Markets in Crypto-Assets Regulation (&ldquo;MiCA&rdquo;) in April 2023,
establishing a regulatory framework for digital asset services across the European Union. MiCA is intended to serve as a comprehensive
regulation of digital asset markets and imposes various obligations on digital asset issuers and service providers. The main aims of MiCA
are industry regulation, consumer protection, prevention of market abuse and upholding the integrity of digital asset markets. MiCA was
formally approved by the European Union&rsquo;s member states in 2023 and is expected to come into effect in 2024.</td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p>

<!-- Field: Page; Sequence: 79; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->75<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There remains significant
uncertainty regarding foreign governments&rsquo; future actions with respect to the regulation of digital assets and digital asset trading
platforms. Such laws, regulations or directives may conflict with those of the United States and may negatively impact the acceptance
of Solana by users, merchants and service providers outside the United States and may therefore impede the growth or sustainability of
the Solana ecosystem in the United States and globally, or otherwise negatively affect the value of Solana held by the Trust. The effect
of any future regulatory change on the Trust or the Solana held by the Trust is impossible to predict, but such change could be substantial
and adverse to the Trust and the value of the Shares.</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_025"></A>THE TRUST AND Solana
PRICES</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Overview of the Trust</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s investment
objective is to seek to provide exposure to the value of Solana held by the Trust, less the expenses of the Trust&rsquo;s operations.
In seeking to achieve its investment objective, the Trust will hold Solana and will value its net assets and the Shares daily based on
the Pricing Benchmark. Solana will be the only digital asset held by the Trust.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor believes that
the Trust will provide a cost-efficient way for investors to implement strategic and tactical asset allocation strategies that use Solana
by investing in the Shares rather than purchasing, holding and trading Solana directly. The latter alternative would require an investor
to acquire Solana by selecting a digital asset trading platform and opening an account or arranging a private transaction, and initiating
a fiat transaction to initiate or settle such acquisition. An investor would then also be required to custody such Solana by selecting
a retail or institutional custodial platform or establishing a personal computer or hardware security module-based system capable of transacting
directly on the blockchain, and incurring the risk associated with cybersecurity and maintaining a private key that is irrecoverable if
lost, among other difficulties.</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Purchase and Sale of Solana</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Because the Trust will conduct
creations and redemptions of Shares for cash, it will be responsible for purchasing and selling Solana in connection with those creation
and redemption orders. The Trust may also be required to sell Solana to pay certain extraordinary, non-recurring expenses that are not
assumed by the Sponsor.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor, on behalf of
the Trust, will typically seek to buy and sell Solana at a price as close to the Pricing Benchmark as practical. When choosing between
potential counterparties, the Sponsor may consider factors other than simply the most favorable price. However, the most favorable price
will be the predominant factor in determining the counterparty with which the Sponsor effectuates the contemplated transaction. Other
factors that the Sponsor may consider include the size of the proposed order, as well as a counterparty&rsquo;s execution capabilities,
reliability and responsiveness.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s purchase
and sale of Solana may be conducted pursuant to either of two models: (i) the &ldquo;Trust-Directed Trade Model&rdquo;; or the (ii) the
&ldquo;Agent Execution Model.&rdquo; The Trust intends to utilize the Trust-Directed Trade Model for all purchases and sales of Solana
and will only utilize the Agent Execution Model in the event that no Solana Trading Counterparty is able or willing to effectuate the
Trust&rsquo;s purchase or sale of Solana.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Whether utilizing either the
Trust-Directed Trade Model or the Agent Execution Model, the Authorized Participants will deliver only cash to create Shares and will
receive only cash when redeeming Shares. Further, Authorized Participants will not directly or indirectly purchase, hold, deliver, or
receive Solana as part of the creation or redemption process or otherwise direct the Trust or a third party with respect to purchasing,
holding, delivering, or receiving Solana as part of the creation or redemption process. Additionally, under both the Trust-Directed Trade
Model and the Agent Execution Model, the Trust will create Shares by receiving Solana from a third party that is not the Authorized Participant,
and the Sponsor, on behalf of the Trust&mdash;not the Authorized Participant&mdash;is responsible for selecting the third party to deliver
the Solana. Further, the third party will not be acting as an agent of the Authorized Participant with respect to the delivery of the
Solana to the Trust or acting at the direction of the Authorized Participant with respect to the delivery of the Solana to the Trust.
Additionally, the Trust will redeem Shares by delivering Solana to a third party that is not the Authorized Participant and the Sponsor,
on behalf of the Trust&mdash;not the Authorized Participant&mdash;is responsible for selecting the third party to receive the Solana.
Further, the third party will not be acting as an agent of the Authorized Participant with respect to the receipt of the Solana from the
Trust or acting at the direction of the Authorized Participant with respect to the receipt of the Solana from the Trust.</p>

<p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>

<!-- Field: Page; Sequence: 80; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->76<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Trust-Directed Trade Model</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Trust-Directed Trade
Model, the Sponsor, on behalf of the Trust, is responsible for acquiring Solana from a Solana trading counterparty that has been approved
by the Sponsor (each, a Solana Trading Counterparty). The Sponsor has entered into contractual agreements with the Solana Trading Counterparties,
and these agreements set forth the general parameters under which a transaction in Solana will be effectuated, should any transaction
with a Solana Trading Counterparty occur. These agreements do not require the Sponsor to utilize any particular Solana Trading Counterparty,
and do not create any contractual obligations on the part of any Solana Trading Counterparty to participate in cash orders for creations
or redemptions. All transactions between the Sponsor, on behalf of the Trust, and a Solana Trading Counterparty will be done on an arm&rsquo;s-length
basis.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">While it is expected and intended
that the Solana Trading Counterparties are unaffiliated third-parties it is possible that a Solana Trading Counterparty may on any given
day be or become considered an affiliate of the Trust if it acquires Shares in an amount that would cause it to become considered an affiliate
of the Trust, as the Shares are publicly traded. Solana Trading Counterparties are not required to have a custody account with the Solana
Custodian. When seeking to purchase or sell Solana on behalf of the Trust, the Sponsor will typically seek to buy and sell Solana at a
price as close to the Pricing Benchmark as practical from any of the approved Solana Trading Counterparties. Upon notification that the
Trust needs to purchase or sell Solana, the Sponsor will obtain indicative prices from multiple Solana Trading Counterparties at which
they would be willing to execute the contemplated transaction. The Sponsor then determines the Solana Trading Counterparty with which
it wishes to transact and records the rationale for that determination. Once agreed upon, the transaction will generally occur on an &ldquo;over-the-counter&rdquo;
basis. Transfers of Solana to and from the Trust Solana Account to the Solana Trading Counterparty are &ldquo;on-chain&rdquo; transactions
represented on the Solana Network. Transfer fees with respect to this on-chain transfer of Solana will be paid by the Solana Custodian.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor maintains a process
for approving and monitoring Solana Trading Counterparties, which is overseen by the Bitwise Portfolio Oversight Committee, which is responsible
for investment activities and related risk, as well as counterparty risk. All Solana Trading Counterparties must be approved by the Bitwise
Portfolio Oversight Committee before the Sponsor, on behalf of the Trust, will engage in transactions with the entity. The Bitwise Portfolio
Oversight Committee continuously reviews all approved Solana Trading Counterparties at its quarterly meetings and will reject the approval
of any previously approved Solana Trading Counterparty if new information arises regarding the entity that puts the appropriateness of
that entity as an approved Solana trading counterparty in doubt. In considering which Solana Trading Counterparties to approve, the Bitwise
Portfolio Oversight Committee has instituted rigorous policies and procedures that include, but are not limited to, (i) a review of all
sanctioned entities, including, but not limited to, the various categories of sanctioned persons and entities identified by the Office
of Foreign Assets Control; (ii) a review of all publicly available information regarding the entity, including a review of all information
that has been filed pursuant to the requirements of U.S. or non-U.S. regulators, with a particular emphasis on the identity of the entity&rsquo;s
owners, disclosure events and reports of disciplinary action; and (iii) a review of the entity&rsquo;s policies and procedures regarding
various topics, including, but not limited to, anti-money laundering and &ldquo;know-your-customer&rdquo; requirements, trade surveillance,
auditing and testing and cybersecurity capabilities.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of _______________, _________________________________
have been approved as Solana Trading Counterparties.</p>

<p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Agent Execution Model</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event that every Solana
Trading Counterparty is either unable or unwilling to effectuate the Trust&rsquo;s purchase or sale of Solana, the Sponsor, on behalf
of the Trust, may execute the trade using the Agent Execution Model.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p>

<!-- Field: Page; Sequence: 81; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->77<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Agent Execution
Model, the Prime Execution Agent, an affiliate of the Solana Custodian, acting in an agency capacity, conducts Solana purchases and sales
on behalf of the Trust with third parties through its [Prime service] pursuant to the Prime Execution Agreement. To avoid having to pre-fund
purchases or sales of Solana, the Trust may borrow Solana or cash as Trade Credit from the Trade Credit Lender on a short-term basis pursuant
to the Trade Financing Agreement. As the Trust intends to conduct nearly all purchases and sales of Solana pursuant to the Trust-Directed
Trade Model, under normal conditions, it expects to keep very little or no Solana in the Trading Balance with the Prime Execution Agent.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the case of a purchase
of Solana, the extension of Trade Credits allows the Trust to purchase Solana through the Prime Execution Agent on the date the Trust
wishes to effectuate the transaction (for instance, on the evening of the day when an order to create Shares is received), with such Solana
being deposited in the Trust&rsquo;s Trading Balance. On the day following a trade when Trade Credits have been utilized, the Trust uses
cash (for instance, from the Authorized Participant who submitted the creation order) to repay the Trade Credits borrowed from the Trade
Credit Lender. The Solana purchased by the Trust is then swept from the Trust&rsquo;s Trading Balance with the Prime Execution Agent to
the Trust Solana Account with the Solana Custodian pursuant to a regular end-of-day sweep process. Transfers of Solana into the Trust&rsquo;s
Trading Balance are off-chain transactions and transfers from the Trust&rsquo;s Trading Balance to the Trust Solana Account are &ldquo;on-chain&rdquo;
transactions represented on the Solana Network. Any financing fee owed to the Trade Credit Lender is deemed part of trade execution costs
and embedded in the trade price for each transaction.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the case of a sale of Solana,
the Trust enters into a transaction to sell Solana through the Prime Execution Agent for cash. The Trust&rsquo;s Trading Balance with
the Prime Execution Agent may not be funded with Solana on the date the Trust wishes to effectuate the transaction (for instance, on the
evening a day when an order to redeem Shares is received) because the Solana remains in the Trust Solana Account with the Solana Custodian.
In those circumstances the Trust may borrow Trade Credits in the form of Solana from the Trade Credit Lender, which allows the Trust to
sell Solana through the Prime Execution Agent at the desired time, and the cash proceeds are deposited in the Trust&rsquo;s Trading Balance
with the Prime Execution Agent. On the business day following the trade, the Trust will use the Solana that is moved from the Trust Solana
Account with the Solana Custodian to the Trading Balance with the Prime Execution Agent to repay the Trade Credits borrowed from the Trade
Credit Lender. Transfers of Solana from the Trust Solana Account to the Trust&rsquo;s Trading Balance are &ldquo;on-chain&rdquo; transactions
represented on the Solana Network. Any financing fee owed to the Trade Credit Lender is deemed part of trade execution costs and embedded
in the trade price for each transaction.</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The CME CF Solana &ndash; Dollar Reference
Rate &ndash; New York Variant</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The net assets of the Trust
and its Shares are valued on a daily basis with reference to the CME CF Solana &ndash; Dollar Reference Rate &ndash; New York Variant,
the Pricing Benchmark, a standardized reference rate published by CF Benchmarks Ltd., the Benchmark Provider, that is designed to reflect
the performance of Solana in U.S. dollars. The Pricing Benchmark was created to facilitate financial products based on Solana. It serves
as a once-a-day benchmark rate of the U.S. dollar price of Solana (USD/SOL), calculated as of 4:00 p.m. ET. The Pricing Benchmark aggregates
the trade flow of several major Solana trading venues, during an observation window between 3:00 p.m. and 4:00 p.m. ET into the U.S. dollar
price of one Solana at 4:00 p.m. ET. The Pricing Benchmark currently uses substantially the same methodology as the CME CF Solana Reference
Rate, the SRR, including utilizing the same constituent Solana exchanges, except that the Pricing Benchmark is calculated as of 4:00 p.m.
ET, whereas the SRR is calculated as of 4:00 p.m. London time. The Pricing Benchmark, which was introduced on September 16, 2024, is based
on materially the same methodology (except calculation time) as the SRR, which was first introduced on April 25, 2022.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Pricing Benchmark is designed
based on the IOSCO Principals for Financial Benchmarks. The Trust uses the Pricing Benchmark to calculate its NAV, which is the aggregate
U.S. dollar value of Solana in the Trust, based on the Pricing Benchmark, less its liabilities and expenses. &ldquo;NAV per Share&rdquo;
is calculated by dividing NAV by the number of Shares currently outstanding. NAV and NAV per Share are not measures calculated in accordance
with GAAP. NAV is not intended to be a substitute for the Trust&rsquo;s Principal Market NAV calculated in accordance with GAAP, and NAV
per Share is not intended to be a substitute for the Trust&rsquo;s Principal Market NAV per Share calculated in accordance with GAAP.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p>

<!-- Field: Page; Sequence: 82; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->78<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor, in its sole discretion,
may cause the Trust to price its portfolio based upon an index, benchmark or standard other than the Pricing Benchmark at any time, with
prior notice to the Shareholders, if investment conditions change or the Sponsor believes that another index, benchmark or standard better
aligns with the Trust&rsquo;s investment objective and strategy. The Sponsor may make this decision for a number of reasons, including,
but not limited to, a determination that the Pricing Benchmark price of Solana differs materially from the global market price of Solana
and/or that third parties are able to purchase and sell Solana on public or private markets not included among the Constituent Platforms,
and such transactions may take place at prices materially higher or lower than the Pricing Benchmark price. The Sponsor, however, is under
no obligation whatsoever to make such changes in any circumstance. In the event that the Sponsor intends to establish the Trust&rsquo;s
NAV by reference to an index, benchmark or standard other than the Pricing Benchmark, it will provide Shareholders with notice in a prospectus
supplement and/or through a current report on Form 8-K or in the Trust&rsquo;s annual or quarterly reports.</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Pricing Benchmark Methodology</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Pricing Benchmark is calculated
based on the &ldquo;Relevant Transactions&rdquo; (as defined below) of all of its constituent Solana trading venues (the &ldquo;Constituent
Platforms&rdquo;) as follows:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">&#9679;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">All Relevant Transactions are added to a joint list, recording the time of execution, trade price and
size for each transaction.</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify">The list is partitioned by timestamp into twelve (12) equally sized time intervals of five (5) minutes
in length.</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify">For each partition separately, the volume-weighted median trade price is calculated from the trade prices
and sizes of all Relevant Transactions, i.e., across all Constituent Platforms. A volume-weighted median differs from a standard median
in that a weighting factor, in this case trade size, is factored into the calculation.</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify">The Pricing Benchmark is then determined by the equally weighted average of the volume medians of all
partitions.</td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of November 1, 2024, the
Constituent Platforms included in the Pricing Benchmark are Bitstamp, Coinbase, Gemini, itBit, Kraken, and LMAX Digital.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify"><i>Bitstamp</i>: A U.K.-based exchange registered as an MSB with FinCEN and licensed as a virtual currency
business under the NYDFS BitLicense as well as a money transmitter in various U.S. states. It is also regulated as a Payments Institution
within the European Union and is registered as a Crypto Asset business with the U.K. FCA.</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify"><i>Coinbase</i>: A U.S.-based exchange registered as an MSB with FinCEN and licensed as a virtual currency
business under the NYDFS BitLicense as well as a money transmitter in various U.S. states. Subsidiaries operating internationally are
further regulated as e-money providers (Republic of Ireland, Central Bank of Ireland) and Major Payment Institutions (Singapore, Monetary
Authority of Singapore).</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify"><i>Gemini</i>: A U.S.-based exchange that is licensed as a virtual currency business under the NYDFS BitLicense.
It is also registered with FinCEN as an MSB and is licensed as a money transmitter in various U.S. states. It is also registered with
the FCA as a Crypto Asset Business.</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify"><i>itBit</i>: A U.S.-based exchange that is licensed as a virtual currency business under the NYDFS BitLicense.
It is also registered FinCEN as an MSB and is licensed as a money transmitter in various U.S. states.</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify"><i>Kraken</i>: A U.S.-based exchange that is registered as an MSB with FinCEN in various U.S. states,
Kraken is registered with the FCA as a Crypto Asset Business and is authorized by the Central Bank of Ireland as a Virtual Asset Service
Provider. Kraken also holds a variety of other licenses and regulatory approvals, including from the Canadian Securities Administrators.</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify"><i>LMAX Digital</i>: A Gibraltar-based exchange regulated by the Gibraltar Financial Services Commission
as a DLT provider for execution and custody services. LMAX Digital does not hold a BitLicense and is part of LMAX Group, a U.K.-based
operator of an FCA-regulated Multilateral Trading Facility and Broker-Dealer.</td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">An oversight function is implemented
by the Benchmark Provider in seeking to ensure that the Pricing Benchmark is administered through the Benchmark Provider&rsquo;s codified
policies for index integrity. The Pricing Benchmark is administered through the Benchmark Provider&rsquo;s codified policies for index
integrity, including a conflicts-of-interest policy, a control framework, an accountability framework, and an input data policy. It is
also subject to the U.K. BMR regulations, compliance with which regulations has been subject to a Limited Assurance Audit under the ISAE
3000 standard as of September 12, 2022, which is publicly available.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p>

<!-- Field: Page; Sequence: 83; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->79<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Pricing Benchmark is subject
to oversight by the CME CF Oversight Committee. The CME CF Oversight Committee shall be comprised of at least five members, including
at least: (i) two who are representatives of CME; (ii) one who is a representative of CF Benchmarks Ltd.; and (iii) two who bring expertise
and industry knowledge relating to benchmark determination, issuance and operations. The CME CF Oversight Committee meets no less frequently
than quarterly. The CME CF Oversight Committee&rsquo;s Founding Charter and quarterly meeting minutes are publicly available.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event that there are
errors or irregularities in the calculation and publication of the Pricing Benchmark, including delayed, missing data or erroneous data,
the Benchmark Provider will apply the &ldquo;Contingency Calculation Rules&rdquo; as they relate to the Pricing Benchmark that are set
forth on the Benchmark Provider&rsquo;s website. Such rules dictate how the Benchmark Provider will calculate the Pricing Benchmark, depending
upon the type of error or irregularity. For instance, in the event that no Relevant Transaction occurs on a Constituent Platform on a
given day, or one or more Relevant Transactions do occur on the Constituent Platform but cannot be retrieved by the Benchmark Provider,
the Constituent Platform is disregarded in the calculation of the Pricing Benchmark for that day. In addition, all Relevant Transactions
are subject to automated screening for erroneous data. Relevant Transactions that have been flagged as erroneous pursuant to the automated
screening and the Contingency Calculation Rules are disregarded in the calculation of the Pricing Benchmark for a given day. If, for whatever
reason, the Benchmark Provider is unable to calculate and publish the Pricing Benchmark by the stipulated dissemination time, it shall
publish a notification on its website informing Pricing Benchmark users, including the Trust, the calculation and publication have been
delayed.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Since the creation of the
Pricing Benchmark, there have been several changes to Constituent Platforms comprising the Pricing Benchmark, most recently in May 2022.
Once it has actual knowledge of changes to the Constituent Platforms used to calculate the Pricing Benchmark, or other material changes
to the Pricing Benchmark calculation methodology, the Trust will notify Shareholders in a prospectus supplement and a current report on
Form 8-K or in its annual or quarterly reports.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A trading venue is eligible
as a &ldquo;Constituent Platform&rdquo; in any of the CME CF Cryptocurrency Pricing Products if it offers a market that facilitates the
spot trading of the relevant cryptocurrency base asset against the corresponding quote asset, including markets where the quote asset
is made fungible with Accepted Assets (the &ldquo;Relevant Pair&rdquo;) and makes trade data and order data available through an Automatic
Programming Interface (&ldquo;API&rdquo;) with sufficient reliability, detail and timeliness. The CME CF Oversight Committee considers
a trading venue to offer sufficiently reliable, detailed and timely trade data and order data through an API when: (i) the API for the
&ldquo;Constituent Platform&rdquo; does not fall or become unavailable to a degree that impacts the integrity of the Pricing Benchmark
given the frequency of calculation; (ii) the data published is at the resolution required so that the benchmark can be calculated, with
the frequency and dissemination precision required; and (iii) the data is broadcast and available for retrieval at the required frequency
(and not negatively impacted by latency) to allow the methodologies to be applied as intended.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, it must, in the
opinion of the CME CF Oversight Committee, fulfill the following criteria:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</p>

<table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in">1.</td><td style="text-align: justify">The venue&rsquo;s Relevant Pair spot trading volume for an index must meet the minimum thresholds as detailed
below for it to be admitted as a Constituent Platform: the average daily volume the venue would have contributed during the observation
window for the Reference Rate of the Relevant Pair exceeds 3% for two consecutive calendar quarters.</td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</p>

<table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in">2.</td><td style="text-align: justify">The venue has policies to ensure fair and transparent market conditions at all times and has processes
in place to identify and impede illegal, unfair or manipulative trading practices.</td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</p>

<table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in">3.</td><td style="text-align: justify">The venue does not impose undue barriers to entry or restrictions on market participants, and utilizing
the venue does not expose market participants to undue credit risk, operational risk, legal risk or other risks.</td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</p>

<table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in">4.</td><td style="text-align: justify">The venue complies with applicable laws and regulations, including, but not limited to, capital markets
regulations, money-transmission regulations, client money custody regulations, and KYC and AML regulations.</td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</p>

<table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in">5.</td><td style="text-align: justify">The venue cooperates with inquiries and investigations of regulators and the Administrator upon request
and must execute data-sharing agreements with CME Group. Once admitted, a Constituent Platform must demonstrate that it continues to fulfill
criteria 2 to 5 inclusive. Should the average daily contribution of a Constituent Platform fall below 3% for any Reference Rate, then
the continued inclusion of the venue as a Constituent Platform to the Relevant Pair shall be assessed by the CME CF Oversight Committee.</td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p>

<!-- Field: Page; Sequence: 84; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->80<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Additionally, a trading venue
may be nominated for inclusion in the list of Constituent Platforms by any member of the public, any exchange or the Oversight Committee.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pricing Benchmark data and
the description of the Pricing Benchmark are based on information made publicly available by the Benchmark Provider on its website at
https://www.cfbenchmarks.com. None of the information on the Benchmark Provider&rsquo;s website is incorporated by reference into this
Prospectus.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The six Constituent Platforms
that contribute transaction data to the Pricing Benchmark with the aggregate volumes traded on their respective SOL-USD markets over the
preceding four calendar quarters are listed in the table below:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The six Constituent Platforms
that contribute transaction data to the Pricing Benchmark with the aggregate volumes traded on their respective SOL-USD markets over the
preceding four calendar quarters are listed in the table below:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</p>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD COLSPAN="22" STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><P STYLE="font-family: Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">Aggregate
                                            Trading Volume of SOL-USD Markets of</FONT></P>
                                                                                <P STYLE="font-family: Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pricing
                                            Benchmark Constituent Platforms</FONT></P></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Period</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Bitstamp</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Coinbase</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Gemini</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Kraken</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">LMAX
    Digital</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">itBit</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; width: 28%; text-align: left; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">2023
    Q3</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">2023
    Q4</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">2024
    Q1</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">2024
    Q2</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
<TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD COLSPAN="24" STYLE="text-indent: 0.5in; font-family: Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
    market share for SOL-USD trading of the six Constituent Platforms over the past four calendar quarters is shown in the table below:
    &nbsp;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD COLSPAN="24" STYLE="text-indent: 0.5in; font-family: Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>

<TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD COLSPAN="22" STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Solana
    Trading Platform Market Share of SOL-USD Trading</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Period</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Bitstamp</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Coinbase</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Gemini</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Kraken</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">LMAX
    Digital</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">itBit</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; text-align: center; padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td></tr>
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; width: 28%; text-align: left; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">2023
    Q3</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; width: 9%; text-align: right"></td><TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td></tr>
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">2023
    Q4</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td></tr>
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">2024
    Q1</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td></tr>
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">2024
    Q2</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></td><TD STYLE="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">%</FONT></td></tr>
  </table>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b>&nbsp;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b>CF BENCHMARKS LTD. DATA
IS USED UNDER LICENSE AS A SOURCE OF INFORMATION FOR THE TRUST&rsquo;S PRODUCTS. CF BENCHMARKS LTD., ITS AGENTS AND LICENSORS HAVE NO
OTHER CONNECTION TO THE TRUST&rsquo;S PRODUCTS AND SERVICES AND DOES NOT SPONSOR, ENDORSE, RECOMMEND OR PROMOTE ANY OF THE TRUST&rsquo;S
PRODUCTS OR SERVICES. CF BENCHMARKS LTD., ITS AGENTS AND LICENSORS HAVE NO OBLIGATION OR LIABILITY IN CONNECTION WITH THE TRUST&rsquo;S
PRODUCTS AND SERVICES. CF BENCHMARKS LTD., ITS AGENTS AND LICENSORS DO NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF ANY INDEX
LICENSED TO THE TRUST AND SHALL NOT HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN.</b></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Trust Structure</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is a statutory trust
formed under the Delaware Statutory Trust Act, and the Trust Agreement constitutes the &ldquo;governing instrument&rdquo; of the Trust
under the laws of the State of Delaware relating to statutory trusts. The Trust holds Solana and is expected from time to time to issue
Baskets in exchange for deposits of cash and to distribute cash in connection with redemptions of Baskets. The Trust&rsquo;s investment
objective is to seek to provide exposure to the value of Solana held by the Trust, less the expenses of the Trust&rsquo;s operations and
other liabilities. In seeking to achieve its investment objective, the Trust will hold Solana and establish its NAV by reference to the
Pricing Benchmark.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p>

<!-- Field: Page; Sequence: 85; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->81<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor believes the Trust&rsquo;s
is a straight-forward solution to seek its investment objective. Besides cash received in connection with purchase orders of Baskets,
the Trust&rsquo;s sole asset is expected to be Solana held with the Solana Custodian. The Sponsor believes that the Pricing Benchmark
is a representative value for the SOL-USD price of Solana, based on the methodology administered by the Benchmark Provider.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust processes and pays
its only ordinary expense (the Sponsor Fee) in Solana. The Trust will only sell Solana (1) in connection with the redemption of Baskets
for cash, (2) on an as-needed basis to pay Trust expenses not assumed by the Sponsor, (3) in the event the Trust terminates and liquidates
its assets, or (4) as otherwise required by law or regulation. This restriction provides protection against potential attempts by bad
actors to manipulate the operation of the Trust based on how the Trust calculates its NAV.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Investors may obtain on a
24-hour basis Solana pricing information based on the spot price for one Solana from various financial information service providers.
Current spot prices are also generally available with bid/ask spreads from digital asset trading platforms, including the Constituent
Platforms. Market prices for the Shares are available from a variety of sources including brokerage firms, information websites and other
information service providers. The NAV of the Trust is published by the Sponsor at the Trust&rsquo;s website (_______.com) on each day
that the Exchange is open for regular trading and is posted on the Trust&rsquo;s website.</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-transform: uppercase; text-align: center">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-transform: uppercase; text-align: center"><A NAME="B_026"></A>Calculation of
NAV</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under normal circumstances,
the Trust&rsquo;s only asset will be Solana and, under limited circumstances, cash. The Trust&rsquo;s Solana is carried, for financial
statement purposes, at fair value, as required by the U.S. generally accepted accounting principles (&ldquo;GAAP&rdquo;). The Trust&rsquo;s
NAV will be determined by the Administrator once each Exchange trading day at 4:00 p.m. Eastern time (&ldquo;ET&rdquo;), or as soon thereafter
as practicable. The NAV for a normal trading day will be released after 4:00 p.m. ET. Trading during the core trading session on the Exchange
typically closes at 4:00 p.m. ET. However, NAVs are not officially struck until later in the day (often by 5:30 p.m. and almost always
by 8:00 p.m.). The pause between 4:00 p.m. and 5:30 p.m. (or later) provides an opportunity for the Sponsor to algorithmically detect,
flag, investigate, and correct unusual pricing should it occur.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Administrator will calculate
the NAV of the Trust by multiplying the number of Solana held by the Trust by the Pricing Benchmark for such day, adding any additional
receivables and subtracting the accrued but unpaid expenses and liabilities of the Trust. The Trust&rsquo;s NAV per Share is calculated
by dividing the Trust&rsquo;s NAV by the number of Shares then outstanding. The Administrator will determine the price of the Trust&rsquo;s
Solana by reference to the Pricing Benchmark, which is published between 4:00 p.m. and 4:30 p.m. ET on every calendar day. The methodology
used to calculate the Pricing Benchmark price to value Solana in determining the NAV of the Trust may not be deemed consistent with GAAP.
To the extent the methodology used to calculate the Pricing Benchmark is deemed inconsistent with GAAP, the Trust will utilize an alternative
GAAP-consistent pricing source for purposes of the Trust&rsquo;s periodic financial statements.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor has the exclusive
authority to determine the NAV of the Trust. The Sponsor has delegated to the Administrator the responsibility to calculate the NAV of
the Trust and the NAV, based on a pricing source selected by the Sponsor (the Pricing Benchmark). The Administrator will determine the
NAV of the Trust each business day. In determining the NAV of the Trust, the Administrator values the Solana held by the Trust based on
the Pricing Benchmark, unless otherwise determined by the Sponsor in its sole discretion. If the Pricing Benchmark is not available or
the Sponsor in its sole discretion determines that the Pricing Benchmark should not be used, the Trust&rsquo;s holdings may be fair valued
in accordance with the policy approved by the Sponsor. The Sponsor does not anticipate that the need to &ldquo;fair value&rdquo; Solana
will be a common occurrence.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p>

<!-- Field: Page; Sequence: 86; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->82<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The ITV will be calculated
by using the prior day&rsquo;s closing NAV per Share of the Trust as a base and updating that value throughout the trading day to reflect
changes in the most recently reported price level of the CME Solana Real Time Price. The ITV disseminated during the Exchange core trading
session hours should not be viewed as an actual real-time update of the NAV, because NAV per Share is calculated only once at the end
of each trading day based upon the relevant end-of-day values of the Trust&rsquo;s investments. The ITV will be disseminated on a per-Share
basis every 15 seconds during regular Exchange core trading session hours of 9:30 a.m. ET to 4:00 p.m. ET. The Exchange will disseminate
the ITV value through the facilities of CTA/CQ High Speed Lines that allow for high-speed data transmission. In addition, the ITV will
be published on the Exchange&rsquo;s website and will be available through online information services such as Bloomberg and Reuters.
The ITV (which is based upon the CME Solana Real Time Price) may differ from the NAV (which is based upon the Pricing Benchmark) due to
differences in how the CME Solana Real Time Price and Pricing Benchmark are calculated. While the Pricing Benchmark is calculated as described
in the section above entitled &ldquo;THE TRUST AND SOLANA PRICES&mdash;&ndash;The CME CF Solana &ndash; Dollar Reference Rate &ndash;
New York Variant,&rdquo; the CME Solana Real Time Price is calculated once per second, in real time by utilizing the order books of Solana&mdash;U.S.
dollar trading pairs operated by all Constituent Platforms. An &ldquo;order book&rdquo; is a list of buy and sell orders with associated
limit prices and sizes that have not yet been matched, that is reported and disseminated by CF Benchmarks Ltd., as the CME Solana Real
Time Price calculation agent. The order books are aggregated into one consolidated order book by the CME Solana Real Time Price calculation
agent and the bid-price volume curve, ask-price volume curve, mid-price volume curve and mid-spread volume curve are calculated. The mid-price
volume curve is the average of the bid-price volume curve (which maps transaction volume to the marginal price per cryptocurrency unit
a seller is required to accept in order to sell this volume to the consolidated order book) and the ask-price volume curve (which maps
a transaction volume to the marginal price per cryptocurrency unit a buyer is required to pay in order to purchase this volume from the
consolidated order book). The mid-price volume curve is weighted by the normalized probability density of the exponential distribution
up to the utilized depth (utilized depth being calculated as the maximum cumulative volume for which the mid-spread volume curve does
not exceed a certain percentage deviation from the mid price). The CME Solana Real Time Price is then given by the sum of the weighted
mid-price volume curve obtained in the previous step.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Dissemination of the ITV provides
additional information that is not otherwise available to the public and may be useful to investors and market professionals in connection
with the trading of the Shares on the Exchange. Investors and market professionals will be able throughout the trading day to compare
the market price of the Trust and the ITV. If the market price of the Shares diverges significantly from the ITV, market professionals
will have an incentive to execute arbitrage trades. For example, if the Trust appears to be trading at a discount compared to the ITV,
a market professional could buy the Shares on the Exchange and sell short futures contracts. Such arbitrage trades can tighten the tracking
between the market price of the Trust and the ITV and thus can be beneficial to all market participants.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor reserves the right
to adjust the Share price of the Trust in the future to maintain convenient trading ranges for investors. Any adjustments would be accomplished
through stock splits or reverse stock splits. Such splits would decrease (in the case of a split) or increase (in the case of a reverse
split) the proportionate NAV per Share, but would have no effect on the net assets of the Trust or the proportionate voting rights of
Shareholders or the value of any Shareholder&rsquo;s investment.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s periodic
financial statements may not utilize the NAV of the Trust determined by reference to the Pricing Benchmark to the extent the methodology
used to calculate the Pricing Benchmark is deemed not to be consistent with GAAP. The Trust&rsquo;s periodic financial statements will
be prepared in accordance with the Financial Accounting Standards Board (&ldquo;FASB&rdquo;) Accounting Standards Codification Topic 820,
&ldquo;Fair Value Measurements and Disclosures&rdquo; (&ldquo;ASC Topic 820") and utilize an exchange-traded price from the Trust&rsquo;s
principal market for Solana on the Trust&rsquo;s financial statement measurement date. The Sponsor will determine in its sole discretion
the valuation sources and policies used to prepare the Trust&rsquo;s financial statements in accordance with GAAP. The Trust intends to
engage a third-party vendor to obtain a price from a principal market for Solana, which will be determined and designated by such third-party
vendor daily based on its consideration of several exchange characteristics, including oversight, and the volume and frequency of trades.
Under GAAP, such a price is expected to be deemed a Level 1 input in accordance with the ASC Topic 820 because it is expected to be a
quoted price in active markets for identical assets or liabilities.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p>

<!-- Field: Page; Sequence: 87; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->83<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To determine which market
is the Trust&rsquo;s principal market (or in the absence of a principal market, the most advantageous market) for purposes of calculating
the Trust&rsquo;s financial statements, the Trust follows ASC 820-10, which outlines the application of fair value accounting. ASC 820-10
determines fair value to be the price that would be received for Solana 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 Solana 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 may transact
through Solana Trading Counterparties, in multiple markets, and its application of ASC 820-10 reflects this fact. The Trust anticipates
that, while multiple venues and types of markets will be available to the Solana Trading Counterparties from whom the Sponsor acquires
or disposes of the Trust&rsquo;s Solana, the principal market in each scenario is determined by looking at the market-based level of volume
and Solana trading activity. Solana Trading Counterparties may transact in a Brokered Market, a Dealer Market, Principal-to-Principal
Markets and Exchange Markets, each as defined in the FASB ASC Master Glossary. Based on information reasonably available to the Trust,
Exchange Markets have the greatest volume and level of activity for the asset. The Trust therefore looks to accessible Exchange Markets
as opposed to the Brokered Market, Dealer Market and Principal-to-Principal Markets to determine its principal market. As a result of
the aforementioned analysis, an Exchange Market has been selected as the Trust&rsquo;s principal market. The Trust determines its principal
market (or in the absence of a principal market the most advantageous market) on a quarterly basis to determine which market is its Principal
Market for the purpose of calculating fair value for the creation of quarterly and annual financial statements.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The process that the Sponsor
has developed for identifying a principal market, as prescribed in ASC 820-10, which outlines the application of fair value accounting.
The process begins by identifying publicly available, well established and reputable Solana trading venues (Exchange Markets, as defined
in the FASB ASC Master Glossary), which are selected by the Sponsor and its affiliates in their sole discretion. Those markets include
Binance, Bitfinex, Bitflyer, Bitstamp, Coinbase Pro, Crypto.com, Gemini, HitBTC, Huobi, Kraken, KuCoin, OKEx, Poloniex. The Sponsor then,
through a service provider, calculates on each valuation period, the highest volume venue during the 60-minute period prior to 4:00 ET
for Solana. The Sponsor then identifies that market as the principal market for Solana during that period, and uses the price for Solana
from that venue at 4:00 ET as the principal market price.</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-transform: uppercase; text-align: center">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-transform: uppercase; text-align: center"><A NAME="B_027"></A>Additional Information
About The trust</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Trust</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is a Delaware statutory
trust, formed pursuant to the Delaware Statutory Trust Act. The Trust continuously issues common shares representing units of undivided
beneficial ownership of the Trust that may be purchased and sold on the Exchange. The Trust operates pursuant to the First Amended and
Restated Trust Agreement dated as of _____________. Delaware Trust Company, a Delaware trust company, is the Delaware trustee of the Trust.
The Trust is managed and controlled by the Sponsor. The Sponsor is a limited liability company formed in the State of Delaware on June
4, 2018.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is passively managed
and does not pursue active management investment strategies. Additionally, the Sponsor does not actively manage the Solana held by the
Trust. This means that the Sponsor does not sell Solana at times when its price is high or acquire Solana at low prices in the expectation
of future price increases. It also means that the Sponsor does not make use of any of the hedging techniques available to professional
Solana investors to attempt to reduce the risks of losses resulting from price decreases. The Solana held by the Trust will only be delivered
to pay its only ordinary expense (the Sponsor Fee) in Solana. The Trust will only sell Solana (1) in connection with the redemption of
Baskets for cash, (2) on an as-needed basis to pay Trust expenses not assumed by the Sponsor, (3)&nbsp;in the event the Trust terminates
and liquidates its assets, or (4) as otherwise required by law or regulation. The delivery or sale of Solana to pay fees and expenses
by the Trust is a taxable event to Shareholders. See &ldquo;<font style="text-transform: uppercase">United States Federal Income Tax Consequences</font>.&rdquo;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is not registered
as an investment company under the Investment Company Act and the Sponsor believes the Trust is not required to register under such act.
The Trust does not hold or trade in commodity futures contracts, &ldquo;commodity interests&rdquo; or any other instruments regulated
by the Commodity Exchange Act, as administered by the CFTC or National Futures Association. The Sponsor believes that the Trust is not
a commodity pool for purposes of the Commodity Exchange Act, and that neither the Sponsor nor the Trustee is subject to regulation as
a commodity pool operator or a commodity trading adviser in connection with the operation of the Trust.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The number of outstanding
Shares is expected to increase and decrease from time to time as a result of the purchase and redemption of Baskets.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust has no fixed termination
date.</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>

<!-- Field: Page; Sequence: 88; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->84<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Trust&rsquo;s Fees and Expenses</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust will pay the unitary
Sponsor Fee of 0.___% per annum of the Trust&rsquo;s Solana holdings.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor Fee is paid by
the Trust to the Sponsor as compensation for services performed under the Trust Agreement and Sponsor Agreement. Except during periods
in which all or a portion of the Sponsor Fee is being waived, the Sponsor Fee will accrue daily and will be payable in Solana monthly
in arrears. The Administrator will calculate the Sponsor Fee on a daily basis by applying a 0.___% annualized rate to the Trust&rsquo;s
total Solana holdings, and the amount of Solana payable in respect of each daily accrual shall be determined by reference to the Pricing
Benchmark. The NAV of the Trust is reduced each day by the amount of the Sponsor Fee calculated each day. On or about the last day of
each month, an amount of Solana will be transferred from the Trust Solana Account to the Sponsor Solana Account equal to the sum of all
daily Sponsor Fees accrued for the month in U.S. dollars divided by the Pricing Benchmark on the last day of the month. The Trust is not
responsible for paying any fees or costs associated with the transfer of Solana to the Sponsor. In exchange for the Sponsor Fee, the Sponsor
has agreed to assume and pay the normal operating expenses of the Trust, which include the Trustee&rsquo;s monthly fee and out-of-pocket
expenses, the fees of the Trust&rsquo;s regular service providers (Cash Custodian, Solana Custodian, Prime Execution Agent, Marketing
Agent, Transfer Agent and Administrator), exchange listing fees, tax reporting fees, SEC registration fees, printing and mailing costs,
audit fees and up to $500,000 per annum in ordinary legal fees and expenses. The Sponsor may determine in its sole discretion to assume
legal fees and expenses of the Trust in excess of $500,000 per annum. The Sponsor will also pay the costs of the Trust&rsquo;s organization.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust may incur certain
extraordinary, non-recurring expenses that are not assumed by the Sponsor, including, but not limited to, taxes and governmental charges,
any applicable brokerage commissions, financing fees, Solana Network fees and similar transaction fees, expenses and costs of any extraordinary
services performed by the Sponsor (or any other service provider) on behalf of the Trust to protect the Trust or the Shareholders (including,
for example, in connection with any fork of the Solana Network, any Incidental Rights (as defined below) and any IR Asset (as defined
below)), any indemnification of the Cash Custodian, Solana Custodian, Prime Execution Agent, Transfer Agent, Administrator or other agents,
service providers or counterparties of the Trust, and extraordinary legal fees and expenses, including any legal fees and expenses incurred
in connection with litigation, regulatory enforcement or investigation matters.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor, from time to
time, may temporarily waive all or a portion of the Sponsor Fee in its sole discretion. To the extent not already disclosed in the Prospectus,
the Sponsor may notify Shareholders of its intent to commence, or cease, waiving the Sponsor Fee on the Trust&rsquo;s website, in a prospectus
supplement, through a current report on Form 8-K and/or in the Trust&rsquo;s annual or quarterly reports.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Administrator and/or the
Sponsor will direct the Solana Custodian to transfer Solana from the Trust Solana Account to the Sponsor Solana Account to pay the Sponsor
Fee and any other Trust expenses not assumed by the Sponsor. To pay for expenses not assumed by the Sponsor that are denominated in U.S.
dollars, the Sponsor, on behalf of the Trust, may sell the Trust&rsquo;s Solana as necessary to pay such expenses. The Sponsor, on behalf
of the Trust, will typically seek to buy and sell Solana at a price as close to the Pricing Benchmark as practical. Such sales will be
undertaken pursuant to the Trust-Directed Trade Model unless no Solana Trading Counterparty is willing or able to effectuate the trade.
Transfers of Solana from the Trust Solana Account to the Sponsor Solana Account, and from the Sponsor Solana Account to the Solana Trading
Counterparty are &ldquo;on-chain&rdquo; transactions represented on the Solana Network. Transfer fees with respect to this on-chain transfer
of Solana will be paid by the Solana Custodian. The cash proceeds of the sale will be sent to the Sponsor, which will use such proceeds
to pay the expenses. Any remaining cash will be distributed back to the Cash Custodian. To the extent that the Trust must utilize the
Agent Execution Model to undertake Solana sales to pay for expenses not assumed by the Sponsor, the Prime Execution Agent, acting in an
agency capacity, would conduct the sale on behalf of the Trust with third parties through its [Prime service] pursuant to the Prime Execution
Agreement. Transfers of Solana from the Trust Solana Account to the Trust&rsquo;s Trading Balance in connection with such sales are &ldquo;on-chain&rdquo;
transactions represented on the Solana Network. Each delivery or sale of Solana by the Trust to pay the Sponsor Fee or other Trust expenses
will be a taxable event to Shareholders. See <font style="text-transform: uppercase">&ldquo;United States Federal Income Tax Consequences.&rdquo;</font></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust does not engage
in any activity designed to derive a profit from changes in the price of Solana. Solana not needed to redeem Baskets, or to cover the
Sponsor Fee and Trust expenses not assumed by the Sponsor, is held by the Solana Custodian or Prime Execution Agent. As a result of the
recurring deliveries of Solana necessary to pay the Sponsor Fee and potential sales of Solana to pay in cash the Trust expenses not assumed
by the Sponsor, the NAV of the Trust and, correspondingly, the amount of Solana represented by each Share will decrease proportionately
over the life of the Trust. New deposits of Solana, purchased with the cash received in connection with purchases of Baskets, will not
reverse this trend.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p>

<!-- Field: Page; Sequence: 89; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->85<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Distributions</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the terms of the
Trust Agreement, the Trust may make distributions on the Shares in cash or potentially in kind.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the Trust is required to
terminate and liquidate, or the Sponsor determines in accordance with the terms of the Trust Agreement that it is appropriate to terminate
and liquidate the Trust, the Sponsor will sell the Trust&rsquo;s Solana and will distribute to the Shareholders any amounts of the cash
proceeds of the liquidation remaining after the satisfaction of all outstanding liabilities of the Trust and the establishment of reserves
for applicable taxes, other governmental charges and contingent or future liabilities as the Sponsor will determine. Under no circumstances
will the Trust distribute Solana to Shareholders.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">See &ldquo;ADDITIONAL INFORMATION
ABOUT THE TRUST&mdash;Termination of the Trust.&rdquo; Shareholders of record on the record date fixed by the Transfer Agent for a distribution
will be entitled to receive their pro rata portions of any distribution.</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Incidental Rights and IR Assets</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">From time to time, the Trust
may come into possession of rights incident to its ownership of Solana, which permit the Trust to acquire, or otherwise establish dominion
and control over, other digital assets. These rights are generally expected to be Forked Assets that arise in connection with hard forks
in the Solana Network, airdrops offered to holders of Solana and digital assets arising from other similar events without any action of
the Trust or of the Sponsor or Trustee on behalf of the Trust. These rights are referred to as &ldquo;Incidental Rights&rdquo; and any
digital assets acquired through Incidental Rights are referred to as &ldquo;IR Assets.&rdquo; Pursuant to the Trust Agreement, the Trust
has explicitly disclaimed all Incidental Rights and IR Assets. Such assets are not considered assets of the Trust at any point in time
and will not be taken into account for purposes of determining the Trust&rsquo;s NAV and the NAV per Share.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Trust Agreement,
to the extent that the Trust involuntarily receives such assets in a Trust wallet, it will, as soon as practicable, and, if possible,
immediately, distribute such assets to the Sponsor. At such time, the Incidental Right(s) and/or IR Asset(s) will be the property of the
Sponsor. Once acquired, the Sponsor, subject to a reasonable, good faith determination, may take any lawful action necessary or desirable
in connection with its acquisition of such assets. In the event that the Sponsor decides to sell the Incidental Right(s) and/or IR Asset(s),
it will seek to do so for cash. This may be a sale of the Incidental Right(s) and/or IR Asset(s) directly in exchange for cash, or in
exchange for another digital asset which may subsequently be exchanged for cash. The Sponsor would then contribute that cash back to the
Trust, which in turn would distribute the cash to the Depository Trust Company (&ldquo;DTC&rdquo;) to be distributed to Shareholders in
proportion to the number of Shares owned.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although the Sponsor intends,
if possible, to arrange for the sale of any Incidental Right(s) and/or IR Asset(s) it receives from the Trust and subsequently contribute
such cash proceeds back to the Trust, it is under no obligation to do so. There are likely to be operational, tax, securities law, regulatory,
legal and practical issues that significantly limit, or prevent entirely, the Sponsor&rsquo;s ability to realize a benefit from any such
Incidental Right(s) and/or IR Asset(s). The Sponsor may choose to evaluate any such fork, airdrop or similar occurrence on a case-by-case
basis in consultation with its legal advisers, tax consultants and custodian. In determining whether to attempt to acquire and/or retain
any Incidental Right(s) and/or IR Asset(s), the Sponsor expects to take into consideration whatever factors it deems relevant in its discretion,
including, without limitation:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify">the availability of a safe and practical way to custody the Incidental Right or IR Asset;</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify">the cost or operational burden of taking possession and/or maintaining ownership of the Incidental Right
or IR Asset and whether such cost or burden exceed the benefits of owning such Incidental Rights or IR Asset or the proceeds that would
be realized from a sale thereof;</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify">whether there are any legal or regulatory restrictions on or risks or consequences arising from, or tax
implications with respect to, the acceptance, retention, ownership, sale, transfer, abandonment, distribution or disposal or disposition
of the Incidental Right or IR Asset, regardless of whether there is a safe and practical way to custody and secure such Incidental Right
or IR Asset;</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<p style="margin-top: 0; margin-bottom: 0"></p>

<!-- Field: Page; Sequence: 90; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->86<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify">the existence of a suitable market into which the Incidental Right or IR Asset may be sold; and</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify">whether claiming, owning, selling, or otherwise taking any action in respect of Incidental Rights or IR
Asset may create legal or regulatory risks, liability, or burdens of any kind for the Sponsor (including, without limitation, if such
Incidental Right or IR Asset is, or may be, a security under federal securities laws or a commodity interest under the Commodity Exchange
Act).</td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor is under no obligation
to realize any economic benefit from any Incidental Right(s) and/or IR Asset(s) it receives from the Trust. The Sponsor may instead determine,
in its sole discretion, to abandon such Incidental Rights or IR Assets permanently and irrevocably for no consideration. Before the Trust
claims any Incidental Right(s) and/or IR Asset(s) resulting from a fork or airdrop in the Solana Network (other than Solana), the Trust
would need to seek and obtain certain regulatory approvals, including an amendment to the Trust&rsquo;s registration statement of which
this Prospectus is a part and approval of an application by the Exchange to amend its listing rules.</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Termination of the Trust</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor will notify Shareholders
at least 30 days before the date for termination of the Trust Agreement and the Trust if any of the following occurs:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify">Shares are delisted from the Exchange and are not approved for listing on another national securities
exchange within five (5) business days of their delisting;</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify">One hundred eighty days have elapsed since the Trustee notified the Sponsor of the Trustee&rsquo;s election
to resign or since the Sponsor removed the Trustee, and a successor trustee has not been appointed or accepted its appointment;</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify">The SEC determines that the Trust is an investment company under the Investment Company Act, and the Sponsor
has made the determination that termination of the Trust is advisable;</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify">The CFTC determines that the Trust is a commodity pool under the Commodity Exchange Act, and the Sponsor
has made the determination that termination of the Trust is advisable;</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify">The Trust is determined to be a &ldquo;money services business&rdquo; under the regulations promulgated
by FinCEN under the authority of the Bank Secrecy Act of 1970 and is required to comply with certain FinCEN regulations thereunder or
is determined to be a &ldquo;money transmitter&rdquo; (or equivalent designation) under the laws of any state in which the Trust operates
and is required to seek licensing or otherwise comply with state licensing requirements, and the Sponsor has made the determination that
termination of the Trust is advisable;</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify">A U.S. regulator requires the Trust to shut down or forces the Trust to liquidate its Solana;</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify">Any ongoing event exists that prevents the Trust from making or makes impractical the Trust&rsquo;s reasonable
efforts to make a fair determination of the price of Solana for purposes of determining the NAV of the Trust;</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify">The Sponsor determines that the aggregate net assets of the Trust in relation to the operating expenses
of the Trust make it unreasonable or imprudent to continue the business of the Trust;</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify">The Trust fails to qualify for treatment, or ceases to be treated, as a &ldquo;grantor trust&rdquo; under
the Code or any comparable provision of the laws of any state or other jurisdiction where that treatment is sought, and the Sponsor determines
that, because of that tax treatment or change in tax treatment, termination of the Trust is advisable;</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify">Sixty days have elapsed since DTC or another depository has ceased to act as depository with respect to
the Shares, and the Sponsor has not identified another depository that is willing to act in such capacity;</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify">The Trustee elects to terminate the Trust after the Sponsor is conclusively deemed to have resigned effective
immediately as a result of the Sponsor being adjudged bankrupt or insolvent, or a receiver of the Sponsor or of its property being appointed,
or a trustee or liquidator or any public officer taking charge or control of the Sponsor or of its property or affairs for the purpose
of rehabilitation, conservation or liquidation and a successor sponsor has not been appointed; or</td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</font></td><td style="text-align: justify">The Sponsor elects to terminate the Trust after the Trustee, Administrator or Solana Custodian (or any
successor trustee, administrator or custodian) resigns or otherwise ceases to be the trustee, administrator or custodian of the Trust,
as applicable, and no replacement trustee, administrator and/or custodian acceptable to the Sponsor is engaged.</td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p>

<!-- Field: Page; Sequence: 91; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->87<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, the Trust may
be dissolved at any time for any reason by the Sponsor in its sole discretion. In respect of termination events that rely on Sponsor determinations
to terminate the Trust (e.g., if the SEC determines that the Trust is an investment company under the Investment Company Act; the CFTC
determines that the Trust is a commodity pool under the Commodity Exchange Act; the Trust is determined to be a money transmitter under
the regulations promulgated by FinCEN; the Trust fails to qualify for treatment, or ceases to be treated, as a grantor trust for U.S.
federal income tax purposes; or, following resignation by a trustee or custodian, the Sponsor determines that no replacement is acceptable
to it), the Sponsor may consider, without limitation, the profitability to the Sponsor and other service providers of the operation of
the Trust, any obstacles or costs relating to the operation or regulatory compliance of the Trust relating to the determination&rsquo;s
triggering event, and the ability to market the Trust to investors. To the extent that the Sponsor determines to continue operation of
the Trust following a determination&rsquo;s triggering event, the Trust will be required to alter its operations to comply with the triggering
event. In the instance of a determination that the Trust is an investment company, the Trust and Sponsor would have to comply with the
regulations and disclosure and reporting requirements applicable to investment companies and investment advisers. In the instance of a
determination that the Trust is a commodity pool, the Trust and the Sponsor would have to comply with regulations and disclosure and reporting
requirements applicable to commodity pools and commodity pool operators or commodity trading advisers. In the event that the Trust is
determined to be a money transmitter, the Trust and the Sponsor will have to comply with applicable federal and state registration and
regulatory requirements for money transmitters and/or money service businesses. In the event that the Trust ceases to qualify for treatment
as a grantor trust for U.S. federal tax purposes, the Trust will be required to alter its disclosure and tax reporting procedures and
may no longer be able to operate or to rely on pass-through tax treatment. In each such case and in the case of the Sponsor&rsquo;s determination
as to whether a potential successor trustee or custodian is acceptable to it, the Sponsor will not be liable to anyone for its determination
of whether to continue or to terminate the Trust.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon the dissolution of the
Trust, the Sponsor (or in the event there is no Sponsor, such person (the &ldquo;Liquidating Trustee&rdquo;) as the majority of the Shareholders
may propose and approve and who agrees to serve hereunder) shall take full charge of the Trust Property. Any Liquidating Trustee so appointed
shall have and may exercise, without further authorization or approval of any of the parties hereto, all of the powers conferred upon
the Sponsor under the terms of this Trust Agreement, subject to all of the applicable limitations, contractual and otherwise, upon the
exercise of such powers, and provided that the Liquidating Trustee shall not have general liability for the acts, omissions, obligations
and expenses of the Trust. Thereafter, in accordance with Section 3808(e) of the DSTA, the affairs of the Trust shall be wound up and
all Solana owned by the Trust shall be liquidated as promptly as is consistent with obtaining the fair value thereof and in such a manner
so as to effectuate orderly sales and a minimal market impact. The Liquidating Trustee may thereafter hold the net proceeds of any such
sale, together with any other cash then held by it under this Trust Agreement, uninvested and without liability for interest, for the
pro rata benefit of Shareholders that had not theretofore been redeemed. The Liquidating Trustee shall not be liable for or responsible
in any way for depreciation or loss incurred by reason of any sale or sales made in accordance with the provisions of this Section 8.01.
The Liquidating Trustee may suspend its sales of Solana upon the occurrence of unusual or unforeseen circumstances, including, but not
limited to, a suspension in trading of Solana or similar market event. Upon receipt of proceeds from the sale of the last Solana held
hereunder, all proceeds shall be applied and distributed in the following order of priority:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</p>

<table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in">1.</td><td style="text-align: justify">pay to Sponsor from the Trust an amount equal to the sum of (1)&nbsp;any compensation due it for extraordinary
or other services, (2)&nbsp;any advances made but not yet repaid and (3)&nbsp;reimbursement of any other disbursements as provided herein;</td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</p>

<table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in">2.</td><td style="text-align: justify">deduct from the Trust any amounts that the Liquidating Trustee, in its sole discretion, shall deem necessary
or appropriate to pay on behalf of the Trust any applicable taxes or other governmental charges that may be payable by the Trust and any
other contingent or future liabilities of the Trust; and</td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</p>

<table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in">3.</td><td style="text-align: justify">distribute each Shareholder&rsquo;s interest in the remaining assets of the Trust. Such distribution shall
consist of cash. Under no circumstances will the Trust distribute Solana to Shareholders.</td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Following the dissolution
and windup of the Trust, including distribution of the assets of the Trust, the Trust shall terminate and the Sponsor or the Liquidating
Trustee, as the case may be, shall instruct the Trustee to execute and cause such certificate of cancellation of the Certificate of Trust
to be filed in accordance with the DSTA at the expense of the Sponsor or the Liquidating Trustee, as the case may be. Notwithstanding
anything to the contrary contained in this Trust Agreement, the existence of the Trust as a separate legal entity shall continue until
the filing of such certificate of cancellation. Upon the termination of the Trust, the Sponsor will be discharged from all obligations
under the Trust Agreement except for certain of its obligations that survive termination of the Trust Agreement.</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>

<!-- Field: Page; Sequence: 92; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->88<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Amendments</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust Agreement can be
amended by the Sponsor in its sole discretion and without the Shareholders&rsquo; consent by making an amendment, a Trust Agreement supplemental
thereto, or an amended and restated trust agreement. Any such restatement, amendment and/or supplement to the Trust Agreement will be
effective on such date as designated by the Sponsor in its sole discretion. However, any amendment to the Trust Agreement that affects
the duties, liabilities, rights or protections of the Trustee will require the Trustee&rsquo;s prior written consent, which it may grant
or withhold in its sole discretion. Every Shareholder, at the time any amendment so becomes effective, will be deemed, by continuing to
hold any Shares or an interest therein, to consent and agree to such amendment and to be bound by the Trust Agreement as amended thereby.
In no event will any amendment impair the right of Authorized Participants to surrender Baskets and receive therefor the Solana Baskets
represented thereby (less fees in connection with the surrender of Shares and any applicable taxes or other governmental charges), except
in order to comply with mandatory provisions of applicable law.</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-transform: uppercase; text-align: center">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-transform: uppercase; text-align: center"><A NAME="B_028"></A>The Trust&rsquo;s
Service Providers</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sponsor</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Bitwise Investment Advisers,
LLC, as Sponsor, arranged for the creation of the Trust and is responsible for the ongoing registration of the Shares for their public
offering in the United States and the listing of Shares on the Exchange. The Sponsor will not exercise day-to-day oversight over the Trustee,
the Custodian, the Administrator, the Transfer Agent or CF Benchmarks Ltd. The Sponsor will develop a marketing plan for the Trust, will
prepare marketing materials regarding the Shares, and will exercise the marketing plan of the Trust on an ongoing basis.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The principal office of the
Sponsor is 250 Montgomery Street, Suite 200, San Francisco, CA 94104.</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Officers of the Sponsor</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following is a biographical
summary of the business experience of each of the officers, directors and other key employees of the Sponsor:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>&nbsp;</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Hunter Horsley</i> is the
Chief Executive Officer of Bitwise Asset Management, Inc., the parent of the Sponsor, and has served in such role since October 2016.
He serves as President and Treasurer of the Sponsor. Prior to Bitwise, Mr. Horsley was a product manager at Facebook and Instagram leading
efforts in monetization from 2015 to 2016. He graduated from the Wharton School at the University of Pennsylvania with a Bachelor of Science
in Economics in 2015. Mr. Horsley took two years off from school from 2011 to 2013 to be on the founding team of a technology company
called Lore (formerly known as CourseKit) to assist in the development of an online learning tool incorporating social networking features.
Lore raised over $6 million in equity, grew to 20 employees and was sold to Noodle Education, Inc., in 2013.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>&nbsp;</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Paul &ldquo;Teddy&rdquo;
Fusaro</i> is the President of Bitwise Asset Management, Inc., and has served in such capacity since January 2021. Prior to joining Bitwise
in April 2018, Mr. Fusaro was Senior Vice President and Head of Portfolio Management and Capital Markets at IndexIQ, the exchange-traded
fund unit of New York Life Investment Management, a firm with over $550 billion in AUM. In this capacity he oversaw portfolio management,
trading, and operations for a suite of alternative strategy exchange-traded funds, mutual funds, and separately managed accounts. Prior
to that, from 2009 to 2013, Mr. Fusaro was Vice President of Portfolio Management and co-head of Trading and Operations at Direxion Investments,
a $13 billion alternative exchange-traded fund manager. Earlier in his career, Mr.&nbsp;Fusaro spent time in both equity derivatives and
credit derivatives at Goldman Sachs &amp; Co. Mr. Fusaro is a graduate of Providence College.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>&nbsp;</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Katherine Dowling</i> is
the General Counsel and Chief Compliance Officer of Bitwise Asset Management and has served in such capacity since March 2021. She serves
as the General Counsel, CCO and Vice President of the Sponsor. Prior to Bitwise, Ms. Dowling was the General Counsel and Chief Compliance
Officer for True Capital Management from 2019 to 2021. Before that, Ms. Dowling was a General Partner, as well as Chief Operating Officer
and Chief Compliance Officer of Luminate Capital Partners, from 2015 to 2018. Prior to 2015, Ms. Dowling spent over ten years as an Assistant
U.S. Attorney, most recently in the Economic Crimes Unit of the U.S. Attorney&rsquo;s Office for the Northern District of California.
Ms. Dowling is an Echols Scholar graduate of the University of Virginia and a graduate of Harvard Law School.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p>

<!-- Field: Page; Sequence: 93; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->89<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following is a biographical
summary of the business experience of certain key officers of Bitwise Asset Management, the parent of the Sponsor:</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>&nbsp;</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Matthew &ldquo;Matt&rdquo;
Hougan</i> is the Chief Investment Officer of Bitwise Asset Management and has served in such capacity since October 2020 after joining
Bitwise in February 2018. Prior to Bitwise, Mr. Hougan was the Chief Executive Officer of Inside ETFs and Managing Director of Global
Finance at Informa PLC, an FTSE 100 company. Before that, he was Chief Executive Officer of ETF.com, a venture-backed start-up that was
sold in three separate transactions, with the data business sold to FactSet in 2015, the Events business sold to Informa in 2015, and
the Media business sold to BATS Global Markets in early 2016. Mr. Hougan was also the editor for nine years of the Journal of Indexes.
Mr. Hougan is a three-time member of Barron&rsquo;s ETF Roundtable and co-author of the CFA (Chartered Financial Analyst) Institute&rsquo;s
monograph on exchange-traded funds. Mr. Hougan is a graduate of Bowdoin College.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>&nbsp;</i></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Hong Kim</i> is the Chief
Technology Officer of Bitwise Asset Management and has served in such capacity since Bitwise&rsquo;s inception. Prior to Bitwise, Mr.
Kim worked in cybersecurity for the South Korean Military. He later worked on Google&rsquo;s backend infrastructure for Drive. Mr. Kim
attended the University of Pennsylvania where he graduated with a Bachelor of Science in Computer Science.</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Trustee</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Delaware Trust Company, a
Delaware trust company, acts as the trustee of the Trust for the purpose of creating a Delaware statutory trust in accordance with the
Delaware Statutory Trust Act (the &ldquo;DSTA&rdquo;). The Trustee is appointed to serve as the trustee of the Trust in the State of Delaware
for the sole purpose of satisfying the requirement of Section 3807(a) of the DSTA that the Trust have at least one trustee with a principal
place of business in the State of Delaware.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The principal address of Delaware
Trust Company, as Trustee is 251 Little Falls Drive, Wilmington, DE 19808.</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">General Duty of Care of Trustee</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trustee is a fiduciary
under the Trust Agreement; provided, however, that the fiduciary duties and responsibilities and liabilities of the Trustee are limited
by, and are only those specifically set forth in, the Trust Agreement.</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Resignation, Discharge or Removal
of Trustee; Successor Trustees</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trustee may resign at
any time by giving at least 30 days&rsquo; advance written notice to the Sponsor. The Sponsor may remove the Trustee at any time by giving
at least 30 days&rsquo; advance written notice to the Trustee. Upon effective resignation or removal, the Trustee will be discharged of
its duties and obligations.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the Trustee resigns or
is removed, the Sponsor, acting on behalf of the Shareholders, is required to use reasonable efforts to appoint a successor trustee. Any
successor Trustee must satisfy the requirements of Section 3807 of the DSTA. Any resignation or removal of the Trustee and appointment
of a successor Trustee cannot become effective until a written acceptance of appointment is delivered by the successor Trustee to the
outgoing Trustee and the Sponsor and any fees and expenses due to the outgoing Trustee are paid or waived by the outgoing Trustee. Following
compliance with the preceding sentence, the successor will become fully vested with the rights, powers, duties and obligations of the
outgoing Trustee under the Trust Agreement, with like effect as if originally named as Trustee, and the outgoing Trustee shall be discharged
of its duties and obligations herein. If no successor Trustee shall have been appointed and shall have accepted such appointment within
forty-five (45) days after the giving of such notice of resignation or removal, the Trustee may petition any court of competent jurisdiction
for the appointment of a successor Trustee.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the Trustee resigns and
no successor trustee is appointed within 180 days after the date the Trustee issues its notice of resignation, the Sponsor will terminate
and liquidate the Trust and distribute its remaining assets.</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>

<!-- Field: Page; Sequence: 94; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->90<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Administrator</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Trust Administration
and Accounting Agreement, the Administrator provides necessary administrative, tax and accounting services and financial reporting for
the maintenance and operations of the Trust. In addition, the Administrator makes available the office space, equipment, personnel and
facilities to provide such services.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The principal address of BNY
Mellon, as Administrator, Transfer Agent and Cash Custodian, is 240 Greenwich Street, New York, NY 10286.</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Transfer Agent</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Transfer Agent (1) issues
and redeems Shares of the Trust; (2) responds to correspondence by Shareholders and others relating to its duties; (3) maintains Shareholder
accounts; and (4) makes periodic reports to the Trust.</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Solana Custodian</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Solana Custodian is responsible
for safekeeping the Solana owned by the Trust. The Solana Custodian was selected by the Sponsor. The Solana Custodian has responsibility
for opening the Trust Solana Account and facilitating the transfer of Solana required for the operation of the Trust.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor may, in its sole
discretion, add or terminate Solana custodians at any time. The Sponsor may, in its sole discretion, change the custodian of the Trust&rsquo;s
Solana holdings, but it will have no obligation whatsoever to do so or to seek any particular terms for the Trust from other such custodians.
However, the Sponsor will only enter into Solana custody arrangements with custodians that meet the Sponsor&rsquo;s criteria, including
an agreement to maintain Trust assets in a segregated account, to maintain insurance and to store the Trust&rsquo;s private keys in cold
storage or in such other manner as the Sponsor determines provides reasonable protection for the Trust&rsquo;s assets from loss or theft.</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Cash Custodian</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Cash Custodian is the
custodian of the Trust&rsquo;s cash holdings.</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</p>

<p style="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Marketing Agent</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Marketing Agent is responsible
for: (1) working with the Transfer Agent to review and approve, or reject, purchase and redemption orders of Baskets placed by Authorized
Participants with the Transfer Agent; and (2) reviewing and approving the marketing materials prepared by the Trust for compliance with
applicable SEC and FINRA advertising laws, rules, and regulations.</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_029"></A>Custody of the
Trust&rsquo;s Assets</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust has entered into
an agreement with the Solana Custodian, the Solana Custody Agreement, pursuant to which the Solana Custodian will custody all of the Trust&rsquo;s
Solana in a segregated account from time to time (the Trust Solana Account), other than the Trust&rsquo;s Solana which is temporarily
maintained in the Trading Balance with the Prime Execution Agent as described below in <i>"</i>THE PRIME EXECUTION AGENT AND THE
TRADE CREDIT LENDER&mdash;The Prime Execution Agent.&rdquo; The Solana Custodian will keep a substantial portion of the private keys associated
with the Trust&rsquo;s Solana in &ldquo;cold storage&rdquo; or similarly secure technology (the &ldquo;Cold Solana Account&rdquo;), with
any remainder of the Trust Solana Account held as a &ldquo;Hot Solana Account.&rdquo; The Sponsor expects that all of the Trust&rsquo;s
assets and private keys will be held in cold storage of the Solana Custodian on an ongoing basis.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p>

<!-- Field: Page; Sequence: 95; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->91<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Custody of Solana typically
involves the generation, storage and utilization of private keys. These private keys are used to effect transfer transactions (i.e., transfers
of Solana from an address associated with the private key to another address). Cold storage of private keys may involve keeping such keys
on a non-networked computer or electronic device or storing the private keys on a storage device or printed medium and deleting the keys
from all computers. Cold storage is a safeguarding method with multiple layers of protections and protocols, by which the private key(s)
corresponding to the Trust&rsquo;s Solana is (are) generated and stored in an offline manner. Private keys are generated in offline computers
that are not connected to the internet so that they are resistant to being hacked. By contrast, in hot storage, the private keys are held
online, where they are more accessible, leading to more efficient transfers, though they are potentially more vulnerable to being hacked.
While the Solana Custodian will generally keep all of the Trust&rsquo;s Solana in cold storage on an ongoing basis, it is possible that,
from time to time, portions of the Trust&rsquo;s Solana will be held outside of cold storage temporarily as part of trade facilitation
in connection with creations and redemptions of Baskets, to sell Solana including to pay Trust expenses not assumed by the Sponsor, as
necessary. The Trust&rsquo;s Solana held in the Cold Solana Account by the Solana Custodian are held in segregated wallets and therefore
are not commingled with the Solana Custodian&rsquo;s or other customer assets. The private key materials are stored within secure storage
facilities within the United States and Europe. For security reasons exact locations are never disclosed. A limited number of employees
at the Solana Custodian are involved in private key management operations, and the Solana Custodian has represented that no single individual
has access to full private keys. The Solana Custodian carefully considers the design of the physical, operational and cryptographic systems
for secure storage of the Trust&rsquo;s private keys in an effort to lower the risk of loss or theft. No such system is perfectly secure
and loss or theft due to operational or other failure is always possible.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Solana Custodian&rsquo;s
internal audit team performs periodic internal audits over custody operations, and the Solana Custodian has represented that Systems and
Organizational Control attestations covering private key management controls are also performed on the Solana Custodian by an external
provider.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the terms of the Solana
Custody Agreement, the Sponsor maintains sole discretion in allocating Solana between the Hot Solana Account and the Cold Solana Account.
Solana custodied by the Solana Custodian is not commingled with assets of Solana Custodian or its affiliates or with assets of other customers
of Solana Custodian. Neither the Trust, the Sponsor, nor any other entity is permitted to lend, pledge, hypothecate or rehypothecate any
of the Trust&rsquo;s Solana. The Solana Custodian has also agreed in the Solana Custody Agreement that it will not, directly or indirectly,
lend, pledge, hypothecate or rehypothecate any of the Trust&rsquo;s Solana, and that the Trust&rsquo;s Solana assets are not treated as
general assets of the Solana Custodian but are instead considered custodial assets that remain the Trust&rsquo;s property. Additionally,
the Solana Custodian has agreed to provide the Trust or its authorized independent public accountant with confirmation of or access to
information sufficient to confirm the Solana held by the Solana Custodian for the Trust and that the Trust&rsquo;s Solana is held in a
separate, segregated account under the Trust&rsquo;s name. The Solana Custody Agreement does not require that private key information
with respect to the Trust&rsquo;s Solana be kept in a particular physical location.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Solana Custodian may receive
deposits of Solana but may not send Solana without use of the corresponding private keys. In order to send Solana when the private keys
are kept in cold storage, unsigned transactions must be physically transferred to the offline cold storage facility and signed using a
software/hardware utility with the corresponding offline keys. At that point, the Solana Custodian can upload the fully signed transaction
to an online network and transfer the Solana. Because the Solana Custodian may need to retrieve private keys from offline storage prior
to initiating transactions, the initiation or crediting of withdrawals or other transactions may be delayed.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Solana Custody Agreement,
the Solana Custodian&rsquo;s liability is limited as follows, among others: (i)&nbsp;other than with respect to claims and losses arising
from spot trading of Solana, or fraud or willful misconduct, among others, the Solana Custodian&rsquo;s aggregate liability under the
Solana Custody Agreement shall not exceed the greater of (A)&nbsp;the greater of (x) $5 million and (y) the aggregate fees paid by the
Trust to the Solana Custodian in the 12 months prior to the event giving rise to the Solana Custodian&rsquo;s liability, and (B) the value
of the affected Solana or cash giving rise to the Solana Custodian&rsquo;s liability; (ii) in respect of the Solana Custodian&rsquo;s
obligations to indemnify the Trust and its affiliates against third-party claims and losses to the extent arising out of or relating to,
among others, the Solana Custodian&rsquo;s violation of any law, rule or regulation with respect to the provision of its services, the
Solana Custodian&rsquo;s liability shall not exceed the greater of (A) $5 million and (B) the aggregate fees paid by the Trust to the
Solana Custodian in the 12 months prior to the event giving rise to the Solana Custodian&rsquo;s liability; and (iii) in respect of any
incidental, indirect, special, punitive, consequential or similar losses, the Solana Custodian is not liable, even if the Solana Custodian
has been advised of or knew or should have known of the possibility thereof. The Solana Custodian is not liable for delays, suspension
of operations, failure in performance, or interruption of service to the extent it is directly due to a cause or condition beyond the
reasonable control of the Solana Custodian. Under the Solana Custody Agreement, except in the case of its negligence, fraud, material
violation of applicable law or willful misconduct, the Solana Custodian shall not have any liability, obligation, or responsibility for
any damage or interruptions caused by any computer viruses, spyware, scareware, Trojan horses, worms or other malware that may affect
the Trust&rsquo;s computer or other equipment, or any phishing, spoofing or other attack, unless the Solana Custodian fails to have commercially
reasonable policies, procedures and technical controls in place to prevent such damages or interruptions.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p>

<!-- Field: Page; Sequence: 96; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->92<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</p>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">[Solana
Custodian&rsquo;s Parent] maintains a commercial crime insurance policy, which is intended to cover the loss of client assets held by
the [Insured Entities], including from employee collusion or fraud, physical loss including theft, damage of key material, security breach
or hack, and fraudulent transfer. The insurance maintained by the [Insured Entities] is shared among all of [Solana Custodian Entities
&ndash; Short Name]&rsquo;s customers, is not specific to the Trust or to customers holding Solana with the Solana Custodian or Prime
Execution Agent and may not be available or sufficient to protect the Trust from all possible losses or sources of losses.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Solana Custodian may terminate the Solana Custody Agreement for any reason upon providing the applicable notice to the Trust, or immediately
for Cause (as defined in the Solana Custody Agreement), including, among others, if the Trust materially breaches the Prime Execution
Agreement and such breach remains uncured, undergoes a bankruptcy event, or fails to repay Trade Credits. The Solana Custodian may terminate
the Solana Custody Agreement for any reason upon providing 180 days&rsquo; notice to the Trust, or immediately for Cause (as defined
below). The Solana Custody Agreement forms a part of the Prime Execution Agreement, and is subject to the termination provisions in the
Prime Execution Agreement. These termination provisions are described in more detail in <I>"</I>THE PRIME EXECUTION AGENT AND THE
TRADE CREDIT LENDER&mdash;The Prime Execution Agent&rdquo; below.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Transfer Agent will facilitate the settlement of Shares in response to the placement of creation orders and redemption orders from Authorized
Participants. The Trust has entered into the Cash Custody Agreement with BNY Mellon under which BNY Mellon acts as custodian of the Trust&rsquo;s
cash and cash equivalents.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust may engage third-party custodians or vendors besides the Solana Custodian and the Cash Custodian to provide custody and security
services for all or a portion of its Solana and/or cash, and the Sponsor will pay the custody fees and any other expenses associated
with any such third-party custodian or vendor. The Sponsor is responsible for overseeing the Solana Custodian and the Trust&rsquo;s other
service providers. The Sponsor may, in its sole discretion, add or terminate Solana custodians at any time. The Sponsor may, in its sole
discretion, change the custodian of the Trust&rsquo;s Solana holdings, but it will have no obligation whatsoever to do so or to seek
any particular terms for the Trust from other such custodians. However, the Sponsor will only enter into Solana custody arrangements
with custodians that meet the Sponsor&rsquo;s criteria, including an agreement to maintain Trust assets in a segregated account, to maintain
insurance and to store the Trust&rsquo;s private keys in cold storage or in such other manner as the Sponsor determines provides reasonable
protection for the Trust&rsquo;s assets from loss or theft.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><A NAME="B_030"></A>THE
PRIME EXECUTION AGENT AND THE TRADE CREDIT LENDER</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
following section describe the role of the Prime Execution Agent and Trade Credit Lender. These parties will only be utilized during
the rare and limited circumstances when the Trust buys and sells Solana using the Agent Execution Model. The Trust intends to utilize
the Trust-Directed Trade Model for all purchases and sales of Solana and will only utilize the Agent Execution Model in the event that
no Solana Trading Counterparty is able or willing to effectuate the Trust&rsquo;s purchase or sale of Solana.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Prime Execution Agent</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pursuant
to the Prime Execution Agreement, the Trust&rsquo;s Solana holdings and cash holdings from time to time may be temporarily held with
the Prime Execution Agent, an affiliate of the Solana Custodian, in the Trading Balance, for certain limited purposes, including in connection
with creations and redemptions of Baskets and the sale of Solana to pay other Trust expenses not assumed by the Sponsor. The Sponsor
may, in its sole discretion, add or terminate prime execution agents at any time. The Sponsor may, in its sole discretion, change the
prime execution agent for the Trust, but it will have no obligation whatsoever to do so or to seek any particular terms for the Trust
from other such prime execution agents.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Within
the Trust&rsquo;s Trading Balance, the Prime Execution Agreement provides that the Trust does not have an identifiable claim to any particular
Solana (and cash). Instead, the Trust&rsquo;s Trading Balance represents an entitlement to a pro rata share of the Solana (and cash)
the Prime Execution Agent holds on behalf of customers who hold similar entitlements against the Prime Execution Agent. In this way,
the Trust&rsquo;s Trading Balance represents an omnibus claim on the Prime Execution Agent&rsquo;s Solana (and cash) held on behalf of
the Prime Execution Agent&rsquo;s customers. The Prime Execution Agent holds the Solana associated with customer entitlements across
a combination of omnibus cold wallets, omnibus &ldquo;hot&rdquo; wallets (meaning wallets whose private keys are generated and stored
online, in internet-connected computers or devices) or in omnibus accounts in the Prime Execution Agent&rsquo;s name on a trading venue
(including third-party venues and the Prime Execution Agent&rsquo;s own execution venue) where the Prime Execution Agent executes orders
to buy and sell Solana on behalf of its clients.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 97; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->93<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Within
such omnibus hot and cold wallets and accounts, the Prime Execution Agent has represented to the Sponsor that it keeps the majority of
assets in cold wallets to promote security, while the balance of assets is kept in hot wallets to facilitate rapid withdrawals. However,
the Sponsor has no control over, and for security reasons the Prime Execution Agent does not disclose to the Sponsor, the percentage
of Solana that the Prime Execution Agent holds for customers holding similar entitlements as the Trust, which are kept in omnibus cold
wallets, as compared to omnibus hot wallets or omnibus accounts in the Prime Execution Agent&rsquo;s name on a trading venue. The Prime
Execution Agent has represented to the Sponsor that the percentage of assets maintained in cold versus hot storage is determined by ongoing
risk analysis and market dynamics, in which the Prime Execution Agent attempts to balance anticipated liquidity needs for its customers
as a class against the anticipated greater security of cold storage.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Prime Execution Agent is not required by the Prime Execution Agreement to hold any of the Solana in the Trust&rsquo;s Trading Balance
in cold storage or to hold any such Solana in segregation, and neither the Trust nor the Sponsor can control the method by which the
Prime Execution Agent holds the Solana credited to the Trust&rsquo;s Trading Balance.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Prime Execution Agent relies on bank accounts to provide its trading platform services and including temporarily holding any cash related
to a customer&rsquo;s purchase or sale of Solana. In particular, the Prime Execution Agent has disclosed that customer cash held by the
Prime Execution Agent, including the cash associated with the Trust&rsquo;s Trading Balance, is held in one or more banks&rsquo; accounts
for the benefit of the Prime Execution Agent&rsquo;s customers, or in Money Market Funds in compliance with Rule 2a-7 under the Investment
Company Act of 1940 and rated &ldquo;AAA&rdquo; by S&amp;P (or the equivalent from any eligible rating service), provided that such investments
are held in accounts in [Solana Custodian Entities &ndash; Short Name]&rsquo;s name for the benefit of customers and are permitted and
held in accordance with state money-transmitter laws. The Prime Execution Agent has represented to the Sponsor that it has implemented
the following policy with respect to the cash associated with the Trust&rsquo;s Trading Balance. First any cash related to the Trust&rsquo;s
purchase or sale of Solana will be held in an FBO Account or in a Money Market Fund. The amount of Trust cash held at each FBO Account
shall, unless otherwise agreed by the Sponsor in writing, be in an amount at each bank that is the lower of (i) the FDIC insurance limit
for deposit insurance and (ii) any bank-specific limit set by the Prime Execution Agent for the applicable bank. Deposit insurance does
not apply to cash held in a Money Market Fund. The Prime Execution Agent has agreed to title the accounts in a manner designed to enable
receipt of FDIC deposit insurance where applicable on a pass-through basis. Second, to the extent the Trust&rsquo;s cash in the Trading
Balance in aggregate exceeds the amounts that can be maintained at the banks on the foregoing basis, the Prime Execution Agent has represented
that it currently conducts an overnight sweep of the excess into U.S. government Money Market Funds. The Sponsor has not independently
verified the Prime Execution Agent&rsquo;s representations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
the extent the Trust sells Solana through the Prime Execution Agent, the Trust&rsquo;s orders will be executed at the Connected Trading
Venues that have been approved in accordance with the Prime Execution Agent&rsquo;s due diligence and risk assessment process. The Prime
Execution Agent has represented that its due diligence on Connected Trading Venues includes reviews conducted by the legal, compliance,
security, privacy and finance and credit-risk teams, The Connected Trading Venues, which are subject to change from time to time, currently
include Bitstamp, LMAX, Kraken, the exchange operated by the Prime Execution Agent, as well as four additional non-bank market makers
(&ldquo;NBMMs&rdquo;). The Prime Execution Agent has represented to the Trust that it is unable to name the NBMMs due to confidentiality
restrictions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pursuant
to the Prime Execution Agreement, the Trust may engage in sales of Solana by placing orders with the Prime Execution Agent. The Prime
Execution Agent will route orders placed by the Sponsor through the prime execution agent execution platform (the &ldquo;Trading Platform&rdquo;)
to a Connected Trading Venue where the order will be executed. Each order placed by the Sponsor will be sent, processed and settled at
each Connected Trading Venue to which it is routed. The Prime Execution Agreement provides that the Prime Execution Agent is subject
to certain conflicts of interest, including: (i) the Trust&rsquo;s orders may be routed to the Prime Execution Agent&rsquo;s own execution
venue where the Trust&rsquo;s orders may be executed against other customers of the Prime Execution Agent or with the [Prime Execution
Agent] acting as principal, (ii) the beneficial identity of the counterparty purchaser or seller with respect to the Trust&rsquo;s orders
may be unknown and therefore may inadvertently be another client of the Prime Execution Agent, (iii) the Prime Execution Agent does not
engage in front-running, but is aware of the Trust&rsquo;s orders or imminent orders and may execute a trade for its own inventory (or
the account of an affiliate) while in possession of that knowledge and (iv) the Prime Execution Agent may act in a principal capacity
with respect to certain orders. As a result of these and other conflicts, when acting as principal, the Prime Execution Agent may have
an incentive to favor its own interests and the interests of its affiliates over the Trust&rsquo;s interests.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 98; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->94<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Subject
to the foregoing, and to certain policies and procedures that the Prime Execution Agreement requires the Prime Execution Agent to have
in place to mitigate conflicts of interest when executing the Trust&rsquo;s orders, the Prime Execution Agreement provides that the Prime
Execution Agent shall have no liability, obligation, or responsibility whatsoever for the selection or performance of any Connected Trading
Venue, and that other Connected Trading Venues and/or trading venues not used by [Prime Execution Agent] may offer better prices and/or
lower costs than the Connected Trading Venue used to execute the Trust&rsquo;s orders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">[Solana
Custodian&rsquo;s Parent] maintains a commercial crime insurance policy, which is intended to cover the loss of client assets held by
[Solana Custodian&rsquo;s Parent] and all of its subsidiaries, including the Prime Execution Agent, including from employee collusion
or fraud, physical loss including theft, damage of key material, security breach or hack, and fraudulent transfer. The insurance maintained
by the [Insured Entities] is shared among all of [Solana Custodian Entities - Short Name]&rsquo;s customers, is not specific to the Trust
or to customers holding Solana with the Solana Custodian or Prime Execution Agent and may not be available or sufficient to protect the
Trust from all possible losses or sources of losses.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Once
the Sponsor places an order to purchase or sell Solana on the Trading Platform, the associated Solana or cash used to fund or fill the
order, if any, will be placed on hold and will generally not be eligible for other use or withdrawal from the Trust&rsquo;s Trading Balance.
The Trust Solana Account may be used directly to fund orders. With each Connected Trading Venue, the Prime Execution Agent shall establish
an account in the Prime Execution Agent&rsquo;s name, or in its name for the benefit of clients, to trade on behalf of its clients, including
the Trust, and the Trust will not, by virtue of the Trading Balance the Trust maintains with the Prime Execution Agent, have a direct
legal relationship, or account with, any Connected Trading Venue.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Prime Execution Agent is permitted to suspend or terminate the Prime Execution Agreement under certain circumstances. The Prime Execution
Agent, for itself or as agent for the Solana Custodian and Trade Credit Lender, may not terminate the Prime Execution Agreement (including
the Solana Custody Agreement) or suspend, restrict terminate or modify the Prime Execution Agent Services (as defined below) on less
than 180 days&rsquo; notice, except in the event of (i) a Change in Law or (ii) a Cause event (as defined below).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Prime Execution Agreement defines a &ldquo;Change in Law&rdquo; as any change in or adoption of any applicable law, rule, or regulation
which, in the reasonable opinion of counsel to the Prime Execution Agent would prohibit or materially impede some or all of the arrangement
contemplated by the Prime Execution Agreement. Upon the occurrence of a Change in Law, the parties will negotiate to agree on modifications
to the Prime Execution Agreement or the Prime Execution Agent Services that would enable compliance with such Change in Law or, in the
case of a material impediment, reduce the impact to the parties of such Change in Law and the [Solana Custodian Entities] shall continue
to provide the Prime Execution Agent Services unless prohibited from doing so by the Change in Law. If the parties cannot agree on modifications
within thirty (30) days following notice from the Prime Execution Agent or if the Change in Law requires that [Prime Execution Agent]
immediately ceases providing any Prime Execution Agent Services, the Prime Execution Agent may, upon written notice, suspend, restrict
or terminate the Prime Execution Agent Services solely to the extent necessary to account for the Change in Law, provided that any such
suspension, restriction, termination or modification is narrowly tailored and, to the extent not prohibited by the Change in Law, the
[Solana Custodian Entities] will continue to provide, at a minimum, the Transition Services (as defined below) following any Change in
Law.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Upon
the occurrence and continuation of a Cause event, and after giving effect to any notice requirement and cure period that may apply, the
Prime Execution Agent may in its reasonable discretion, terminate the Prime Execution Agreement and accelerate the Trust&rsquo;s obligations,
and/or take certain other actions. The Prime Execution Agreement defines &ldquo;Cause&rdquo; to mean (i) a material breach of the Prime
Execution Agreement (other than the Solana Custody Agreement) which is uncured for ten (10) days; (ii) a material breach of the Solana
Custody Agreement which is uncured for 30 days; (iii) a Bankruptcy Event (as defined below); and (iv) the failure by the Trust to repay
Trade Credits by the applicable deadline specified in the Trade Financing Agreement which, in the event the failure results solely from
an error or omission of an administrative or operational nature, remains uncured for a period of one (1) business day.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 99; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->95<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Notwithstanding
any termination of the Prime Execution Agreement by the Prime Execution Agent for Cause, during any Transition Period (as defined below)
the [Solana Custodian Entities] (defined in the Prime Execution Agreement as the Prime Execution Agent, Solana Custodian, and Trade Credit
Lender) or their affiliates shall continue to provide the Transition Services (as defined below) and render such assistance as the Trust
may reasonably request to enable the continuation and orderly assumption of the Transition Services to be effected by the Trust, its
affiliate or any alternative service provider and shall continue to provide the Transition Services pursuant to the Prime Execution Agreement,
except to the extent any Transition Service is prohibited under applicable law (including, but not limited to, applicable sanctions programs)
or by a facially valid subpoena, court order, or binding order of a government authority; provided that (i) the [Solana Custodian Entities]
will continue to have the right to exercise their right of set-off under the Prime Execution Agreement with respect to any sale proceeds
during the Transition Period for any fees or other amounts owed by the Trust and (ii), notwithstanding any provision in the Prime Execution
Agreement to the contrary, in no event shall any [Solana Custodian Entity], its affiliates, or their respective officers, directors,
agents, employees and representatives have any liability to the Trust or Sponsor for any claims or losses arising out of or relating
to the Prime Execution Agreement during (A) with respect to any Transition Services described in clause (i) of the definition of Transition
Services, the 91st day through the end of the Transition Period (as defined below) and (B) with respect to any Transition Services described
in clause (ii) of the definition of Transition Services, the 16th&nbsp;day through the end of the Transition Period, which do not result
from its gross negligence, fraud, material violation of applicable law or willful misconduct; provided that throughout the Transition
Period the [Solana Custodian Entities] shall act in good faith and in a commercially reasonable manner to provide the same level of service
with respect to the Transition Services as was provided prior to the start of the Transition Period. For the avoidance of doubt, during
the Transition Period, the fees set forth in the Prime Execution Agreement will continue to apply to the Transition Services.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&ldquo;Transition
Period&rdquo; is defined in the Prime Execution Agreement to mean a 180-day period (or such extended period as agreed in writing by the
[Solana Custodian Entities] and the Trust) commencing on the date the Trust is notified of any termination of the Prime Execution Agreement
pursuant to a Cause event.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&ldquo;Transition
Services&rdquo; means the Prime Execution Agent services consisting of (i) the custody of the Trust&rsquo;s Solana on the Trust&rsquo;s
behalf, the processing of deposits and withdrawals and other custody transactions, and (ii) access to the Prime Execution Agent&rsquo;s
trading platform and the execution and settlement of all orders for the sale of Solana submitted by the Trust. For the avoidance of doubt,
the Transition Services shall not include the extension of credit, and the obligation to execute and settle any Orders for the purchase
of Digital Assets.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&ldquo;Bankruptcy
Event&rdquo; is defined in the Prime Execution Agreement to mean the party is (i) dissolved (other than pursuant to a consolidation,
amalgamation or merger); (ii) becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to
pay its debts as they become due; (iii) makes a general assignment, arrangement or composition with or for the benefit of its creditors;
(iv) institutes or has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any
bankruptcy or insolvency law or other similar law affecting creditors&rsquo; rights, or a petition is presented for its winding-up or
liquidation, and in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition (I) results
in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation
or (II) is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution or presentation thereof; (v)
has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation
or merger); (vi) seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee,
custodian or other similar official for it or for all or substantially all its assets; (vii) has a secured party take possession of all
or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued
on or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed,
discharged, stayed or restrained, in each case within 30 days thereafter; (viii) causes or is subject to any event with respect to it
which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in clauses (i) to (vii)
(inclusive); or (ix) takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing
acts.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 100; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->96<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust may terminate the Prime Execution Agreement, including the Solana Custody Agreement, in whole or in part for any reason upon thirty
(30) days&rsquo; notice to the Prime Execution Agent, for itself or as agent on behalf of the Solana Custodian or Trade Credit Lender,
or upon a [Prime Execution Agent Termination Event]. The Prime Execution Agreement defines a &ldquo;[Prime Execution Agent Termination
Event]&rdquo; to mean the occurrence and continuance of (i) a Bankruptcy Event with respect to any [Solana Custodian Entity], (ii) the
failure of any [Solana Custodian Entity] to sell or withdraw or transfer the Trust&rsquo;s Solana in accordance with the Trust&rsquo;s
instructions within the time periods set forth in the Prime Execution Agreement and such failure is not cured within two (2) business
days following the Trust providing written notice to the relevant [Solana Custodian Entity] (&ldquo;CB Return Cure&rdquo;); provided,
however, that (A) if, prior to the expiration of the CB Return Cure, the Prime Execution Agent transfers cash to the Trust in an amount
equal to the value of the Solana based on the Benchmark Valuation (defined as the Pricing Benchmark) as of the time that the request
to sell, transfer or withdraw was originally made by the Trust (the &ldquo;Solana Cash Value&rdquo;) or if the Prime Execution Agent
delivers cash collateral to an account designated by the Trust and in which the Trust has a perfected, first priority security interest
and in an amount equal to the Solana Cash Value until the relevant Solana is sold, withdrawn or transferred or the Trust elects to receive
such amount in cash in lieu of the Prime Execution Agent&rsquo;s obligation to sell, withdraw or transfer the relevant Solana, in each
cash, such failure will be deemed cured; provided, further that, the Trust shall have the right to choose whether to receive the Solana
Cash Value in lieu of the relevant Solana or receive the Solana Cash Value as cash collateral, or (B) if such failure is due to a technology
or security issue where, in the commercially reasonable opinion of the Prime Execution Agent, returning the relevant Solana would result
in material risk to the Trust or the Prime Execution Agent or may result in the relevant Solana being lost or otherwise not successfully
returned and the Prime Execution Agent promptly notifies the Trust promptly upon Client&rsquo;s notice of such failure, (1) the Trust
may request that the Prime Execution Agent still sell, withdraw or transfer the Solana, but the Prime Execution Agent will have no liability
with respect to any such sell, withdrawal or transfer (unless the Prime Execution Agent or any of the [Solana Custodian Entities] act
with negligence unrelated to such technology or security issue) and any failure to withdraw or transfer shall not result in a [Prime
Execution Agent Termination Event ] if the Trust does not receive the withdrawn or transferred Solana or the proceeds of any such sale
due to such technology or security issue, or (2) if the Trust does not elect to have the Prime Execution Agent still make the sale, withdrawal
or transfer, a [Prime Execution Agent Termination Event ] shall not occur while the relevant security or technology event is occurring
and continuing, (iii) the failure of any [Solana Custodian Entity] to withdraw or transfer cash to the Trust in accordance with the Trust&rsquo;s
instructions within the time periods set forth in the Prime Execution Agreement and such failure is not cured within one (1) business
day following the Trust providing written notice to the relevant [Solana Custodian Entity], (iv) a [Solana Custodian Entity] intentionally
or willfully, materially breaches any provision of the Prime Execution Agreement (other than the provisions of the Solana Custody Agreement)
and such breach remains uncured for a period of ten (10) calendar days after notice of such breach is provided by the Trust to the Prime
Execution Agent; or (v) a [Solana Custodian Entity] intentionally or willfully, materially breaches any provision of the Solana Custody
Agreement and such breach remains uncured for a period of 30 calendar days after notice of such breach is provided by the Trust to the
Prime Execution Agent.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Prime Execution Agent does not guarantee uninterrupted access to the Trading Platform or the services it provides to the Trust. Under
certain circumstances, the Prime Execution Agent is permitted to halt or suspend trading on the Trading Platform, or impose limits on
the amount or size of, or reject, the Trust&rsquo;s orders, including in the event of, among others, (a) delays, suspension of operations,
failure in performance, or interruption of service that are directly due to a cause or condition beyond the reasonable control of the
Prime Execution Agent, (b) the Trust has engaged in unlawful or abusive activities or fraud, or (c) a security or technology issue occurred
and is continuing that results in the Prime Execution Agent being unable to provide trading services or accept the Trust&rsquo;s order,
in each case, subject to certain protections for the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Neither
the Prime Execution Agent nor any other [Solana Custodian Entity] is permitted to withdraw the Trust&rsquo;s Solana from the Trust Solana
Account, or loan, hypothecate, pledge or otherwise encumber the Trust&rsquo;s Solana, without the consent of the Trust. The Trading Balance
is subject to the lien to secure outstanding Trade Credits in favor of the Trade Credit Lender discussed below.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 101; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->97<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Under
the Prime Execution Agreement, the Prime Execution Agent&rsquo;s liability is limited as follows, among others: (i) other than with respect
to claims and losses arising from spot trading of Solana, or fraud or willful misconduct, among others, the Prime Execution Agent&rsquo;s
aggregate liability shall not exceed the greater of (A) the greater of (x) &nbsp;$5&nbsp;million and (y) the aggregate fees paid by the
Trust to the Prime Execution Agent in the 12 months prior to the event giving rise to the Prime Execution Agent&rsquo;s liability, and
(B) the value of the cash or affected Solana giving rise to the Prime Execution Agent&rsquo;s liability; (ii) in respect of the Prime
Execution Agent&rsquo;s obligations to indemnify the Trust and its affiliates against third-party claims and losses to the extent arising
out of or relating to, among others, the Prime Execution Agent&rsquo;s violation of any law, rule or regulation with respect to the provision
of its services, or the full amount of the Trust&rsquo;s assets lost due to the insolvency of or security event at a Connected Trading
Venue, the Prime Execution Agent&rsquo;s liability shall not exceed the greater of (A) $5 million and (B) the aggregate fees paid by
the Trust to the Prime Execution Agent in the 12 months prior to the event giving rise to the Prime Execution Agent&rsquo;s liability;
and (iii) in respect of any incidental, indirect, special, punitive, consequential or similar losses, the Prime Execution Agent is not
liable, even if the Prime Execution Agent has been advised of or knew or should have known of the possibility thereof. The Prime Execution
Agent is not liable for delays, suspension of operations, failure in performance, or interruption of service to the extent it is directly
due to a cause or condition beyond the reasonable control of the Prime Execution Agent. Both the Trust and the Prime Execution Agent
and its affiliates (including the Solana Custodian) are required to indemnify each other under certain circumstances. The Prime Execution
Agreement is governed by New York law and provides that disputes arising under it are subject to arbitration.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Prime Execution Agreement provides that the [Solana Custodian Entities] may have actual or potential conflicts of interest in connection
with providing the Prime Execution Agent Services including that (i) orders to buy or sell Solana may be routed to the Prime Execution
Agent&rsquo;s exchange platform ("[Prime Execution Agent Exchange]") where such orders may be executed against other [Prime
Execution Agent] customers or with [Prime Execution Agent] acting as principal, (ii) the beneficial identity of the purchaser or seller
with respect to an order is unknown and therefore may inadvertently be another [Prime Execution Agent] customer, (iii) the Prime Execution
Agent does not engage in front-running, but is aware of orders or imminent orders and may execute a trade for its own inventory (or the
account of an affiliate) while in possession of that knowledge, and (iv) [Prime Execution Agent] may act in a principal capacity with
respect to certain orders (e.g., to fill residual order size when a portion of an order may be below the minimum size accepted by the
Connected Trading Venues). As a result of these and other conflicts, when acting as principal, the [Solana Custodian Entities] may have
an incentive to favor their own interests and the interests of their affiliates over the Trust&rsquo;s interests and have in place certain
policies and procedures that are designed to mitigate such conflicts. The Prime Execution Agent will maintain appropriate and effective
arrangements to eliminate or manage conflicts of interest, including segregation of duties, information barriers and training. The Prime
Execution Agent will notify the Trust of changes to its business that have a material adverse effect on the Prime Execution Agent&rsquo;s
ability to manage its conflicts of interest. The [Solana Custodian Entities] shall execute trades pursuant to such policies and procedures;
provided that the [Solana Custodian Entities] (a) shall execute in a commercially reasonable amount of time (i) any marketable orders
appropriately entered by the Trust and (ii) any other pending orders by the Trust received by the [Solana Custodian Entities] that become
marketable, (b) for any order that the Prime Execution Agent receives from the Trust, the Prime Execution Agent will make commercially
reasonable efforts to route orders for execution to the Connected Trading Venue offering the highest price for the Trust&rsquo;s Solana
sale orders, including consideration of any gas fees or similar fees related to a particular blockchain at the time that such orders
are routed for execution, and (c) shall not knowingly enter into a transaction for the benefit of (x) the [Solana Custodian Entities],
or (y)&nbsp;any other client received after the Trust&rsquo;s order, ahead of any order received from the Trust. For purposes of the
foregoing, a marketable order is a sell order equivalent to or better than the best bid price on any Connected Trading Venue (or any
venue that a [Solana Custodian Entity] may use) at a given moment. The Prime Execution Agent agrees to direct the Trust&rsquo;s orders
in a manner that does not systematically favor the [Prime Execution Agent Exchange] or Connected Trading Venues that provide financial
incentives to the Prime Execution Agent; provided, however, that under certain circumstances the Prime Execution Agent may choose to
intentionally route to the [Prime Execution Agent Exchange] due to temporary conditions affecting Connected Trading Venues (e.g., connectivity
problems of the Connected Trading Venue or funding constraints).</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trade Credit Lender</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
avoid having to pre-fund purchases or sales of Solana when using the Agent Execution Model, the Trust may borrow Solana or cash as Trade
Credit from the Trade Credit Lender on a short-term basis. The Sponsor does not intend to fund the Trading Balance at the Prime Execution
Agent with sufficient cash or Solana to pay fees and expenses and instead intends to utilize the Trade Financing Agreement for such fees
and expenses. This allows the Trust to buy or sell Solana through the Prime Execution Agent in an amount that exceeds the cash or Solana
credited to the Trust&rsquo;s Trading Balance at the Prime Execution Agent at the time such order is submitted to the Prime Execution
Agent, which is expected to facilitate the Trust&rsquo;s ability purchase and sell Solana in a timely manner, rather than waiting for
the cash to be transferred by the Cash Custodian to the Prime Execution Agent prior to purchasing the Solana or for the Solana held in
the Trust Solana Account to be transferred to the Trust&rsquo;s Trading Balance prior to selling Solana. The Trust is required by the
terms of the Trade Financing Agreement, which is part of the Prime Execution Agreement, to repay any extension of Trade Credit by the
Trade Credit Lender by 6:00 p.m. ET on the business day following the day that the Trade Credit was extended to the Trust. The Trade
Credit Lender is only required to extend Trade Credits to the Trust to the extent such Solana or cash is actually available to the Trade
Credit Lender. For example, if the Trade Credit Lender is unable to borrow Solana to lend to the Trust as a Trade Credit, or there is
a material market disruption (as determined by the Trade Credit Lender in good faith and in its sole discretion), the Trade Credit Lender
is not obligated to extend Trade Credits to the Trust. To secure the repayment of Trade Credits, the Trust has granted a first-priority
lien to the Trade Credit Lender over the assets in its Trading Balance and the Trust Solana Account. If the Trust fails to repay a Trade
Credit within the required deadline, the Trade Credit Lender is permitted to take control of Solana or cash credited to the Trust&rsquo;s
Trading Balance and Trust Solana Account (though it is required to exhaust the Trading Balance prior to taking control of assets in the
Trust Solana Account) and liquidate them to repay the outstanding Trade Credit. Trade Credits bear interest. Pursuant to the Trade Financing
Agreement, there is a maximum &ldquo;Authorized Amount&rdquo; of Trade Credits that the Trade Credit Lender allows to be outstanding
at any one time, which is determined and may be changed by the Trade Credit Lender in its sole discretion. To the extent the Trade Credit
Lender changes the Authorized Amount, it will give the Trust advance notice if it is feasible to do so.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 102; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->98<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
entirety of the Trust&rsquo;s Solana holdings is maintained with the Solana Custodian rather than the Prime Execution Agent. Accordingly,
when using the Agent Execution Model, the Trust does expect to utilize Trade Credits. When utilizing Trade Credits in connection with
Purchase Orders and Redemption Orders, any interest payable on Trade Credits will be the responsibility of the Authorized Participants.
In the very rare event that Trade Credits are utilized in connection with the payment of Trust expenses not assumed by the Sponsor, any
interest payable on the Trade Credits will be the responsibility of the Trust. Any such interest payments borne by the Trust will have
the effect of reducing the amount of Solana represented by a Share and the NAV of the Trust. In connection with a Redemption Order or
to pay expenses not assumed by the Sponsor, the Trust will first borrow Solana from the Trade Credit Lender using the Trade Financing
Agreement, and then sell this Solana. In connection with a Purchase Order, the Trust will first borrow cash from the Trade Credit Lender
using the Trade Financing Agreement, and then purchase Solana. The purpose of borrowing the Solana or cash from the Trade Credit Lender
is to lock in the Solana price on the trade date or the payment date, as applicable, rather than waiting for the funds associated with
the creation to be transferred by the Cash Custodian to the Prime Execution Agent prior to purchasing the Solana or for the Solana held
in the Trust Solana Account to be transferred to a Trading Balance prior to selling the Solana (a process that may take up to twenty-four
hours, or longer if the Solana Network is experiencing delays in transaction confirmation, or if there are other delays). To the extent
that the execution price of the Solana acquired exceeds the amount of cash deposited by the Authorized Participant, the Authorized Participant
bears the responsibility for the difference.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
the event Trade Credits are unavailable from the Trade Credit Lender or become exhausted, the Sponsor would require the Authorized Participant
to deliver cash on the trade date so that a purchase order can be settled in a timely manner. For a Redemption Order under the Agent
Execution Model, the Trust may use financing when the Solana remains in the Trust Solana Account at the point of intended execution of
a sale of Solana. In the event Trade Credits are unavailable or become exhausted in this situation, the Sponsor would instruct the Solana
Custodian to move Solana out of the Trust Solana Account into the Trading Balance so that it could be sold directly in response to a
redemption order or to pay fees and expenses. Under these circumstances, the Trust may not be able to lock in the Solana price on the
trade date or the payment date, as applicable, and would instead have to wait until the transfer from the Trust Solana Account the Trading
Balance was completed before selling the Solana.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><A NAME="B_031"></A>Form
of Shares</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Registered
Form</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shares
are issued in registered form in accordance with the Trust Agreement. The Transfer Agent has been appointed registrar and transfer agent
for the purpose of transferring Shares in certificated form. The Transfer Agent keeps a record of all Shareholders and holders of the
Shares in certified form in the registry (&ldquo;Register&rdquo;). The Sponsor recognizes transfers of Shares in certificated form only
if done in accordance with the Trust Agreement. The beneficial interests in such Shares are held in book-entry form through participants
and/or accountholders in DTC.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>

<!-- Field: Page; Sequence: 103; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->99<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Book-Entry</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Individual
certificates are not issued for the Shares. Instead, Shares are represented by one or more global certificates, which are deposited by
the Transfer Agent with DTC and registered in the name of Cede &amp; Co., as nominee for DTC. The global certificates evidence all of
the Shares outstanding at any time. Shareholders are limited to (1) participants in DTC such as banks, brokers, dealers and trust companies
(&ldquo;DTC Participants&rdquo;), (2) those who maintain, either directly or indirectly, a custodial relationship with a DTC Participant
(&ldquo;Indirect Participants&rdquo;), and (3) those who hold interests in the Shares through DTC Participants or Indirect Participants,
in each case who satisfy the requirements for transfers of Shares. DTC Participants acting on behalf of investors holding Shares through
such participants&rsquo; accounts in DTC will follow the delivery practice applicable to securities eligible for DTC&rsquo;s Same-Day
Funds Settlement System. Shares are credited to DTC Participants&rsquo; securities accounts following confirmation of receipt of payment.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">DTC</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">DTC
has advised the Sponsor as follows: It is a limited-purpose trust company organized under the laws of the State of New York and is a
member of the Federal Reserve System, a &ldquo;clearing corporation&rdquo; within the meaning of the New York Uniform Commercial Code
and a &ldquo;clearing agency&rdquo; registered pursuant to the provisions of Section&nbsp;17A of the Exchange Act. DTC holds securities
for DTC Participants and facilitates the clearance and settlement of transactions between DTC Participants through electronic book-entry
changes in accounts of DTC Participants.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><A NAME="B_032"></A>Transfer
of Shares</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Shares are only transferable through the book-entry system of DTC. Shareholders who are not DTC Participants may transfer their Shares
through DTC by instructing the DTC Participant holding their Shares (or by instructing the Indirect Participant or other entity through
which their Shares are held) to transfer the Shares. Transfers are made in accordance with standard securities industry practice.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Transfers
of interests in Shares with DTC are made in accordance with the usual rules and operating procedures of DTC and the nature of the transfer.
DTC has established procedures to facilitate transfers among the participants and/or accountholders of DTC. Because DTC can only act
on behalf of DTC Participants, who in turn act on behalf of Indirect Participants, the ability of a person or entity having an interest
in a global certificate to pledge such interest to persons or entities that do not participate in DTC, or otherwise take actions in respect
of such interest, may be affected by the lack of a certificate or other definitive document representing such interest.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">DTC
has advised the Sponsor that it will take any action permitted to be taken by a Shareholder (including, without limitation, the presentation
of a global certificate for exchange) only at the direction of one or more DTC Participants in whose account with DTC interests in global
certificates are credited and only in respect of such portion of the aggregate principal amount of the global certificate as to which
such DTC Participant or Participants has or have given such direction.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_033"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">SEED
CAPITAL INVESTOR</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Bitwise
Asset Management, Inc., the parent of the Sponsor, served as seed capital investor to the Trust (the &ldquo;Seed Capital Investor&rdquo;).
The Seed Capital Investor agreed to purchase $____ in Shares on __________, and on ______________, took delivery of __ Shares at a per-Share
price of $___ (the &ldquo;Seed Shares&rdquo;). The $____ the Trust received in consideration for the sale of the Seed Shares served as
the basis of the audit described in the sections entitled &ldquo;REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM&rdquo; and &ldquo;STATEMENT
OF FINANCIAL CONDITION.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor will not receive from the Trust or any of its affiliates any fee or other compensation in connection with the Seed Capital Investor&rsquo;s
purchase of the Seed Shares.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"></P>

<!-- Field: Page; Sequence: 104; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->100<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_034"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Plan
of Distribution</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Buying
and Selling Shares</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Most
investors buy and sell Shares in secondary market transactions through brokers. Shares trade on the Exchange under the ticker symbol
"____.&rdquo; Shares are bought and sold throughout the trading day like other publicly traded securities. When buying or selling
Shares through a broker, most investors incur customary brokerage commissions and charges. Shareholders are encouraged to review the
terms of their brokerage account for details on applicable charges.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Bitwise
Investment Manager, LLC, an affiliate of the Sponsor, is expected to purchase the initial Baskets of Shares for $____________, at per-Share
price of $___ for these ________ Shares (the Seed Baskets). Such proceeds are expected to be used by the Trust to purchase Solana at
or prior to the listing of Shares on the Exchange. Bitwise Investment Manager, LLC will act as a statutory underwriter in connection
with the initial purchase of the Seed Baskets.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Authorized
Participants</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
offering of the Shares is a best efforts offering. The Trust continuously offers Baskets consisting of 10,000 Shares to Authorized Participants.
Authorized Participants pay a transaction fee for each order they place to purchase or redeem one or more Baskets. The Sponsor believes
that the Basket size of 10,000 Shares will enable Authorized Participants to manage inventory and facilitate an effective arbitrage mechanism
for the Trust, however, the Sponsor may adjust the Baskets in order to improve the effectiveness of the activities of Authorized Participants
in the secondary market for the Shares if the Sponsor determines it to be necessary or advisable. Because new Shares can be created and
issued on an ongoing basis, at any point during the life of the Trust, a &ldquo;distribution,&rdquo; as such term is used in the 1933
Act, will be occurring.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
offering of Baskets is being made in compliance with Conduct Rule 2310 of FINRA. Accordingly, Authorized Participants will not make any
sales to any account over which they have discretionary authority without the prior written approval of a purchaser of Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">By
executing an Authorized Participant Agreement, an Authorized Participant becomes part of the group of parties eligible to purchase Baskets
from, and put Baskets for redemption to, the Trust. An Authorized Participant is under no obligation to purchase or redeem Baskets or
to offer to the public Shares of any Basket it does create. As of ___________, 2024, ___________________________ have executed Authorized
Participant Agreements with the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Because
new Shares can be created and issued on an ongoing basis, at any point during the life of the Trust, a &ldquo;distribution,&rdquo; as
such term is used in the 1933 Act, will be occurring. Authorized Participants, other broker-dealers and other persons are cautioned that
some of their activities may result in their being deemed participants in a distribution in a manner that would render them statutory
underwriters and subject them to the prospectus-delivery and liability provisions of the 1933 Act. Any purchaser who purchases Shares
with a view toward distribution of such Shares may be deemed to be a statutory underwriter. In addition, an Authorized Participant, other
broker-dealer firm or its client will be deemed a statutory underwriter if it purchases a Basket from the Trust, breaks the Basket down
into the constituent Shares and sells the Shares to its customers; or if it chooses to couple the creation of a supply of new Shares
with an active selling effort involving solicitation of secondary market demand for the Shares. In contrast, Authorized Participants
may engage in secondary market or other transactions in Shares that would not be deemed &ldquo;underwriting.&rdquo; For example, an Authorized
Participant may act in the capacity of a broker or dealer with respect to Shares that were previously distributed by other Authorized
Participants. A determination of whether a particular market participant is an underwriter must take into account all the facts and circumstances
pertaining to the activities of the broker-dealer or its client in the particular case, and the examples mentioned above should not be
considered a complete description of all the activities that would lead to designation as an underwriter and subject them to the prospectus-delivery
and liability provisions of the 1933 Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Dealers
who are neither Authorized Participants nor &ldquo;underwriters&rdquo; but are nonetheless participating in a distribution (as contrasted
to ordinary secondary trading transactions), and thus dealing with Shares that are part of an &ldquo;unsold allotment&rdquo; within the
meaning of Section 4(3)(C) of the 1933 Act, would be unable to take advantage of the prospectus-delivery exemption provided by Section
4(3) of the 1933 Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 105; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->101<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">While
the Authorized Participants may be indemnified by the Sponsor, they will not be entitled to receive a discount or commission from the
Trust or the Sponsor for their purchases of Baskets.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Selling
Shareholders</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor or its affiliates, or a fund or unit investment trust for which the Sponsor or an affiliate of the Sponsor serves as sponsor
or investment advisor, may purchase Shares of the Trust through a broker-dealer or other investors, including in secondary market transactions,
and because the Sponsor and its affiliates may be deemed affiliates of the Trust, the Shares are being registered to permit the resale
of these Shares by affiliates of the Trust from time to time after any such purchase. The Trust will not receive any of the proceeds
from the resale of such Shares.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_035"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Creation
and Redemption of Shares</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">When
the Trust creates or redeems its Shares, it will do so only in Baskets (blocks of 10,000 Shares) based on the quantity of Solana attributable
to each Share of the Trust (net of accrued but unpaid expenses and liabilities) multiplied by the number of Shares comprising a Basket
(10,000). This is called the &ldquo;Basket Amount.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Authorized
Participants are the only persons that may place orders to create and redeem Baskets. Authorized Participants must be (1) registered
broker-dealers or other securities market participants, such as banks and other financial institutions, that are not required to register
as broker-dealers to engage in securities transactions described below, and (2) DTC Participants. To become an Authorized Participant,
a person must enter into an Authorized Participant Agreement. The Authorized Participant Agreement provides the procedures for the creation
and redemption of Baskets and for the delivery of the cash or Shares required for such creation and redemptions. The Authorized Participant
Agreement and the related procedures attached thereto may be amended by the Trust, without the consent of any Shareholder or Authorized
Participant. Authorized Participants must pay the Transfer Agent a non-refundable fee for each order they place to create or redeem one
or more Baskets. The transaction fee may be waived, reduced, increased or otherwise changed by the Sponsor in its sole discretion. Authorized
Participants who make deposits with the Trust in exchange for Baskets receive no fees, commissions or other form of compensation or inducement
of any kind from either the Trust or the Sponsor, and no such person will have any obligation or responsibility to the Sponsor or the
Trust to effect any sale or resale of Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Each
Authorized Participant will be required to be registered as a broker-dealer under the Exchange Act and a member in good standing with
FINRA, or exempt from being or otherwise not required to be licensed as a broker-dealer or a member of FINRA, and will be qualified to
act as a broker or dealer in the states or other jurisdictions where the nature of its business so requires. Certain Authorized Participants
may also be regulated under federal and state banking laws and regulations. Each Authorized Participant has its own set of rules and
procedures, internal controls and information barriers as it determines is appropriate in light of its own regulatory regime.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Under
the Authorized Participant Agreement, the Sponsor, and the Trust under limited circumstances, have agreed to indemnify the Authorized
Participants against certain liabilities, including liabilities under the 1933 Act, and to contribute to the payments the Authorized
Participants may be required to make in respect of those liabilities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
following description of the procedures for the creation and redemption of Baskets is only a summary and an investor should refer to
the relevant provisions of the Trust Agreement and the form of Authorized Participant Agreement for more detail. The Trust Agreement
and form of Authorized Participant Agreement are filed as exhibits to the registration statement of which this Prospectus is a part.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Determination
of Basket Amount</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Basket Amount required to create each Basket changes from day to day. On each day that the Exchange is open for regular trading, the
Administrator adjusts the quantity of Solana constituting the Basket Amount as appropriate to reflect accrued expenses and any loss of
Solana that may occur. The computation is made by the Administrator each business day prior to the commencement of trading on the Exchange.
The Administrator determines the Basket Amount for a given day by dividing the number of Solana held by the Trust as of the opening of
business on that business day, adjusted for the amount of Solana constituting estimated accrued but unpaid fees and expenses of the Trust
as of the opening of business on that business day, by the quotient of the number of Shares outstanding at the opening of business, multiplied
by 10,000. Fractions of Solana smaller than ___________ are disregarded for purposes of the computation of the Basket Amount. The Basket
Amount so determined is communicated via electronic mail message to all Authorized Participants and made available on the Sponsor&rsquo;s
website for the Shares. The Exchange also publishes the Basket Amount determined by the Administrator as indicated above.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>

<!-- Field: Page; Sequence: 106; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->102<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Creation
Procedures</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
any business day, an Authorized Participant may create Shares by placing an order to purchase one or more Baskets with the Transfer Agent
through the Marketing Agent in exchange for cash (a &ldquo;Purchase Order&rdquo;). Such orders are subject to approval by the Marketing
Agent and Transfer Agent. Such orders are subject to approval by the Marketing Agent and Transfer Agent. For purposes of processing creation
and redemption orders, a &ldquo;business day&rdquo; means any day other than a day when the Exchange is closed for regular trading. Purchase
Orders must be placed by 2:00 p.m., ET, or the close of regular trading on the Exchange, whichever is earlier (the &ldquo;Order Cut-Off
Time&rdquo;). The Order Cut-Off time may be modified by the Sponsor in its sole discretion. The day on which a Purchase Order is accepted
by the Transfer Agent is considered the &ldquo;Purchase Order Date.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor may in its sole discretion limit the number of Shares created pursuant to Purchase Orders on any specified day without notice
to the Authorized Participants and may direct the Marketing Agent to reject any Purchase Orders in excess of such capped amount. The
Sponsor may choose to limit the number of Shares created pursuant to Purchase Orders when it deems so doing to be in the best interest
of Shareholders. It may choose to do so when it believes the market is too volatile to execute a Solana transaction, when it believes
the price of Solana is being inconsistently, irregularly, or discontinuously published from Solana trading venues and other data sources,
or when it believes other similar circumstances may create a scenario in which accepting Purchase Orders would not be in the best interests
of the Shareholders. The Sponsor does not believe that the Trust&rsquo;s ability to arrive at such a determination will have a significant
impact on the Shares in the secondary market because it believes that the ability to create Shares would be reinstated shortly after
such determination is made, and any entity desiring to create Shares would be able to do so once the ability to create Shares is reinstated.
However, it is possible that such a determination would cause the Shares to trade at premiums or discounts relative to the Trust&rsquo;s
NAV on the secondary market if arbitrageurs believe that there is risk that the creation and redemption process is not available, as
this process is a component of keeping the price of the Shares on the secondary market closely aligned to the Trust&rsquo;s NAV.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
manner by which creations are made is dictated by the terms of the Authorized Participant Agreement. By placing a Purchase Order, an
Authorized Participant agrees to deposit, or cause the deposit of, cash with the Trust in an equivalent amount of cash equal to the required
amount of Solana as described in the &ldquo;Determination of Required Deposits&rdquo; sub-section above, multiplied by the Pricing Benchmark
price, plus any additional cash required to account for the price at which the Trust agrees to purchase the requisite amount of Solana
to the extent it is greater than the Pricing Benchmark price on each Purchase Order Date. On each Purchase Order Date, the Administrator
will communicate to the Authorized Participant the full cash amount required to settle the transaction. Authorized Participants may not
withdraw a creation request. If an Authorized Participant fails to consummate the foregoing, the Purchase Order will be cancelled. The
Sponsor causes to be published each night the amount of Solana that will be acquired in exchange for each Purchase Order, from which
can be computed the estimated amount of cash required to create each Basket, prior to accounting for any additional cash required to
acquire the requisite amount of Solana if the price paid by the Trust is in excess of the Pricing Benchmark on each Purchase Order Date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">An
Authorized Participant who places a Purchase Order is responsible for facilitating the delivery of the required amount of cash to the
Cash Custodian by 3:00 p.m. ET, on the business day following the Purchase Order Date. Pursuant to the cash creation and redemption process,
the Trust is responsible for acquiring and selling Solana, which it may do pursuant to two different models: (i) the &ldquo;Trust-Directed
Trade Model,&rdquo; and the (ii) the &ldquo;Agent Execution Model.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Under
the Trust-Directed Trade Model, the Sponsor, on behalf of the Trust, is responsible for acquiring Solana from an approved Solana Trading
Counterparty in an amount equal to the Basket Amount. When seeking to purchase Solana on behalf of the Trust, the Sponsor will seek to
purchase Solana at a price as close to the Pricing Benchmark as practical. Once the trade has been agreed upon with a Solana Trading
Counterparty, the transaction will generally occur on an &ldquo;over-the-counter&rdquo; basis. Transfers of Solana from the Solana Trading
Counterparty to the Trust Solana Account are &ldquo;on-chain&rdquo; transactions represented on the Solana Network. Upon receipt of the
deposit amount of Solana in the Trust Solana Account at the Solana Custodian from the Solana Trading Counterparty, the Solana Custodian
will notify the Sponsor that the Solana has been received. The Sponsor will then notify the Transfer Agent that the Solana has been received,
and the Transfer Agent will direct DTC to credit the number of Shares ordered to the Authorized Participant&rsquo;s DTC account and will
wire the cash previously sent by the Authorized Participant to the Solana Trading Counterparty to complete settlement of the Purchase
Order and the acquisition of the Solana by the Trust. If the Solana Trading Counterparty fails to deliver the Solana to the Solana Custodian,
no cash is sent from the Cash Custodian to the Solana Trading Counterparty, no Shares are transferred to the Authorized Participant&rsquo;s
DTC account, the cash is returned to the Authorized Participant, and the Purchase Order is cancelled.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 107; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->103<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Under
the Agent Execution Model, the Prime Execution Agent, acting in an agency capacity, conducts Solana purchases on behalf of the Trust
with third parties through its [Prime service] pursuant to the Prime Execution Agreement. On the evening of the Purchase Order Date,
the Trust enters into a transaction to buy Solana through the Prime Execution Agent for cash. Because the Trust&rsquo;s Trading Balance
may not be funded with cash on the Purchase Order Date for the purchase of Solana in connection with the Purchase Order under the Agent
Execution Model, the Trust may borrow Trade Credits in the form of cash from the Trade Credit Lender pursuant to the Trade Financing
Agreement or may require the Authorized Participant to deliver the required cash for the Purchase Order on the Purchase Order Date. The
extension of Trade Credits on the Purchase Order Date allows the Trust to purchase Solana through the Prime Execution Agent on the Purchase
Order Date, with such Solana being deposited in the Trust&rsquo;s Trading Balance. On the day following the Purchase Order Date, the
Purchase Order Settlement Date, the Trust delivers Shares to the Authorized Participant&rsquo;s DTC account in exchange for cash received
from the Authorized Participant. Where applicable, the Trust uses the cash to repay the Trade Credits borrowed from the Trade Credit
Lender. On the Purchase Order Settlement Date for a Purchase Order utilizing the Agent Execution Model, the Solana associated with the
Purchase Order and purchased on the Purchase Order Date is swept from the Trust&rsquo;s Trading Balance with the Prime Execution Agent
to the Trust Solana Account with the Solana Custodian pursuant to a regular end-of-day sweep process. Transfers of Solana into the Trust&rsquo;s
Trading Balance are off-chain transactions and transfers from the Trust&rsquo;s Trading Balance to the Trust Solana Account are &ldquo;on-chain&rdquo;
transactions represented on the Solana Network. Any financing fee owed to the Trade Credit Lender is deemed part of trade execution costs
and embedded in the trade price for each transaction.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
between the Trust and the Authorized Participant, the expense and risk of the difference between the price of Solana calculated by the
Administrator for daily valuation using the Pricing Benchmark and the price at which the Trust acquires the Solana will be borne solely
by the Authorized Participant to the extent that the Trust pays more for Solana than the price used by the Trust for daily valuation.
Any such additional cash amount will be included in the amount of cash calculated by the Administrator on the Purchase Order Date, communicated
to the Authorized Participant on the Purchase Order Date, and wired by the Authorized Participant to the Cash Custodian on the Settlement
Date.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Rejection
of Purchase Orders</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor or its designee has the absolute right, but does not have any obligation, to reject any purchase order if the Sponsor determines
that:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            Purchase Order is not in proper form;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">it
                                            would not be in the best interest of the Shareholders;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            acceptance of the Purchase Order would have adverse tax consequences to the Trust or its
                                            Shareholders;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            acceptance or receipt of which would, in the opinion of counsel to the Sponsor, be unlawful;
                                            or</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">circumstances
                                            outside the control of the Trust, the Sponsor, the Marketing Agent, the Transfer Agent, the
                                            Cash Custodian or the Solana Custodian make it, for all practical purposes, not feasible
                                            to process Baskets (including if the Sponsor determines that the investments available to
                                            the Trust at that time will not enable it to meet its investment objective).</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">None
of the Sponsor, the Marketing Agent, the Cash Custodian or the Solana Custodian will be liable for the rejection of any Purchase Order.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Redemption
Procedures</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
any business day, an Authorized Participant may place an order with the Transfer Agent through the Marketing Agent to redeem one or more
Baskets (a &ldquo;Redemption Order&rdquo;). Redemption Orders must be placed by 2:00 p.m. ET (the &ldquo;Redemption Order Cut-Off Time&rdquo;),
which may be modified by the Sponsor in its sole discretion. A Redemption Order will be effective on the date it is accepted by the Transfer
Agent (&ldquo;Redemption Order Date&rdquo;). The redemption distribution from the Trust in exchange for a redemption of Shares consists
of a movement of cash representing the Basket Amount of Solana, less any trading expenses incurred by the Trust in liquidating the Solana,
to the redeeming Authorized Participant or its designee.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 108; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->104<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Under
the Trust-Directed Trade Model, the procedures by which an Authorized Participant can redeem one or more Baskets mirror the procedures
for the creation of Baskets under the Trust-Directed Trade Model with an additional safeguard on Solana being removed from the Trust
Solana Account, which will not occur until cash has been received by the Cash Custodian in an amount equal to the Basket Amount of Solana
multiplied by the price at which the Trust agrees with the Solana Trading Counterparty to sell the Solana on the Redemption Order Date.
When seeking to sell Solana on behalf of the Trust, the Sponsor will seek to sell Solana at a price as close to the Pricing Benchmark
as practical. Once the trade has been agreed upon with a Solana Trading Counterparty, the transaction will generally occur on an &ldquo;over-the-counter&rdquo;
basis. Transfers of Solana from the Trust Solana Account to the Solana Trading Counterparty are &ldquo;on-chain&rdquo; transactions represented
on the Solana Network. The Authorized Participant must deliver the Shares represented by the Basket to be redeemed to the Trust&rsquo;s
DTC account by end of day ET on the business day following the Redemption Order Date (the &ldquo;Redemption Order Settlement Date&rdquo;).
The Solana Custodian will not send the Basket Amount of Solana from the Trust Solana Account to the Solana Trading Counterparty until
the Cash Custodian has received the cash from the Solana Trading Counterparty and is instructed by the Sponsor to make such transfer.
Once the Solana Trading Counterparty has sent the cash to the Cash Custodian in an agreed-upon amount to settle the agreed upon sale
of the Basket Amount of Solana, the Transfer Agent will notify the Sponsor. The Sponsor will then notify the Solana Custodian to transfer
the Solana to the Solana Trading Counterparty, and the Transfer Agent will facilitate the redemption of Shares in exchange for cash.
Once the Authorized Participant has delivered the Shares represented by the Basket to be redeemed to the Trust&rsquo;s DTC account, the
Cash Custodian will wire the requisite amount of cash to the Authorized Participant. Transfers of Solana from the Trust Solana Account
to the Solana Trading Counterparty are &ldquo;on-chain&rdquo; transactions represented on the Solana Network. In the event that by the
end of the day on the Redemption Order Settlement Date, the Trust&rsquo;s account at DTC shall not have been credited with the total
number of Shares corresponding to the total number of Baskets to be redeemed pursuant to such Redemption Order the Transfer Agent shall
send to the Authorized Participant, the Sponsor and the Solana Custodian via fax or electronic mail message notice of such fact and the
Authorized Participant shall have two (2) business days following receipt of such notice to correct such failure. If such failure is
not cured within such two (2) business day period, the Transfer Agent (in consultation with the Sponsor) will cancel such Redemption
Order and will send via fax or electronic mail message notice of such cancellation to the Authorized Participant and the Solana Custodian,
and the Authorized Participant will be solely responsible for all costs incurred by the Trust, the Transfer Agent, the Sponsor or the
Solana Custodian related to the cancelled Redemption Order.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">For
a redemption of Baskets utilizing the Agent Execution Model, the Authorized Participant may be required to submit a Redemption Order
by an earlier than normal order cutoff time (the &ldquo;Redemption Early Order Cutoff Time&rdquo;). The Redemption Early Order Cutoff
Time may be as early as 5:00 p.m. ET on the business day prior to Redemption Order Date. Once a Redemption Order is received, the Sponsor
instructs the Solana Custodian to prepare to transfer the Solana associated with the Redemption Order from the Trust Solana Account with
the Solana Custodian to the Trust&rsquo;s Trading Balance with the Prime Execution Agent. For a Redemption Order utilizing the Agent
Execution Model, on the evening of the Redemption Order Date, the Prime Execution Agent, acting in an agency capacity, conducts Solana
sales on behalf of the Trust with third parties through its [Prime service] in exchange for cash. The Trust&rsquo;s Trading Balance with
the Prime Execution Agent may not be funded with Solana on the evening of the Redemption Order Date at the time of the intended execution
of the sale of Solana in connection with the Redemption Order because such Solana is still in the Trust Solana Account at the Solana
Custodian. In those circumstances the Trust may borrow Trade Credits in the form of Solana from the Trade Credit Lender, which allows
the Trust to sell Solana through the Prime Execution Agent on the evening Redemption Order Date, and the cash proceeds are deposited
in the Trust&rsquo;s Trading Balance with the Prime Execution Agent. Such cash is then transferred to the Cash Custodian. The Trust will
subsequently transfer the Basket Amount of Solana from the Trust Solana Account to the Trust&rsquo;s Trading Balance with the Prime Execution
Agent. Once the Authorized Participant has delivered the Shares represented by the Basket to be redeemed to the Trust&rsquo;s DTC account,
the Cash Custodian will then wire the requisite amount of cash to the Authorized Participant. In the event Trade Credits were used, the
Trust will use the Solana that is moved from the Trust Solana Account with the Solana Custodian to the Trading Balance with the Prime
Execution Agent to repay the Trade Credits borrowed from the Trade Credit Lender. Transfers of Solana from the Trust Solana Account to
the Trust&rsquo;s Trading Balance are &ldquo;on-chain&rdquo; transactions represented on the Solana Network.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>

<!-- Field: Page; Sequence: 109; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->105<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Suspension
or Rejection of Redemption Orders</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor may, in its discretion, suspend the right of purchase or redemption or may postpone the Redemption Order Settlement Date, for
(1) for any period during which the Exchange is closed other than customary weekend or holiday closings, or trading on the Exchange is
suspended or restricted, (2)&nbsp;any period during which an emergency exists as a result of which the fulfillment of a purchase order
or the redemption distribution is not reasonably practicable (for example, as a result of an interruption in services or availability
of the Prime Execution Agent, Solana Custodian, Cash Custodian, Administrator, or other service providers to the Trust, act of God, catastrophe,
civil disturbance, government prohibition, war, terrorism, strike or other labor dispute, fire, force majeure, interruption in telecommunications,
internet services, or network provider services, unavailability of Fedwire, SWIFT or banks&rsquo; payment processes, significant technical
failure, bug, error, disruption or fork of the Solana Network, hacking, cybersecurity breach, or power, internet, or Solana Network outage,
or similar event), or (3) such other period as the Sponsor determines to be necessary for the protection of the Shareholders of the Trust
(for example, where acceptance of the U.S. dollars needed to create each Basket would have certain adverse tax consequences to the Trust
or its Shareholders). For example, the Sponsor may determine that it is necessary to suspend redemptions to allow for the orderly liquidation
of the Trust&rsquo;s assets. If the Sponsor has difficulty liquidating the Trust&rsquo;s positions (e.g., because of a market disruption
event), it may be appropriate to suspend redemptions until such time as such circumstances are rectified. None of the Sponsor, the person
authorized to take Redemption Orders in the manner provided in the Authorized Participant Agreement, the Solana Custodian or the Cash
Custodian will be liable to any person or in any way for any loss or damages that may result from any such suspension or postponement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Redemption
Orders must be made in whole Baskets. The Sponsor acting by itself or through the person authorized to take Redemption Orders in the
manner provided in the Authorized Participant Agreement may, in its sole discretion, reject any Redemption Order (1) the Sponsor determines
not to be in proper form, (2) the fulfillment of which its counsel advises may be illegal under applicable laws and regulations, or (3)
if circumstances outside the control of the Sponsor, the person authorized to take redemption orders in the manner provided in the Authorized
Participant Agreement or the Solana Custodian make it for all practical purposes not feasible for the Shares to be delivered under the
Redemption Order. The Sponsor may also reject a Redemption Order if the number of Shares being redeemed would reduce the remaining outstanding
Shares to 100,000 Shares (<I>i.e.</I>, ten Baskets) or fewer.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Creation
and Redemption Transaction Fee</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
compensate the Transfer Agent for expenses incurred in connection with the creation and redemption of Baskets, an Authorized Participant
is required to pay a transaction fee to the Transfer Agent to create or redeem Baskets, which does not vary in accordance with the number
of Baskets in such order. The transaction fee may be reduced, increased or otherwise changed by the Sponsor.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Tax
Responsibility</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Authorized
Participants are responsible for any transfer tax, sales or use tax, stamp tax, recording tax, value added tax or similar tax or governmental
charge applicable to the creation or redemption of Baskets, regardless of whether or not such tax or charge is imposed directly on the
Authorized Participant, and agree to indemnify the Sponsor and the Trust if they are required by law to pay any such tax, together with
any applicable penalties, additions to tax and interest thereon.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Secondary
Market Transactions</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
discussed above, Authorized Participants are the only persons that may place orders to create and redeem Baskets. Authorized Participants
must be registered broker-dealers or other securities market participants, such as banks and other financial institutions that are not
required to register as broker-dealers to engage in securities transactions. An Authorized Participant is under no obligation to create
or redeem Baskets, and an Authorized Participant is under no obligation to offer to the public Shares of any Basket it does create.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Authorized
Participants that do offer to the public Shares from the Basket they create will do so at per-Share offering prices that are expected
to reflect, among other factors, the trading price of the Shares on the Exchange, the NAV of the Trust at the time the Authorized Participant
purchased the Baskets, the NAV of the Shares at the time of the offer of the Shares to the public, the supply of and demand for Shares
at the time of sale, and the liquidity of Solana or other portfolio investments. Baskets are generally expected to be redeemed when the
price per Share is at a discount to the NAV per Share. Shares initially comprising the same Basket but offered by Authorized Participants
to the public at different times may have different offering prices. An order for one or more Baskets may be placed by an Authorized
Participant on behalf of multiple clients. Authorized Participants who make deposits of cash with the Trust in exchange for Baskets receive
no fees, commissions or other forms of compensation or inducement of any kind from either the Trust or the Sponsor, and no such person
has any obligation or responsibility to the Sponsor or the Trust to effect any sale or resale of Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 110; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->106<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shares
are expected to trade in the secondary market on the Exchange. Shares may trade in the secondary market at prices that are lower or higher
relative to their NAV per Share. The amount of the discount or premium in the trading price relative to the NAV per Share may be influenced
by various factors, including the number of investors who seek to purchase or sell Shares in the secondary market and the liquidity of
Solana.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_036"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Use
of Proceeds</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Proceeds
received by the Trust from Purchase Orders of Baskets will be used to acquire Solana. Such deposits of cash are held by the Cash Custodian
on behalf of the Trust until (i) used to acquire Solana, (ii) accrued and distributed to pay fees due to the Sponsor and Trust expenses
and liabilities not assumed by the Sponsor, (iii) distributed to Authorized Participant in connection with redemptions of Baskets, or
(iv) disposed of in a liquidation of the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
the event that the Trust is terminated and its assets are to be liquidated, all of the Trust&rsquo;s Solana will be sold and the cash
proceeds will be distributed to Shareholders. Under no circumstances will the Trust distribute Solana to Shareholders.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_037"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Ownership
oF Beneficial Interest in the Trust</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
beneficial interest in the Trust is divided into Shares. Each Share of the Trust represents an equal beneficial interest in the net assets
of the Trust, and each holder of Shares is entitled to receive such holder&rsquo;s pro rata share of distributions of income and capital
gains, if any.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">All
Shares are fully paid and non-assessable. No Share will have any priority or preference over any other Share of the Trust. All distributions,
if any, will be made ratably among all Shareholders from the assets of the Trust according to the number of Shares held of record by
such Shareholders on the record date for any distribution or on the date of termination of the Trust, as the case may be. Except as otherwise
provided by the Sponsor, Shareholders will have no preemptive or other right to subscribe to any additional shares or other securities
issued by the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor will have full power and authority, in its sole discretion, without seeking the approval of the Trustee or the Shareholders (a)
to establish and designate and to change in any manner and to fix such preferences, voting powers, rights, duties and privileges of the
Trust as the Sponsor may from time to time determine, (b) to divide the beneficial interest in the Trust into an unlimited amount of
Shares, with or without par value, as the Sponsor will determine, (c) to issue Shares without limitation as to number (including fractional
Shares), to such persons and for such amount of consideration, subject to any restriction set forth in the By-Laws, if any, at such time
or times and on such terms as the Sponsor may deem appropriate, (d) to divide or combine the Shares into a greater or lesser number without
thereby materially changing the proportionate beneficial interest of the Shares in the assets held, and (e) to take such other action
with respect to the Shares as the Sponsor may deem desirable. The ownership of Shares will be recorded on the books of the Trust or a
transfer or similar agent for the Trust. No certificates certifying the ownership of Shares will be issued except as the Sponsor may
otherwise determine from time to time. The Sponsor may make such rules as it considers appropriate for the issuance of share certificates,
transfer of Shares and similar matters. The record books of the Trust as kept by the Trust, or any transfer or similar agent, as the
case may be, will be conclusive as to the identity of the Shareholders and as to the number of Shares held from time to time by each.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_038"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Conflicts
of Interest</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">There
are present and potential future conflicts of interest in the Trust&rsquo;s structure and operation you should consider before you purchase
Shares. The Sponsor will use this notice of conflicts as a defense against any claim or other proceeding made. If the Sponsor is not
able to resolve these conflicts of interest adequately, it may impact the Trust&rsquo;s ability to achieve its investment objectives.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 111; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->107<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
officers, directors and employees of the Sponsor do not devote their time exclusively to the Trust. These persons are directors, officers
or employees of other entities, or otherwise work in respect of other clients, which may compete with the Trust for their services. They
could have a conflict between their responsibilities to the Trust and to those other entities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor has adopted policies and procedures that identify the conflicts of interest associated with these companies and their principals,
officers, directors and employees when and if trading Solana, Solana futures and related contracts or other Solana-linked derivatives.
These policies are intended to prevent conflicts of interest occurring where the Sponsor or their principals, officers, directors or
employees could give preferential treatment to their own accounts or trade their own accounts ahead of or against the Trust. Pursuant
to these policies, all principals, officers, directors and employees of the Sponsor, and their family members, must receive prior written
clearance from the Sponsor&rsquo;s chief compliance officer before entering into a transaction in Solana, Solana futures or any other
Solana-linked derivative equal if such transaction exceeds $4,999 in current market value. To the extent any such transaction constitutes
a purchase of Solana, Solana futures or other Solana-linked derivative exceeds $4,999 in current market value, the policies require that
such Solana, Solana futures or Solana-linked derivative must be held for 60 days before it can be traded or sold.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor has sole current authority to manage the investments and operations of the Trust, and this may allow it to act in a way that
furthers its own interests, which may create a conflict with a Shareholder&rsquo;s best interests. Except as required under applicable
federal law or under the rules or regulations of the Exchange, Shareholders have no voting rights, which will limit their ability to
influence matters such as amendment of the Trust Agreement, a change in the Trust&rsquo;s basic investment policy, dissolution of the
Trust, or the sale or distribution of the Trust&rsquo;s assets.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor serves as the sponsor for the Trust. The Sponsor may have a conflict to the extent that its trading decisions for the Trust may
be influenced by the effect they would have on the other funds it manages, including, but not limited to, the Bitwise 10 Crypto Index
Fund, LLC; the Bitwise 10 Index Offshore Fund Ltd.; the Digital Asset Index Fund; the Bitwise Bitcoin Fund, LLC; the Bitwise Ethereum
Fund, LLC; the Bitwise DeFi Crypto Index Fund; the Bitwise Bitcoin ETF; and the Bitwise Ethereum ETF. In addition, the Sponsor may be
required to indemnify its officers, directors and key employees with respect to their activities on behalf of the other funds, if the
need for indemnification arises. This potential indemnification could cause the Sponsor&rsquo;s assets to decrease. If the Sponsor&rsquo;s
other sources of income are not sufficient to compensate for the indemnification, it could cease operations, which could in turn result
in Trust losses and/or termination of the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
the Sponsor acquires knowledge of a potential transaction or arrangement that may be an opportunity for the Trust, it will have no duty
to offer such opportunity to the Trust. The Sponsor will not be liable to the Trust or the Shareholders for breach of any fiduciary or
other duty if the Sponsor pursues such opportunity or directs it to another person or does not communicate such opportunity to the Trust.
Neither the Trust nor any Shareholder has any rights or obligations by virtue of the Trust Agreement, the trust relationship created
thereby, or this Prospectus in such business ventures or the income or profits derived from such business ventures. The pursuit of such
business ventures, even if competitive with the activities of the Trust, will not be deemed wrongful or improper.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Resolution
of Conflicts Procedures</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust Agreement provides that whenever a conflict of interest exists between the Sponsor or any of its affiliates, on the one hand, and
the Trust or any Shareholders or any other person, on the other hand, the Sponsor will resolve such conflict of interest considering
the relative interest of each party (including its own interest) and the benefits and burdens relating to such interests, any customary
or accepted industry practices, and any applicable accepted accounting practices or principles.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_039"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Fiduciary
and Regulatory Duties AND OBLIGATIONS of the Sponsor</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
general fiduciary duties that would otherwise be imposed on the Sponsor (which would make its operation of the Trust as described herein
impracticable due to the strict prohibition imposed by such duties on, for example, conflicts of interest on behalf of a fiduciary in
its dealings with its beneficiaries) are defined and limited in scope by the terms of the Trust Agreement (to which terms all Shareholders,
by subscribing to the Shares, are deemed to consent).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Additionally,
under the Trust Agreement, the Sponsor has the following obligations as a sponsor of the Trust:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            execute, file, record and/or publish all certificates, statements and other documents and
                                            do any and all other things as may be appropriate for the formation, qualification and operation
                                            of the Trust and for the conduct of its business in all appropriate jurisdictions;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"></P>

<!-- Field: Page; Sequence: 112; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->108<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            retain independent public accountants to audit the accounts of the Trust;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            employ attorneys to represent the Trust;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            select the Trust&rsquo;s Trustee, administrator, transfer agent, custodian(s), digital asset
                                            trading platform counterparties and OTC market participant counterparties, Pricing Benchmark,
                                            Benchmark Provider, marketing agent(s), insurer(s) and any other service provider(s) and
                                            cause the Trust to enter into contracts with such service provider(s);</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            negotiate and enter into insurance agreements to secure and maintain the insurance coverage
                                            to the extent described in this Prospectus;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            develop a marketing plan for the Trust on an ongoing basis and prepare marketing materials
                                            regarding the Trust;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            maintain the Trust&rsquo;s website;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            acquire and sell Solana, subject in each instance to the limitations imposed by the Trust
                                            Agreement, with a view to providing Shareholders with exposure to the value of Solana held
                                            by the Trust, less the expenses of the Trust&rsquo;s operations, valuing the Trust&rsquo;s
                                            net assets and the Shares daily with reference to the Pricing Benchmark, or any other pricing
                                            methodology adopted by the Sponsor in its discretion (for the avoidance of doubt, the Sponsor
                                            may select such subsequent pricing methodology without Shareholder approval);</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
                                            connection with a hard fork of the Solana Network to which the Sponsor has actual knowledge,
                                            to determine, in good faith, whether the digital asset network running the modified or the
                                            extant Solana Network software is generally accepted to be the Solana Network and should
                                            therefore be considered to be Solana for the purposes of the Trust&rsquo;s ongoing operations;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            enter into an Authorized Participant Agreement with each Authorized Participant and discharge
                                            the duties and responsibilities of the Trust and the Sponsor thereunder;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            receive directly or through its delegates from Authorized Participants and process or cause
                                            its delegates to process properly submitted Purchase Orders, as described in the Trust Agreement
                                            and in the Authorized Participant Agreement;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
                                            connection with Purchase Orders, to receive from Authorized Participants directly or through
                                            its delegates the required amount of cash;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
                                            connection with Purchase Orders, after accepting a Purchase Order and receiving the required
                                            amount of cash, either directly or through its delegates to direct the Transfer Agent to
                                            credit the Baskets to fill the Purchase Order within one (1) business day immediately following
                                            the Purchase Order Date;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            receive directly or through its delegates from Authorized Participants and process or cause
                                            its delegates to process properly submitted Redemption Orders, as described in the Trust
                                            Agreement and in the Authorized Participant Agreement;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            assist in the preparation and filing of reports and proxy statements (if any) to the Shareholders,
                                            the periodic updating of the Registration Statement and this Prospectus and other reports
                                            and documents for the Trust required to be filed by the Trust with the SEC and other governmental
                                            bodies;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            use its best efforts to maintain the status of the Trust as a grantor trust for U.S. federal
                                            income tax purposes, including by making such elections, filing such tax returns, and preparing,
                                            disseminating and filing such tax reports as it is advised by its counsel or accountants
                                            are from time to time required by any statute, rule or regulation of the United States, any
                                            state or political subdivision thereof, or other jurisdiction having taxing authority in
                                            respect of the Trust or its administration; the expense of accountants employed to prepare
                                            such tax returns and tax reports will be an expense of the Trust;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"></P>

<!-- Field: Page; Sequence: 113; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->109<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            monitor all fees charged to the Trust, and the services rendered by the service providers
                                            to the Trust, to determine whether the fees paid by, and the services rendered to, the Trust
                                            are at competitive rates and are the best price and services available under the circumstances
                                            and, if necessary, to renegotiate the fee structure to obtain such rates and services for
                                            the Trust;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            perform such other services as the Sponsor believes the Trust may from time to time require;
                                            and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
                                            general, to carry out any other business in connection with or incidental to any of the foregoing
                                            powers; to do everything necessary, suitable or proper for the accomplishment of any purpose
                                            or the attainment of any object or the furtherance of any power herein set forth, either
                                            alone or in association with others; and to do every other act or thing incidental or appurtenant
                                            or growing out of or connected with the aforesaid business or purposes, objects or powers.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
the extent that a law (common or statutory) or in equity, the Sponsor has duties (including fiduciary duties) and liabilities relating
thereto to the Trust, the Shareholders or any other person, the Sponsor will not be liable to the Trust, the Shareholders or to any other
person for its good faith reliance on the provisions of the Trust Agreement or this Prospectus unless such reliance constitutes gross
negligence, bad faith, or willful misconduct on the part of the Sponsor.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><A NAME="B_040"></A>Liability
and Indemnification</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Trustee</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trustee will not be liable for the acts or omissions of the Sponsor, nor will the Trustee be liable for supervising or monitoring the
performance and the duties and obligations of the Sponsor or the Trust under the Trust Agreement. The Trustee will not be personally
liable under any circumstances, except for its own willful misconduct, bad faith or gross negligence. In particular, but not by way of
limitation:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9;(a)&#9;the
Trustee will not be personally liable for any error of judgment made in good faith except to the extent such error of judgment constitutes
gross negligence on its part;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9;(b)&#9;no
provision of the Trust Agreement will require the Trustee to expend or risk its personal funds or otherwise incur any financial liability
in the performance of its rights or powers hereunder, if the Trustee shall have reasonable grounds for believing that the payment of
such funds or adequate indemnity against such risk or liability is not reasonably assured or provided to it;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9;(c)&#9;under
no circumstances will the Trustee be personally liable for any representation, warranty, covenant, agreement, or indebtedness of the
Trust;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9;(d)&#9;the
Trustee will not be personally responsible for or in respect of the validity or sufficiency of the Trust Agreement or for the due execution
hereof by the Sponsor;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9;(e)&#9;the
Trustee will incur no liability to anyone in acting upon any signature, instrument, notice, resolution, request, consent, order, certificate,
report, opinion, bond or other document or paper reasonably believed by it to be genuine and reasonably believed by it to be signed by
the proper party or parties. The Trustee may accept a certified copy of a resolution of any governing body of any corporate party as
conclusive evidence that such resolution has been duly adopted by such body and that the same is in full force and effect. As to any
fact or matter the manner of ascertainment of which is not specifically prescribed herein, the Trustee may for all purposes hereof rely
on a certificate, signed by an authorized officer of the Sponsor or any other corresponding directing party, as to such fact or matter,
and such certificate will constitute full protection to the Trustee for any action taken or omitted to be taken by it in good faith in
reliance thereon;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9;(f)&#9;in
the exercise or administration of the trust hereunder, the Trustee (i) may act directly or through agents or attorneys pursuant to agreements
entered into with any of them, and the Trustee will not be liable for the default or misconduct of such agents or attorneys if such agents
or attorneys will have been selected by the Trustee in good faith and with due care and (ii) may consult with counsel, accountants and
other skilled persons to be selected by it in good faith and with due care and employed by it, and it will not be liable for anything
done, suffered or omitted in good faith by it in accordance with the advice or opinion of any such counsel, accountants or other skilled
persons;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in; text-align: justify"></P>

<!-- Field: Page; Sequence: 114; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->110<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9;(g)&#9;except
as expressly provided in Article III of the Trust Agreement, the Trustee acts solely as a trustee under the Trust Agreement and not in
its individual capacity, and all persons having any claim against the Trustee by reason of the transactions contemplated by the Trust
Agreement will look only to the Trust&rsquo;s property for payment or satisfaction thereof; and</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9;(h)&#9;the
Trustee will not be liable for punitive, exemplary, consequential, special or other similar damages under any circumstances.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trustee or any officer, affiliate, director, employee, or agent of the Trustee (each, an &ldquo;Indemnified Person&rdquo;) will be entitled
to indemnification from the Sponsor or the Trust, to the fullest extent permitted by law, from and against any and all losses, claims,
taxes, damages, reasonable expenses, and liabilities (including liabilities under state or federal securities laws) of any kind and nature
whatsoever (collectively, &ldquo;Losses&rdquo;), to the extent that such Losses arise out of or are imposed upon or asserted against
such Indemnified Persons with respect to the creation, operation or termination of the Trust, the execution, delivery or performance
of the Trust Agreement or the transactions contemplated in the Trust Agreement; provided, however, that the Sponsor and the Trust will
not be required to indemnify any Indemnified Person for any Losses that are a result of the willful misconduct, bad faith or gross negligence
of such Indemnified Person. The obligations of the Sponsor and the Trust to indemnify the Indemnified Persons will survive the termination
of the Trust Agreement.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sponsor</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor will not be under any liability to the Trust, the Trustee or any Shareholder for any action taken or for refraining from the
taking of any action in good faith pursuant to the Trust Agreement, or for errors in judgment or for depreciation or loss incurred by
reason of the sale of any Solana or other assets held in trust hereunder; provided, however, that this provision will not protect the
Sponsor against any liability to which it would otherwise be subject by reason of its own gross negligence, bad faith, or willful misconduct.
The Sponsor may rely in good faith on any paper, order, notice, list, affidavit, receipt, evaluation, opinion, endorsement, assignment,
draft or any other document of any kind prima facie properly executed and submitted to it by the Trustee, the Trustee&rsquo;s counsel
or any other Indemnified Person for any matters arising hereunder. The Sponsor will in no event be deemed to have assumed or incurred
any liability, duty, or obligation to any Shareholder or to the Trustee other than as expressly provided for herein. The Trust will not
incur the cost of that portion of any insurance which insures any party against any liability, the indemnification of which is herein
prohibited.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, as described in the Trust Agreement, (i) whenever a conflict of interest exists or arises between the Sponsor or any of its
Affiliates, on the one hand, and the Trust, on the other hand; or (ii) whenever the Trust Agreement or any other agreement contemplated
herein or therein provides that the Sponsor will act in a manner that is, or provides terms that are, fair and reasonable to the Trust,
the Sponsor will resolve such conflict of interest, take such action or provide such terms, considering in each case the relative interest
of each party (including its own interest) to such conflict, agreement, transaction or situation and the benefits and burdens relating
to such interests, and any applicable generally accepted accounting practices or principles. In the absence of bad faith by the Sponsor,
the resolution, action or terms so made, taken or provided by the Sponsor will not constitute a breach of the Trust Agreement or any
other agreement contemplated herein or of any duty or obligation of the Sponsor at law or in equity or otherwise.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor and its shareholders, members, directors, officers, employees, Affiliates and subsidiaries (each a &ldquo;Sponsor Indemnified
Party&rdquo;) will be indemnified by the Trust and held harmless against any loss, liability or expense incurred hereunder without gross
negligence, bad faith, or willful misconduct on the part of such Sponsor Indemnified Party arising out of or in connection with the performance
of its obligations under the Trust Agreement or any actions taken in accordance with the provisions of the Trust Agreement. Any amounts
payable to a Sponsor Indemnified Party under Section 4.06 of the Trust Agreement may be payable in advance or will be secured by a lien
on the Trust. The Sponsor will not be under any obligation to appear in, prosecute or defend any legal action that in its opinion may
involve it in any expense or liability; provided, however, that the Sponsor may, in its discretion, undertake any action that it may
deem necessary or desirable in respect of the Trust Agreement and the rights and duties of the parties hereto and the interests of the
Shareholders and, in such event, the legal expenses and costs of any such action will be expenses and costs of the Trust and the Sponsor
will be entitled to be reimbursed therefor by the Trust. The obligations of the Trust to indemnify the Sponsor Indemnified Parties will
survive the termination of the Trust Agreement.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"></P>

<!-- Field: Page; Sequence: 115; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->111<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_041"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Provisions
of Law</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">According
to applicable law, indemnification of the Sponsor is payable only if the Sponsor determined, in good faith, that the act, omission or
conduct that gave rise to the claim for indemnification was in the best interest of the Trust and the act, omission or activity that
was the basis for such loss, liability, damage, cost or expense was not the result of negligence or misconduct and such liability or
loss was not the result of negligence or misconduct by the Sponsor, and such indemnification or agreement to hold harmless is recoverable
only out of the assets of the Trust.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Provisions
of Federal and State Securities Laws</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
offering is made pursuant to federal and state securities laws. The SEC and state securities agencies take the position that indemnification
of the Sponsor that arises out of an alleged violation of such laws is prohibited unless certain conditions are met.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">These
conditions require that no indemnification of the Sponsor or any underwriter for the Trust may be made in respect of any losses, liabilities
or expenses arising from or out of an alleged violation of federal or state securities laws unless: (i) there has been a successful adjudication
on the merits of each count involving alleged securities law violations as to the party seeking indemnification and the court approves
the indemnification; (ii) such claim has been dismissed with prejudice on the merits by a court of competent jurisdiction as to the party
seeking indemnification; or (iii) a court of competent jurisdiction approves a settlement of the claims against the party seeking indemnification
and finds that indemnification of the settlement and related costs should be made, provided that, before seeking such approval, the Sponsor
or other indemnitee must apprise the court of the position held by regulatory agencies against such indemnification. These agencies are
the SEC and the securities administrator of the state or states in which the plaintiffs claim they were offered or sold interests.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Provisions
of the 1933 Act and NASAA Guidelines</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Insofar
as indemnification for liabilities arising under the 1933 Act may be permitted to the Sponsor or its directors, officers, or persons
controlling the Trust, the Trust has been informed that the SEC and the various state administrators believe that such indemnification
is against public policy as expressed in the 1933 Act and the North American Securities Administrators Association, Inc. (&ldquo;NASAA&rdquo;)
commodity pool guidelines and is therefore unenforceable.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><A NAME="B_042"></A>Management;
Voting by Shareholders</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Except
as required under applicable federal law or under the rules or regulations of the Exchange, Shareholders shall have no voting rights
hereunder (including with respect to mergers, consolidations or conversions of the Trust or transfers to or domestication in any jurisdiction
by the Trust or any other matters that under the Delaware Act default voting rights are provided to holders of beneficial interests).
The Shareholders shall have the right to vote on other matters only as the Sponsor may consider desirable and so authorize in its sole
discretion. To the extent that federal or Delaware law is amended, modified or interpreted by rule, regulation, order, or no-action letter
to (on a mandatory basis) expand, eliminate or limit Shareholders&rsquo; right to vote on any specific matter, the Shareholders&rsquo;
right to vote shall be deemed to be amended, modified or interpreted in accordance therewith without further approval by the Sponsor
or the Shareholders.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_043"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Meetings</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Meetings
of the Trust&rsquo;s Shareholders may be called by the Sponsor for such purposes as may be prescribed by law or the Trust Agreement.
All notices of meetings will be sent or otherwise given to each Shareholder of record not less than seven nor more than one hundred twenty
days before the date of the meeting in the manner determined by the Sponsor. The notice will specify: (a) the place, date and hour of
the meeting; and (b) the general nature of the business to be transacted. Shareholders may vote in person, by proxy, or in any manner
determined by the Sponsor at any such meeting. Except when a larger quorum is required by applicable law or by the Trust Agreement, the
presence (in person or by ballot) of thirty-three and one-third percent (33 1/3%) of the Shares entitled to vote will constitute a quorum
at a Shareholders&rsquo; meeting. Any action taken by Shareholders may be taken without a meeting so long as Shareholders holding a majority
of Shares entitled to vote on the matter (or such larger proportion thereof as will be required by any express provision of this Trust
Agreement or federal law) or holding a majority (or such larger proportion as aforesaid) of the Shares entitled to vote separately on
the matter consent to the action in writing or by other electronic means. Such consent will be treated for all purposes as a vote taken
at a meeting of Shareholders.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"></P>

<!-- Field: Page; Sequence: 116; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->112<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_044"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Books
and Records</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust keeps its books of record and account at the office of the Sponsor located at 250 Montgomery Street, Suite 200, San Francisco,
CA 94104, or at the offices of the Administrator, or at such office, including of an administrative agent, as it may subsequently designate
upon notice. The books and records are open to inspection by any person who establishes to the Trust&rsquo;s satisfaction that such person
is a Shareholder upon reasonable advance notice at all reasonable times during usual business hours of the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust keeps a copy of the Trust Agreement on file in the Sponsor&rsquo;s office which will be available for inspection by any Shareholder
at all times during the Trust&rsquo;s usual business hours upon reasonable advance notice.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_045"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Statements,
Filings, and Reports to Shareholders</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">After
the end of each fiscal year, the Sponsor will cause to be prepared an annual report for the Trust containing audited financial statements.
The annual report will be in such form and contain such information as will be required by applicable laws, rules and regulations and
may contain such additional information that the Sponsor determines shall be included. The annual report will be filed with the SEC and
the Exchange and will be distributed to such persons and in such manner as is required by applicable laws, rules and regulations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor is responsible for the registration and qualification of the Shares under federal securities laws. The Sponsor will also prepare,
or cause to be prepared, and file any periodic reports or updates required under the Exchange Act. The Administrator will assist and
support the Sponsor in the preparation of such reports.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Administrator will make such elections, file such tax returns, and prepare, disseminate and file such tax reports as it is advised to
by its counsel or accountants or as required from time to time by any applicable statute, rule or regulation.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_046"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Fiscal
Year</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
fiscal year of the Trust is the calendar year. The Sponsor may select an alternate fiscal year.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_047"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Governing
Law; Consent to Delaware Jurisdiction</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
rights of the Sponsor, the Trust, DTC (as registered owner of the Trust&rsquo;s global certificate for Shares) and the Shareholders are
governed by the laws of the State of Delaware. The Sponsor, the Trust and DTC and, by accepting Shares, each DTC Participant and each
Shareholder consent to the exclusive jurisdiction of the courts of the State of Delaware and any federal courts located in Delaware.
Such consent is not required for any person to assert a claim of Delaware jurisdiction over the Sponsor or the Trust. However, pursuant
to the Trust Agreement, this shall not apply to causes of action for violations of U.S. federal or state securities laws. Section 22
of the 1933 Act creates concurrent jurisdiction for federal and state courts over all suits brought to enforce any duty or liability
created by the 1933 Act or the rules and regulations thereunder. Investors cannot waive compliance with federal securities laws and the
rules and regulations thereunder.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_048"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Legal
Matters</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Litigation
and Claims</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Within
the past five years of the date of this Prospectus, there have been no material administrative, civil or criminal actions against the
Sponsor, the Trust or any principal or affiliate of any of them. This includes any actions pending, on appeal, concluded, threatened,
or otherwise known to them.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>

<!-- Field: Page; Sequence: 117; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->113<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Legal
Opinion</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Chapman
and Cutler LLP has advised the Sponsor in connection with the Shares being offered. Chapman and Cutler LLP also advises the Sponsor with
respect to its responsibilities as sponsor of, and with respect to matters relating to, the Trust. Certain opinions of counsel have been
filed with the SEC as exhibits to the Registration Statement of which this Prospectus is a part.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_049"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Experts</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">________,
_______________, __________________, an independent registered public accounting firm, is hereby named as an expert in auditing and accounting.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_050"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Material
Contracts</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Fund
Administration and Accounting Agreement</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pursuant
to the Fund Administration and Accounting Agreement, the Administrator is generally responsible for the day-to-day administration of
the Trust. The responsibilities of the Administrator include (i) establishing appropriate expense accruals and computing expense ratios,
maintaining expense files and coordinating the payment of Trust-approved invoices; (ii) calculating Trust-approved income and per Share
amounts required for periodic distributions to be made by the Trust; (iii) calculating total return information; (iv) coordinating the
Trust&rsquo;s annual audit; (v) supplying various normal and customary portfolio and Trust statistical data as requested on an ongoing
basis; and (vi) preparing financial statements for the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
responsibilities of the Administrator also include providing various valuation and computation accounting services for the Trust, including
(i) maintaining certain financial books and records for the Trust, including creation and redemptions books and records, and Trust accounting
records; (ii) computing the Trust&rsquo;s NAV; (iii)&nbsp;obtaining quotes from pricing services as directed and approved by the Sponsor
or, if such quotes are unavailable, then obtaining such prices from the Sponsor and, in either case, calculating the market value of
the Trust&rsquo;s assets in accordance with the Trust&rsquo;s valuation policies or guidelines; and (iv) transmitting or making available
a copy of the daily portfolio valuation to the Sponsor.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust will indemnify the Administrator and any affiliate of the Administrator (&ldquo;Indemnitees&rdquo;), and the Indemnitees will incur
no liability for their reliance upon (i) any law, act, regulation or interpretation of the same even though the same may thereafter have
been altered, changed, amended or repealed, (ii) the Trust&rsquo;s offering materials or documents (excluding information provided by
the Administrator), (iii) any instructions, or (iv) any written opinion of legal counsel for the Trust or the Administrator, or arising
out of transactions or other activities of the Trust that occurred prior to the commencement of the Fund Administration and Accounting
Agreement; provided, however, that the Trust shall not indemnify any Indemnitee for any losses arising out of such Indemnitees&rsquo;
own bad faith, gross negligence or willful misconduct in the performance of the Fund Administration and Accounting Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Fund Administration and Accounting Agreement shall be effective commencing upon regulatory approval by the SEC permitting shares of the
Trust to be offered for sale and, unless terminated pursuant to its terms, shall continue until 11:59 p.m. on the date which is the third
anniversary of such date (the &ldquo;Initial Term&rdquo;), at which time such Agreement shall terminate, unless renewed in accordance
with the terms hereof. The Fund Administration and Accounting Agreement shall automatically renew for successive terms of one (1) year
each (each, a &ldquo;Renewal Term&rdquo;), unless the Trust or the Administrator gives written notice to the other party of its intent
not to renew and such notice is received by the other party not less than ninety (90) days prior to the expiration of the Initial Term
or the then-current Renewal Term (a &ldquo;Non-Renewal Notice&rdquo;). In the event a party provides a Non-Renewal Notice, the Fund Administration
and Accounting Agreement shall terminate at 11:59 p.m. on the last day of the Initial Term or Renewal Term, as applicable.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Transfer
Agency and Service Agreement</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pursuant
to the Transfer Agency and Service Agreement, the Transfer Agent is generally responsible for the day-to-day administration of the Trust.
The responsibilities of the Transfer Agent include: (i) performing and facilitating the performance of purchases and redemption of Baskets;
(ii) preparing and transmitting by means of DTC&rsquo;s book-entry system payments for dividends and distributions on or with respect
to the Shares, if any, declared by the Trust; (iii) maintaining the record of the name and address of the Shareholder and the number
of Shares issued by the Trust and held by the Shareholder; and (iv) recording the issuance of Shares of the Trust and maintain a record
of the total number of Shares of the Trust which are outstanding and authorized, based upon data provided to it by the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 118; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->114<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Transfer Agency and Service Agreement will have a one-year initial term and will automatically be renewed for successive one-year periods,
unless terminated by either party pursuant to the terms of the agreement.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Solana
Custody Agreement</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pursuant
to the Solana Custody Agreement, the Solana Custodian is responsible for providing the Trust with segregated cold wallet digital asset
custody. The Trust&rsquo;s assets with the Solana Custodian are held in segregated wallets and are therefore not commingled with corporate
or other customer assets. The Solana Custodian also segregates each of the accounts (comprising multiple wallets in some cases) that
a client (such as the Trust) may hold with the Solana Custodian, and each such account&rsquo;s balance represents the account&rsquo;s
on-chain balance, which can be independently verified by the client or third-party auditors as needed. This approach applies to each
asset supported by the Solana Custodian.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Private
key materials are generated and subsequently stored in a form whereby no private key is stored in a decrypted format. The private key
materials are stored within the Solana Custodian&rsquo;s secure storage facilities within the United States and Europe. For security
reasons, these exact locations are never disclosed.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Personnel
supporting key operations are very limited and the Solana Custodian requires a background check prior to onboarding, and where required,
annually thereafter. No single individual associated with the Solana Custodian has access to full private keys. Private key decryption
and subsequent transaction signing instead require access to multiple systems and human operators in order to reconstitute a key and
perform an on-chain transaction. For security purposes, the Solana Custodian does not disclose specifics about the roles and numbers
of individuals involved in these processes.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Solana Custodian&rsquo;s parent, [Solana Custodian&rsquo;s Parent], maintains a commercial crime insurance policy of up to $___&nbsp;million,
which is intended to cover the loss of client assets held by [Solana Custodian&rsquo;s Parent] and all of its subsidiaries, including
the [Insured Entities], including from employee collusion or fraud, physical loss including theft, damage of key material, security breach
or hack, and fraudulent transfer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Solana Custodian maintains an Internal Audit team that performs periodic internal audits of custody operations. SOC attestations are
also performed on the Solana Custodian&rsquo;s services. The SOC 1 Type 2 and SOC 2 Type 2 reports produced cover private key management
controls. A SOC 1 Type 2 report addresses the controls at a service organization that are likely to be relevant to user entities&rsquo;
internal control over financial reporting. A SOC 2 Type 2 report addresses controls at a service organization relevant to security, availability,
processing integrity, confidentiality, or privacy in order to support users&rsquo; evaluations of their own systems of internal control.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Solana Custodian will not be liable for any amount greater than the value of the supported digital assets on deposit in the Trust&rsquo;s
custodial account(s) at the time of the event giving rise to the liability.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Solana Custody Agreement, which is a part of the Prime Execution Agreement, was effective as of the Prime Execution Agreement&rsquo;s
execution on ___________, and will remain in effect until terminated by either the Trust, the Solana Custodian or the Prime Execution
Agent. The Solana Custodian may terminate the Solana Custody Agreement for any reason upon providing the applicable notice to the Trust,
or immediately for &ldquo;Cause&rdquo; (as defined in the Solana Custody Agreement), including, among others, if the Trust materially
breaches the Prime Execution Agreement and such breach remains uncured, undergoes a bankruptcy event, or fails to repay Trade Credits.
The Solana Custodian may terminate the Solana Custody Agreement for any reason upon providing 180 days&rsquo; notice to the Trust, or
immediately for &ldquo;Cause.&rdquo; The Solana Custody Agreement forms a part of the Prime Execution Agreement, and is subject to the
termination provisions in the Prime Execution Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Neither
the Sponsor nor the Trust has given any instructions to the Solana Custodian as it relates to Incidental Rights and/or IR Assets.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 119; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->115<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Prime
Execution Agreement</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pursuant
to the Prime Execution Agreement, the Trust&rsquo;s Solana holdings and cash holdings from time to time may be temporarily held with
the Prime Execution Agent, an affiliate of the Solana Custodian, in the Trading Balance, for certain limited purposes, including in connection
with creations and redemptions of Baskets and the sale of Solana to pay Trust expenses not assumed by the Sponsor. The Sponsor may, in
its sole discretion, add or terminate prime execution agents at any time. The Sponsor may, in its sole discretion, change the prime execution
agent for the Trust, but it will have no obligation whatsoever to do so or to seek any particular terms for the Trust from other such
prime execution agents.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Within
the Trust&rsquo;s Trading Balance, the Prime Execution Agreement provides that the Trust does not have an identifiable claim to any particular
Solana (and cash). Instead, the Trust&rsquo;s Trading Balance represents an entitlement to a pro rata share of the Solana (and cash)
the Prime Execution Agent holds on behalf of customers who hold similar entitlements against the Prime Execution Agent. In this way,
the Trust&rsquo;s Trading Balance represents an omnibus claim on the Prime Execution Agent&rsquo;s Solana (and cash) held on behalf of
the Prime Execution Agent&rsquo;s customers. The Prime Execution Agent holds the Solana associated with customer entitlements across
a combination of omnibus cold wallets, omnibus &ldquo;hot&rdquo; wallets (meaning wallets whose private keys are generated and stored
online, in Internet-connected computers or devices) or in omnibus accounts in the Prime Execution Agent&rsquo;s name on a trading venue
(including third-party venues and the Prime Execution Agent&rsquo;s own execution venue) where the Prime Execution Agent executes orders
to buy and sell Solana on behalf of its clients.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pursuant
to the Prime Execution Agreement, the Trust may engage in sales of Solana by placing orders with the Prime Execution Agent. The Prime
Execution Agent will route orders placed by the Sponsor through the prime execution agent execution platform (the &ldquo;Trading Platform&rdquo;)
to a Connected Trading Venue where the order will be executed. Each order placed by the Sponsor will be sent, processed and settled at
each Connected Trading Venue to which it is routed. The Prime Execution Agreement provides that the Prime Execution Agent is subject
to certain conflicts of interest, including: (i) the Trust&rsquo;s orders may be routed to the Prime Execution Agent&rsquo;s own execution
venue where the Trust&rsquo;s orders may be executed against other customers of the Prime Execution Agent or with the [Prime Execution
Agent] acting as principal, (ii) the beneficial identity of the counterparty purchaser or seller with respect to the Trust&rsquo;s orders
may be unknown and therefore may inadvertently be another client of the Prime Execution Agent, (iii)&nbsp;the Prime Execution Agent does
not engage in front-running, but is aware of the Trust&rsquo;s orders or imminent orders and may execute a trade for its own inventory
(or the account of an affiliate) while in possession of that knowledge and (iv) the Prime Execution Agent may act in a principal capacity
with respect to certain orders. As a result of these and other conflicts, when acting as principal, the Prime Execution Agent may have
an incentive to favor its own interests and the interests of its affiliates over the Trust&rsquo;s interests.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Prime Execution Agent is permitted to suspend or terminate the Prime Execution Agreement under certain circumstances. The Prime Execution
Agent, for itself or as agent for the Solana Custodian and Trade Credit Lender, may not terminate the Prime Execution Agreement (including
the Solana Custody Agreement) or suspend, restrict terminate or modify the Prime Execution Agent Services (as such term is defined in
the Agreement) on less than 180 days&rsquo; notice, except in the event of (i) a Change in Law or (ii) a &ldquo;Cause&rdquo; event (as
such term is defined in the Agreement). The Prime Execution Agreement defines &ldquo;Prime Execution Agent Services&rdquo; as (i) the
custody of the Trust&rsquo;s Solana in the Trust Solana Account, the processing of deposits and withdrawals and other custody transactions,
(ii) access to the Prime Execution Agent&rsquo;s trading platform and the execution and settlement of all orders for the sale of Solana
submitted by the Trust, and (iii) the extension of credit to the Trust by the Trade Credit Lender pursuant to the Trade Financing Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Prime Execution Agreement, including the Solana Custody Agreement, was effective as of its execution on ______________, and will remain
in effect until terminated by either the Trust or the Prime Execution Agent. The Trust may terminate the Prime Execution Agreement, including
the Solana Custody Agreement, in whole or in part for any reason upon 30 days&rsquo; notice to the Prime Execution Agent, for itself
or as agent on behalf of the Solana Custodian or Trade Credit Lender, or upon a [Prime Execution Agent Termination Event]. The Prime
Execution Agreement defines a &ldquo;[Prime Execution Agent Termination Event]&rdquo; to mean the occurrence and continuance of (i) a
Bankruptcy Event with respect to any [Solana Custodian Entity], (ii) the failure of any [Solana Custodian Entity] to sell or withdraw
or transfer the Trust&rsquo;s Solana in accordance with the Trust&rsquo;s instructions within the time periods set forth in the Prime
Execution Agreement and such failure is not cured within two (2) business days following the Trust providing written notice to the relevant
[Solana Custodian Entity] (&ldquo;CB Return Cure&rdquo;); provided, however, that (A) if, prior to the expiration of the CB Return Cure,
the Prime Execution Agent transfers cash to the Trust in an amount equal to the value of the Solana based on the Benchmark Valuation
(defined as the Pricing Benchmark) as of the time that the request to sell, transfer or withdraw was originally made by the Trust (the
&ldquo;Solana Cash Value&rdquo;) or if the Prime Execution Agent delivers cash collateral to an account designated by the Trust and in
which the Trust has a perfected, first priority security interest and in an amount equal to the Solana Cash Value until the relevant
Solana is sold, withdrawn or transferred or the Trust elects to receive such amount in cash in lieu of the Prime Execution Agent&rsquo;s
obligation to sell, withdraw or transfer the relevant Solana, in each cash, such failure will be deemed cured; provided, further that,
the Trust shall have the right to choose whether to receive the Solana Cash Value in lieu of the relevant Solana or receive the Solana
Cash Value as cash collateral, or (B) if such failure is due to a technology or security issue where, in the commercially reasonable
opinion of the Prime Execution Agent, returning the relevant Solana would result in material risk to the Trust or the Prime Execution
Agent or may result in the relevant Solana being lost or otherwise not successfully returned and the Prime Execution Agent promptly notifies
the Trust promptly upon Client&rsquo;s notice of such failure, (1) the Trust may request that the Prime Execution Agent still sell, withdraw
or transfer the Solana, but the Prime Execution Agent will have no liability with respect to any such sell, withdrawal or transfer (unless
the Prime Execution Agent or any of the [Solana Custodian Entities] act with negligence unrelated to such technology or security issue)
and any failure to withdraw or transfer shall not result in a [Prime Execution Agent Termination Event ] if the Trust does not receive
the withdrawn or transferred Solana or the proceeds of any such sale due to such technology or security issue, or (2) if the Trust does
not elect to have the Prime Execution Agent still make the sale, withdrawal or transfer, a [Prime Execution Agent Termination Event ]
shall not occur while the relevant security or technology event is occurring and continuing, (iii) the failure of any [Solana Custodian
Entity] to withdraw or transfer cash to the Trust in accordance with the Trust&rsquo;s instructions within the time periods set forth
in the Prime Execution Agreement and such failure is not cured within one (1) business day following the Trust providing written notice
to the relevant [Solana Custodian Entity], (iv) a [Solana Custodian Entity] intentionally or willfully, materially breaches any provision
of the Prime Execution Agreement (other than the provisions of the Solana Custody Agreement) and such breach remains uncured for a period
of ten (10) calendar days after notice of such breach is provided by the Trust to the Prime Execution Agent; or (v) a [Solana Custodian
Entity] intentionally or willfully, materially breaches any provision of the Solana Custody Agreement and such breach remains uncured
for a period of 30 calendar days after notice of such breach is provided by the Trust to the Prime Execution Agent.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 120; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->116<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Trade
Financing Agreement</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trade Financing Agreement was entered into between the Trust (as the &ldquo;Borrower&rdquo;), [Lender] (the &ldquo;Lender&rdquo;), [Agent]
(the &ldquo;Agent&rdquo; or &ldquo;[Agent]"), and [Solana Custodian] as agent with respect to the Trust&rsquo;s balance of Solana
held in the Trust Solana Account pursuant to the Solana Custody Agreement to govern the extension of credit from [Lender] to the Trust
for use in connection with trading Solana on [Agent]&rsquo;s Trading Platform.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pursuant
to the terms of the Trade Financing Agreement, the Lender agrees to lend to the Trust a specific quantity of cash and/or Solana (Trade
Credits) in connection with the purchase or sale of Solana via [Agent]&rsquo;s Trading Platform for use on the Trading Platform up to
the Authorized Amount. The &ldquo;Authorized Amount&rdquo; shall mean the aggregate U.S. dollar notional amount of Trade Credits that
the Lender has agreed to extend to the Trust during any Defined Interval. &ldquo;Defined Interval&rdquo; means a twenty-four (24) hour
period starting at 6:00 a.m. ET (or such other time as may be notified by the Lender to the Trust from time to time) on any day that
the Lender has extended Trade Credit to the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust and the Lender agree that the Trust may use the Trade Credits exclusively for the purpose of the execution of trades on the Trading
Platform. The Lender is under no obligation to continue to provide Trade Credits and may in its sole discretion impose black-out periods
during which Trade Credits for any or all fiat currencies and/or digital assets (including U.S. dollars and Solana) may be unavailable;
provided, however, that the Lender will provide the Trust with advance notice of such black-out periods if feasible to do so.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Lender will establish in the name of the Trust a ledger entry for purposes of tracking Trade Credits extended by the Lender (&ldquo;Trade
Finance Debit Account&rdquo;). The Trade Finance Debit Account shall reflect the cumulative Trade Credits that the Lender has extended
during each Defined Interval, both in terms of the aggregate notional value of the Trade Credits and the Trade Credits denominated in
specific digital assets (such as Solana). The Trade Finance Debit Account shall be conclusive, absent manifest error, of the amount of
Trade Credits extended by the Lender to the Trust. &ldquo;Defined Interval&rdquo; shall mean a twenty-four-hour period starting at 6:00
a.m. ET (or such other time as may be notified by the Lender to the Trust from time to time) on any day that the Lender has extended
Trade Credit to the Trust. For the avoidance of doubt, in the event that the Lender extends Trade Credit to the Trust prior to 6:00 a.m.
ET on any given day, such notional amount of Trade Credit shall be included in the aggregation of the Authorized Amount for the immediately
prior day. The Lender or the Agent may revise the Defined Interval time period referenced above upon five (5) business days&rsquo; prior
notice to the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Under
the Trade Financing Agreement, the Lender and the Trust agreed that any digital assets (including Solana) and any item of property (whether
investment property, financial asset, security, general intangible or instrument (each as defined in the UCC) or cash) and all proceeds
of the foregoing, credited to the Trust&rsquo;s Trading Balance and Trust Solana Account, shall be treated as a &ldquo;financial asset&rdquo;
within the meaning of NY UCC &sect;8-102(a)(9). The Trust granted to the Lender and the Agent a continuing first priority security interest
in, lien on and right of set-off against all of the Trust&rsquo;s right, title and interest, whether now owned or existing or hereafter
acquired or arising, in the Trust&rsquo;s Trading Balance and Trust Solana Account together with proceeds thereof, in order to secure
(i)&nbsp;repayment of Trade Credits to the Lender, (ii) payment of all fees and other amounts owed by the Trust to the Lender or the
Agent hereunder, and (iii) all other obligations of the Trust to the Lender and the Agent arising hereunder from time to time. In addition,
the Trust shall execute such documents and take such other actions as the Lender or the Agent shall reasonably request in order to perfect
and maintain the priority of the Lender&rsquo;s and the Agent&rsquo;s security interest with respect to Trust&rsquo;s Trading Balance
and the Trust Solana Account. For purposes of perfecting the Lender&rsquo;s security interest in the Trading Balance, the Agent holds
the Trust&rsquo;s Trading Balance for itself and also as agent for the Lender, and has control over the Trust&rsquo;s Trading Balance
for its own benefit and for the benefit and on behalf of the Lender. The Agent agrees to follow entitlement orders of the Lender as secured
party with respect to the Trading Balance without further consent of the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 121; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->117<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust agrees to fully repay to the Lender the Trade Credits extended during a Defined Interval by the Settlement Deadline for that Defined
Interval. The &ldquo;Settlement Deadline&rdquo; shall mean 6:00 p.m. ET on the calendar day immediately following the start of a Defined
Interval. The Trust is permitted to repay the Trade Credits at any time during the Defined Interval. Failure of the Trust to fully repay
the Trade Credits by the Settlement Deadline may result in an Event of Default (as such term is defined in the agreement). The Trust
must repay the Lender with the same type of asset that the Lender provided in extending the applicable Trade Credit. The Trust&rsquo;s
repayment obligation shall be satisfied only when the Lender receives good funds for cash Trade Credits or Solana for Solana Trade Credits.
All cash repayments must be made to the Lender in good funds by the Settlement Deadline, regardless of whether the Federal Reserve wire
transfer system is open for business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Upon
the occurrence of an Event of Default: (a) any outstanding extension of Trade Credit shall be immediately due and payable; (b) in addition
to all rights under the [Prime Execution Agreement], the Lender or the Agent may exercise any rights of a secured creditor with respect
to its interests in the Trust&rsquo;s assets, and may exercise all other rights under agreements between the Trust and the Lender, the
Agent or [Solana Custodian], including the Lender&rsquo;s, the Agent&rsquo;s or the [Solana Custodian]&rsquo;s rights under the [Prime
Execution Agreement]. The Lender and the Agent agree that they will exercise their secured creditor rights with respect to the Trading
Balance before exercising their secured creditor rights with respect to the Trust Solana Account; (c) the Trust authorizes the Agent,
as securities intermediary with respect to the Trading Balance, to comply with all instructions and entitlement orders from the Lender,
as secured party, with respect to the disposition of assets in the Trust&rsquo;s Trading Balance as contemplated herein without further
consent or direction from the Trust or any other party; the Trust also authorizes [Solana Custodian], as securities intermediary with
respect to the Trust Solana Account, to comply with all instructions and entitlement orders from the Lender or the Agent, as secured
party, with respect to the disposition of assets in the Trust Solana Account; [Solana Custodian] agrees to follow such instructions and
entitlement orders; (d) without prior notice to the Trust, the Lender shall have the right to instruct the Agent (and the Agent agrees
to comply with such instruction) to: (i) transfer the Trust&rsquo;s Client Assets from the Trust&rsquo;s Trading Balance to the Lender
to repay the unpaid Trade Credits, and/or (ii) liquidate or cancel outstanding orders (including Orders that have been submitted or are
in the process of being fulfilled); and (e) without prior notice to the Trust, the Lender may suspend or terminate the Trust&rsquo;s
ability to receive extensions of Trade Credits, regardless of whether the Trust has cured the Event of Default.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
the above actions are not sufficient to satisfy all obligations of the Trust to the Lender and the Agent, the Lender or the Agent shall
have the right to liquidate any and all of the Trust&rsquo;s assets and positions held with the Lender or the Agent, including the Trading
Balance and the Trust Solana Account, to cover any losses incurred by the Trust&rsquo;s failure to repay the Trade Credits. In connection
with liquidating such assets, the Trust authorizes the Lender or the Agent, on the Lender&rsquo;s behalf, in the Lender&rsquo;s sole
discretion, to liquidate any of the Trust&rsquo;s Solana in a commercially reasonable sale at the market price. The Trust understands
that the price of Solana may rise or fall quickly, and neither the Lender nor the Agent has any obligation to liquidate the Trust&rsquo;s
Solana at a time that provides the best price.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
parties to the Trade Financing Agreement may terminate the agreement immediately upon giving the other party written notice. Upon notice
of termination, all outstanding extensions of Trade Credits shall become due and payable immediately. All obligations of the Trust with
respect to outstanding Trade Credits and other amounts due hereunder, and rights of the Lender and the Agent in connection therewith
shall survive the termination of the Trade Financing Agreement, including the Lender&rsquo;s and the Agent&rsquo;s security interest
in the Trust Trading Balance and Trust Solana Account and the Lender, the Agent&rsquo;s and [Solana Custodian]&rsquo;s right of set-off
under the Prime Execution Agreement.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Cash
Custody Agreement</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust has entered into the Cash Custody Agreement with __________ under which __________ acts as custodian of the Trust&rsquo;s cash
and cash equivalents (in such capacity, the &ldquo;Cash Custodian&rdquo;). The Cash Custodian has agreed to provide its services under
the Cash Custody Agreement until terminated in accordance with the provisions of the Cash Custody Agreement. Either the Cash Custodian
or the Trust may terminate the Cash Custody Agreement by giving written notice to the counterparty as set forth in the Cash Custody Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
fees of the Cash Custodian are paid by the Trust. In addition, the Trust shall reimburse the Cash Custodian for any out-of-pocket and
incidental expenses incurred by the Cash Custodian in connection with the Cash Custody Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 122; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->118<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Cash Custodian shall exercise the standard of care and diligence that a professional custodian would observe in these affairs taking
into account the prevailing rules, practices, procedures and circumstances in the relevant market (&ldquo;Standard of Care&rdquo;). Except
as otherwise expressly provided in the Cash Custody Agreement, the Cash Custodian&rsquo;s liability arising out of or relating to the
Cash Custody Agreement shall be limited solely to those direct damages that are caused by the Cash Custodian&rsquo;s failure to perform
its obligations under the Cash Custody Agreement in accordance with the Standard of Care. The Trust agrees to indemnify the Cash Custodian
and hold the Cash Custodian harmless from and against all losses, costs, expenses, damages and liabilities (including reasonable counsel
fees and expenses) incurred by the Cash Custodian arising out of or relating to the Cash Custodian&rsquo;s performance under the Cash
Custody Agreement, except to the extent resulting from the Cash Custodian&rsquo;s failure to perform its obligations under the Cash Custody
Agreement in accordance with the Standard of Care. The Cash Custody Agreement is governed by the substantive laws of the State of New
York.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Marketing
Agent Agreement</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pursuant
to the Marketing Agent Agreement, the Marketing Agent is generally responsible for the day-to-day administration of the Trust. The responsibilities
of the Marketing Agent include (i) at the request of the Trust, assisting the Trust with facilitating Authorized Participant Agreements
between and among Authorized Participants, the Trust, and the applicable Transfer Agent, for the creation and redemption of Baskets of
the Trust; (ii)&nbsp;maintaining copies of confirmations of Basket creation and redemption order acceptances and producing such copies
upon reasonable request from the Trust or Sponsor; (iii) making available copies of this Prospectus to Authorized Participants who have
purchased Baskets in accordance with the Authorized Participant Agreements; (iv) maintaining telephonic, facsimile and/or access to direct
computer communications links with the Transfer Agent; (v) reviewing and approving, prior to use, certain Trust marketing materials submitted
by the Trust for review (&ldquo;Marketing Materials&rdquo;) for compliance with applicable SEC and FINRA advertising rules, and filing
all such Marketing Materials required to be filed with FINRA; (vi) ensuring that all direct requests by Authorized Participants for copies
of this Prospectus are fulfilled; and (vii) working with the Transfer Agent to review and approve orders placed by Authorized Participants
and transmitted to the Transfer Agent.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust shall indemnify, defend and hold the Marketing Agent, its affiliates and each of their respective members, managers, directors,
officers, employees, representatives and any person who controls or previously controlled the Marketing Agent within the meaning of Section
15 of the 1933 Act (collectively, the &ldquo;Marketing Agent Indemnitees&rdquo;), free and harmless from and against any and all losses,
claims, demands, liabilities, damages and expenses (including the costs of investigating or defending any alleged losses, claims, demands,
liabilities, damages or expenses and any reasonable counsel fees incurred in connection therewith) (collectively, &ldquo;Losses&rdquo;)
that any Marketing Agent Indemnitee may incur arising out of or relating to (i) the Trust&rsquo;s breach of any of its obligations, representations,
warranties or covenants contained in the Marketing Agent Agreement; (ii) the Trust&rsquo;s failure to comply in all material respects
with any applicable laws, rules or regulations; or (iii) any claim that this Prospectus, sales literature and advertising materials or
other information filed or made public by the Trust (as from time to time amended) includes or included an untrue statement of a material
fact or omits or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein
not misleading provided, however, that the Trust&rsquo;s obligation to indemnify any of the Marketing Agent Indemnitees shall not be
deemed to cover any Losses arising out of any untrue statement or alleged untrue statement or omission or alleged omission made in this
Prospectus or any such advertising materials or sales literature or other information filed or made public by the Trust in reliance upon
and in conformity with information provided by the Marketing Agent to the Trust, in writing, for use in this Prospectus or any such advertising
materials or sales literature.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Marketing Agreement shall continue in effect for two years. Thereafter, if not terminated, the Marketing Agreement shall continue automatically
in effect for successive one-year periods.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 123; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->119<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_051"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">United
States Federal Income Tax Consequences</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
following discussion of the material U.S. federal income tax consequences that generally will apply to the purchase, ownership and disposition
of Shares by a U.S. Shareholder (as defined below), and certain U.S. federal income consequences that may apply to an investment in Shares
by a Non-U.S. Shareholder (as defined below), represents, insofar as it describes conclusions as to U.S. federal income tax law and subject
to the limitations and qualifications described therein, the opinion of Chapman and Cutler LLP, special U.S. federal income tax counsel
to the Sponsor. The discussion below is based on the Internal Revenue Code of 1986 (the &ldquo;Code&rdquo;), Treasury Regulations promulgated
thereunder and judicial and administrative interpretations of the Code, all as in effect on the date of this Prospectus and all of which
are subject to change either prospectively or retroactively. The tax treatment of Shareholders may vary depending upon their own particular
circumstances. Certain Shareholders (including, but not limited to, banks, financial institutions, insurance companies, regulated investment
companies, real estate investment trusts, tax-exempt organizations, tax-exempt or tax-advantaged retirement plans or accounts, brokers
or dealers, traders, partnerships for U.S. federal income tax purposes, persons holding Shares as a position in a &ldquo;hedging,&rdquo;
&ldquo;straddle,&rdquo; &ldquo;conversion,&rdquo; &ldquo;constructive sale&rdquo; or other integrated transaction for U.S. federal income
tax purposes, persons whose &ldquo;functional currency&rdquo; is not the U.S. dollar, persons with &ldquo;applicable financial statements&rdquo;
within the meaning of Section 451(b) of the Code, or other investors with special circumstances) may be subject to special rules not
discussed below. In addition, the following discussion applies only to investors who will hold Shares as &ldquo;capital assets&rdquo;
within the meaning of Section 1221 of the Code. Moreover, the discussion below does not address the effect of any state, local or foreign
tax law consequences that may apply to an investment in Shares. Purchasers of Shares are urged to consult their own tax advisers with
respect to all federal, state, local and foreign tax law considerations potentially applicable to their investment in Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">For
purposes of this discussion, a &ldquo;U.S. Shareholder&rdquo; is a Shareholder that is:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">an
                                            individual who is treated as a citizen or resident of the United States for U.S. federal
                                            income tax purposes;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">a
                                            corporation (or entity treated as a corporation for U.S. federal income tax purposes) created
                                            or organized in or under the laws of the United States, any state thereof or the District
                                            of Columbia;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">an
                                            estate, the income of which is includible in gross income for U.S. federal income tax purposes
                                            regardless of its source; or</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">a
                                            trust, if a court within the United States is able to exercise primary supervision over the
                                            administration of the trust and one or more U.S. persons have the authority to control all
                                            substantial decisions of the trust, or a trust that has made a valid election under applicable
                                            Treasury Regulations to be treated as a domestic trust.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">A
Shareholder that is not a U.S. Shareholder as defined above is considered a &ldquo;Non-U.S. Shareholder&rdquo; for purposes of this discussion.
If a partnership or other entity or arrangement treated as a partnership for U.S. federal income tax purposes holds Shares, the tax treatment
of a partner generally depends upon the status of the partner and the activities of the partnership. If you are a partner of a partnership
holding Shares, the discussion below may not be applicable and we urge you to consult your own tax adviser for the U.S. federal income
tax implications of the purchase, ownership and disposition of such Shares.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 124; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->120<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Taxation
of the Trust</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor and the Trustee will treat the Trust as a &ldquo;grantor trust&rdquo; for U.S. federal income tax purposes. In the opinion of
Chapman and Cutler LLP, although not free from doubt due to the lack of directly governing authority, the Trust should be classified
as a &ldquo;grantor trust&rdquo; for U.S. federal income tax purposes (and the following discussion assumes such classification). As
a result, the Trust itself should not be subject to U.S. federal income tax. Instead, the Trust&rsquo;s income and expenses should &ldquo;flow
through&rdquo; to the Shareholders, and the Trustee will report the Trust&rsquo;s income, gains, losses and deductions to the Internal
Revenue Service (the &ldquo;IRS&rdquo;) on that basis.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
opinion of Chapman and Cutler LLP represents only its best legal judgment and is not binding on the IRS or any court. Accordingly, there
can be no assurance that the IRS will agree with the conclusions of counsel&rsquo;s opinion and it is possible that the IRS or another
tax authority could assert a position contrary to one or all of those conclusions and that a court could sustain that contrary position.
Neither the Sponsor nor the Trustee will request a ruling from the IRS with respect to the classification of the Trust for U.S. federal
income tax purposes or with respect to any other matter. Because of the evolving nature of digital assets, it is not possible to predict
potential future developments that may arise with respect to digital assets, including forks, airdrops and other similar occurrences.
Assuming that the Trust is currently a grantor trust for U.S. federal income tax purposes, certain future developments could render it
impossible, or impracticable, for the Trust to continue to be treated as a grantor trust for such purposes. If the IRS were to assert
successfully that the Trust is not classified as a &ldquo;grantor trust,&rdquo; the Trust would likely be classified as a partnership
for U.S. federal income tax purposes, which may affect the timing and other tax consequences to the Shareholders, and might be classified
as a publicly traded partnership that would be taxable as a corporation for U.S. federal income tax purposes, in which case the Trust
would be taxed in the same manner as a regular corporation on its taxable income and distributions to Shareholders out of the earnings
and profits of the Trust would be taxed to Shareholders as ordinary dividend income.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Uncertainty
Regarding the U.S. Federal Income Tax Treatment of Digital Assets</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Each
beneficial owner of Shares will be treated for U.S. federal income tax purposes as the owner of an undivided interest in the Solana held
in the Trust. Due to the new and evolving nature of digital assets and the absence of comprehensive guidance with respect to digital
assets, many significant aspects of the U.S. federal income tax treatment of digital assets are uncertain.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
2014, the IRS released a notice (the &ldquo;Notice&rdquo;) discussing certain aspects of the treatment of &ldquo;convertible virtual
currency&rdquo; (including, without limitation, Solana) for U.S. federal income tax purposes. In the Notice, the IRS stated that, for
U.S. federal income tax purposes, such digital assets (i) are property, (ii) are not &ldquo;currency&rdquo; for purposes of the provisions
of the Code relating to foreign currency gain or loss and (iii) may be held as a capital asset. Later, the IRS released a revenue ruling
and a set of &ldquo;Frequently Asked Questions&rdquo; (the &ldquo;2019 Ruling &amp; FAQs&rdquo;) that provide some additional guidance,
including guidance to the effect that, under certain circumstances, hard forks of digital assets are taxable events giving rise to ordinary
income and guidance with respect to the determination of the tax basis of digital assets. Recently, the IRS released additional guidance
confirming that staking income paid in digital assets is included in gross income (the &ldquo;2023 Ruling &amp; FAQs&rdquo;; the 2019
Ruling &amp; FAQs and the 2023 Ruling &amp; FAQs together, the &ldquo;Rulings &amp; FAQs&rdquo;). However, the Notice and the Rulings
&amp; FAQs do not address other significant aspects of the U.S. federal income tax treatment of digital assets. Moreover, although the
Rulings &amp; FAQs address the treatment of hard forks, there continues to be significant uncertainty with respect to the timing and
amount of the income inclusions. While the Rulings &amp; FAQs do not address most situations in which airdrops occur, it is clear from
the reasoning of the Rulings &amp; FAQs that the IRS generally would treat an airdrop as a taxable event giving rise to ordinary income.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">There
can be no assurance that the IRS will not alter its position with respect to digital assets in the future or that a court would uphold
the treatment set forth in the Notice and the Rulings &amp; FAQs. It is also unclear what additional guidance on the treatment of digital
assets for U.S. federal income tax purposes may be issued in the future. Any such alteration of the current IRS positions or additional
guidance could result in adverse tax consequences for Shareholders and could have an adverse effect on the prices of digital currencies,
including the price of Solana, and therefore could have an adverse effect on the value of Shares. Future developments that may arise
with respect to digital assets may increase the uncertainty with respect to the treatment of digital assets for U.S. federal income tax
purposes.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 125; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->121<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">For
example, El Salvador has recently announced that it is making bitcoin legal tender in El Salvador. If the IRS recognizes Solana as a
&ldquo;foreign currency,&rdquo; the tax consequences of an investment in the Trust will change. Gains or losses in respect of foreign
currencies are generally ordinary gains or losses. In general, entering or acquiring forward contracts, futures contracts, options or
similar financial instruments is treated as a foreign currency contract that produces ordinary gain or loss. However, ordinary gain or
loss treatment does not apply (unless elected) to contracts that require delivery of, or the settlement of which depends on the value
of, a foreign currency in respect of which positions are traded through regulated futures contracts. Instead, such contracts are treated
as having 60% long-term capital gain or loss and 40% short-term capital gain or loss. Such contracts are also required to be marked to
market at the end of each year.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
remainder of this discussion assumes that Solana, and any Incidental Rights or IR Assets that the Trust may hold, is properly treated
for U.S. federal income tax purposes as property that may be held as a capital asset and that is not currency for purposes of the provisions
of the Code relating to foreign currency gain and loss.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shareholders
are urged to consult their tax advisers regarding the tax consequences of an investment in the Trust and in digital currencies in general,
including, in the case of Shareholders that are generally exempt from U.S. federal income taxation, whether such Shareholders may recognize
&ldquo;unrelated business taxable income&rdquo; (&ldquo;UBTI&rdquo;) as a consequence of a fork, airdrop or similar occurrence.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Incidental
Rights and IR Assets</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">From
time to time, the Trust may come into possession of rights incident to its ownership of Solana, which permit the Trust to acquire, or
otherwise establish dominion and control over, other digital assets. These rights are generally expected to be Forked Assets that arise
in connection with hard forks in the Solana Network, airdrops offered to holders of Solana and digital assets arising from other similar
events without any action of the Trust or of the Sponsor or Trustee on behalf of the Trust. These rights are referred to as &ldquo;Incidental
Rights&rdquo; and any digital assets acquired through Incidental Rights are referred to as &ldquo;IR Assets.&rdquo; Pursuant to the Trust
Agreement, the Trust has explicitly disclaimed all Incidental Rights and IR Assets. Such assets are not considered assets of the Trust
at any point in time and will not be taken into account for purposes of determining the Trust&rsquo;s NAV and the NAV per Share.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pursuant
to the Trust Agreement, to the extent that the Trust receives such assets in a Trust wallet, it will, as soon as practicable, and, if
possible, immediately, distribute such assets to the Sponsor. At such time, the Incidental Right(s) and/or IR Asset(s) will be the property
of the Sponsor. Once acquired, the Sponsor, subject to a reasonable, good faith determination, may take any lawful action necessary or
desirable in connection with its acquisition of such assets. In the event that the Sponsor decides to sell the Incidental Right(s) and/or
IR Asset(s), it will seek to do so for cash. This may be a sale of the Incidental Right(s) and/or IR Asset(s) directly in exchange for
cash, or in exchange for another digital asset that may subsequently be exchanged for cash. The Sponsor would then contribute that cash
back to the Trust, which in turn would distribute the cash to DTC to be distributed to Shareholders in proportion to the number of Shares
owned. Such distribution would generally be a taxable event giving rise to ordinary income for a U.S. Holder.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Taxation
of U.S. Shareholders</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shareholders
will be treated for U.S. federal income tax purposes as if they directly owned a pro rata share of the underlying assets held in the
Trust. Shareholders also will be treated as if they directly received their respective pro rata shares of the Trust&rsquo;s income, if
any, and as if they directly incurred their respective pro rata shares of the Trust&rsquo;s expenses. In the case of a Shareholder that
acquires its Shares as part of the creation of a Basket, the delivery of Solana to the Trust in exchange for a pro rata share of the
underlying Solana represented by the Shares will not be a taxable event to the Shareholder, and the Shareholder&rsquo;s tax basis and
holding period for the Shareholder&rsquo;s pro rata share of the Solana held in the Trust will be the same as its tax basis and holding
period for the Solana delivered in exchange therefor. For purposes of this discussion, and unless stated otherwise, it is assumed that
all of a Shareholder&rsquo;s Shares are acquired on the same date and at the same price per Share. Shareholders that hold multiple lots
of Shares, or that are contemplating acquiring multiple lots of Shares, should consult their own tax advisers as to the determination
of the tax basis and holding period for the underlying Solana related to such Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Solana
may be used to pay certain expenses of the Trust, which under current IRS guidance will be treated as a sale of such Solana. If the Trust
sells Solana (for example to generate cash to pay fees or expenses) or is treated as selling Solana (for example by using Solana to pay
fees or expenses), a Shareholder will recognize gain or loss in an amount equal to the difference between (a) the Shareholder&rsquo;s
pro rata share of the amount realized by the Trust upon the sale and (b) the Shareholder&rsquo;s tax basis for its pro rata share of
the Solana that was sold. A Shareholder&rsquo;s tax basis for its share of any Solana sold by the Trust should generally be determined
by multiplying the Shareholder&rsquo;s total basis for its share of all of the Solana held in the Trust immediately prior to the sale,
by a fraction the numerator of which is the amount of Solana sold, and the denominator of which is the total amount of the Solana held
in the Trust immediately prior to the sale. After any such sale, a Shareholder&rsquo;s tax basis for its pro rata share of the Solana
remaining in the Trust should be equal to its tax basis for its share of the total amount of the Solana held in the Trust immediately
prior to the sale, less the portion of such basis allocable to its share of the Solana that was sold.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 126; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->122<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shareholders&rsquo;
pro rata shares of the expenses incurred by the Trust will be treated as &ldquo;miscellaneous itemized deductions&rdquo; for U.S. federal
income tax purposes. As a result, for taxable years beginning after December 31, 2017 and before January 1, 2026, a non-corporate U.S.
Shareholder&rsquo;s share of these expenses will not be deductible for U.S. federal income tax purposes. For taxable years beginning
on or after January 1, 2026, a non-corporate U.S. Shareholder&rsquo;s share of these expenses will be deductible for regular U.S. federal
income tax purposes only to the extent that the U.S. Shareholder&rsquo;s share of the expenses, when combined with other &ldquo;miscellaneous
itemized deductions,&rdquo; exceeds 2% of the U.S. Shareholder&rsquo;s adjusted gross income for the particular year, will not be deductible
for U.S. federal alternative minimum tax purposes and will be subject to certain other limitations on deductibility.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Upon
a Shareholder&rsquo;s sale of some or all of its Shares, the Shareholder will be treated as having sold the portion or all, respectively,
of its pro rata share of the Solana held in the Trust at the time of the sale that is attributable to the Shares sold. Accordingly, the
Shareholder generally will recognize gain or loss on the sale in an amount equal to the difference between (a) the amount realized pursuant
to the sale of the Shares, and (b) the Shareholder&rsquo;s tax basis for the portion of its pro rata share of the Solana held in the
Trust at the time of sale that is attributable to the Shares sold, as determined in the manner described in the preceding paragraph.
Based on current IRS guidance, such gain or loss (as well as any gain or loss realized by a Shareholder on account of the Trust selling
Solana) will generally be long-term or short-term capital gain or loss, depending upon whether the Shareholder has a holding period in
its pro rata share of the Solana that was sold of more than one (1) year.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
current maximum tax rate for individuals applicable to capital gains is 20% (subject to an additional tax of 3.8% on net investment income).
However, gain from collectibles is subject to a 28% maximum (also subject to the 3.8% additional tax), and currency gain is subject to
tax at ordinary income rates. Current guidance indicates that digital assets are treated neither as collectibles nor as currencies, but
the IRS has the authority to change its position on the treatment of digital assets.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">A
redemption of some or all of a Shareholder&rsquo;s Shares in exchange for the underlying Solana represented by the Shares redeemed generally
will not be a taxable event to the Shareholder. The Shareholder&rsquo;s tax basis for the Solana received in the redemption generally
will be the same as the Shareholder&rsquo;s tax basis for the portion of its pro rata share of the Solana held in the Trust immediately
prior to the redemption that is attributable to the Shares redeemed. The Shareholder&rsquo;s holding period with respect to the Solana
received should include the period during which the Shareholder held the Shares redeemed. A subsequent sale of the Solana received by
the Shareholder will be a taxable event, unless a nonrecognition provision of the Code applies to such sale.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">After
any sale or redemption of less than all of a Shareholder&rsquo;s Shares, the Shareholder&rsquo;s tax basis for its pro rata share of
the Solana held in the Trust immediately after such sale or redemption generally will be equal to its tax basis for its share of the
total amount of the Solana held in the Trust immediately prior to the sale or redemption, less the portion of such basis that is taken
into account in determining the amount of gain or loss recognized by the Shareholder upon such sale or, in the case of a redemption,
that is treated as the basis of the Solana received by the Shareholder in the redemption.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
a fork were to occur in the Solana Network, the Trust would hold both the original Solana and the alternative new asset. However, such
Forked Asset would not constitute an asset of the Trust as, pursuant to the Trust Agreement, the Trust has disclaimed all Incidental
Rights and IR Assets, including Forked Assets. The Trust Agreement requires that, if such a transaction occurs, the Trust will, as soon
as possible, distribute the Forked Asset to the Sponsor. The Sponsor may then sell the Forked Asset, at which point it would contribute
the proceeds of that sale back to the Trust, which would distribute the cash to Shareholders. Such distribution would cause Shareholders
to incur a federal income tax liability.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 127; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->123<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Although
the Trust has explicitly disclaimed all Incidental Rights and IR Assets, it is possible that the IRS may not recognize such a disclaimer.
Under such circumstances, the receipt, distribution and/or sale of the Forked Asset may cause Shareholders to incur a federal income
tax liability. The IRS has taken the position in the Rulings &amp; FAQs that, under certain circumstances, a fork constitutes a taxable
event giving rise to ordinary income, and it is clear from the reasoning of the Rulings &amp; FAQs that the IRS generally would treat
an airdrop as a taxable event giving rise to ordinary income. Under the Rulings &amp; FAQs, a U.S. Shareholder will have a basis in any
IR Asset received in a fork or airdrop equal to the amount of income the U.S. Shareholder recognizes as a result of such fork or airdrop
and the U.S. Shareholder&rsquo;s holding period for such IR Asset will begin as of the time it recognizes such income. In the absence
of guidance to the contrary, it is possible that any income recognized by a U.S. tax-exempt Shareholder as a consequence of a hard fork,
airdrop or similar occurrence would constitute UBTI. A tax-exempt Shareholder should consult its tax adviser regarding whether such Shareholder
may recognize some UBTI as a consequence of an investment in Shares.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.8%
Tax on Net Investment Income</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Certain
U.S. Shareholders who are individuals are required to pay a 3.8% tax on the lesser of the excess of their modified adjusted gross income
over a threshold amount ($210,000 for married persons filing jointly and $200,000 for single taxpayers) or their &ldquo;net investment
income,&rdquo; which generally includes capital gains from the disposition of property. This tax is in addition to any capital gains
taxes due on such investment income. A similar tax applies to estates and trusts. U.S. Shareholders should consult their own tax advisers
regarding the effect, if any, this tax may have on their investment in the Shares.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Brokerage
Fees and Trust Expenses</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Any
brokerage or other transaction fee incurred by a Shareholder in purchasing Shares will be treated as part of the Shareholder&rsquo;s
tax basis in the underlying assets of the Trust. Similarly, any brokerage fee incurred by a Shareholder in selling Shares will reduce
the amount realized by the Shareholder with respect to the sale.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shareholders
will be required to recognize the full amount of gain or loss upon a sale or deemed sale of Solana by the Trust (as discussed above),
even though some or all of the proceeds of such sale are used by the Trustee to pay Trust expenses. Shareholders may deduct their respective
pro rata shares of each expense incurred by the Trust to the same extent as if they directly incurred the expense. Shareholders who are
individuals, estates or trusts, however, may be required to treat some or all of the expenses of the Trust as miscellaneous itemized
deductions. An individual may not deduct miscellaneous itemized deductions for tax years beginning after December 31, 2017 and before
January 1, 2026. For tax years beginning after December 31, 2025, individuals may deduct certain miscellaneous itemized deductions only
to the extent they exceed in the aggregate 2% of the individual&rsquo;s adjusted gross income. Similar rules apply to certain miscellaneous
itemized deductions of estates and trusts. In addition, such deductions may be subject to phase-outs and other limitations under applicable
provisions of the Code.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Investment
by Certain Retirement Plans</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Individual
retirement accounts (&ldquo;IRAs&rdquo;) and participant-directed accounts under tax-qualified retirement plans are limited in the types
of investments they may make under the Code. Potential purchasers of Shares that are IRAs or participant-directed accounts under a Code
section 401(a) plan should consult with their own tax advisers as to the tax consequences of a purchase of Shares.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Taxation
of Non-U.S. Shareholders</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">A
Non-U.S. Shareholder generally should not be subject to U.S. federal income tax with respect to gain recognized upon the sale or other
disposition of Shares, or upon the sale or disposition of Solana by the Trust, unless (1) the Non-U.S. Shareholder is an individual and
is present in the United States for 183 days or more during the taxable year of the sale or other disposition, and the gain is treated
as being from U.S. sources; or (2) the gain is effectively connected with the conduct by the Non-U.S. Shareholder of a trade or business
in the United States and certain other conditions are met. A Non-U.S. Shareholder also will generally not be subject to U.S. federal
income or withholding tax with respect to any distribution received from the Trust, whether in cash or in kind.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 128; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->124<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Provided
that it does not constitute income that is treated as &ldquo;effectively connected&rdquo; with the conduct of a trade or business in
the United States, U.S.-source &ldquo;fixed or determinable annual or periodical&rdquo; (&ldquo;FDAP&rdquo;) income received, or treated
as received, by a Non-U.S. Shareholder will generally be subject to U.S. withholding tax at the rate of 30% (subject to possible reduction
or elimination pursuant to an applicable tax treaty and to statutory exemptions such as the portfolio interest exemption). Although there
is no guidance on point, it is likely that any ordinary income recognized by a Non-U.S. Shareholder as a result of a fork, airdrop or
similar occurrence would constitute FDAP income. It is unclear, however, whether any such FDAP income would be properly treated as U.S.-source
or foreign-source FDAP income. A non-U.S. Shareholder in the Trust should assume that, in the absence of guidance, a withholding agent
(including the Sponsor) is likely to withhold 30% from a Non-U.S. Shareholder&rsquo;s pro rata share of any such income, including by
deducting such withheld amounts from proceeds that such Non-U.S. Shareholder would otherwise be entitled to receive in connection with
a distribution of Incidental Rights, IR Assets or proceeds from the disposition of Incidental Rights or IR Assets by the Sponsor. A Non-U.S.
Shareholder that is a resident of a country that maintains an income tax treaty with the United States may be eligible to claim the benefits
of that treaty to reduce or eliminate, or to obtain a partial or full refund of, the 30% U.S. withholding tax on its share of any such
income, but only if the Non-U.S. Shareholder&rsquo;s home country treats the Trust as &ldquo;fiscally transparent,&rdquo; as defined
in applicable Treasury Regulations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Although
the nature of the Incidental Rights and IR Assets that the Trust may hold in the future is uncertain and the Trust has sought to disclaim
such assets, it is unlikely that any such asset would give rise to income that is treated as &ldquo;effectively connected&rdquo; with
the conduct of a trade or business in the United States or that any income derived by a Non-U.S. Shareholder from any such asset would
otherwise be subject to U.S. income or withholding tax, except as discussed above in connection with the fork, airdrop or similar occurrence
giving rise to Incidental Rights or IR Assets. There can, however, be no complete assurance in this regard.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">U.S.
Information Reporting and Backup Withholding</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trustee will file certain information returns with the IRS and provide certain tax-related information to Shareholders in connection
with the Trust. To the extent required by applicable regulations, each Shareholder will be provided with information regarding its allocable
portion of the Trust&rsquo;s annual income, expenses, gains and losses (if any). A U.S. Shareholder may be subject to U.S. backup withholding
tax, at a rate of 24%, in certain circumstances unless it provides its taxpayer identification number and complies with certain certification
procedures. Non-U.S. Shareholders may have to comply with certification procedures to establish that they are not a U.S. person, and
some Non-U.S. Shareholders may be required to meet certain information reporting or certification requirements imposed by the Foreign
Account Tax Compliance Act, in order to avoid certain information reporting and withholding tax requirements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
amount of any backup withholding will be allowed as a credit against a Shareholder&rsquo;s U.S. federal income tax liability and may
entitle the Shareholder to a refund, provided that the required information is furnished to the IRS in a timely manner.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Taxation
in Jurisdictions Other Than the United States</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Prospective
purchasers of Shares that are based in or acting out of a jurisdiction other than the United States are advised to consult their own
tax advisers as to the tax consequences under the laws of such jurisdiction (or any other jurisdiction other than the United States to
which they are subject) of their purchase, holding, sale and redemption of or any other dealing in Shares and, in particular, as to whether
any value added tax, other consumption tax or any transfer tax is payable in relation to such purchase, holding, sale, redemption or
other dealing.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>PROSPECTIVE
SHAREHOLDERS ARE URGED TO CONSULT THEIR TAX ADVISERS BEFORE DECIDING WHETHER TO INVEST IN THE SHARES OF THE TRUST.</B></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_052"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Purchases
By Employee Benefit Plans</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Although
there can be no assurance that an investment in the Trust will achieve the investment objectives of an employee benefit plan in making
such investment, the Trust has certain features that may be of interest to such a plan. For example, because they are not taxpaying entities,
employee benefit plans are not subject to paying annual tax on profits (if any) of the Trust.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">General</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
following section sets forth certain consequences under the Employee Retirement Income Security Act of 1974 (&ldquo;ERISA&rdquo;) and
the Code, which a fiduciary of an &ldquo;employee benefit plan&rdquo; as defined in, and subject to the fiduciary responsibility provisions
of, ERISA or of a &ldquo;plan&rdquo; as defined in and subject to Section&nbsp;4975 of the Code who has investment discretion should
consider before deciding to invest the plan&rsquo;s assets in the Trust (such &ldquo;employee benefit plans&rdquo; and &ldquo;plans&rdquo;
being referred to herein as &ldquo;Plans,&rdquo; and such fiduciaries with investment discretion being referred to herein as &ldquo;Plan
Fiduciaries&rdquo;). The following summary is intended not to be complete, but only to address certain questions under ERISA and the
Code that are likely to be raised by the Plan Fiduciary&rsquo;s own counsel.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 129; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->125<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
general, the terms &ldquo;employee benefit plan&rdquo; as defined in ERISA and &ldquo;plan&rdquo; as defined in Section&nbsp;4975 of
the Code together refer to any plan or account of various types that provide retirement benefits or welfare benefits to an individual
or to an employer&rsquo;s employees and their beneficiaries. Such plans and accounts include, but are not limited to, corporate pension
and profit sharing plans, &ldquo;simplified employee pension plans,&rdquo; Keogh plans for self-employed individuals (including partners),
individual retirement accounts described in Section&nbsp;408 of the Code and medical benefit plans.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Each
Plan Fiduciary must give appropriate consideration to the facts and circumstances that are relevant to an investment in the Trust, including
the role that such an investment in the Trust would play in the Plan&rsquo;s overall investment portfolio. Each Plan Fiduciary, before
deciding to invest in the Trust, must be satisfied that such investment in the Trust is a prudent investment for the Plan, that the investments
of the Plan, including the investment in the Trust, are diversified so as to minimize the risk of large losses and that an investment
in the Trust complies with the documents of the Plan and related trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">EACH
PLAN FIDUCIARY CONSIDERING ACQUIRING SHARES MUST CONSULT WITH ITS OWN LEGAL AND TAX ADVISERS BEFORE DOING SO. AN INVESTMENT IN THE TRUST
IS SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK. THE TRUST IS NOT INTENDED AS A COMPLETE INVESTMENT PROGRAM.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Plan
Assets</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">ERISA
and a regulation issued thereunder (the &ldquo;Plan Asset Rules&rdquo;) contain rules for determining when an investment by a Plan in
an entity will result in the underlying assets of such entity being assets of the Plan for purposes of ERISA and Section&nbsp;4975 of
the Code (<I>i.e.</I>, &ldquo;plan assets&rdquo;). Those rules provide that assets of an entity will not be plan assets of a Plan that
purchases an interest therein if certain exceptions apply, including (i)&nbsp;an exception applicable if the equity interest purchased
is a &ldquo;publicly-offered security&rdquo; (the &ldquo;Publicly-Offered Security Exception&rdquo;) and (ii)&nbsp;an exception applicable
if the investment by all &ldquo;benefit plan investors&rdquo; is not &ldquo;significant&rdquo; or certain other exceptions apply (the
&ldquo;Insignificant Participation Exception&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Publicly-Offered Security Exception applies if the equity interest is a security that is (1)&nbsp;&ldquo;freely transferable,&rdquo;
(2)&nbsp;part of a class of securities that is &ldquo;widely held,&rdquo; and (3)&nbsp;either (a)&nbsp;part of a class of securities
registered under Section 12(b) or 12(g) of the Exchange Act, or (b)&nbsp;sold to the Plan as part of a public offering pursuant to an
effective registration statement under the 1933 Act and the class of which such security is a part is registered under the Exchange Act
within 120&nbsp;days (or such later time as may be allowed by the SEC) after the end of the fiscal year of the issuer in which the offering
of such security occurred. The Plan Asset Rules state that the determination of whether a security is &ldquo;freely transferable&rdquo;
is to be made based on all relevant facts and circumstances. Under the Plan Asset Rules, a class of securities is &ldquo;widely held&rdquo;
only if it is of a class of securities owned by 100 or more shareholders independent of the issuer and of each other.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Shares of the Trust should be considered to be publicly offered securities. First, the Shares will be sold as part of a public offering
pursuant to an effective registration statement under the 1933 Act, and the Shares will be timely registered under the Exchange Act.
Second, it appears that the Shares will be freely transferable because the Shares of the Trust will be freely tradable on the Exchange
like any other exchange-listed security. Finally, it is anticipated that the Shares will be owned by at least 100 Shareholders independent
of the Trust. Therefore, the underlying assets of the Trust should not be considered to constitute assets of any Plan that purchases
Shares.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Ineligible
Purchasers</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
general, Shares may not be purchased with the assets of a Plan if the Sponsor, the Administrator, the Trustee, the Transfer Agent, the
Solana Custodian, the Marketing Agent, the Exchange, or any of their respective affiliates or any of their respective employees either:
(a)&nbsp;has investment discretion with respect to the investment of such plan assets; (b)&nbsp;has authority or responsibility to give
or regularly gives investment advice with respect to such plan assets, for a fee, and pursuant to an agreement or understanding that
such advice will serve as a primary basis for investment decisions with respect to such plan assets and that such advice will be based
on the particular investment needs of the Plan; or (c)&nbsp;is an employer maintaining or contributing to such Plan. A party that is
described in clause&nbsp;(a) or (b) of the preceding sentence is a fiduciary under ERISA and the Code with respect to the Plan, and any
such purchase might result in a &ldquo;prohibited transaction&rdquo; under ERISA and the Code.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 130; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->126<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Except
as otherwise set forth, the foregoing statements regarding the consequences under ERISA and the Code of an investment in the Trust are
based on the provisions of the Code and ERISA as currently in effect, and the existing administrative and judicial interpretations thereunder.
No assurance can be given that administrative, judicial or legislative changes will not occur that will not make the foregoing statements
incorrect or incomplete.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">ALLOWING
AN INVESTMENT IN THE TRUST IS NOT TO BE CONSTRUED AS A REPRESENTATION BY THE SPONSOR OR ANY OF ITS AFFILIATES, AGENTS OR EMPLOYEES THAT
THIS INVESTMENT MEETS SOME OR ALL OF THE RELEVANT LEGAL REQUIREMENTS WITH RESPECT TO INVESTMENTS BY ANY PARTICULAR PLAN OR THAT THIS
INVESTMENT IS APPROPRIATE FOR ANY SUCH PARTICULAR PLAN. THE PERSON WITH INVESTMENT DISCRETION SHOULD CONSULT WITH THE PLAN&rsquo;S ATTORNEY
AND FINANCIAL ADVISERS AS TO THE PROPRIETY OF AN INVESTMENT IN THE TRUST IN LIGHT OF THE CIRCUMSTANCES OF THE PARTICULAR PLAN, CURRENT
TAX LAW AND ERISA.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_053"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Information
You Should Know</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
Prospectus contains information investors should consider when making an investment decision about the Shares. Investors should rely
only on the information contained in this Prospectus or any applicable prospectus supplement. None of the Trust or the Sponsor has authorized
any person to provide investors with different information and, if anyone provides investors with different or inconsistent information,
investors should not rely on it. This Prospectus is not an offer to sell the Shares in any jurisdiction where the offer or sale of the
Shares is not permitted.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
information contained in this Prospectus was obtained from the Sponsor and other sources the Sponsor believed to be reliable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Investors
should disregard anything we said in an earlier document that is inconsistent with what is included in this Prospectus or any applicable
prospectus supplement. Where the context requires, when the Sponsor refers to this &ldquo;Prospectus,&rdquo; it is referring to this
Prospectus and (if applicable) the relevant prospectus supplement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Investors
should not assume that the information in this Prospectus or any applicable prospectus supplement is current as of any date other than
the date on the front page of this Prospectus or the date on the front page of any applicable prospectus supplement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Cross
references in this Prospectus to captions in these materials indicate where an investor can find further related discussions. The table
of contents assists in locating these captions.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_054"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Summary
of Promotional and Sales Material</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust expects to use the following sales material it has prepared:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            Trust&rsquo;s website, ______.com; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            Trust Fact Sheet found on the Trust&rsquo;s website.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
materials described above are not a part of this Prospectus or the registration statement of which this Prospectus is a part.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_055"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Intellectual
Property</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor owns trademark registrations for the Trust. The Sponsor relies upon these trademarks through which it markets its services and
strives to build and maintain brand recognition in the market and among current and potential investors. So long as the Sponsor continues
to use these trademarks to identify its services, without challenge from any third party, and properly maintains and renews the trademark
registrations under applicable laws, rules and regulations, it will continue to have indefinite protection for these trademarks under
current laws, rules and regulations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 131; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->127<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Sponsor also owns trademark registrations for the Sponsor. The Sponsor relies upon these trademarks through which it markets its services
and strives to build and maintain brand recognition in the market and among current and potential investors. So long as the Sponsor continues
to use these trademarks to identify its services, without challenge from any third party, and properly maintains and renews the trademark
registrations under applicable laws, rules and regulations; it will continue to have indefinite protection for these trademarks under
current laws, rules and regulations.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_056"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Where
You Can Find More Information</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust has filed a registration statement on Form S-1 with the SEC under the 1933 Act. This Prospectus does not contain all of the information
set forth in the registration statement (including the exhibits to the registration statement), parts of which have been omitted in accordance
with the rules and regulations of the SEC. For further information about the Trust or the Shares, please refer to the registration statement,
which is available online at www.sec.gov.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Information
about the Trust and the Shares can also be obtained from the Trust&rsquo;s website, which is _____.com. The Trust&rsquo;s website address
is only provided here as a convenience and the information contained on or connected to the website is not part of this Prospectus or
the registration statement of which this Prospectus is part. The Trust is subject to the informational requirements of the Exchange Act
and will file certain reports and other information with the SEC under the Exchange Act. The Sponsor will file an updated Prospectus
annually on behalf of the Trust pursuant to the requirements of the 1933 Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
reports and other information are available online at www.sec.gov.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_057"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Privacy
Policy</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust and the Sponsor may collect or have access to certain nonpublic personal information about current and former investors. Nonpublic
personal information may include information received from investors, such as an investor&rsquo;s name, social security number and address,
as well as information received from brokerage firms about investor holdings and transactions in Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust and the Sponsor do not disclose nonpublic personal information except as required by law or as described in their Privacy Policy.
In general, the Trust and the Sponsor restrict access to the nonpublic personal information they collect about investors to those of
their and their affiliates&rsquo; employees and service providers who need access to such information to provide products and services
to investors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust and the Sponsor maintain safeguards that comply with federal law to protect investors&rsquo; nonpublic personal information. These
safeguards are reasonably designed to (1) ensure the security and confidentiality of investors&rsquo; records and information, (2) protect
against any anticipated threats or hazards to the security or integrity of investors&rsquo; records and information, and (3) protect
against unauthorized access to or use of investors&rsquo; records or information that could result in substantial harm or inconvenience
to any investor.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Third-party
service providers with whom the Trust and the Sponsor share nonpublic personal information about investors must agree to follow appropriate
standards of security and confidentiality, which includes safeguarding such nonpublic personal information physically, electronically
and procedurally.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">A
copy of the Sponsor&rsquo;s current Privacy Policy, which is applicable to the Trust, is provided to investors annually and is also available
at _______.com.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>


<!-- Field: Page; Sequence: 132; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->128<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_058"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Report
of independent registered public accounting firm</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">[To be provided
in a subsequent amendment]</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


<!-- Field: Page; Sequence: 133; Options: NewSection; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->


<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><A NAME="B_059"></A><FONT STYLE="font-family: Times New Roman, Times, Serif">Statement
of financial condition</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">[To be provided
in a subsequent amendment]</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>


<!-- Field: Page; Sequence: 134; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: uppercase"><B>Bitwise
Solana ETF</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: uppercase"><B>shares</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: uppercase"><B>prospectus</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>__________,
2024</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Until
_________, 2024 (25 calendar days after the date of this Prospectus) all dealers that effect transactions in these securities, whether
or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers&rsquo; obligation
to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT>&nbsp;</P>


<!-- Field: Page; Sequence: 135 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">PART
II</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">INFORMATION
NOT REQUIRED IN PROSPECTUS</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Item
13. Other Expenses of Issuance and Distribution.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust shall not bear any expenses incurred in connection with the issuance and distribution of the securities being registered. These
expenses shall be paid by Bitwise Investment Advisers, LLC, the sponsor of the Trust. Except for the Securities and Exchange Commission
Registration Fee and Exchange Listing Fee, all such expenses are estimated:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; width: 88%; text-align: left">SEC registration fee (actual)</TD><TD STYLE="padding-bottom: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; width: 1%; text-align: left">*</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Listing fee (actual)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Auditor&rsquo;s fees and expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Legal fees and expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Printing expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Miscellaneous expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt">Total</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">An
indeterminate number of the securities is being registered as may from time to time be sold at indeterminate prices. In accordance with
Rules 456(d) and 457(u), the Trust is deferring payment of all of the additional registration fee and will pay the additional registration
fee subsequently on an annual basis.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Item
14. Indemnification of Directors and Officers.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Trust Agreement provides that the Sponsor and its shareholders, members, directors, officers, employees, Affiliates and subsidiaries
(each a &ldquo;Sponsor Indemnified Party&rdquo;) will be indemnified by the Trust and held harmless against any loss, liability or expense
incurred under the Trust Agreement without gross negligence, bad faith, or willful misconduct on the part of such Sponsor Indemnified
Party arising out of or in connection with the performance of its obligations hereunder or any actions taken in accordance with the provisions
of the Trust Agreement. Any amounts payable to a Sponsor Indemnified Party under Section 4.06 of the Trust Agreement may be payable in
advance or will be secured by a lien on the Trust. The Sponsor will not be under any obligation to appear in, prosecute or defend any
legal action that in its opinion may involve it in any expense or liability; provided, however, that the Sponsor may, in its discretion,
undertake any action that it may deem necessary or desirable in respect of the Trust Agreement and the rights and duties of the parties
hereto and the interests of the Shareholders and, in such event, the legal expenses and costs of any such action will be expenses and
costs of the Trust and the Sponsor will be entitled to be reimbursed therefor by the Trust. The obligations of the Trust to indemnify
the Sponsor Indemnified Parties will survive the termination of the Trust Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Item
15. Recent Sales of Unregistered Securities.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
May 28, 2024, the Trust sold 8 Shares at a per-Share price of $25to Bitwise Asset Management, Inc., an affiliate of the Sponsor, in a
transaction exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended. No further sales of unregistered
securities are contemplated.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Item
16. Exhibits and Financial Statement Schedules.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Exhibit.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
exhibits to this registration statement are listed in the Exhibit Index to this registration statement, which is incorporated herein
by reference.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Financial
Statement Schedules. Not applicable.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 136; Options: NewSection; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Item
17. Undertakings.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
undersigned registrant hereby undertakes:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            file, during any period in which offers or sales are being made, a post-effective amendment
                                            to this registration statement:</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)
To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)
To reflect in the Prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities
offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range
may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
and price represent no more than 20% change in the maximum aggregate offering price set forth in the &ldquo;Calculation of Registration
Fee&rdquo; table in the effective registration statement; and</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)
To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or
any material change to such information in the registration statement;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Provided,
however, that: (1)(i), (ii), and (iii) of this section do not apply if the registration statement is on Form S-1, Form S-3, Form SF-3
or Form F-3 and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed
with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934
that are incorporated by reference in the registration statement, or, as to a registration statement on Form S-3, Form SF-3 or Form F-3,
is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">That,
                                            for the purpose of determining any liability under the Securities Act of 1933, each such
                                            post-effective amendment shall be deemed to be a new registration statement relating to the
                                            securities offered therein, and the offering of such securities at that time shall be deemed
                                            to be the initial bona fide offering thereof.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(3)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            remove from registration by means of a post-effective amendment any of the securities being
                                            registered that remain unsold at the termination of the offering.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(4)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">That,
                                            for the purpose of determining liability under the Securities Act of 1933 to any purchaser:</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
                                            the registrant is relying on Rule 430B:</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(A)
Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the
date the filed prospectus was deemed part of and included in the registration statement; and</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(B)
Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on
Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required
by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier
of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the
offering described in the Prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date
an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the
registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial
bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration
statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is
part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or
modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in
any such document immediately prior to such effective date; or</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 137; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
                                            the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as
                                            part of a registration statement relating to an offering, other than registration statements
                                            relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be
                                            deemed to be part of and included in the registration statement as of the date it is first
                                            used after effectiveness; provided, however, that no statement made in a registration statement
                                            or prospectus that is part of the registration statement or made in a document incorporated
                                            or deemed incorporated by reference into the registration statement or prospectus that is
                                            part of the registration statement will, as to a purchaser with a time of contract of sale
                                            prior to such first use, supersede or modify any statement that was made in the registration
                                            statement or prospectus that was part of the registration statement or made in any such document
                                            immediately prior to such date of first use.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(5)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">That,
                                            for the purpose of determining the liability of the registrant under the Securities Act of
                                            1933 to any purchaser in the initial distribution of the securities:</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration
statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold
to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will
be considered to offer or sell such securities to such purchaser:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)
Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule
424;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)
Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by
the undersigned registrant;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)
The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant
or its securities provided by or on behalf of the undersigned registrant; and</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iv)
Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(6)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Insofar
                                            as indemnification for liabilities arising under the Securities Act of 1933 may be permitted
                                            to directors, officers and controlling persons of the registrant pursuant to the foregoing
                                            provisions, or otherwise, the registrant has been advised that in the opinion of the Securities
                                            and Exchange Commission such indemnification is against public policy as expressed in the
                                            Act and is, therefore, unenforceable. In the event that a claim for indemnification against
                                            such liabilities (other than the payment by the registrant of expenses incurred or paid by
                                            a director, officer or controlling person of the registrant in the successful defense of
                                            any action, suit or proceeding) is asserted by such director, officer or controlling person
                                            in connection with the securities being registered, the registrant will, unless in the opinion
                                            of its counsel the matter has been settled by controlling precedent, submit to a court of
                                            appropriate jurisdiction the question whether such indemnification by it is against public
                                            policy as expressed in the Act and will be governed by the final adjudication of such issue.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>


<!-- Field: Page; Sequence: 138; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">SIGNATURES</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pursuant
to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf
by the undersigned, thereunto duly authorized in the City of San Francisco, State of California, on November 21, 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif">Bitwise Investment Advisers, LLC</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sponsor of the Bitwise Solana ETF</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 60%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 35%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">By:</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>/s/ Hunter Horsley</I></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Name:&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Hunter Horsley</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Title:</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">President and Treasurer</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pursuant
to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities*
and on the dates indicated.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="vertical-align: top; width: 28%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Signature</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 42%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Title</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 28%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Date</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>/s/
    Hunter Horsley </I></FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">President</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">November 21, 2024</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">Hunter Horsley</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">(Principal Executive Officer)*</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>/s/
    Paul (&ldquo;Teddy&rdquo;) Fusaro</I></FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">Chief Operating Officer</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">November 21, 2024</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">Paul (&ldquo;Teddy&rdquo;) Fusaro</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">(Principal Financial Officer and Principal
    Accounting Officer)*</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
registrant is a trust and the persons are signing in their capacities as officers of Bitwise Investment Advisers, LLC, the Sponsor of
the registrant.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>


<!-- Field: Page; Sequence: 139; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">EXHIBIT
INDEX</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 9%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Exhibit No.</FONT></TD>
    <TD STYLE="width: 1%; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; border-bottom: black 1.5pt solid; width: 90%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Exhibit Description</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">3.1</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea022203101ex3-1_bitwise.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif">Trust Agreement<SUP>(1)</SUP></FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">3.2</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea022203101ex3-2_bitwise.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif">Certificate of Trust<SUP>(1)</SUP></FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">3.3</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">First Amended and Restated Declaration of Trust and Trust Agreement<SUP>(2)</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">5.1</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Opinion of Chapman and Cutler LLP as to legality<SUP>(2)</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">8.1</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Opinion of Chapman and Cutler LLP as to tax matters<SUP>(2)</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">10.1</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sponsor Agreement<SUP>(2)</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">10.2</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Form of Authorized Participant Agreement<SUP>(2)</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">10.3</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Marketing Agreement<SUP>(2)</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">10.4</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Prime Execution Agreement (with Solana Custody Agreement and Trade Financing
    Agreement included as exhibits thereto)<SUP>(2)</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">10.5</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Cash Custody Agreement<SUP>(2)</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">10.6</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Fund Administration and Accounting Agreement<SUP>(2)</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">10.7</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Transfer Agency and Service Agreement<SUP>(2)</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">10.8</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Form of Master Purchase and Sale Agreement for Digital Assets<SUP>(2)</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">23.1</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Consent of Independent Registered Public Accounting Firm<SUP>(2)</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">23.2</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Chapman and Cutler LLP (included in Exhibits 5.1 and 8.1)<SUP>(2)</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">107</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea022203101ex-fee_bitwise.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif">Filing Fee Table<SUP>(1)</SUP></FONT></A></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 22.3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Filed
                                            herewith.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 22.3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            be filed by amendment.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;II-5</FONT></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>



</BODY>
</HTML>
[{"type": "S-1", "sequence": "1", "filename": "ea0222031-s1_bitwise.htm", "description": "REGISTRATION STATEMENT", "secsgml_size_bytes": 1347824}]
{"company-data": {"conformed-name": "Bitwise Solana ETF", "cik": "0002045872", "organization-name": "", "irs-number": "000000000", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-283391", "film-number": "241485351"}, "business-address": {"street1": "250 MONTGOMERY STREET", "street2": "SUITE 200", "city": "SAN FRANCISCO", "state": "CA", "zip": "94104", "phone": "415-707-3663"}, "mail-address": {"street1": "250 MONTGOMERY STREET", "street2": "SUITE 200", "city": "SAN FRANCISCO", "state": "CA", "zip": "94104"}}
As
filed with the Securities and Exchange Commission on November 21, 2024.
Registration
No. 333-_________
UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
S-1
REGISTRATION
STATEMENT
UNDER
THE SECURITIES ACT OF 1933
Bitwise
Solana ETF
(Exact
name of registrant as specified in its charter)
Delaware
(State
                                            or other jurisdiction of
incorporation
    or organization)
(I.R.S.
    Employer
Identification No.)
c/o
Bitwise Investment Advisers, LLC
250 Montgomery Street, Suite 200
San Francisco, California 94104
(415) 707-3663
(Address, including zip code, and telephone number, including
area code, of registrant's principal executive offices and for service of process purposes)
Copies
to:
Richard Coyle, Esq.
James
Audette, Esq.
Chapman and Cutler LLP
320
South Canal Street, 27
th
Floor
Chicago,
Illinois 60606
(312)
845-3724
Katherine
Dowling, Esq.
Bitwise Investment Advisers, LLC
250 Montgomery Street, Suite 200
San Francisco, California 94104
(415) 707-3663
Approximate
date of commencement of proposed sale to the public: As soon as practicable after the effective date of this Registration Statement.
If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933 check the following box: ☒
If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the
following box and list the Securities Act registration statement number of the earlier effective registration statement for the same
offering: ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
Indicate
by check mark whether the registrant is a large, accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or an emerging growth company. See the definitions of "large, accelerated filer," "accelerated filer,"
"smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large
    accelerated filer ☐
Accelerated
    filer ☐
Non-accelerated filer
    ☒
Smaller reporting
    company ☒
Emerging growth company
    ☒
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☒
The
registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the
registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective
in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date
as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.
The
information in this Prospectus is not complete and may be changed. We may not sell these securities until the registration statement
filed with the Securities and Exchange Commission is effective. This Prospectus is not an offer to sell these securities and it is not
soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
Subject
to Completion
Preliminary
Prospectus dated November 21, 2024
PROSPECTUS
Shares
Bitwise
Solana ETF
The
Bitwise Solana ETF (the "Trust") is an exchange-traded product that issues common shares of beneficial interest ("Shares")
that are anticipated to be listed on Cboe BZX Exchange, Inc. (the "Exchange") under the ticker symbol "_____."
The Trust's investment objective is to seek to provide exposure to the value of Solana held by the Trust, less the expenses of
the Trust's operations and other liabilities. In seeking to achieve its investment objective, the Trust will hold Solana and establish
its net asset value ("NAV") by reference to the CME CF Solana – Dollar Reference Rate – New York Variant ("Pricing
Benchmark"). The Pricing Benchmark is calculated by CF Benchmarks Ltd. (the "Benchmark Provider") based on an aggregation
of executed trade flow of major Solana trading platforms ("Constituent Platforms"). The Trust is sponsored and managed by
Bitwise Investment Advisers, LLC (the "Sponsor").
The
Trust will pay to the Sponsor a unitary management fee of 0.____% per annum of the Trust's Solana holdings (the "Sponsor
Fee").
When
the Trust creates or redeems its Shares, it will do so in blocks of 10,000 Shares (each, a "Basket") based on the quantity
of Solana attributable to each Share of the Trust (net of accrued but unpaid expenses and liabilities) multiplied by the number of Shares
(10,000) comprising a Basket (the "Basket Amount"). For an order to create (purchase) a Basket, the purchase shall be in
the amount of U.S. dollars needed to purchase the Basket Amount (plus a per-order transaction fee), as calculated by the Administrator
(as defined below). For an order to redeem a Basket, the Sponsor shall arrange for the Basket Amount of Solana to be sold and the cash
proceeds (minus a per-order transaction fee) distributed. The Trust only creates and redeems Baskets in transactions with financial firms
that are authorized to purchase or redeem Shares with the Trust (each, an "Authorized Participant"). Shares initially comprising
the same Basket but offered by the Authorized Participants to the public at different times may have different offering prices that depend
on various factors, including the supply and demand for Shares, the value of the Trust's assets, and market conditions at the time
of a transaction. Investors who buy or sell Shares during the day from their broker may do so at a premium or discount relative to the
NAV of the Shares.
Bitwise
Asset Management, Inc., the parent of the Sponsor, served as seed capital investor to the Trust (the "Seed Capital Investor").
The Seed Capital Investor agreed to purchase $________ in Shares on ________, and on ________ took delivery of __ Shares at a per-Share
price of $___ (the "Seed Shares"). The $_____ the Trust received in consideration for the sale of the Seed Shares served
as the basis of the audit described in the sections entitled "REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM" and
"STATEMENT OF FINANCIAL CONDITION."
Bitwise
Investment Manager, LLC, an affiliate of the Sponsor, is expected to purchase the initial Baskets of Shares for $____________, at a per-Share
price of $__ for these ________ Shares (the "Seed Baskets"). Such proceeds are expected to be used by the Trust to purchase
Solana at or prior to the listing of Shares on the Exchange. Bitwise Investment Manager, LLC will act as a statutory underwriter in connection
with the initial purchase of the Seed Baskets.
Neither
the Trust, nor the Sponsor, nor the Solana Custodian (defined below), nor any other person associated with the Trust will, directly or
indirectly, engage in actions where any portion of the Trust's Solana is used to earn additional Solana or generate income or other
earnings.
Investors
who decide to buy or sell Shares of the Trust will place their trade orders through their brokers and may incur customary brokerage commissions
and charges. Prior to this offering, there has been no public market for the Shares. Investing in the Trust involves risks similar to
those involved with an investment directly in Solana and other significant risks.
See "RISK FACTORS" beginning on page
10
.
The
offering of the Shares is registered with the U.S. Securities and Exchange Commission ("SEC") in accordance with the Securities
Act of 1933 (the "1933 Act"). The Trust intends to issue Shares on a continuous basis and is registering an indeterminate
number of Shares. The offering is intended to be a continuous offering and is not expected to terminate until three years from the date
of the original offering, unless extended as permitted by applicable rules under the 1933 Act. The Trust is not a fund registered or
subject to regulation under the Investment Company Act of 1940. The Trust is not a commodity pool for purposes of the Commodity Exchange
Act of 1936, and the Sponsor is not subject to regulation by the Commodity Futures Trading Commission as a commodity pool operator or
a commodity trading adviser.
AN
INVESTMENT IN THE TRUST MAY NOT BE SUITABLE FOR INVESTORS THAT ARE NOT IN A POSITION TO ACCEPT MORE RISK THAN MAY BE INVOLVED WITH OTHER
EXCHANGE-TRADED PRODUCTS THAT DO NOT HOLD Solana OR INTERESTS RELATED TO SOLANA. THE SHARES ARE SPECULATIVE SECURITIES. THEIR PURCHASE
INVOLVES A HIGH DEGREE OF RISK AND YOU COULD LOSE YOUR ENTIRE INVESTMENT. YOU SHOULD CONSIDER ALL RISK FACTORS BEFORE INVESTING IN THE
TRUST. PLEASE REFER TO "RISK FACTORS" BEGINNING ON PAGE 10.
NEITHER
THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THE SECURITIES OFFERED IN THIS
PROSPECTUS, OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
The
date of this Prospectus is _____________, 2024
TABLE
OF CONTENTS
Page
Prospectus
    Summary
1
Risk
    Factors
10
Solana,
    Solana MARKET AND REGULATION OF Solana
69
THE
    TRUST AND Solana PRICES
76
Calculation
    of NAV
82
ADDITIONAL
    INFORMATION ABOUT THE TRUST
84
The
    Trust's Service Providers
89
Custody
    of the Trust's Assets
91
THE
    PRIME EXECUTION AGENT AND the TRADE CREDIT LENDER
93
Form
    of Shares
99
Transfer
    of Shares
100
SEED
    CAPITAL INVESTOR
100
Plan
    of Distribution
101
Creation
    and Redemption of Shares
102
Use
    of Proceeds
107
OWNERSHIP
    OR BENEFICIAL INTEREST IN THE TRUST
107
Conflicts
    of Interest
107
FIDUCIARY
    AND REGULATORY DUTIES AND OBLIGATIONS OF THE SPONSOR
108
Liability
    and Indemnification
110
Provisions
    of Law
112
Management;
    Voting by Shareholders
112
Meetings
112
Books
    and Records
113
STATEMENTS,
    FILINGS, AND REPORTS TO SHAREHOLDERS
113
Fiscal
    Year
113
GOVERNING
    LAW; CONSENT TO DELAWARE JURISDICTION
113
Legal
    Matters
113
Experts
114
Material
    Contracts
114
UNITED
    STATES FEDERAL INCOME TAX CONSEQUENCES
120
Purchases
    By Employee Benefit Plans
125
Information
    You Should Know
127
SUMMARY
    OF PROMOTIONAL AND SALES MATERIAL
127
Intellectual
    Property
127
Where
    You Can Find More Information
128
Privacy
    Policy
128
REPORT
    OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
F-1
Statement
    of financial condition
F-2
This
Prospectus contains information you should consider when making an investment decision about the Shares. You may rely on the information
contained in this Prospectus. The Trust and the Sponsor have not authorized any person to provide you with different information and,
if anyone provides you with different or inconsistent information, you should not rely on it. This Prospectus is not an offer to sell
the Shares in any jurisdiction where the offer or sale of the Shares is not permitted.
Until
__________, 2024 (25 days after the date of this Prospectus), all dealers effecting transactions in the Shares, whether or not participating
in this distribution, may be required to deliver a prospectus. This requirement is in addition to the obligations of dealers to deliver
a prospectus when acting as underwriters and with respect to unsold allotments or subscriptions. The Sponsor first intends to use this
Prospectus on ___________, 2024.
The
Shares are not registered for public sale in any jurisdiction other than the United States.
i
STATEMENT
REGARDING FORWARD-LOOKING STATEMENTS
This
Prospectus includes "forward-looking statements" that generally relate to future events or future performance. In some cases,
you can identify forward-looking statements by terminology such as "may," "will," "should," "expect,"
"plan," "anticipate," "believe," "estimate," "predict," "potential,"
or the negative of these terms or other comparable terminology. All statements (other than statements of historical fact) included in
this Prospectus that address activities, events, or developments that will or may occur in the future, including such matters as movements
in the digital asset markets, the Trust's operations, the Sponsor's plans, and references to the Trust's future success
and other similar matters, are forward-looking statements. These statements are only predictions. Actual events or results may differ
materially. These statements are based upon certain assumptions and analyses the Sponsor has made based on its perception of historical
trends, current conditions, and expected future developments, as well as other factors appropriate in the circumstances.
Whether
or not actual results and developments will conform to the Sponsor's expectations and predictions is subject to a number of risks
and uncertainties, including:
●
the
                                            special considerations discussed in this Prospectus;
●
general
                                            economic, market and business conditions;
●
technology
                                            developments regarding the use of Solana and other digital assets, including the systems
                                            used by the Sponsor and the Trust's custodian in their provision of services to the
                                            Trust;
●
changes
                                            in laws or regulations, including those concerning taxes, made by governmental authorities
                                            or regulatory bodies; and
●
other
                                            world economic and political developments, including, without limitation, global pandemics
                                            and the societal and government responses thereto.
See
"RISK FACTORS." Consequently, all the forward-looking statements made in this prospectus are qualified by these cautionary
statements, and there can be no assurance that the actual results or developments the Sponsor anticipates will be realized or, even if
substantially realized, that they will result in the expected consequences to, or have the expected effects on, the Trust's operations
or the value of the Shares. Neither the Trust nor the Sponsor is under a duty to update any of the forward-looking statements to conform
such statements to actual results or to reflect a change in the Sponsor's expectations or predictions.
EMERGING
GROWTH COMPANY STATUS
The
Trust is an
"
emerging growth company
"
as that term is used in the Jumpstart Our Business Startups Act (the
"
JOBS
Act
")
and, as such, may elect to comply with certain reduced reporting requirements.
For as long as the Trust is an emerging growth company, unlike other public companies, it will not be required to:
●
provide
                                            an auditor's attestation report on management's assessment of the effectiveness
                                            of its system of internal control over financial reporting pursuant to Section 404(b) of
                                            the Sarbanes-Oxley Act of 2002;
●
comply
                                            with any new requirements adopted by the Public Company Accounting Oversight Board ("PCAOB")
                                            requiring mandatory auditor rotation or a supplement to the auditor's report in which
                                            the auditor would be required to provide additional information about the audit and the financial
                                            statements of the issuer;
●
comply
                                            with any new audit rules adopted by the PCAOB after April 5, 2012, unless the Securities
                                            and Exchange Commission determines otherwise;
●
provide
                                            certain disclosure regarding executive compensation required of larger public companies;
                                            or
●
obtain
                                            shareholder approval of any golden parachute payments not previously approved.
The
Trust will cease to be an "emerging growth company" upon the earliest of (i) when it has $1.0 billion or more in annual revenues;
(ii) when it is deemed to be a large accelerated filer under Rule 12b-2 promulgated pursuant to the Securities Exchange Act of 1934;
(iii) when it issues more than $1.0 billion of non-convertible debt over a three-year period; or (iv) the last day of the fiscal year
following the fifth anniversary of its initial public offering.
In
addition, Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided
in Section 7(a)(2)(B) of the Securities Act of 1933 for complying with new or revised accounting standards. In other words, an emerging
growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies;
however, the Trust is choosing to "opt out" of such extended transition period, and as a result, the Trust will comply with
new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies.
Section 107 of the JOBS Act provides that the Trust's decision to opt out of the extended transition period for complying with
new or revised accounting standards is irrevocable.
ii
Prospectus
Summary
This
is only a summary of the Prospectus and, while it contains material information about the Trust and its Shares, it does not contain or
summarize all of the information about the Trust and the Shares contained in this Prospectus that is material and/or which may be important
to you. You should read this entire Prospectus before making an investment decision about the Shares.
Overview
of the Trust
The
Bitwise Solana ETF (the "Trust") is an exchange-traded product that issues common shares of beneficial interest ("Shares")
that are anticipated to be listed on Cboe BZX Exchange, Inc. (the "Exchange") under the ticker symbol "____."
The Trust's investment objective is to seek to provide exposure to the value of Solana held by the Trust, less the expenses of
the Trust's operations and other liabilities. In seeking to achieve its investment objective, the Trust will hold Solana and establish
its net asset value ("NAV") by reference to the CME CF Solana – Dollar Reference Rate – New York Variant ("Pricing
Benchmark"). The Trust is sponsored and managed by Bitwise Investment Advisers, LLC (the "Sponsor").
The
Trust intends to provide direct exposure to the value of Solana held by the Trust with
_____ ("_____"
or
the "Solana Custodian"). The Solana Custodian is chartered as a New York State limited liability trust company
that provides custody services for digital assets. The Solana Custodian is not insured by the Federal Deposit Insurance Corporation (the
"FDIC")-insured but carries insurance provided by private insurance carriers. The net assets of the Trust and its Shares
are valued on a daily basis with reference to the Pricing Benchmark, a standardized reference rate published by CF Benchmarks Ltd. (the
"Benchmark Provider") that is designed to reflect the performance of Solana in U.S. dollars. The Pricing Benchmark is calculated
by the Benchmark Provider based on an aggregation of executed trade flow of major Solana trading platforms ("Constituent Platforms").
The Pricing Benchmark is calculated as of 4:00 p.m. Eastern time ("ET").
Solana
is a digital asset. Like all digital assets, buying, holding and selling Solana is very different from buying, holding and selling more
conventional investments like stocks and bonds. Stocks represent ownership in a company, entitling shareholders to a portion of the company's
profits. Bonds are debt instruments issued by corporations or governments, where the bondholder is a creditor to the issuer that is generally
entitled to a stream of income payments. Ownership of stocks and bonds is typically recorded through a centralized system managed by
brokers, custodians or clearinghouses. Ownership of Solana does not entitle its holders to any portion of a company's profits or
any stream of income payments. Solana is a decentralized digital asset and ownership of it is reflected on a decentralized ledger. Additionally,
Solana is not a security, and is thus not subject to the protections of the U.S. federal securities laws.
The
Trust provides investors with the opportunity to access the market for Solana through a traditional brokerage account without the potential
barriers to entry or risks involved with acquiring and holding Solana directly. The Trust will not use derivatives that could subject
the Trust to additional counterparty and credit risks. The Sponsor believes that the design of the Trust will enable certain investors
to more effectively and efficiently implement strategic and tactical asset allocation strategies that use Solana by investing in the
Shares rather than purchasing, holding and trading Solana directly.
Solana
and the Solana Network
Solana
is a digital asset that is created and transmitted through the operations of a peer-to-peer, decentralized network of computers that
operates on cryptographic protocols (the "Solana Network"). No single entity is known to own or operate the Solana Network,
the infrastructure of which is understood to be collectively maintained by a decentralized user base. The Solana Network allows people
to exchange tokens of value, called Solana, which are recorded on a public transaction ledger known as a blockchain. Solana can be used
to pay for goods and services, including computational power on the Solana Network, or it can be converted to fiat currencies, such as
the U.S. dollar, at rates determined on digital asset trading platforms or in individual end-user-to-end-user transactions under a barter
system. Furthermore, the Solana Network was designed to allow users to write and implement smart contracts—that is, general-purpose
code that executes on every computer in the network and can instruct the transmission of information and value based on a sophisticated
set of logical conditions. Using smart contracts, users can create markets, store registries of debts or promises, represent the ownership
of property, move funds in accordance with conditional instructions and create digital assets other than Solana on the Solana Network.
Smart contract operations are executed on the Solana blockchain in exchange for payment of Solana. Like the Ethereum network, the Solana
Network is one of a number of projects intended to expand blockchain use beyond just a peer-to-peer money system.
1
The
Solana protocol introduced the Proof-of-History ("PoH") timestamping mechanism. PoH automatically orders on-chain transactions
by creating a historical record that proves an event has occurred at a specific moment in time. PoH is intended to provide a transaction
processing speed and capacity advantage over other blockchain networks like Bitcoin and Ethereum, which rely on sequential production
of blocks and can lead to delays caused by validator confirmations. PoH is a new blockchain technology that is not widely used. PoH may
not function as intended. For example, it may require more specialized equipment to participate in the network and fail to attract a
significant number of users, or may be subject to outages or fail to function as intended. In addition, there may be flaws in the cryptography
underlying PoH, including flaws that affect functionality of the Solana Network or make the network vulnerable to attack.
In
addition to the PoH mechanism described above, the Solana Network uses a proof-of-stake consensus mechanism to incentivize Solana holders
to validate transactions. Unlike proof-of-work, in which miners expend computational resources to compete to validate transactions and
are rewarded coins in proportion to the amount of computational resources expended, in proof-of-stake, validators risk or "stake"
coins to compete to be randomly selected to validate transactions and are rewarded coins in proportion to the amount of coins staked.
Any malicious activity, such as disagreeing with the eventual consensus or otherwise violating protocol rules, results in the forfeiture
or "slashing" of a portion of the staked coins. Proof-of-stake is viewed as more energy efficient and scalable than proof-of-work
and is sometimes referred to as "virtual mining."
The
Solana protocol was first conceived by Anatoly Yakovenko in a 2017 whitepaper. Development of the Solana Network is overseen by the Solana
Foundation, a Swiss non-profit organization, and Solana Labs, Inc. ("Solana Labs"), a Delaware corporation, which administered
the original network launch and token distribution.
Although
Solana Labs and the Solana Foundation continue to exert significant influence over the direction of the development of Solana, the Solana
Network, like the Ethereum network, is believed to be decentralized and does not require governmental authorities or financial institution
intermediaries to create, transmit or determine the value of Solana.
The
Sponsor believes that certain factors have combined to improve the efficiency of the Solana market, creating a dynamic, institutional-quality,
two-sided market.
For
more information on Solana and the Solana Network, see "SOLANA, SOLANA MARKET AND REGULATION OF SOLANA" below.
The
Trust's Investment Objective and Strategies
The
Trust's investment objective is to seek to provide exposure to the value of Solana held by the Trust, less the expenses of the
Trust's operations. In seeking to achieve its investment objective, the Trust will hold Solana and accrue the Sponsor's management
fee (the "Sponsor Fee") in U.S. dollars. The Trust will value its Solana holdings, net assets and the Shares daily based
on the Pricing Benchmark. The Trust is passively managed and does not pursue active management investment strategies, and the Sponsor
does not actively manage the Solana held by the Trust. This means that the Sponsor does not sell Solana at times when its price is high
or acquire Solana at low prices in the expectation of future price increases. It also means that the Sponsor does not make use of any
of the hedging techniques available to professional Solana investors to attempt to reduce the risks of losses resulting from price decreases.
The Trust will not utilize leverage or any similar arrangements in seeking to meet its investment objective. Solana will be the only
digital asset held by the Trust.
Although
the Shares are not the exact equivalent of a direct investment in Solana, they provide investors with an alternative that constitutes
a relatively cost-effective way to obtain Solana exposure through the securities market.
When
the Trust creates or redeems its Shares, it will do so in blocks of 10,000 Shares (each, a "Basket") based on the quantity
of Solana attributable to each Share of the Trust (net of accrued but unpaid expenses and liabilities) multiplied by the number of Shares
(10,000) comprising a Basket (the "Basket Amount"). For an order to create (purchase) a Basket, the purchase shall be in
the amount of U.S. dollars needed to purchase the Basket Amount (plus a per-order transaction fee), as calculated by the Administrator
(as defined below). For an order to redeem a Basket, the Sponsor shall arrange for the Basket Amount to be sold and the cash proceeds
(minus a per-order transaction fee) distributed. The Trust only creates and redeems Baskets in transactions with financial firms that
are authorized to purchase or redeem Shares with the Trust (each, an "Authorized Participant"). Shares initially comprising
the same Basket but offered by the Authorized Participants to the public at different times may have different offering prices that depend
on various factors, including the supply and demand for Shares, the value of the Trust's assets, and market conditions at the time
of a transaction.
2
The
Basket Amount required to create each Basket changes from day to day. On each day that the Exchange is open for regular trading, the
Administrator adjusts the quantity of Solana constituting the Basket Amount as appropriate to reflect accrued expenses and any loss of
Solana that may occur. The computation is made by the Administrator each business day prior to the commencement of trading on the Exchange.
The Administrator determines the Basket Amount for a given day by dividing the number of Solana held by the Trust as of the opening of
business on that business day, adjusted for the amount of Solana constituting estimated accrued but unpaid fees and expenses of the Trust
as of the opening of business on that business day, by the quotient of the number of Shares outstanding at the opening of business divided
by 10,000. Fractions of Solana smaller than [___________] are disregarded for purposes of the computation of the Basket Amount. The Basket
Amount so determined is communicated via electronic mail message to all Authorized Participants and made available on the Sponsor's
website for the Shares.
As
of the date of this prospectus, the Trust only creates and redeems Shares in exchange for cash. If the Trust were to create or redeem
Shares in exchange for Solana, the Trust would first need to seek certain regulatory approvals, including an amendment to Exchange's
listing rules and an amendment to the Trust's registration statement, of which this prospectus forms a part. There can be no guarantee
that the Trust will be successful in obtaining such regulatory approvals, and the timing of any such approvals is unknown. If the Trust
is successful in obtaining the necessary regulatory approvals to allow for creations and redemptions in-kind, the Trust will notify Shareholders
in a prospectus supplement and/or a current report on Form 8-K or in its annual or quarterly reports.
Purchases
and Sales of Solana
Because
the Trust will conduct creations and redemptions of Shares for cash, it will be responsible for purchasing and selling Solana in connection
with those creation and redemption orders. The Trust may also be required to sell Solana to pay certain extraordinary, non-recurring
expenses that are not assumed by the Sponsor. The Sponsor, on behalf of the Trust, will typically seek to buy and sell Solana at a price
as close to the Pricing Benchmark as practical. Such purchase and sale transactions may be conducted pursuant to two models: (i) the
"Trust-Directed Trade Model"; and (ii) the "Agent Execution Model." The Trust intends to utilize the Trust-Directed
Trade Model for all purchases and sales of Solana and will only utilize the Agent Execution Model in the event that no Solana Trading
Counterparty (as defined below) is willing or able to effectuate the Trust's purchase or sale of Solana.
Under
the Trust-Directed Trade Model, the Sponsor, on behalf of the Trust, is responsible for acquiring Solana from a Solana trading counterparty
that has been approved by the Sponsor (each, a "Solana Trading Counterparty"). As of _________, _______________________________________
have been approved as Solana Trading Counterparties. The Sponsor has entered into contractual agreements with the Solana Trading Counterparties,
and these agreements set forth the general parameters under which a transaction in Solana will be effectuated, should any transaction
with a Solana Trading Counterparty occur. These agreements do not require the Sponsor to utilize any particular Solana Trading Counterparty,
and do not create any contractual obligations on the part of any Solana Trading Counterparty to participate in cash orders for creations
or redemptions. All transactions between the Sponsor, on behalf of the Trust, and a Solana Trading Counterparty will be done on an arm's-length
basis.
Under
the Agent Execution Model, ___________ ("_________" or the "Prime Execution Agent," which is an affiliate of
the Solana Custodian), acting in an agency capacity, conducts Solana purchases and sales on behalf of the Trust with third parties through
its ____________ service pursuant to an agreement (the "Prime Execution Agreement"). To utilize the Agent Execution Model,
the Trust may maintain some Solana or cash in a trading account (the "Trading Balance") with the Prime Execution Agent. To
avoid having to pre-fund purchases or sales of Solana in connection with cash creations and redemptions and sales of Solana to pay Trust
expenses not assumed by the Sponsor, to the extent applicable, the Trust may borrow Solana or cash as trade credit ("Trade Credit")
from _____ (the "Trade Credit Lender") on a short-term basis pursuant to the _____(the "Trade Financing Agreement").
3
The
CME CF Solana – Dollar Reference Rate – New York Variant
The
Pricing Benchmark was designed to provide a daily, 4:00 p.m. ET reference rate of the U.S. dollar price of one Solana that may be used
to develop financial products. The Pricing Benchmark uses the same methodology as the CME CF Solana – Dollar Reference Rate ("SRR").
The only material difference between the Pricing Benchmark and the SRR is that the SRR measures the U.S. dollar price of one Solana as
of 4:00 p.m. London time and the Pricing Benchmark measures the U.S. dollar price of one Solana as of 4:00 p.m. ET. The CME Group also
publishes the CME CF Solana Real Time Index (the "CME Solana Real Time Price"), which is a continuous measure of the U.S.
dollar price of one Solana calculated once per second. Each of the Pricing Benchmark, the SRR and the CME Solana Real Time Price is representative
of the Solana trading activity on the Constituent Platforms, which include, as of the date of this Prospectus, Bitstamp, Coinbase, Gemini,
itBit, LMAX and Kraken. For more information on the Pricing Benchmark, the ERR and the CME Solana Real Time Price, see "THE TRUST
AND SOLANA PRICES" below.
The
Trust uses the Pricing Benchmark to calculate its daily NAV and utilizes the CME Solana Real Time Price to calculate an Indicative Trust
Value (the "ITV"). The ITV is intended to provide additional information not otherwise available to the public that may be
useful to investors and market professionals in connection with the trading of the Shares on the Exchange. It is calculated by using
the prior day's holdings at close of business and the most recently reported price level of the CME Solana Real Time Price. The
ITV will be disseminated on a per-Share basis every 15 seconds during regular Exchange trading hours of 9:30 a.m. to 4:00 p.m. ET.
The
Trust's Legal Structure
The
Trust is a Delaware statutory trust, formed pursuant to the Delaware Statutory Trust Act (the "DSTA"). The Trust continuously
issues common shares representing units of undivided beneficial ownership of the Trust that may be purchased and sold on the Exchange.
The Trust operates pursuant to the First Amended and Restated Declaration of Trust and Trust Agreement (the "Trust Agreement"),
dated as of _________. Delaware Trust Company, a Delaware trust company, is the Delaware trustee of the Trust (the "Trustee").
The Trust is managed and controlled by the Sponsor pursuant to the terms of the Trust Agreement and the Sponsor Agreement, dated as of
____________, between the Trust and the Sponsor. The Sponsor is a limited liability company formed in the State of Delaware on June 4,
2018. Except as required under applicable federal law or under the rules or regulations of the Exchange, shareholders of the Trust ("Shareholders")
do not have any voting rights and take no part in the management or control of, and have no voice in, the Trust's operations or
business.
The
Trust's Service Providers
The
Sponsor
Bitwise
Investment Advisers, LLC serves as the Sponsor for the Trust. The Sponsor arranged for the creation of the Trust and is responsible for
the ongoing registration of the Shares for their public offering in the United States and the listing of the Shares on the Exchange.
The Sponsor will develop a marketing plan for the Trust, will prepare marketing materials regarding the Shares, and will operate the
marketing plan of the Trust on an ongoing basis. The Sponsor also oversees the additional service providers of the Trust and exercises
managerial control of the Trust as permitted under the Trust Agreement.
The
Trustee
Delaware
Trust Company serves as the Trustee, as required to create a Delaware statutory trust in accordance with the Trust Agreement and the
DSTA.
The
Administrator
The
__________________ ("__________") serves as the Trust's administrator (in such capacity, the "Administrator").
Under the Trust Administration and Accounting Agreement, the Administrator provides necessary administrative, tax and accounting services
and financial reporting for the maintenance and operations of the Trust. In addition, the Administrator makes available the office space,
equipment, personnel and facilities required to provide such services. The Administrator's principal address is ______________________.
4
The
Transfer Agent
_____________
serves as the transfer agent for the Trust (in such capacity, the "Transfer Agent"). The Transfer Agent: (1) issues and redeems
Shares of the Trust; (2) responds to correspondence by Shareholders and others relating to its duties; (3) maintains Shareholder accounts;
and (4) makes periodic reports to the Trust.
The
Solana Custodian
_____________________
serves as the Trust's Solana Custodian pursuant to an agreement
between it and the Trust (the "Solana Custody Agreement"). The Solana Custodian is a fiduciary under § 100 of the New
York Banking Law. Under the Solana Custody Agreement, the Solana Custodian is responsible for safekeeping the Solana owned by the Trust.
The Solana Custodian was selected by the Sponsor. The Solana Custodian has responsibility for opening a special account that holds the
Trust's Solana (the "Trust Solana Account") and implementing the controls designed by the Sponsor for the account,
as well as facilitating the transfer of Solana required for the operation of the Trust. The Solana Custodian will also enter into an
agreement with the Sponsor to open a custody account to receive payment of the Sponsor Fee (the "Sponsor Solana Account").
The
Solana Custodian is a third-party limited-purpose trust company that was chartered in 2018 upon receiving a trust charter from the New
York Department of Financial Services. The Solana Custodian has one of the longest track records in the industry of providing custodial
services for digital asset private keys. The Sponsor believes that the Solana Custodian's policies, procedures, and controls for
safekeeping, exclusively possessing, and controlling the Trust's Solana holdings are consistent with industry best practices to
protect against theft, loss, and unauthorized and accidental use of the private keys. The Trust Solana Account and Sponsor Solana Account
are segregated accounts and are therefore not commingled with corporate or other customer assets.
The
Trust may retain additional Solana custodians from time to time pursuant to a Solana custodian agreement to perform certain services
that are typical of a Solana custodian. The Sponsor may, in its sole discretion, add or terminate Solana custodians at any time.
The
Cash Custodian
The
_______________ also serves as the Cash Custodian pursuant to an agreement between it and the Trust (the "Cash Custody Agreement").
The Cash Custodian is the custodian of the Trust's cash holdings. The Trust may retain additional cash custodians from time to
time pursuant to a cash custodian agreement to perform certain services that are typical of a cash custodian. The Sponsor may, in its
sole discretion, add or terminate cash custodians at any time.
The
Marketing Agent
______________
(the "Marketing Agent") is responsible for: (1) working with the Transfer Agent to review and approve, or reject, purchase
and redemption orders of Shares placed by Authorized Participants with the Transfer Agent; and (2) reviewing and approving the marketing
materials prepared by the Trust for compliance with applicable U.S. Securities and Exchange Commission ("SEC") and Financial
Industry Regulatory Authority ("FINRA") advertising laws, rules, and regulations.
Except
for the specific, limited circumstance and time in which the Trust is using the Agent Execution Model, the Trust, the Sponsor and the
service providers will not loan or pledge the Trust's assets, nor will the Trust's assets serve as collateral for any loan
or similar arrangement. During the specific, limited circumstance and time when the Trust is using the Agent Execution Model, the Trust's
Solana may be subject to a lien to secure outstanding Trade Credits in favor of the Trade Credit Lender, as is discussed in further detail
below.
The
Trust's Fees and Expenses
The
Trust will pay the unitary Sponsor Fee of 0.___% per annum of the Trust's Solana holdings.
The
Sponsor Fee is paid by the Trust to the Sponsor as compensation for services performed under the Trust Agreement and Sponsor Agreement.
Except during periods in which all or a portion of the Sponsor Fee is being waived, the Sponsor Fee will accrue daily and will be payable
in Solana monthly in arrears. The Administrator will calculate the Sponsor Fee on a daily basis by applying a 0.__% annualized rate to
the Trust's total Solana holdings, and the amount of Solana payable in respect of each daily accrual shall be determined by reference
to the Pricing Benchmark.
5
The
NAV of the Trust is reduced each day by the amount of the Sponsor Fee calculated each day. On or about the last day of each month, an
amount of Solana will be transferred from the Trust Solana Account to the Sponsor Solana Account equal to the sum of all daily Sponsor
Fees accrued for the month in U.S. dollars divided by the Pricing Benchmark on the last day of the month. The Trust is not responsible
for paying any fees or costs associated with the transfer of Solana to the Sponsor. The Sponsor, from time to time, may temporarily waive
all or a portion of the Sponsor Fee in its sole discretion. To the extent not already disclosed in the Prospectus, the Sponsor may notify
Shareholders of its intent to commence, or cease, waiving the Sponsor Fee on the Trust's website, in a prospectus supplement, through
a current report on Form 8-K and/or in the Trust's annual or quarterly reports.
In
exchange for the Sponsor Fee, the Sponsor has agreed to assume and pay the normal operating expenses of the Trust, which include the
Trustee's monthly fee and out-of-pocket expenses, the fees of the Trust's regular service providers (Cash Custodian, Solana
Custodian, Prime Execution Agent, Marketing Agent, Transfer Agent and Administrator), exchange listing fees, tax reporting fees, SEC
registration fees, printing and mailing costs, audit fees and up to $500,000 per annum in ordinary legal fees and expenses. The Sponsor
may determine in its sole discretion to assume legal fees and expenses of the Trust in excess of $500,000 per annum. The Sponsor will
also pay the costs of the Trust's organization.
The
Trust may incur certain extraordinary, non-recurring expenses that are not assumed by the Sponsor, including, but not limited to, taxes
and governmental charges, any applicable brokerage commissions, financing fees, Solana Network fees and similar transaction fees, expenses
and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Trust to protect the
Trust or the Shareholders (including, for example, in connection with any fork of the Solana Network, any Incidental Rights (as defined
below) and any IR Asset (as defined below)), any indemnification of the Cash Custodian, Solana Custodian, Prime Execution Agent, Transfer
Agent, Administrator or other agents, service providers or counterparties of the Trust, and extraordinary legal fees and expenses, including
any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters. The Administrator
and/or the Sponsor will direct the Solana Custodian to transfer Solana from the Trust Solana Account to the Sponsor Solana Account to
pay the Sponsor Fee and any other Trust expenses not assumed by the Sponsor. To pay for expenses not assumed by the Sponsor that are
denominated in U.S. dollars, the Sponsor, on behalf of the Trust, may sell the Trust's Solana as necessary to pay such expenses.
Custody
of the Trust's Assets
The
Trust's Solana Custodian will maintain custody of all of the Trust's Solana, other than that which is maintained in a trading
account (the "Trading Balance") with _____________ ("_________" or the "Prime Execution Agent," which
is an affiliate of the Solana Custodian), in the Trust Solana Account. The Trading Balance will only be used in the limited circumstances
in which the Trust is using the Agent Execution Model to effectuate the purchases and sales of Solana. The Solana Custodian provides
safekeeping of digital assets using a multi-layer cold storage security platform designed to provide offline security of the digital
assets held by the Solana Custodian. However, the Solana Custodian is not a banking institution or otherwise a member of the FDIC and,
therefore, deposits held with or assets held by the Solana Custodian are not insured by the FDIC. In addition, neither the Trust nor
the Sponsor insures the Trust's Solana. The Solana Custodian has insurance coverage as a subsidiary under its parent company, _______________,
which procures fidelity (e.g., crime) insurance to protect the organization from risks such as theft of funds. Specifically, the fidelity
program provides coverage for the theft of funds held in hot or cold storage. The insurance program is provided by a syndicate of industry-leading
insurers. The insurance program does not cover, insure or guarantee the performance of the Trust.
The
Solana in the Trust Solana Account may be held across multiple wallets, any of which will feature the following safety and security measures
to be implemented by the Solana Custodian:
●
Cold
                                            Storage
: Cold storage in the context of Solana means keeping the reserve of Solana offline,
                                            which is a widely used security precaution, especially when dealing with a large amount of
                                            Solana. Solana held under custodianship with the Solana Custodian will be kept in high-security,
                                            offline, multi-layer cold storage vaults. This means that the private keys, the cryptographic
                                            component that allows a user to access Solana, are stored offline on hardware that has never
                                            been connected to the internet. Storing the private key offline minimizes the risk of the
                                            Solana being stolen. The Sponsor expects that all of the Trust's Solana will be held
                                            in cold storage of the Solana Custodian on an ongoing basis. In connection with creations
                                            or redemptions, the Trust will, under most circumstances, process redemptions by selling
                                            Solana from the portion of its Solana held in cold storage.
6
●
Private
                                            Keys
: All private keys are securely stored using multiple layers of high-quality encryption
                                            and in Solana Custodian-owned offline hardware vaults in secure environments. No customers
                                            or third parties are given access to the Solana Custodian's private keys.
●
Whitelisting
:
                                            Transactions are only sent to vetted, known addresses. The Solana Custodian's platform
                                            supports pre-approval and test transactions. The Solana Custodian requires authentication
                                            when adding or removing addresses for whitelisting. All instructions to initiate a whitelist
                                            addition or removal must be submitted via the _____________ platform. When a whitelist addition
                                            or removal request is initiated, the initiating user will be prompted to authenticate its
                                            request using a two-factor authentication key. A consensus mechanism on the _____________
                                            platform dictates how many approvals are required in order for the consensus to be achieved
                                            to add or remove a whitelisted address. Only when the consensus is met is the underlying
                                            transaction considered officially approved. An account's roster and user roles are
                                            maintained by the Solana Custodian in a separate log, an Authorized User List ("AUL").
                                            Any changes to the account's roster must be reflected on an updated AUL first and executed
                                            by an authorized signatory.
●
Audit
                                            Trails
: Audit trails exist for all movement of Solana within Solana Custodian-controlled
                                            Solana wallets and are audited annually for accuracy and completeness by an independent external
                                            audit firm.
In
addition to the above measures, in accordance with the Solana Custody Agreement, Solana held in custody with the Solana Custodian will
be segregated from both the proprietary property of the Solana Custodian and the assets of any other customer in accounts that clearly
identify the Trust as the owner of the accounts.
Under
the rare and limited circumstances when the Trust is utilizing the Agent Execution Model to acquire Solana, a portion of the Trust's
Solana holdings and cash holdings may be held with the Prime Execution Agent in the Trading Balance. The Trust will only utilize the
Agent Execution Model when the Trust-Directed Trading Model is unavailable. Within the Trust's Trading Balance, the Prime Execution
Agreement provides that the Trust does not have an identifiable claim to any particular Solana (and cash). Instead, the Trust's
Trading Balance represents an entitlement to a pro rata share of the Solana (and cash) the Prime Execution Agent holds on behalf of customers
who hold similar entitlements against the Prime Execution Agent. In this way, the Trust's Trading Balance represents an omnibus
claim on the Prime Execution Agent's Solana (and cash) held on behalf of the Prime Execution Agent's customers. The Prime
Execution Agent holds the Solana associated with customer entitlements across a combination of omnibus cold wallets, omnibus "hot"
wallets (meaning wallets whose private keys are generated and stored online, in internet-connected computers or devices) or in omnibus
accounts in the Prime Execution Agent's name on a trading venue (including third-party venues and the Prime Execution Agent's
own execution venue) where the Prime Execution Agent executes orders to buy and sell Solana on behalf of its clients. Within such omnibus
hot and cold wallets and accounts, the Prime Execution Agent has represented to the Sponsor that it keeps the majority of assets in cold
wallets, to promote security, while the balance of assets is kept in hot wallets to facilitate rapid withdrawals. However, the Sponsor
has no control over, and for security reasons the Prime Execution Agent does not disclose to the Sponsor, the percentage of Solana that
the Prime Execution Agent holds for customers holding similar entitlements as the Trust, which are kept in omnibus cold wallets, as compared
to omnibus hot wallets or omnibus accounts in the Prime Execution Agent's name on a trading venue. The Prime Execution Agent has
represented to the Sponsor that the percentage of assets maintained in cold versus hot storage is determined by ongoing risk analysis
and market dynamics, in which the Prime Execution Agent attempts to balance anticipated liquidity needs for its customers as a class
against the anticipated greater security of cold storage.
To
the extent that the Trust engages an additional Solana Custodian in the future (a "Future Solana Custodian," and with ______________,
the "Solana Custodians"), other than the Solana held with the Prime Execution Agent in the Trust's Trading Balance,
the Sponsor will allocate the Trust's Solana between the Trust Solana Account at [Solana Custodian] and the special account that
holds the Trust's Solana at the Future Solana Custodian (the "Future Trust Solana Account," and with the Trust Solana
Account, the "Trust Solana Accounts"). In determining the amount and percentage of the Trust's Solana to allocate to
each Trust Solana Account, the Sponsor will consider (i) the concentration of the Trust's Solana at each Solana Custodian, (ii)
the Sponsor's assessment of the safety and security policies and procedures of each Solana Custodian, (iii) the insurance policies
of each Solana Custodian, (iv) the fees and expenses associated with the storage of the Trust's Solana at each Solana Custodian,
(v) the fees and expenses associated with the transfer to or from the Trust Solana Account at each Solana Custodian, and (vi) any other
factor the Sponsor deems relevant in making the allocation determination. The Sponsor does not intend to disclose the amount or percentage
of the Trust's Solana held at either [Solana Custodian] or the Future Solana Custodian, and the Sponsor may change the allocation
between the Solana Custodians at any time and without notice to Shareholders. The fees and expenses associated with the transfer of Solana
between the Trust Solana Account at each Solana Custodian will be borne by the Sponsor, not the Trust or the Shareholders. Any transfer
of Solana between the Trust Solana Accounts at each Solana Custodian will occur "on-chain" over the Solana Network. On-chain
transactions are subject to all of the risks of the Solana Network, including the risk that transactions will be made erroneously and
are generally irreversible.
7
The
Trust relies on the Cash Custodian to hold any cash related to the creation and redemption of Shares, purchase or sale of Solana or held
for payment of expenses not assumed by the Sponsor.
The
Transfer Agent will facilitate the settlement of Shares in response to the placement of purchase and redemption orders from Authorized
Participants.
Plan
of Distribution
When
the Trust sells or redeems its Shares, it will do so in Baskets. The Trust only creates and redeems Baskets in transactions with Authorized
Participants. In connection with an order to purchase Shares, an Authorized Participant shall deliver to the Transfer Agent the amount
of U.S. dollars needed to purchase the Basket Amount of Solana, as well as the per-order transaction fee. In connection with an order
to redeem Shares, an Authorized Participant shall deliver to the Trust's account at DTC the Basket(s) to be redeemed and the Sponsor
shall arrange for the Basket Amount of Solana to be sold and the resulting U.S. dollars to be distributed to the Authorized Participant.
BNY Mellon will facilitate the processing of purchase and redemption orders in Baskets from the Trust in its capacity as Transfer Agent
and will custody the Trust's cash holdings in its capacity as Cash Custodian.
Authorized
Participants may then offer Shares to the public at prices that depend on various factors, including the supply and demand for Shares,
the value of the Trust's assets, and market conditions at the time of a transaction. Investors who buy or sell Shares during the
day from their broker may do so at a premium or discount relative to the NAV of the Shares.
Investors
who decide to buy or sell Shares will place their trade orders through their brokers and may incur customary brokerage commissions and
charges. Prior to this offering, there has been no public market for the Shares. The Shares are expected to be listed for trading, subject
to notice of issuance, on the Exchange under the ticker symbol "____."
Federal
Income Tax Considerations
Owners
of Shares are treated, for U.S. federal income tax purposes, as if they owned a proportionate share of the assets of the Trust. They
are also viewed as if they directly received a proportionate share of any income of the Trust, or as if they had incurred a proportionate
share of the expenses of the Trust. Consequently, each sale of Solana by the Trust (which includes under current Internal Revenue Service
("IRS") guidance using Solana to pay expenses of the Trust) constitutes a taxable event to Shareholders. See "UNITED
STATES FEDERAL INCOME TAX CONSEQUENCES—Taxation of U.S. Shareholders."
Use
of Proceeds
Proceeds
received by the Trust from Purchase Orders of Baskets will be used to acquire Solana. Such deposits of cash are held by the Cash Custodian
on behalf of the Trust until (i) used to acquire Solana, (ii) accrued and distributed to pay Trust expenses and liabilities not assumed
by the Sponsor, (iii) distributed to Authorized Participants in connection with redemptions of Baskets, or (iv) disposed of in a liquidation
of the Trust.
Principal
Investment Risks of an Investment in the Trust
An
investment in the Trust involves risks. Investors may choose to use the Trust as a means of investing indirectly in Solana. Because the
value of the Shares is correlated with the value of the Solana held by the Trust, it is important to understand the investment attributes
of, and the market for, Solana. As noted, there are significant risks and hazards inherent in the Solana market that may cause the price
of Solana to widely fluctuate. Investors considering a purchase of Shares should carefully consider how much of their total assets should
be exposed to the Solana market, and should fully understand, be willing to assume, and have the financial resources necessary to withstand,
the risks involved in the Trust's investment strategy, and be in a position to bear the potential loss of their entire investment
in the Trust.
8
Solana
is a relatively new technological innovation with a limited history. There is no assurance that usage of the Solana Network or Solana
will continue to grow. A contraction in the use or adoption of Solana may result in increased volatility or a reduction in the price
of Solana, which could adversely impact the value of the Shares. Sales of Solana that have been newly released from escrow may cause
the price of Solana to decline, which could negatively affect an investment in the Shares. Solana markets have a limited history, Solana
trading prices have exhibited high levels of volatility, and in some cases such volatility has been sudden and extreme. Because of such
volatility, Shareholders could lose all or substantially all of their investment in the Trust. Regulation of the use of Solana and the
Solana Network continues to evolve both in the United States and in foreign jurisdictions, which may restrict the use of Solana or otherwise
impact the demand for Solana. Disruptions at digital asset trading platforms could adversely affect the availability of Solana and the
ability of Authorized Participants to purchase or sell Solana and, therefore, their ability to create and redeem Shares.
Spot
markets on which Solana trades are relatively new and largely unregulated or may not be complying with existing regulations and, therefore,
may be more exposed to fraud and security breaches than established, regulated exchanges for other financial assets or instruments, which
could have a negative impact on the performance of the Trust. Disruptions at Solana spot markets, futures markets and in the over-the-counter
("OTC") markets could adversely affect the availability of Solana and the ability of Authorized Participants (as defined
below) to purchase or sell Solana or Solana derivatives (or provide cash in relation thereto) and therefore their ability to create and
redeem Shares of the Trust. The loss or destruction of certain "private keys," including by the Custodian, could prevent
the Trust from accessing its Solana. Loss of these private keys may be irreversible and could result in the loss of all or substantially
all of an investment in the Trust. Loss of private keys may also impede the Trust's ability to operate, including by limiting the
Trust's ability to transfer Solana in the face of a redemption request and forcing the Trust to consider liquidation.
Custody
of digital assets such as Solana includes unique risks of loss. The loss or destruction of private keys could prevent the Trust from
accessing its Solana. Loss of these private keys may be irreversible and could result in the loss of all or substantially all of an investment
in the Trust. Similarly, transactions on the Solana Network generally may not be reversed or corrected, meaning that errors in transactions
from the Trust Solana Account could result in the loss of all or substantially all of an investment in the Trust.
There
is no assurance as to whether the Trust will be profitable or whether the Trust will meet its expenses and liabilities. Any investment
made in the Trust may result in a total loss of the investment.
The
Trust's return may not match the performance of the Pricing Benchmark because the Trust incurs operating expenses. The NAV of the
Trust may not always correspond to the market price of its Shares for a number of reasons, including price volatility, trading activity,
normal trading hours for the Trust, the calculation methodology of the NAV, and/or the closing of digital asset trading platforms due
to fraud, failure, security breaches or otherwise. As a result, Baskets may be created or redeemed at a U.S. dollar value that differs
from the market price of the Shares.
9
Risk
Factors
You
should consider carefully the risks described below before making an investment decision. You should also refer to the other information
included in this Prospectus, as well as information found in documents incorporated by reference in this Prospectus, before you decide
to purchase any Shares. These risk factors may be amended, supplemented or superseded from time to time by risk factors contained in
any periodic report, prospectus supplement, post-effective amendment or in other reports filed with the SEC in the future.
Risks
Related to Digital Assets
A
determination that Solana or any other digital asset is a "security" may adversely affect the price of Solana and the value
of the Shares, and result in potentially extraordinary, nonrecurring expenses to, or termination of, the Trust.
Depending
on its characteristics, a digital asset, including Solana, may be considered a "security" under U.S. federal securities laws.
The test for determining whether a particular digital asset is a "security" is complex and difficult to apply, and the outcome
is difficult to predict. Public, though non-binding, statements by senior officials at the SEC have indicated that the SEC does not currently
consider bitcoin to be a security. While publicly non-committal on ether's status a security, there is reason to believe that the
SEC has also concluded that ether is not a security. The SEC staff has also provided informal assurances via no-action letter to a handful
of promoters that their digital assets are not securities.
On
the other hand, the SEC has brought enforcement actions against the issuers and promoters of several other digital assets on the basis
that the digital assets in question are securities. More recently, the SEC has also brought enforcement actions against digital asset
trading platforms for allegedly operating unregistered securities exchanges on the basis that certain of the digital assets traded on
their platforms are securities. For example, in June 2023, the SEC brought suit against two of the largest operators of digital asset
trading platforms in Securities and Exchange Commission v. Binance Holdings Ltd., et al (the "Binance Complaint") and Securities
and Exchange Commission v. Coinbase, Inc., and Coinbase Global, Inc. (the "Coinbase Complaint"), alleging that Binance and
Coinbase had solicited U.S. investors to buy, sell, and trade "crypto asset securities" through their unregistered trading
platforms and operated unregistered securities exchanges, brokerages and clearing agencies. The Binance Complaint and the Coinbase Complaint
have led, and may in the future lead, to further volatility in digital asset prices.
Whether
a digital asset is a security under the U.S. federal securities laws depends on whether it is included in the lists of instruments making
up the definition of "security" in the Securities Act, the Securities Exchange Act of 1934 (the "Exchange Act")
and the Investment Company Act. Digital assets do not appear in any of these lists, although each list includes the terms "investment
contract" and "note," and the SEC has typically analyzed whether a particular digital asset is a security by reference
to whether it meets the tests developed by the federal courts interpreting these terms, known as the "Howey" and "Reves"
tests, respectively. For many digital assets, whether or not the Howey or Reves tests are met is difficult to resolve definitively, and
substantial legal arguments can often be made both in favor of and against a particular digital asset qualifying as a security under
one or both of the Howey and Reves tests. Adding to the complexity, the SEC staff has indicated that the security status of a particular
digital asset can change over time as the relevant facts evolve.
If
the Sponsor determines that Solana is a security under the U.S. federal securities laws, whether that determination is initially made
by the Sponsor itself, or because a federal court upholds an allegation that Solana is a security, the Sponsor does not intend to permit
the Trust to continue holding Solana in a way that would violate the federal securities laws (and therefore would either dissolve the
Trust or potentially seek to operate the Trust in a manner that complies with the federal securities laws, including the Investment Company
Act).
Any
enforcement action by the SEC or a state securities regulator asserting that Solana is a security, or a court decision to that effect,
would be expected to have an immediate material adverse impact on the trading price of Solana, as well as the Shares. This is because
the business models behind most digital assets are incompatible with regulations applying to transactions in securities. If a digital
asset is determined to be a security, it is likely to become difficult or impossible for the digital asset to be traded, cleared or custodied
in the United States through the same channels used by non-security digital assets, which in addition to materially and adversely affecting
the trading value of the digital asset is likely to significantly impact its liquidity and market participants' ability to convert
the digital asset into U.S. dollars. Any assertion that a digital asset is a security by the SEC or another regulatory authority may
have similar effects.
10
If
Solana is found by a court or other regulatory body to be a security, the Trust could be considered an unregistered "investment
company" under the Investment Company Act of 1940, which could necessitate the Trust's liquidation under the terms of the
Trust Agreement. Furthermore, the Trust could be considered to be engaged in a distribution (i.e., a public offering) of unregistered
securities in violation of Section 5 of the Securities Act, which could impose significant civil and criminal liability on the Trust.
There is no guarantee that a court of regulatory body will agree with the Trust's assessment of Solana as a non-security.
Moreover,
whether or not the Sponsor or the Trust were subject to additional regulatory requirements as a result of any determination that its
assets include securities, the Sponsor may nevertheless decide to terminate the Trust, in order, if possible, to liquidate the Trust's
assets while a liquid market still exists. If the SEC or a federal court were to determine that Solana is a security, it is likely that
the value of the Shares of the Trust would decline significantly. Furthermore, if a federal court upholds an allegation that Solana is
a security, the Trust itself may be terminated and, if practical, its assets liquidated.
The
trading prices of many digital assets, including Solana, have experienced extreme volatility in recent periods and may continue to do
so. Extreme volatility in the future, including further declines in the trading price of Solana, could have a material adverse effect
on the value of the Shares and the Shares could lose all or substantially all of their value.
The
price of Solana as determined by the Solana market has experienced periods of extreme volatility and may be influenced by a wide variety
of factors. Speculators and investors who seek to profit from trading and holding Solana generate a significant portion of Solana demand.
Such speculation regarding the potential future appreciation in the value of Solana may cause the price of Solana to increase.
Conversely,
a decrease in demand for or speculative interest regarding Solana may cause the price to decline. The volatility of the price of Solana,
particularly arising from speculative activity, may have a negative impact on the performance of the Trust.
Many
digital assets, including Solana, were only introduced within the past decade, and the medium-to-long-term value of the Shares is subject
to a number of factors relating to the capabilities and development of blockchain technologies and to the fundamental investment characteristics
of digital assets.
Many
digital assets, including Solana, were only introduced within the past decade, and the medium-to-long-term value of the Shares is subject
to a number of factors relating to the capabilities and development of blockchain technologies, such as the recentness of their development;
their dependence on the internet and other technologies; their dependence on the role played by users, developers and validators; and
the potential for malicious activity. For example, the realization of one or more of the following risks could materially adversely affect
the value of the Shares:
●
Digital
asset networks, including networks and networks utilizing the Solana Network, and the software used to operate them are in the early
stages of development. Given the recentness of the development of digital asset networks, digital assets may not function as intended
and parties may be unwilling to use digital assets, which would dampen the growth, if any, of digital asset networks. Because Solana
is a digital asset, the value of the Shares is subject to a number of factors relating to the fundamental investment characteristics
of digital assets, including the fact that digital assets are bearer instruments and loss, theft, compromise, or destruction of the associated
private keys could result in permanent loss of the asset.
●
Digital
                                            asset networks are dependent upon the internet. A disruption of the internet or a digital
                                            asset network, such as the Solana Network, would affect the ability to transfer digital assets,
                                            including Solana, and, consequently, a disruption may impact their value.
●
Although
                                            unlikely, the acceptance of software patches or upgrades by a significant, but not overwhelming,
                                            percentage of the users and validators in a digital asset network, such as the Solana Network,
                                            could theoretically result in a "fork" in such network's blockchain, including
                                            the Solana Network, resulting in the operation of multiple separate networks.
●
Governance
                                            of the Solana Network is by voluntary consensus. As a result, there may be a lack of consensus
                                            or clarity on the governance of the Solana Network, which may stymie the Solana Network's
                                            utility and ability to grow and face challenges. In particular, it may be difficult to find
                                            solutions or marshal sufficient effort to overcome any future problems on the Solana Network,
                                            especially long-term problems.
11
●
Unlike
                                            many other blockchain networks, validators on the Solana Network are not directly compensated
                                            for their participation in the consensus process. Running a validator on the Solana Network
                                            is generally considered a voluntary contribution to the health and decentralization of the
                                            network. Participants run validators for reasons other than direct financial gain, such as
                                            supporting the network's decentralization, ensuring its security, or for reputational
                                            benefits within the Solana community. However, because there is no financial incentive for
                                            entities or individuals to maintain validators, there is no guarantee that such entities
                                            or individuals will continue to run validators. To the extent that a significant number of
                                            entities or individuals stop running validators, there would be serious negative consequences
                                            to the Solana Network's functionality, security and overall existence.
●
Many
                                            digital asset networks, including the Solana, face significant scaling challenges and are
                                            being upgraded with various features designed to increase the speed of digital asset transactions
                                            and the number of transactions that can be processed in a given period (known as "throughput").
                                            These attempts to increase the volume of transactions may not be effective, and such upgrades
                                            may fail, resulting in potentially irreparable damage to the Solana Network and the price
                                            of Solana.
●
In
                                            the past, flaws in the source code for digital assets have been exposed and exploited, including
                                            flaws that disabled some functionality for users, exposed users' personal information
                                            and/or resulted in the theft of users' digital assets. The cryptography underlying
                                            the Solana Network could prove to be flawed or ineffective, or developments in mathematics
                                            and/or technology, including advances in digital computing, algebraic geometry and quantum
                                            computing, could result in such cryptography becoming ineffective. In any of these circumstances,
                                            a malicious actor may be able to compromise the security of the Solana Network or take the
                                            Trust's Solana, which would adversely affect the value of the Shares. Moreover, functionality
                                            of the Solana Network may be negatively affected such that it is no longer attractive to
                                            users, thereby dampening demand for Solana. Even if another digital asset other than Solana
                                            were affected by similar circumstances, any reduction in confidence in the source code or
                                            cryptography underlying digital assets generally could negatively affect the demand for digital
                                            assets and therefore adversely affect the value of the Shares.
Moreover,
because digital assets, including Solana, have been in existence for a relatively short period of time and are continuing to develop,
there may be additional risks in the future that are impossible to predict as of the date of this Prospectus.
Digital
assets represent a new and rapidly evolving industry, and the value of the Shares depends on the acceptance of Solana.
The
first major blockchain-based digital asset, bitcoin, was launched in 2009. The Solana Network launched in 2020. In general, digital asset
networks, including the Solana Network and other cryptographic and algorithmic protocols governing the issuance of digital assets represent
a new and rapidly evolving industry that is subject to a variety of factors that are difficult to evaluate. For example, the realization
of one or more of the following risks could materially adversely affect the value of the Shares:
●
Banks
                                            and other established financial institutions may refuse to process funds for Solana transactions;
                                            process wire transfers to or from digital asset trading platforms, Solana-related companies
                                            or service providers; or maintain accounts for persons or entities transacting in Solana.
                                            As a result, the prices of Solana are largely determined by speculators and validators, thus
                                            contributing to price volatility that makes retailers less likely to accept Solana in the
                                            future.
●
Banks
                                            may not provide banking services, or may cut off banking services, to businesses that provide
                                            digital asset related services or that accept digital assets as payment, which could dampen
                                            liquidity in the market and damage the public perception of digital assets generally or any
                                            one digital asset in particular, such as Solana, and their or its utility as a payment system,
                                            which could decrease the price of digital assets generally or individually.
●
Certain
                                            privacy-preserving features have been or are expected to be introduced to a number of digital
                                            asset networks. If any such features are introduced to the Solana Network, any trading platforms
                                            or businesses that facilitate transactions in Solana may be at an increased risk of criminal
                                            or civil lawsuits, or of having banking services cut off if there is a concern that these
                                            features interfere with the performance of anti-money laundering duties and economic sanctions
                                            checks.
●
Users,
                                            developers and validators may otherwise switch to or adopt certain digital assets at the
                                            expense of their engagement.
12
The
Trust is not actively managed and will not have any formal strategy relating to the development of the Solana Network and will not attempt
to avoid or mitigate losses caused by declines in the price of Solana.
Recent
developments in the digital asset economy have led to extreme volatility and disruption in digital asset markets, a loss of confidence
in participants of the digital asset ecosystem, significant negative publicity surrounding digital assets broadly and market-wide declines
in liquidity.
The
trading prices of many digital assets, including Solana, have experienced extreme volatility in recent periods and may continue to do
so. For instance, there were steep increases in the value of certain digital assets, including Solana, over the course of 2021, and multiple
market observers asserted that digital assets were experiencing a "bubble." These increases were followed by steep drawdowns
throughout 2022 in digital asset trading prices, including for Solana. These episodes of rapid price appreciation followed by steep drawdowns
have occurred multiple times throughout Solana's history. Over the course of 2023, Solana prices have continued to exhibit extreme
volatility.
Extreme
volatility may persist and the value of the Shares may significantly decline in the future without recovery. The digital asset markets
may still be experiencing a bubble or may experience a bubble again in the future. For example, in the first half of 2022, each of Celsius
Network, Voyager Digital Ltd., and Three Arrows Capital declared bankruptcy, resulting in a loss of confidence in participants of the
digital asset ecosystem and negative publicity surrounding digital assets more broadly. In November 2022, FTX Trading Ltd. ("FTX"),
one of the largest digital asset exchanges by volume at the time, halted customer withdrawals amid rumors of the company's liquidity
issues and likely insolvency, which were subsequently corroborated by its CEO. Shortly thereafter, FTX's CEO resigned and FTX and
many of its affiliates filed for bankruptcy in the United States, while other affiliates have entered insolvency, liquidation, or similar
proceedings around the globe, following which the U.S. Department of Justice brought criminal fraud and other charges, and the SEC and
CFTC brought civil securities and commodities fraud charges, against certain of FTX's and its affiliates' senior executives,
including its former CEO. In addition, several other entities in the digital asset industry filed for bankruptcy following FTX's
bankruptcy filing, such as BlockFi Inc. and Genesis Global Capital, LLC ("Genesis"). In response to these events (collectively,
the "2022 Events"), the digital asset markets have experienced extreme price volatility and other entities in the digital
asset industry have been, and may continue to be, negatively affected, further undermining confidence in the digital asset markets.
Some
sources report the price of Solana declined 94% overall in 2022, including over 50% in the two months following FTX's declaration
of bankruptcy. The 2022 events have also negatively impacted the liquidity of the digital asset markets as certain entities affiliated
with FTX engaged in significant trading activity. If the liquidity of the digital asset markets continues to be negatively impacted by
these events, digital asset prices, including Solana, may continue to experience significant volatility or price declines and confidence
in the digital asset markets may be further undermined. In addition, regulatory and enforcement scrutiny has increased, including from,
among others, the Department of Justice, the SEC, the CFTC, the White House and Congress, as well as state regulators and authorities.
These events are continuing to develop, and the full facts are continuing to emerge. It is not possible to predict at this time all of
the risks that they may pose to the Trust, its service providers or to the digital asset industry as a whole.
Extreme
volatility in the future, including further declines in the trading prices of Solana, could have a material adverse effect on the value
of the Shares and the Shares could lose all or substantially all of their value. Furthermore, negative perception, a lack of stability
and standardized regulation in the digital asset economy may reduce confidence in the digital asset economy and may result in greater
volatility in the price of Solana and other digital assets, including a depreciation in value. The Trust is not actively managed and
will not take any actions to take advantage, or mitigate the impacts, of volatility in the price of Solana.
Proof-of-stake
blockchains are a relatively recent innovation and have not been subject to as widespread use or adoption over as long of a period of
time as traditional proof-of-work blockchains.
Certain
digital assets, such as bitcoin, use a "proof-of-work" consensus algorithm. The genesis block on the Bitcoin blockchain was
mined in 2009, and Bitcoin's blockchain has been in operation since then. Many newer blockchains enabling smart contract functionality,
including the current Ethereum network following the completion of the Merge in 2022, use a newer consensus algorithm known as "proof-of-stake."
While their proponents believe that they may have certain advantages, the "proof-of-stake" consensus mechanisms and governance
systems underlying many newer blockchain protocols, including the Solana Network, and their associated digital assets – including
the Solana held by the Trust – have not been tested at scale over as long of a period of time or subject to as widespread use or
adoption as, for example, Bitcoin's proof-of-work consensus mechanism has. This could lead to these blockchains, and their associated
digital assets, having undetected vulnerabilities, structural design flaws, suboptimal incentive structures for network participants
(e.g., validators), technical disruptions, or a wide variety of other problems, any of which could cause these blockchains not to function
as intended, lead to outright failure to function entirely causing a total outage or disruption of network activity, or to suffer other
operational problems or reputational damage, leading to a loss of users or adoption or a loss in value of the associated digital assets,
including the Trust's assets. Over the long term, there can be no assurance that the proof-of-stake blockchain on which the Trust's
assets rely will achieve widespread scale or adoption or perform successfully; any failure to do so could negatively impact the value
of the Trust's assets.
13
The
Solana Protocol was only conceived in 2017 and the Solana Protocol or its proof-of-history timestamping mechanism may not function as
intended, which could have an adverse impact on the value of Solana and an investment in the Shares.
The
Solana protocol was first conceived by Anatoly Yakovenko in a 2017 whitepaper, and introduced the Proof-of-History ("PoH")
timestamping mechanism. PoH is a timestamping mechanism that automatically orders on-chain transactions by creating a historical record
that proves an event has occurred at a specific moment in time. PoH is intended to provide a transaction processing speed and capacity
advantage over other blockchain networks like Bitcoin and Ethereum, which rely on sequential production of blocks and can lead to delays
caused by validator confirmations.
PoH
is a new blockchain technology that is not widely used, and may not function as intended. For example, it may require more specialized
equipment to participate in the network and fail to attract a significant number of users. In addition, there may be flaws in the cryptography
underlying PoH or the Solana protocol, including flaws that affect functionality of the Solana Network or make the network vulnerable
to attack.
For
example, on September 14, 2021, the Solana Network experienced a significant disruption, later attributed to a type of denial of service
attack, and was offline for 17 hours, only returning to full functionality 24 hours later. The development of the Solana Network is ongoing
and any further disruption could have a material adverse effect on the value of Solana and an investment in the Shares.
Digital
asset networks face significant scaling challenges and efforts to increase the volume and speed of transactions may not be successful.
Many
digital asset networks, including the Solana Network, face significant scaling challenges due to the fact that public blockchains generally
face a tradeoff between security and scalability. One means through which public blockchains achieve security is decentralization, meaning
that no intermediary is responsible for securing and maintaining these systems. For example, a greater degree of decentralization generally
means a given digital asset network is less susceptible to manipulation or capture. Achieving decentralization may mean that every single
node on a given digital asset network is responsible for securing the system by processing every transaction and every single full node
is responsible for maintaining a copy of the entire state of the network. However, this may involve tradeoffs from an efficiency perspective,
and impose constraints on throughput. A digital asset network may be limited in the number of transactions it can process by the fact
that all validators participate in validating in each block and the capabilities of each single fully participating node. Many developers
are actively researching and testing scalability solutions for public blockchains that do not necessarily result in lower levels of security
or decentralization, such as off-chain payment channels. Off-chain payment channels would allow parties to transact without requiring
the full processing power of a blockchain.
As
of ________, 20__, the Solana Network handled approximately [3,000] transactions per second. In an effort to increase the volume of transactions
that can be processed on a given digital asset network, many digital assets are being upgraded with various features to increase the
speed and throughput of digital asset transactions.
As
corresponding increases in throughput lag behind growth in the use of digital asset networks, average fees and settlement times may increase
considerably. Since inception, Solana transaction fees have stood at a fixed rate of 0.000005 Solana per transaction. Increased fees
and decreased settlement speeds could preclude certain uses for Solana (e.g., micropayments) and could reduce demand for, and the price
of, Solana, which could adversely impact the value of the Shares.
There
is no guarantee that any of the mechanisms in place or being explored for increasing the scale of settlement of Solana Network transactions
will be effective, or how long these mechanisms will take to become effective, which could adversely impact the value of the Shares.
14
The
rapid development of other competing scalability solutions, such as those which would rely on handling the bulk of computational work
relating to transactions or smart contracts and DApps outside of the main Solana Network and Solana blockchain, has caused alternatives
to sharding to emerge. "Layer 2" is a collective term for solutions which are designed to help increase throughput and reduce
transaction fees by handling or validating transactions off the main Solana Network (known as "Layer 1") and then attempting
to take advantage of the perceived security and integrity advantages of the Layer 1 Solana Network by uploading the transactions validated
on the Layer 2 protocol back to the Layer 1 Solana Network. The details of how this is done vary significantly between different Layer
2 technologies and implementations. For example, "rollups" perform transaction execution outside the Layer 1 Solana Network
and then post the data, typically in batches, back to the Layer 1 Solana Network where consensus is reached. "Zero knowledge rollups"
are generally designed to run the computation needed to validate the transactions off-chain, on the Layer 2 protocol, and submit a proof
of validity of a batch of transactions (not the entire transactions themselves) that is recorded on the Layer 1 Solana Network. By contrast,
"optimistic rollups" assume transactions are valid by default and only run computation, via a fraud proof, in the event of
a challenge. Other proposed Layer 2 scaling solutions include, among others, "state channels", which are designed to allow
participants to run a large number of transactions on the Layer 2 side channel protocol and only submit two transactions to the main
Layer 1 Solana Network (the transaction opening the state channel, and the transaction closing the channel), "side chains",
in which an entire Layer 2 blockchain network with similar capabilities to the existing Layer 1 Solana Network runs in parallel with
the existing Layer 1 Solana Network and allows smart contracts and DApps to run on the Layer 2 side chain without burdening the main
Layer 1 network, and others. To date, the Solana Network community has not coalesced overwhelmingly around any particular Layer 2 solution,
though this could change.
Many
developers are actively researching and testing scalability solutions for public blockchains. However, there is no guarantee that any
of the mechanisms in place or being explored for increasing speed and throughput of settlement of the Solana Network transactions will
be effective, which could cause the Solana Network to not adequately resolve scaling challenges and adversely impact the adoption of
Solana and the Solana Network and the value of the Shares. There is no guarantee that any potential scaling solution, whether a change
to the Layer 1 Solana Network like sharding or the introduction of a Layer 2 solution like rollups, state channels or side chains, will
achieve widespread adoption. It is possible that proposed changes to the Layer 1 Solana Network could divide the community, potentially
even causing a hard fork, or that the decentralized governance of the Solana Network causes network participants to fail to coalesce
overwhelmingly around any particular solution, causing the Solana Network to suffer reduced adoption or causing users or validators to
migrate to other blockchain networks. It is also possible that scaling solutions could fail to work as intended, could suffer from centralization
concerns, or could introduce bugs, coding defects or flaws, security risks, or other problems that could cause them to suffer operational
disruptions. Alternatively, if a widely-used Layer 2 network were to fail, it could reduce demand for Solana because it would eliminate
a source of demand for using Solana to record transactions from the Layer 2 onto the Layer 1 Solana Network. Any of the foregoing could
adversely affect the price of Solana or the value of the Shares of the Trust.
Failure
of funds that hold digital assets to receive SEC approval to list their shares on exchanges could adversely affect the value of the Shares.
There
have been a growing a number of attempts to list on national securities exchanges the shares of funds that hold digital assets. These
investment vehicles attempt to provide institutional and retail investors exposure to markets for digital assets and related products.
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. However, the SEC has repeatedly denied such requests. If exchange-listing requests 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.
15
Risks
Associated with Solana and the Solana Network
The
value of the Shares relates directly to the price of Solana, which may be highly volatile and subject to fluctuations due to a number
of factors.
The
value of the Shares relates directly to the value of the Solana held by the Trust and fluctuations in the price of Solana could adversely
affect the value of the Shares. The market price of Solana may be highly volatile, and subject to a number of factors, including:
●
an
                                            increase in the global Solana supply or a decrease in global Solana demand;
●
market
                                            conditions of, and overall sentiment towards, the digital assets and blockchain technology
                                            industry;
●
trading
                                            activity on digital asset trading platforms, which, in many cases, are largely unregulated
                                            or may be subject to manipulation;
●
the
                                            adoption of Solana as a medium of exchange, store-of-value or other consumptive asset and
                                            the maintenance and development of the open-source software protocol of the Solana Network,
                                            and their ability to meet user demands;
●
manipulative
                                            trading activity on digital asset exchanges, which, in many cases, are largely unregulated;
●
the
                                            needs of decentralized applications, smart contracts, their users, and users of the Solana
                                            Network generally for Solana to pay gas fees to execute transactions;
●
forks
                                            in the Solana Network, particularly where changes to the Solana Network source code are either
                                            not well-received by key constituencies within the Solana community or are not successfully
                                            executed or implemented and fail to achieve the functionality such changes were intended
                                            to bring about;
●
governmental
                                            or regulatory actions by, or investigations or litigation in, countries around the world
                                            targeting well-known decentralized applications or smart contracts that are built on the
                                            Solana Network, or other developments or problems, and associated publicity, involving or
                                            affecting such decentralized applications or smart contracts;
●
increased
                                            competition from other forms of digital assets or payment services, including digital currencies
                                            constituting legal tender that may be issued in the future by central banks, or digital assets
                                            meant to serve as a medium of exchange by major private companies or other institutions;
●
increased
                                            competition from other blockchain networks combining smart contracts, programmable scripting
                                            languages, and an associated runtime environment, with blockchain-based recordkeeping, particularly
                                            where such other blockchain networks are able to offer users access to a larger consumer
                                            user base, greater efficiency, reliability, or processing speed, or more economical transaction
                                            processing fees than the Solana Network;
●
investors'
                                            expectations with respect to interest rates, the rates of inflation of fiat currencies or
                                            Solana, and digital asset exchange rates;
●
consumer
                                            preferences and perceptions of Solana specifically and digital assets generally, the Solana
                                            Network relative to competing blockchain protocols, and Solana relative to competing digital
                                            assets;
●
negative
                                            events, publicity, and social media coverage relating to the digital assets and blockchain
                                            technology industry;
●
fiat
                                            currency withdrawal and deposit policies on digital asset trading platforms;
●
the
                                            liquidity of digital asset markets and any increase or decrease in trading volume or market
                                            making on digital asset markets;
●
business
                                            failures, bankruptcies, hacking, fraud, crime, government investigations, or other negative
                                            developments affecting digital asset businesses, including digital asset trading platforms,
                                            or banks or other financial institutions and service providers which provide services to
                                            the digital assets industry;
●
the
                                            use of leverage in digital asset markets, including the unwinding of positions, "margin
                                            calls", collateral liquidations and similar events;
16
●
investment
                                            and trading activities of large or active consumer and institutional users, speculators,
                                            miners, and investors in Solana;
●
a
                                            "short squeeze" resulting from speculation on the price of Solana, if aggregate
                                            short exposure exceeds the number of shares available for purchase;
●
an
                                            active derivatives market for Solana or for digital assets generally;
●
monetary
                                            policies of governments, legislation or regulation, trade restrictions, currency devaluations
                                            and revaluations and regulatory measures or enforcement actions, if any, that restrict the
                                            use of Solana as a form of payment or the purchase of Solana on the digital asset markets;
●
global
                                            or regional political, economic or financial conditions, events and situations, such as the
                                            novel coronavirus outbreak;
●
fees
                                            associated with processing a Solana transaction and the speed at which Solana transactions
                                            are settled;
●
the
                                            maintenance, troubleshooting, and development of the Solana Network including by miners and
                                            developers worldwide;
●
the
                                            ability for the Solana Network to attract and retain miners to secure and confirm transactions
                                            accurately and efficiently;
●
ongoing
                                            technological viability and security of the Solana Network and Solana transactions, including
                                            vulnerabilities against hacks and scalability;
●
financial
                                            strength of market participants;
●
the
                                            availability and cost of funding and capital;
●
the
                                            liquidity and credit risk of digital asset trading platforms;
●
interruptions
                                            in service from or closures or failures of major digital asset trading platforms or their
                                            banking partners, or outages or system failures affecting the Solana Network;
●
decreased
                                            confidence in digital assets and digital assets trading platforms;
●
poor
                                            risk management or fraud by entities in the digital assets ecosystem;
●
increased
                                            competition from other forms of digital assets or payment services; and
●
the
                                            Trust's own acquisitions or dispositions of Solana, since there is no limit on the
                                            number of Solana that the Trust may acquire.
Although
returns from investing in Solana have at times diverged from those associated with other asset classes to a greater or lesser extent,
there can be no assurance that there will be any such divergence in the future, either generally or with respect to any particular asset
class, or that price movements will not be correlated. In addition, there is no assurance that Solana will maintain its value in the
long, intermediate, short, or any other term. In the event that the price of Solana declines, the Sponsor expects the value of the Shares
to decline proportionately.
The
price of the Shares of the Trust is represented by the Pricing Benchmark that may also be subject to momentum pricing due to speculation
regarding future appreciation in value of Solana, leading to greater volatility that could adversely affect the value of the Shares.
Momentum pricing typically is associated with growth stocks and other assets whose valuation, as determined by the investing public,
accounts for future appreciation in value, if any. The Sponsor believes that momentum pricing of Solana has resulted, and may continue
to result, in speculation regarding future appreciation in the value of Solana, inflating and making the Pricing Benchmark more volatile.
As a result, Solana may be more likely to fluctuate in value due to changing investor confidence, which could impact future appreciation
or depreciation in the Pricing Benchmark and could adversely affect the value of the Trust.
The
Trust is not actively managed and does not and will not have any strategy relating to the development of the Solana Network, nor will
the Trust seek to avoid or mitigate losses from declines in the Solana price. Furthermore, the impact of the expansion of the Trust's
Solana holdings on the digital asset industry and the Solana Network is uncertain. A decline in the popularity or acceptance of the Solana
Network, or the value of Solana, would harm the value of the Trust.
17
Solana
is a relatively new technological innovation with a limited operating history.
Solana
has a relatively limited history of existence and operations. There is a limited established performance record for the price of Solana
and, in turn, a limited basis for evaluating an investment in Solana. Although past performance is not necessarily indicative of future
results, if Solana had a more established history, such history might (or might not) provide investors with more information on which
to evaluate an investment in the Trust.
Blockchain
technologies are based on theoretical conjectures as to the impossibility of solving certain cryptographical puzzles quickly. These premises
may be incorrect or may become incorrect due to technological advances.
Blockchain
technologies are premised on theoretical conjectures as to the impossibility, in practice, of solving certain mathematical problems quickly.
Those conjectures remain unproven, however, and mathematical or technological advances could conceivably prove them to be incorrect.
Blockchain technology companies may also be negatively affected by cryptography or other technological or mathematical advances, such
as the development of quantum computers with significantly more power than computers presently available, that undermine or vitiate the
cryptographic consensus mechanism underpinning the Solana blockchain and other distributed ledger protocols. If either of these events
were to happen, markets that rely on blockchain technologies, such as the Solana Network, could quickly collapse, and an investment in
the Trust may be adversely affected.
The
value of the Shares depends on the development and acceptance of the Solana Network. The slowing or stopping of the development or acceptance
of the Solana Network may adversely affect an investment in the trust.
Digital
assets such as Solana were only introduced within the past 15 years, and the medium to long term value of the Shares is subject to a
number of factors over time relating to the capabilities and development of blockchain technologies, such as the recentness of their
development, their dependence on the internet and other technologies, their dependence on the role played by users, developers validators
and the potential for malicious activity. Solana itself was conceived only in 2017, and first sold in 2018. For example, the realization
of one or more of the following risks could materially adversely affect the value of the Shares: digital asset networks, including the
Solana peer-to-peer network and associated blockchain ledger (such blockchain, the "Solana blockchain" and together with
the peer-to-peer network, the "Solana Network" or "Layer 1 Solana Network"), and the software used to operate
them are in the early stages of development. Given the recentness of the development of digital asset networks, digital assets may not
function as intended and parties may be unwilling to use digital assets, which would dampen the growth, if any, of digital asset networks.
Because Solana is a digital asset, the value of the Shares is subject to a number of factors relating to the fundamental investment characteristics
of digital assets, including the fact that digital assets are bearer instruments and loss, theft, compromise, or destruction of the associated
private keys could result in permanent loss of the asset.
The
Solana Network, including the cryptographic and algorithmic protocols associated with the operation of the Solana blockchain, has only
been in existence since 2017, and Solana markets have a limited performance record, making them part of a new and rapidly evolving industry
that is subject to a variety of factors that are difficult to evaluate. For example, the following are some of the risks could materially
adversely affect the value of the Shares:
●
Digital
                                            assets, including Solana, are controllable only by the possessor of both the unique public
                                            key and private key or keys relating to the Solana Network address, or "wallet",
                                            at which the digital asset is held. Private keys must be safeguarded and kept private in
                                            order to prevent a third party from accessing the digital asset held in such wallet. The
                                            loss, theft, compromise or destruction of a private key required to access a digital asset
                                            may be irreversible. If a private key is lost, stolen, destroyed or otherwise compromised
                                            and no backup of the private key is accessible, the owner would be unable to access the digital
                                            asset corresponding to that private key and the private key will not be capable of being
                                            restored by the digital asset network resulting in the total loss of the value of the digital
                                            asset linked to the private key.
●
Digital
                                            asset networks are dependent upon the internet. A disruption of the internet or a digital
                                            asset network, such as the Solana Network, would affect the ability to transfer digital assets,
                                            including Solana, and, consequently, their value.
18
●
Governance
                                            of the Solana Network is by voluntary consensus and open competition. As a result, there
                                            may be a lack of consensus or clarity on the governance of the Solana Network, which may
                                            stymie the Solana Network's utility and ability to grow and face challenges. In particular,
                                            it may be difficult to find solutions or martial sufficient effort to overcome any future
                                            problems on the Solana Network, especially long-term problems.
●
The
                                            foregoing notwithstanding, the Solana Network's protocol is informally overseen by
                                            a collective of core developers who propose amendments to the relevant network's source
                                            code. Core developers' roles evolve over time, largely based on self-determined participation.
                                            If a significant majority of users and validators were to adopt amendments to the Solana
                                            Network based on the proposals of such core developers, the Solana Network would be subject
                                            to new protocols that may adversely affect the value of Solana.
●
To
                                            the extent that any validators cease to record transactions that do not include the payment
                                            of a transaction fee in solved blocks or do not record a transaction because the transaction
                                            fee is too low, such transactions will not be recorded on the Solana blockchain until a block
                                            is validated by a validator who does not require the payment of transaction fees or is willing
                                            to accept a lower fee. Any widespread delays in the recording of transactions could result
                                            in a loss of confidence in a digital asset network.
●
As
                                            the Solana Network continues to develop and grow, certain technical issues might be uncovered
                                            and the trouble shooting and resolution of such issues requires the attention and efforts
                                            of Solana's global development community. Like all software, the Solana Network is
                                            at risk of vulnerabilities and bugs that can potentially be exploited by malicious actors.
●
Many
                                            digital asset networks, including the Solana Network, face significant scaling challenges
                                            and are being upgraded with various features designed to increase the speed of digital asset
                                            transactions and the number of transactions that can processed in a given period (known as
                                            "throughput"). These attempts to increase the volume of transactions may not
                                            be effective, and such upgrades may fail, resulting in potentially irreparable damage to
                                            the Solana Network and the value of Solana.
●
Moreover,
                                            in the past, bugs, defects and flaws in the source code for digital assets have been exposed
                                            and exploited, including flaws that disrupted normal Solana Network, Solana Client, or DApp
                                            and smart contract operations or disabled related functionality for users, exposed users'
                                            personal information and/or resulted in the theft of users' digital assets. The cryptography
                                            underlying the Solana Network or Solana as an asset could prove to be flawed or ineffective,
                                            or developments in mathematics and/or technology, including advances in digital computing,
                                            algebraic geometry and quantum computing, could result in such cryptography becoming ineffective.
                                            In any of these circumstances, a malicious actor may be able to compromise the security of
                                            the Solana Network or take the Trust's Solana, which would adversely affect the value
                                            of the Shares. Moreover, normal operations and functionality of the Solana Network may be
                                            negatively affected Such losses of functionality could lead to the Solana Network losing
                                            attractiveness to users, nodes, validators, or other stakeholders, thereby dampening demand
                                            for Solana. Even if another digital asset other than Solana were affected by similar circumstances,
                                            any reduction in confidence in the source code or cryptography underlying digital assets
                                            generally could negatively affect the demand for digital assets and therefore adversely affect
                                            the value of the Shares.
●
The
                                            Solana Network is still in the process of developing and making significant decisions that
                                            will affect policies that govern the supply and issuance of Solana as well as other Solana
                                            Network protocols. The open-source nature of many digital asset network protocols, such as
                                            the protocol for the Solana Network, means that developers and other contributors are generally
                                            not directly compensated for their contributions in maintaining and developing such protocols.
                                            As a result, the developers and other contributors of a particular digital asset may lack
                                            a financial incentive to maintain or develop the network, or may lack the resources to adequately
                                            address emerging issues. Alternatively, some developers may be funded by companies whose
                                            interests are at odds with other participants in a particular digital asset network. If the
                                            Solana Network does not successfully develop its policies on supply and issuance, and other
                                            major design decisions or does so in a manner that is not attractive to network participants
                                            it could lead to a decline in adoption of the Solana Network and price of Solana.
19
●
Software
                                            applications running on top of the Solana Network (often referred to as "decentralized
                                            applications" or "DApps", whether or not decentralized in fact) and smart
                                            contract developers depend on being able to obtain Solana to be able to run their programs
                                            and operate their businesses. In particular, decentralized applications and smart contracts
                                            require Solana in order to pay the gas fees needed to power such applications and smart contracts
                                            and execute transactions. As such, they represent a significant source of demand for Solana.
                                            Solana's price volatility (particularly where Solana prices increase), or the Solana
                                            Network's wider inability to meet the demands of decentralized applications and smart
                                            contracts in terms of inexpensive, reliable, and prompt transaction execution (including
                                            during congested periods), or to solve its scaling challenges or increase its throughput,
                                            may discourage such decentralized application and smart contract developers from using the
                                            Solana Network as the foundational infrastructure layer for building their applications and
                                            smart contracts. If decentralized application and smart contract developers abandon the Solana
                                            blockchain for other blockchain or digital asset networks or protocols for whatever reason,
                                            the value of Solana could be negatively affected.
Moreover,
because digital assets, including Solana, have been in existence for a short period of time and are continuing to develop, there may
be additional risks in the future that are impossible to predict as of the date of this Prospectus.
Smart
contracts, including those relating to DeFi applications, are a new technology and their ongoing development and operation may result
in problems, which could reduce the demand for Solana or cause a wider loss of confidence in the Solana Network, either of which could
have an adverse impact on the value of sol.
Smart
contracts are programs that run on the Solana blockchain that execute automatically when certain conditions are met. Since smart contracts
typically cannot be stopped or reversed, vulnerabilities in their programming can have damaging effects. For example, in June 2016, a
vulnerability in the smart contracts underlying the DAO, a distributed autonomous organization for venture capital funding on the Ethereum
network, allowed an attack by a hacker to syphon approximately $60 million worth of ETH from The DAO's accounts into a segregated
account. In the aftermath of the theft, certain core developers and contributors pursued a "hard fork" of the Ethereum Network
in order to erase any record of the theft. Despite these efforts, the price of ETH reportedly dropped approximately 35% in the aftermath
of the attack and subsequent hard fork. In addition, in July 2017, a vulnerability in a smart contract for a multi-signature wallet software
developed by Parity led to a reportedly $30 million theft of ETH, and in November 2017, a new vulnerability in Parity's wallet
software reportedly led to roughly $160 million worth of ETH being indefinitely frozen in an account. Furthermore, in April 2018, a batch
overflow bug was found in many Ethereum-based ERC20-compatible smart contract tokens that allows hackers to create a large number of
smart contract tokens, causing multiple crypto asset platforms worldwide to shut down ERC20-compatible token trading. Similarly, in March
2020, a design flaw in the MakerDAO smart contract caused forced liquidations of crypto assets at significantly discounted prices, resulting
in millions of dollars of losses to users who had deposited crypto assets into the smart contract. In another example, in February 2022,
a vulnerability in a smart contract for Wormhole, a bridge between the Ethereum and Solana Networks led to a $320 million theft of Ethereum.
While persons associated with Solana Labs and/or the Solana Foundation are understood to have played a key role in bringing the network
back online, the broader community also played a key role, as Solana validators coordinated to upgrade and restart the network. Other
smart contracts, such as bridges between blockchain networks and decentralized finance ("DeFi") protocols have also been
manipulated, exploited or used in ways that were not intended or envisioned by their creators such that attackers syphoned over $3.8
billion worth of digital assets from smart contracts in 2022. Problems with the development, deployment, and operation of smart contracts
may have an adverse effect on the value of Solana, just as they have for other digital assets like Ethereum.
In
some cases, smart contracts can be controlled by one or more "admin keys" or users with special privileges, or "super
users". These users may have the ability to unilaterally make changes to the smart contract, enable or disable features on the
smart contract, change how the smart contract receives external inputs and data, and make other changes to the smart contract. Furthermore,
in some cases inadequate public information may be available information asymmetries may exist, even with respect to open-source smart
contracts or applications; certain participants may have hidden informational or technological advantages, making for an uneven playing
field. There may be opportunities for bad actors to perpetrate fraudulent schemes and engage in illicit activities and other misconduct,
such as exit scams and rug pulls (orchestrated by developers and/or influencers who promote a smart contract or application and, ultimately,
escape with the money at an agreed time), or Ponzi or similar fraud schemes.
20
Many
DeFi applications are currently deployed on the Solana Network, and smart contracts relating to DeFi applications currently represent
a significant source of demand for Solana. DeFi applications may achieve their investment purposes through self-executing smart contracts
that may allow users to invest digital assets in a pool from which other users can borrow without requiring an intermediate party to
facilitate these transactions. These investments may earn interest to the investor based on the rates at which borrowers repay the loan,
and can generally be withdrawn by the investor. For smart contracts that hold a pool of digital asset reserves, smart contract super
users or admin key holders may be able to extract funds from the pool, liquidate assets held in the pool, or take other actions that
decrease the value of the digital assets held by the smart contract in reserves. Even for digital assets that have adopted a decentralized
governance mechanism, such as smart contracts that are governed by the holders of a governance token, such governance tokens can be concentrated
in the hands of a small group of core community members, who would be able to make similar changes unilaterally to the smart contract.
If any such super user or group of core members unilaterally make adverse changes to a smart contract, the design, functionality, features
and value of the smart contract, its related digital assets may be harmed. In addition, assets held by the smart contract in reserves
may be stolen, misused, burnt, locked up or otherwise become unusable and irrecoverable. Super users can also become targets of hackers
and malicious attackers. If an attacker is able to access or obtain the super user privileges of a smart contract, or if a smart contract's
super users or core community members take actions that adversely affect the smart contract, users who transact with the smart contract
may experience decreased functionality of the smart contract or may suffer a partial or total loss of any digital assets they have used
to transact with the smart contract. Furthermore, the underlying smart contracts may be insecure, contain bugs or other vulnerabilities,
or otherwise may not work as intended. Any of the foregoing could cause users of the DeFi application to be negatively affected, or could
cause the DeFi application to be the subject of negative publicity. Because DeFi applications may be built on the Solana Network and
represent a significant source of demand for Solana, public confidence in the Solana Network itself could be negatively affected, such
sources of demand could diminish and the value of Solana could decrease. Similar risks apply to any smart contract or decentralized application,
not just DeFi applications.
Digital
assets may have concentrated ownership and large sales or distributions by holders of such digital assets, or any ability to participate
in or otherwise influence a digital asset's underlying network, could have an adverse effect on the market price of such digital
asset.
As
of September 2024, the largest 100 Solana wallets held approximately 22% of the Solana in circulation. Moreover, it is possible that
other persons or entities control multiple wallets that collectively hold a significant number of Solana, even if they individually only
hold a small amount, and it is possible that some of these wallets are controlled by the same person or entity. As a result of this concentration
of ownership, large sales or distributions by such holders could have an adverse effect on the market price of Solana. Competition from
other consortia or private blockchains could have a negative impact on the price of Solana and adversely affect an investment in the
Shares.
Any
name change and any associated rebranding initiative by the core developers of Solana may not be favorably received by the digital asset
community, which could negatively impact the value of Solana and the value of the Shares.
From
time to time, digital assets may undergo name changes and associated rebranding initiatives. For example, Bitcoin Cash may sometimes
be referred to as Bitcoin ABC in an effort to differentiate itself from any Bitcoin Cash hard forks, such as Bitcoin Satoshi's
Vision, and in the third quarter of 2018, the team behind ZEN rebranded and changed the name of ZenCash to "Horizen." We
cannot predict the impact of any name change and any associated rebranding initiative on Solana. After a name change and an associated
rebranding initiative, a digital asset may not be able to achieve or maintain brand name recognition or status that is comparable to
the recognition and status previously enjoyed by such digital asset. The failure of any name change and any associated rebranding initiative
by a digital asset may result in such digital asset not realizing some or all of the anticipated benefits contemplated by the name change
and associated rebranding initiative, and could negatively impact the value of Solana and the value of the Shares.
The
loss or destruction of a private key required to access Solana may be irreversible. The Solana Custodian's loss of access to a
private key associated with the Trust's Solana could adversely affect an investment in the Shares.
Transfers
of Solana among users are accomplished via Solana transactions (i.e., sending Solana from one user to another). The creation of an Solana
transaction requires the use of a unique numerical code known as a "private key." In the absence of the correct private key
corresponding to a holder's particular Solana, the Solana is inaccessible. The custody of the Trust's Solana is handled by
the Solana Custodian, and the transfer of Solana to and from Authorized Participants is directed by the Sponsor. The Sponsor has evaluated
the procedures and internal controls of the Trust's Solana Custodian to safeguard the Trust's Solana holdings. If the Solana
Custodian's internal procedures and controls are inadequate to safeguard the Trust's Solana holdings, and the Trust's
private key(s) is(are) lost, destroyed or otherwise compromised and no backup of the private key(s) is(are) accessible, the Trust will
be unable to access its Solana, which could adversely affect an investment in the Shares. In addition, if the Trust's private key(s)
is(are) misappropriated and the Trust's Solana holdings are stolen, the Trust could lose some or all of its Solana holdings, which
could adversely impact an investment in the Shares.
21
New
competing digital assets may result in a reduction in demand for Solana, which could have a negative impact on the price of Solana and
may have a negative impact on the performance of the Trust.
Solana
faces significant competition from other digital assets, as well as from other technologies or payment forms, such as SWIFT, ACH, remittance
networks, credit cards and cash. There is no guarantee that Solana will become a dominant form of cross-border payments, store of value
or method of exchange.
Competition
From central bank digital currencies and emerging payments initiatives involving financial institutions could adversely affect the value
of Solana and other digital assets.
Central
banks in various countries have introduced digital forms of legal tender ("CBDCs"). 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, Solana
and other cryptocurrencies as a medium of exchange or store of value. Central banks and other governmental entities have also announced
cooperative initiatives and consortia with private sector entities, with the goal of leveraging blockchain and other technology to reduce
friction in cross-border and interbank payments and settlement, and commercial banks and other financial institutions have also recently
announced a number of initiatives of their own to incorporate new technologies, including blockchain and similar technologies, into their
payments and settlement activities, which could compete with, or reduce the demand for, Solana. As a result of any of the foregoing factors,
the value of Solana could decrease, which could adversely affect an investment in the Trust.
The
price of Solana may be affected due to stablecoins (including Tether and USDC), the activities of stablecoin issuers and their regulatory
treatment.
While
the Trust does not invest in and will not hold stablecoins, it may nonetheless be exposed to risks that stablecoins pose for the Solana
market and other digital asset markets. Stablecoins are digital assets designed to have a stable value over time as compared to typically
volatile digital assets, and are typically marketed as being pegged to a fiat currency, such as the U.S. dollar, at a certain value.
Although the prices of stablecoins are intended to be stable, their market value may fluctuate. This volatility has in the past apparently
impacted the price of Solana. Stablecoins are a relatively new phenomenon, and it is impossible to know all of the risks that they could
pose to participants in the Solana market. In addition, some have argued that some stablecoins, particularly Tether, are improperly issued
without sufficient backing in a way that, when the stablecoin is used to pay for Solana, could cause artificial rather than genuine demand
for Solana, artificially inflating the price of Solana, and also argue that those associated with certain stablecoins may be involved
in laundering money. On February 17, 2021 the New York Attorney General entered into an agreement with Tether's operators, including
Bitfinex, requiring them to cease any further trading activity with New York persons and pay $18.5 million in penalties for false and
misleading statements made regarding the assets backing Tether. On October 15, 2021, the CFTC announced a settlement with Tether's
operators, Tether Holdings Limited, Tether Operations Limited, Tether Limited, and Tether International Limited, in which they agreed
to pay $42.5 million in fines to settle charges that, among others, Tether's claims that it maintained sufficient U.S. dollar reserves
to back every Tether stablecoin in circulation with the "equivalent amount of corresponding fiat currency" held by Tether
were untrue.
Bitfinex
also agreed to pay the CFTC a $1.5 million fine to settle charges that Bitfinex offered off-exchange leveraged, margined, or financed
transactions involving cryptocurrencies, including Solana, with U.S. customers who were not eligible contract participants and accepted
funds (including in the form of Tether stablecoins) and orders in connection with such illegal off-exchange transactions, triggering
an obligation to register with the CFTC, which the CFTC order asserts it violated. The CFTC previously fined Bitfinex in 2016 on similar
charges.
22
USDC
is a reserve-backed stablecoin issued by Circle Internet Financial that is commonly used as a method of payment in digital asset markets,
including the Solana market. While USDC is designed to maintain a stable value at 1U.S. dollar at all times, on March 10, 2023, the value
of USDC fell below $1.00 for multiple days after Circle Internet Financial disclosed that US$3.3 billion of the USDC reserves were held
at Silicon Valley Bank, which had entered FDIC receivership earlier that day. Stablecoins are reliant on the U.S. banking system and
U.S. treasuries, and the failure of either to function normally could impede the function of stablecoins, and therefore could adversely
affect the value of the Shares.
Given
the foundational role that stablecoins play in global digital asset markets, their fundamental liquidity can have a dramatic impact on
the broader digital asset market, including the market for Solana. Because a large portion of the digital asset market still depends
on stablecoins such as Tether and USDC, there is a risk that a disorderly de-pegging or a run on Tether or USDC could lead to dramatic
market volatility in digital assets more broadly. Volatility in stablecoins, operational issues with stablecoins (for example, technical
issues that prevent settlement), concerns about the sufficiency of any reserves that support stablecoins or potential manipulative activity
when unbacked stablecoins are used to pay for other digital assets (including Solana), or regulatory concerns about stablecoin issuers
or intermediaries, such as exchanges, that support stablecoins, or the removal or migration of prominent stablecoins away from the Solana
Network, could impact individuals' willingness to trade on trading venues that rely on stablecoins, reduce liquidity in the Solana
market, and affect the value of Solana, and in turn impact an investment in the Shares. [Given Bitfinex has in the past been, and is
currently, a component of the Pricing Benchmark and Bitfinex and Tether are understood to be under common ownership and management, problems
with Tether specifically could potentially affect pricing of transactions on Bitfinex or otherwise disrupt Bitfinex's operations.]
If
the digital asset award or transaction fees for recording transactions on the Solana Network are not sufficiently high to incentivize
validators, or if certain jurisdictions continue to limit or otherwise regulate validating activities, validators may cease expanding
validating power or demand high transaction fees, which could negatively impact the value of Solana and the value of the shares.
If
the digital asset awards for validating blocks or the transaction fees for recording transactions on the Solana Network are not sufficiently
high to incentivize validators, or if certain jurisdictions continue to limit or otherwise regulate validating activities, validators
may cease expending validating power to validate blocks and confirmations of transactions on the Solana blockchain could be slowed. For
example, the realization of one or more of the following risks could materially adversely affect the value of the Shares:
●
A
                                            reduction in the processing power expended by validators on the Solana Network could increase
                                            the likelihood of a malicious actor or botnet (a volunteer or hacked collection of computers
                                            controlled by networked software coordinating the actions of the computers) obtaining control.
                                            See "RISK FACTORS—Risks Associated with Solana and the Solana Network—The
                                            Solana Network." The Solana Network could be vulnerable to attacks on transaction finality
                                            and consensus processes, which could adversely affect an investment in the trust or the ability
                                            of the trust to operate."
●
Validators
                                            have historically accepted relatively low transaction confirmation fees on most digital asset
                                            networks. If validators demand higher transaction fees for recording transactions in the
                                            Solana blockchain or a software upgrade automatically charges fees for all transactions on
                                            the Solana Network, the cost of using Solana may increase and the marketplace may be reluctant
                                            to accept Solana as a means of payment. Alternatively, validators could collude in an anti-competitive
                                            manner to reject low transaction fees on the Solana Network and force users to pay higher
                                            fees, thus reducing the attractiveness of the Solana Network. Higher transaction confirmation
                                            fees resulting through collusion or otherwise may adversely affect the attractiveness of
                                            the Solana Network, the value of Solana and the value of the Shares.
●
To
                                            the extent that any validators cease to record transactions that do not include the payment
                                            of a transaction fee in blocks or do not record a transaction because the transaction fee
                                            is too low, such transactions will not be recorded on the Solana blockchain until a block
                                            is validated by a validator who does not require the payment of transaction fees or is willing
                                            to accept a lower fee. Any widespread delays or disruptions in the recording of transactions
                                            could result in a loss of confidence in the Solana Network and could prevent the Trust from
                                            completing transactions associated with the day-to-day operations of the Trust, including
                                            creations and redemptions of the Shares in exchange for Solana with Authorized Participants.
23
●
During
                                            the course of ordering transactions and validating blocks, validators may be able to prioritize
                                            certain transactions in return for increased transaction fees, an incentive system known
                                            as "Maximal Extractable Value" or MEV. For example, in blockchain networks that
                                            facilitate DeFi protocols in particular, such as the Solana Network, users may attempt to
                                            gain an advantage over other users by increasing offered transaction fees. Certain software
                                            solutions, such as Flashbots, have been developed which facilitate validators in capturing
                                            MEV produced by these increased fees. The MEV incentive system may lead to an increase in
                                            transaction fees on the Solana Network, which may diminish its use. Users or other stakeholders
                                            on the Solana Network could also view the existence of MEV as unfair manipulation of decentralized
                                            digital asset networks, and refrain from using DeFi protocols or the Solana Network generally.
                                            In addition, it's possible regulators or legislators could enact rules which restrict
                                            the use of MEV, which could diminish the popularity of the Solana Network among users and
                                            validators. Any of these or other outcomes related to MEV may adversely affect the value
                                            of Solana and the value of the Shares.
Validators
may suffer losses due to staking, or staking may prove unattractive to validators, which could make the Solana Network less attractive.
Validation
on the Solana Network requires Solana to be transferred into smart contracts on the underlying blockchain networks not under the Trust's
or anyone else's control. If the Solana Network source code or protocol fail to behave as expected, suffer cybersecurity attacks
or hacks, experience security issues, or encounter other problems, such assets may be irretrievably lost. In addition, the Solana Networks
dictate requirements for participation in validation activity, and may impose penalties, if the relevant activities are not performed
correctly. The Solana Network sanction (i.e., "slashing") is imposed if a validator commits malicious acts related to the
validation of blocks with invalid transactions. On the Solana Network, slashing generally operates by social consensus, rather than being
automatically hardwired into the protocol's code. The Solana community generally aspires to slash 100% of staked assets in cases
where a Solana node is maliciously trying to violate safety rules and 0% during routine operation. There is currently no automatic slashing
in the Solana Network. Rather, for regular consensus, after a safety violation, the Solana Network will halt. The validators will analyze
the data prior to the halt and figure out who was responsible and propose that the stake of the malicious actors responsible for the
safety violation should be slashed after restart, typically 100%. Separately, as part of the "activating" and "de-activating"
or "cooling down" processes of staking, staked Solana will be inaccessible for a variable period of time determined by a
range of factors, resulting in potential inaccessibility during those periods. "Activation" is the funding of a validator
to be included in the active set, thereby allowing the validator to participate in the Solana Network's proof-of-stake consensus
protocol. "De-activating" is the request to exit from the active set and no longer participate in the Solana Network's
proof-of-stake consensus protocol. As part of these "activating" and "de-activating" processes of staking on
the Solana Network, any staked Solana will be inaccessible for a period of time. The duration of activating and exiting periods are dependent
on a range of factors. However, depending on demand, un-staking can take between one to several epochs to complete. An Epoch is approximately
two days long on the Solana Network.
The
Solana Network requires the payment of base fees and the practice of paying prioritization fees is common, and such fees can become significant
as the amount and complexity of the transaction grows, depending on the degree of network congestion and the price of Solana. Any cybersecurity
attacks, security issues, hacks, penalties, slashing events, or other problems could damage validators' willingness to participate
in validation, discourage existing and future validators from serving as such, and adversely impact the Solana Network's adoption
or the price of Solana. Any disruption of validation on the Solana Network could interfere with network operations and cause the Solana
Network to be less attractive to users and application developers than competing blockchain networks, which could cause the price of
Solana to decrease. The limited liquidity during the "activation" or "de-activation" processes could dissuade
potential validators from participating, which could interfere with network operations or security and cause the Solana Network to be
less attractive to users and application developers than competing blockchain networks, which could cause the price of Solana to decrease.
Operational
cost may exceed the award for validating transaction, and increased transaction fees may adversely affect the usage of the Solana Network.
If
transaction confirmation fees become too high, the marketplace may be reluctant to use the Solana Network. This may result in decreased
usage and limit expansion of the Solana Network in the retail, commercial and payments space, adversely impacting investment in the Trust.
Conversely, if the reward for validators or the value of the transaction fees is insufficient to motivate validators, they may cease
to validate transactions.
24
Ultimately,
if the awards of new Solana costs of validating transactions grow disproportionately, miners may operate at a loss, transition to other
networks, or cease operations altogether. Each of these outcomes could, in turn, slow transaction validation and usage, which could have
a negative impact on the Solana Network and could adversely affect the value of the Solana held by the Trust.
As
a result of Solana's fee burning mechanism, the incentives for validators to validate transactions with higher gas fees are reduced,
since those validators would not receive those gas fees.
An
acute cessation of validator operations would reduce the collective processing power on the Solana Network, which would adversely affect
the transaction verification process by temporarily decreasing the speed at which blocks are added to the blockchain and make the blockchain
more vulnerable to a malicious actor obtaining control in excess of the relevant threshold of the processing power on the blockchain.
Reductions in processing power could result in material, though temporary, delays in transaction confirmation time. Any reduction in
confidence in the transaction verification process or may adversely impact the value of Shares of the Trust or the ability of the Sponsor
to operate.
Anonymity
and illicit financing risk.
Although
transaction details of peer-to-peer transactions are recorded on the Solana Network, a buyer or seller of digital assets on a peer-to-peer
basis directly on the Solana Network may never know to whom the public key belongs or the true identity of the party with whom it is
transacting. Public key addresses are randomized sequences of alphanumeric characters that, standing alone, do not provide sufficient
information to identify users. In addition, certain technologies may obscure the origin or chain of custody of digital assets. The opaque
nature of the market poses asset verification challenges for market participants, regulators and auditors and gives rise to an increased
risk of manipulation and fraud, including the potential for Ponzi schemes, bucket shops and pump-and-dump schemes. Digital assets have
in the past been used to facilitate illicit activities. If a digital asset were used to facilitate illicit activities, businesses that
facilitate transactions in such digital assets could be at increased risk of potential criminal or civil liability or lawsuits, or of
having banking or other services cut off, and such digital asset could be removed from digital asset platforms. Any of the aforementioned
occurrences could adversely affect the price of the relevant digital asset, the attractiveness of the respective blockchain network and
an investment in the Shares. If the Trust or the Sponsor were to transact with a sanctioned entity, the Trust or the Sponsor would be
at risk of potential criminal or civil lawsuits or liability.
The
Trust takes measures with the objective of reducing illicit financing risks in connection with the Trust's activities. However,
illicit financing risks are present in the digital asset markets, including markets for Solana. There can be no assurance that the measures
employed by the Trust will prove successful in reducing illicit financing risks, and the Trust is subject to the complex illicit financing
risks and vulnerabilities present in the digital asset markets. If such risks eventuate, the Trust, the Sponsor or their respective affiliates
could face civil or criminal liability, fines, penalties, or other punishments; be subject to investigation; have their assets frozen;
lose access to banking services or services provided by other service providers; or suffer disruptions to their operations, any of which
could negatively affect the Trust's ability to operate or could cause losses in value of the Shares.
The
Trust and the Sponsor have adopted and implemented policies and procedures that are designed to comply with applicable anti-money laundering
laws and sanctions laws and regulations, including applicable know-your-customer ("KYC") laws and regulations. The Sponsor
and the Trust will only interact with known third-party service providers with respect to whom the Sponsor or its affiliates have engaged
in a thorough due diligence process and/or a thorough KYC process, such as the Authorized Participants, Solana Trading Counterparties,
Prime Execution Agent and Solana Custodian. The Prime Execution Agent and Solana Custodian must undergo counterparty due diligence by
the Sponsor. Each Authorized Participant must undergo onboarding by the Sponsor prior to placing creation or redemption orders with respect
to the Trust.
Furthermore,
Authorized Participants, as broker-dealers, and the Prime Execution Agent and Solana Custodian, as entities licensed to conduct virtual
currency business activity by the New York Department of Financial Services and as limited-purpose trust companies subject to New York
Banking Law, respectively, are "financial institutions" subject to the U.S. Bank Secrecy Act, as amended ("BSA"),
and U.S. economic sanctions laws. The Trust will only accept creation and redemption requests from Authorized Participants who have represented
to the Trust that they have implemented compliance programs that are designed to ensure compliance with applicable sanctions and anti-money
laundering laws. The Trust will not hold any Solana except that which has been delivered by approved Solana Trading Counterparties or
by execution through the Prime Execution Agent, in connection with Authorized Participant creation requests. Moreover, the Prime Execution
Agent has represented to the Trust that it has implemented and will maintain and follow compliance programs that are designed to comply
with applicable sanctions and anti-money laundering laws and that it performs both initial and ongoing due diligence on each of its customers
as well as ongoing transaction monitoring that is designed to identify and report suspicious activity conducted through customer accounts,
including those opened by the Authorized Participants or their agents/partners for purposes of facilitating Solana deposits to, and withdrawals
from, the Trust's Trading Balance, as required by law.
25
The
Prime Execution Agent and Solana Custodian have adopted and implemented anti-money laundering and sanctions compliance programs that
provide additional protections to ensure that the Sponsor and the Trust do not transact with a sanctioned party. Notably, the Prime Execution
Agent and Solana Custodian perform screening using blockchain analytics to identify, detect, and mitigate the risk of transacting with
a sanctioned or other unlawful actor. Pursuant to the Solana Custodian's and Prime Execution Agent's blockchain analytics
screening programs, any Solana that is delivered to the Trust Solana Account or the Trust's Trading Balance will undergo screening
designed to assess whether the origins of that Solana are illicit.
The
Prime Execution Agreement provides, among others, that if the Prime Execution Agent conducts blockchain analytics screening on a Solana
transaction deposited by an Authorized Participant and such screening results in the Solana transaction being suspected or determined
to be in violation of certain applicable sanctions laws, the Prime Execution Agent and its affiliates, including the Solana Custodian,
will (a) block or reject the deposit of such Solana into the Trust's Trading Account, where required by applicable sanctions laws,
and (b) agree to promptly inform the Trust if any fund movement between an Authorized Participant's account at the Prime Execution
Agent and the Trust's account(s) involves such Solana, so long as permitted by applicable law.
However,
there is no guarantee that such procedures will always prove to be effective or that the Prime Execution Agent and its affiliates will
always perform their obligations. Such screening may also result in the Solana identified by such screening being blocked or frozen by
the Prime Execution Agent, and thus made unavailable to the Trust. Moreover, the Prime Execution Agreement and Solana Custody Agreement
require the Trust to attest that it has performed its own due diligence on the Solana Trading Counterparties it has contracted with to
source Solana from and has confirmed that the Solana Trading Counterparties have implemented policies, procedures and controls designed
to comply with applicable anti-money laundering and applicable sanctions laws. Although the Sponsor arranges for such diligence to be
performed, including by the Trust's service providers, there is no guarantee such diligence will prove effective in identifying
all possible sources of illicit financing risks. Solana Trading Counterparties represent to the Sponsor that they conduct due diligence
on their own counterparties from whom they source the Solana they deposit with the Trust, and that they have formed a reasonable belief
that such Solana being transferred by the Solana Trading Counterparty to the Trust was not derived from, or associated with, unlawful
or criminal activity. However, there is the risk that Solana Trading Counterparties may not conduct sufficient due diligence processes
on the sources of their Solana or that their representations to the Sponsor may turn out to be inaccurate, which could cause the Trust
to suffer a loss. If the Authorized Participants or Solana Trading Counterparties have inadequate policies, procedures and controls for
complying with applicable anti-money laundering and applicable sanctions laws or the Trust's procedures or diligence proves to
be ineffective, violations of such laws could result, which could result in regulatory liability for the Trust or the Sponsor under such
laws, including governmental fines, penalties, and other punishments, as well as potential liability to or cessation of services by the
Prime Execution Agent and its affiliates, including the Solana Custodian, under the Prime Execution Agreement and Solana Custody Agreement.
Any of the foregoing could result in losses to the Shareholders or negatively affect the Trust's ability to operate.
A
temporary or permanent "fork" or a "clone" of the Solana Network could adversely affect the value of the Shares.
The
Solana Network operates using open-source protocols, meaning that any user can download the software, modify it and then propose that
the users and validators of Solana adopt the modification. When a modification is introduced and a substantial majority of users and
validators' consent to the modification, the change is implemented and the network remains uninterrupted. However, if less than
a substantial majority of users and validators' consent to the proposed modification, and the modification is not compatible with
the software prior to its modification, the consequence would be what is known as a "hard fork" of the Solana Network, with
one group running the pre-modified software and the other running the modified software. The effect of such a fork would be the existence
of two versions of Solana running in parallel, yet lacking interchangeability. For example, in September 2022, the Ethereum Network
transitioned to a proof-of-stake model, in an upgrade referred to as the "Merge." Following the Merge, a hard fork of the
Ethereum Network occurred, as certain Ethereum miners and network participants planned to maintain the proof-of-work consensus mechanism
that was removed as part of the Merge. This version of the network was rebranded as "Ethereum Proof-of-Work."
26
Forks
may also occur as a network community's response to a significant security breach. For example, in July 2016, Ethereum "forked"
into Ethereum and a new digital asset, Ethereum Classic, as a result of the Ethereum Network community's response to a significant
security breach. In June 2016, an anonymous hacker exploited a smart contract running on the Ethereum Network to syphon approximately
$60 million of ETH held by The DAO, a distributed autonomous organization, into a segregated account. In response to the hack, most participants
in the Ethereum community elected to adopt a "fork" that effectively reversed the hack. However, a minority of users continued
to develop the original blockchain, referred to as "Ethereum Classic" with the digital asset on that blockchain now referred
to as ETC. ETC now trades on several Digital asset trading platforms. A fork may also occur as a result of an unintentional or unanticipated
software flaw in the various versions of otherwise compatible software that users run. Such a fork could lead to users and validators
abandoning the digital asset with the flawed software. It is possible, however, that a substantial number of users and validators could
adopt an incompatible version of the digital asset while resisting community-led efforts to merge the two chains. This could result in
a permanent fork, as in the case of Ethereum and Ethereum Classic.
Furthermore,
a hard fork can lead to new security concerns. For example, when the Ethereum and Ethereum Classic networks, two other digital asset
networks, split in July 2016, replay attacks, in which transactions from one network were rebroadcast to nefarious effect on the other
network, plagued Ethereum trading platforms through at least October 2016. An Ethereum trading platform announced in July 2016 that it
had lost 40,000 Ethereum Classic, worth about $100,000 at that time, as a result of replay attacks. Similar replay attack concerns occurred
in connection with the Bitcoin Cash and Bitcoin Satoshi's Vision networks split in November 2018. Another possible result of a
hard fork is an inherent decrease in the level of security due to significant amounts of validating power remaining on one network or
migrating instead to the new forked network. After a hard fork, it may become easier for an individual validator or validating pool's
validating power to exceed 50% of the validating power of a digital asset network that retained or attracted less validating power, thereby
making digital asset networks that rely on proof-of-stake more susceptible to attack.
Protocols
may also be cloned. Unlike a fork, which modifies an existing blockchain, and results in two competing networks, each with the same genesis
block, a "clone" is a copy of a protocol's codebase, but results in an entirely new blockchain and new genesis block.
Tokens are created solely from the new "clone" network and, in contrast to forks, holders of tokens of the existing network
that was cloned do not receive any tokens of the new network. A "clone" results in a competing network that has characteristics
substantially similar to the network it was based on, subject to any changes as determined by the developer(s) that initiated the clone.
A
hard fork may adversely affect the price of Solana at the time of announcement or adoption. For example, the announcement of a hard fork
could lead to increased demand for the pre-fork digital asset, in anticipation that ownership of the pre-fork digital asset would entitle
holders to a new digital asset following the fork. The increased demand for the pre-fork digital asset may cause the price of the digital
asset to rise. After the hard fork, it is possible the aggregate price of the two versions of the digital asset running in parallel would
be less than the price of the digital asset immediately prior to the fork. Furthermore, while the Trust would be entitled to both versions
of the digital asset running in parallel, the Sponsor will, as permitted by the terms of the Trust Agreement, determine which version
of the digital asset is generally accepted as the Solana Network and should therefore be considered the appropriate network for the Trust's
purposes, and there is no guarantee that the Sponsor will choose the digital asset that is ultimately the most valuable fork.
Either
of these events could therefore adversely impact the value of the Shares. As an illustrative example of a digital asset hard fork, following
the DAO hack in July 2016, holders of Ethereum voted on-chain to reverse the hack, effectively causing a hard fork. For the days following
the vote, the price of Ethereum rose from $11.65 on July 15, 2016 to $14.66 on July 21, 2016, the day after the first Ethereum Classic
block was mined. A clone may also adversely affect the price of Solana at the time of announcement or adoption. For example, on November
6, 2016, Rhett Creighton, a Zcash developer, cloned the Zcash Network to launch Zclassic, a substantially identical version of the Zcash
Network that eliminated the Founders' Reward. For the days following the date the first Zclassic block was mined, the price of
ZEC fell from $504.57 on November 5, 2016 to $236.01 on November 7, 2016 in the midst of a broader sell off of ZEC beginning immediately
after the Zcash Network launch on October 28, 2016. A clone may also adversely affect the price of Solana at the time of announcement
or adoption. A future fork in or clone of the Solana Network could adversely affect the value of the Shares or the ability of the Trust
to operate.
27
In
the event of a hard fork of the Solana Network, the Sponsor will, if permitted by the terms of the Trust Agreement, use its discretion
to determine which network should be considered the appropriate network for the Trust's purposes, and in doing so may adversely
affect the value of the Shares.
In
the event of a hard fork of the Solana Network, the Sponsor will, if permitted by the terms of the Trust Agreement, use its discretion
to determine, in good faith, which peer-to-peer network, among a group of incompatible forks of the Solana Network, is generally accepted
as the Solana Network and should therefore be considered the appropriate network for the Trust's purposes. The Sponsor will base
its determination on a variety of then relevant factors, including, but not limited to, the Sponsor's beliefs regarding expectations
of the core developers of Solana, users, service providers, businesses, miners and other constituencies, as well as the actual continued
acceptance of, mining power on, and community engagement with, the Solana Network. There is no guarantee that the Sponsor will choose
the digital asset that is ultimately the most valuable fork, and the Sponsor's decision may adversely affect the value of the Shares
as a result. The Sponsor may also disagree with Shareholders and security vendors on what is generally accepted as Solana and should
therefore be considered "Solana" for the Trust's purposes, which may also adversely affect the value of the Shares
as a result.
In
the event of a hard fork of the Solana Network, the Solana Custodian's operations may be interrupted or subject to additional security
risks that could disrupt the Trust's ability to process creations and redemptions of Shares or otherwise threaten the security
of the Trust's Solana holdings.
In
the event of a hard fork of the Solana Ledger, the Solana Custodian may temporarily halt the ability of customers (including the Trust)
to deposit, withdraw or transfer Solana on the Solana Custodian's platform. Such a delay may be intended to permit the Solana Custodian
to assess the resulting versions of the Solana Network, to determine how best to securely "split" the Solana from the Forked
Asset, and to prevent malicious users from conducting "replay attacks" (
i.e.
, broadcasting transactions on both versions
of the forked networks to put Solana Custodian assets at risk). As a result, the Trust is likely to suspend creations and redemptions
during a period in which the Solana Custodian's operations are halted.
In
addition, any losses experienced by the Solana Custodian due to a hard fork, including due to replay attacks or technological errors
in assessing the fork, could have a materially adverse impact on an investment in the Shares.
Shareholders
may not receive the benefits of any forks or "airdrops."
We
refer to the right to receive any benefits arising from a fork, airdrop (defined below), or similar event as an "Incidental Right"
and any such virtual currency acquired through an Incidental Right as "IR Virtual Currency." The only crypto asset to be
held by the Trust will be Solana. The Trust has adopted the following procedures to address situations involving any fork, airdrop or
similar event that results in the issuance of Incidental Rights or IR Virtual Currency that the Trust may receive. The Trust Agreement
stipulates that if a fork occurs, the Sponsor shall determine which asset constitutes Solana and which network constitutes the Solana
Network, and the Sponsor will as soon as possible cause the Trust to irrevocably abandon the Incidental Rights or IR Virtual Currency.
Because the Trust will abandon any Incidental Rights and IR Virtual Currency, the Trust would not receive any direct or indirect consideration
for the Incidental Rights or IR Virtual Currency and thus the value of the Shares will not reflect the value of the Incidental Rights
or IR Virtual Currency. Such Incidental Rights or IR Virtual Currency will not be taken into account for purposes of determining NAV.
In the event the Trust seeks to change this position, an application would need to be filed with the SEC by the Exchange seeking approval
to amend its listing rules to permit the Trust to distribute the Incidental Rights or IR Virtual Currency that is not Solana in-kind
to the Sponsor, as agent for the Shareholders, and the Sponsor would arrange to sell or otherwise dispose of the Incidental Rights or
IR Virtual Currency and for the proceeds (if any) to be distributed to the Shareholders. There can be no assurance as to whether or when
the Sponsor would make such a decision, or when the Exchange will seek or obtain this approval, if at all.
28
In
addition to forks, a digital asset may become subject to a similar occurrence known as an "airdrop." In an airdrop, the promotors
of a new digital asset announce to holders of another digital asset that such holders will be entitled to claim a certain amount of the
new digital asset for free, based on the fact that they hold such other digital asset. Neither the Trust nor the Sponsor shall be under
any obligation to claim or attempt to secure or realize any economic benefit from "airdropped" assets, and the Sponsor will
cause the Trust to irrevocably and permanently abandon, for no consideration, such Incidental Rights or IR Virtual Currency. In the event
the Trust seeks to change this position, an application would need to be filed with the SEC by the Exchange seeking approval to amend
its listing rules to permit the Trust to distribute the Incidental Rights or IR Virtual Currency associated with the airdropped assets
in-kind to the Sponsor, as agent for the Shareholders, and the Sponsor would arrange to sell or otherwise dispose of the Incidental Rights
or IR Virtual Currency and for the proceeds (if any) to be distributed to the Shareholders.
With
respect to any fork, airdrop or similar event, the Sponsor will cause the Trust to irrevocably abandon the Incidental Rights and any
IR Virtual Currency associated with such event. As such, Shareholders will not receive the benefits of any forks, and the Trust is not
able to participate in any airdrop. In the event the Trust seeks to change this position, an application would need to be filed with
the SEC by the Exchange seeking approval to amend its listing rules to permit the Trust to change this policy.
Even
if required regulatory approval is sought and obtained, Shareholders may not receive the benefits of any forks, airdrops, or similar
events, the Trust may not choose, or be able, to participate in an airdrop, and the timing of receiving any benefits from a fork, airdrop
or similar event is uncertain. Any inability to recognize the economic benefit of a hard fork or airdrop could adversely affect the value
of the Shares.
The
Solana Network could be vulnerable to attacks on transaction finality and consensus processes, which could adversely affect an investment
in the Trust or the ability of the Trust to operate.
The
Solana Network is currently vulnerable to several types of attacks, including:
●
"33%
                                            attack" where, if a validator or group of validators were to gain control of more than
                                            33% of the total staked Solana on the Solana Network, a malicious actor could temporarily
                                            impede or delay block confirmation or even cause a temporary fork in the blockchain.
●
"
50%
attack" where, if a validator or group of validators acting in concert were to gain control of more than 50% of the total staked
Solana on the Solana Network, a malicious actor would be able to gain full control of the Solana Network and the ability to manipulate
the blockchain on a forward-looking basis, including censoring transactions following the achievement of threshold, double-spending and
fraudulent block propagation, while the attacker maintains the threshold. In theory, the minority non-attackers might reach social consensus
to reject blocks proposed by the malicious majority attacker, reducing the attacker's ability to engage in malicious activity,
but there can be no assurance this would happen or that non-attackers would be able to coordinate effectively.
●
"
>66%
attack" where, if a validator or group of validators acting in concert were to gain control of more than 66% of the total staked
Solana on the Solana Network, a malicious actor could permanently and irreversibly manipulate the blockchain, including censorship, double-spending
and fraudulent block propagation, both on a forward-and backward-looking basis. The attacker could unilaterally finalize their preferred
chain without the votes of any other stakers, and could also reverse past finalized blocks.
If
a malicious actor, group or botnet (a volunteer or hacked collection of computers controlled by networked software coordinating the actions
of the computers) obtains certain percentages of the validating power dedicated to validation on the Solana Network is controlled by
a bad actor (often referred to as a "51% attack", though the numerical thresholds vary in the proof-of-stake consensus mechanism
of the Solana Network), it may be able to alter the Solana blockchain on which the Solana Network and Solana transactions rely. The Solana
Network's proof-of-stake consensus mechanism requires a 2/3 supermajority of validators who have staked Solana to vote in favor
in order to finalize transactions and add blocks to the Solana blockchain. If the bad actor were to obtain 2/3 of the total Solana staked
in validation processes, it is widely believed that the bad actor could construct fraudulent blocks, "double-spend" its own
Solana (i.e., spend the same Solana in more than one transaction), or censor other users' transactions by preventing them from
being confirmed while continuing to validate and confirm its own transactions and earn the associated block reward, thereby enriching
itself while also entrenching its own control of the Solana blockchain. If the bad actor were to obtain 1/3 of the total Solana staked
in validation processes, the bad actor could prevent certain transactions from completing in a timely manner, or at all, and prevent
the confirmation of other users' transactions, though this would likely be temporary (since it would likely be penalized for inactivity
leakage, resulting in the bad actor's staked Solana being slashed, as defined below) and it likely could not double spend or propagate
fraudulent blocks without the 66% supermajority of staked assets. With control of the respective threshold of total staked assets on
the Solana Network, it could be possible for the malicious actor to control, exclude or modify the ordering of transactions on the Solana
blockchain and prevent the confirmation of other users' transactions, while continuing to mine new Solana and confirm its own blocks,
for so long as it maintained control. To the extent that such malicious actor or botnet did not yield its control of the validating power
on the Solana Network or the Solana community did not reject the fraudulent blocks as malicious or to the extent that such bad actor
did not yield its control of processing power, reversing any changes made to the Solana blockchain may be difficult or impossible. Further,
a malicious actor or botnet could create a flood of transactions in order to slow down the Solana Network.
29
For
example, in August 2020, the Ethereum Classic network was the target of two double-spend attacks by an unknown actor or actors that gained
more than 50% of the processing power of the Ethereum Classic network. The attacks resulted in reorganizations of the Ethereum Classic
blockchain that allowed the attacker or attackers to reverse previously recorded transactions in excess of $5.0 million and $1.0 million.
Any similar attacks on the Solana Network could negatively impact the value of Solana and the value of the Shares.
In
addition, in May 2019, the Bitcoin Cash network experienced a 51% attack when two large mining pools reversed a series of transactions
in order to stop an unknown miner from taking advantage of a flaw in a recent Bitcoin Cash protocol upgrade. Although this particular
attack was arguably benevolent, the fact that such coordinated activity was able to occur may negatively impact perceptions of the Bitcoin
Cash network. Although the two attacks described above took place on proof-of-work-based networks, it is possible that a similar attack
may occur on the Solana Network, which could negatively impact the value of Solana and the value of the Shares.
Although
there are no known reports of malicious control of the Solana Network, if groups of coordinating or connected Solana holders that together
have more than 50% of outstanding Solana, were to stake that Solana and run validators, they could exert authority over the validation
of Solana transactions. This risk is heightened if over 50% of the validating power on the network falls within the jurisdiction of a
single governmental authority. If network participants, including the core developers and the administrators of validating pools, do
not act to ensure greater decentralization of Solana, the feasibility of a malicious actor obtaining control of the validating power
on the Solana Network will increase, which may adversely affect the value Solana and the value of the Shares.
A
malicious actor may also obtain control over the Solana Network through its influence over core developers by gaining direct control
over a core developer or an otherwise influential programmer. To the extent that users and miners accept amendments to the source code
proposed by the controlled core developer, other core developers do not counter such amendments, and such amendments enable the malicious
exploitation of the Solana Network, the risk that a malicious actor may be able to obtain control of the Solana Network in this manner
exists. Moreover, it is possible that a group of Solana holders that together control more than 50% of outstanding Solana are in fact
part of the initial or core developer group, or are otherwise influential members of the Solana community. To the extent that the initial
or existing core developer groups also control more than the relevant thresholds of outstanding Solana, as some believe, the risk of
and arising from this particular group of users obtaining control of the validating power on the Solana Network will be even greater,
and should this materialize, it may adversely affect the value of the Shares.
If
validators exit the Solana Network, it could increase the likelihood of a malicious actor obtaining control.
Validators
exiting the network could make the Solana Network more vulnerable to a malicious actor obtaining control of a large percentage of staked
Solana, which might enable them to manipulate the Solana blockchain by censoring or manipulating specific transactions, as discussed
previously. If the Solana blockchain suffers such an attack, the price of Solana could be negatively affected, and a loss of confidence
in the Solana Network could result. Any reduction in confidence in the transaction confirmation process or staking power of the Solana
Network may adversely affect an investment in the Trust.
30
The
digital asset trading platforms on which Solana trades are relatively new and largely unregulated or may not be complying with existing
regulations.
Digital
asset trading platforms are relatively new and, in some cases, unregulated. Many operate outside the United States.
Furthermore,
while many prominent digital asset trading platforms provide the public with significant information regarding their ownership structure,
management teams, corporate practices and regulatory compliance, many digital asset trading platforms do not provide this information.
Digital asset trading platforms may not be subject to, or may not comply with, regulation in a similar manner as other regulated trading
platforms, such as national securities exchanges or designated contract markets. As a result, the marketplace may lose confidence in
digital asset trading platforms, including prominent trading platforms that handle a significant volume of Solana trading.
Many
digital asset trading platforms are unlicensed, unregulated, operate without extensive supervision by governmental authorities, and do
not provide the public with significant information regarding their ownership structure, management team, corporate practices, cybersecurity,
and regulatory compliance. In particular, those located outside the United States may be subject to significantly less stringent regulatory
and compliance requirements in their local jurisdictions, and may take the position that they are not subject to laws and regulations
that would apply to a national securities exchange or designated contract market in the United States, or may, as a practical matter,
be beyond the ambit of U.S. regulators. As a result, trading activity on or reported by these digital asset trading platforms is generally
significantly less regulated than trading in regulated U.S. securities and commodities markets, and may reflect behavior that would be
prohibited in regulated U.S. trading venues. For example, in 2019 there were reports claiming that 80.95% of bitcoin trading volume on
digital asset trading platforms was false or noneconomic in nature, with specific focus on unregulated trading platforms located outside
of the United States. Such reports alleged that certain overseas trading platforms have displayed suspicious trading activity suggestive
of a variety of manipulative or fraudulent practices, such as fake or artificial trading volume or trading volume based on non-economic
"wash trading" (where offsetting trades are entered into for other than bona fide reasons, such as the desire to inflate
reported trading volumes), and attributed such manipulative or fraudulent behavior to motives like the incentive to attract listing fees
from token issuers who seek the most liquid and high-volume trading platforms on which to list their coins. Although these reports concerned
bitcoin, it is possible that similar concerns are present for Solana markets as well.
Other
academics and market observers have put forth evidence to support claims that manipulative trading activity has occurred on certain digital
asset trading platforms. For example, in a 2017 paper titled "Price Manipulation in the Bitcoin Ecosystem" sponsored by the
Interdisciplinary Cyber Research Center at Tel Aviv University, a group of researchers used publicly available trading data, as well
as leaked transaction data from a 2014 Mt. Gox security breach, to identify and analyze the impact of "suspicious trading activity"
on Mt. Gox between February and November 2013, which, according to the authors, caused the price of bitcoin to increase from around $150
to more than $1,000 over a two-month period.
In
August 2017, it was reported that a trader or group of traders nicknamed "Spoofy" was placing large orders on Bitfinex without
actually executing them, presumably in order to influence other investors into buying or selling by creating a false appearance that
greater demand existed in the market. In December 2017, an anonymous blogger (publishing under the pseudonym Bitfinex'd) cited
publicly available trading data to support his or her claim that a trading bot nicknamed "Picasso" was pursuing a paint-the-tape-style
manipulation strategy by buying and selling bitcoin and bitcoin cash between affiliated accounts in order to create the appearance of
substantial trading activity and thereby influence the price of such assets. Although bitcoin and Solana are different assets, Solana
prices may be subject to similar activity. Even in the United States, there have been allegations of wash trading even on regulated venues.
Any actual or perceived false trading in the digital asset exchange market, and any other fraudulent or manipulative acts and practices,
could adversely affect the value of digital assets and/or negatively affect the market perception of digital assets.
31
The
Solana market globally and in the United States is not subject to comparable regulatory guardrails as exist in regulated securities markets.
Furthermore, many Solana trading venues lack certain safeguards put in place by exchanges for more traditional assets to enhance the
stability of trading on the exchanges and prevent "flash crashes," such as limit-down circuit breakers. As a result, the
prices of Solana on trading venues may be subject to larger and/or more frequent sudden declines than assets traded on more traditional
exchanges. Tools to detect and deter fraudulent or manipulative trading activities such as market manipulation, front-running of trades,
and wash-trading may not be available to or employed by digital asset trading platforms, or may not exist at all.
Digital
asset trading platforms may be exposed to security breaches.
The
nature of the assets held at Solana trading platforms makes them appealing targets for hackers and a number of digital asset trading
platforms have been victims of cybercrimes. Over the past several years, some digital asset trading platforms have been closed due to
security breaches. In many of these instances, the customers of such digital asset trading platforms were not compensated or made whole
for the partial or complete losses of their account balances in such digital asset trading platforms. While, generally speaking, smaller
digital asset trading platforms are less likely to have the infrastructure and capitalization that make larger digital asset trading
platforms more stable, larger digital asset trading platforms are more likely to be appealing targets for hackers and malware. For example,
the collapse of Mt. Gox, which filed for bankruptcy protection in Japan in late February 2014, demonstrated that even the largest digital
asset trading platforms could be subject to abrupt failure with consequences both for users of digital asset trading platforms and for
the digital asset industry as a whole. In particular, in the two weeks that followed the February 7, 2014, halt of bitcoin withdrawals
from Mt. Gox, the value of one bitcoin fell on other exchanges from around $795 on February 6, 2014, to $578 on February 20, 2014. Additionally,
in January 2015, Bitstamp announced that approximately 19,000 bitcoin had been stolen from its operational or "hot" wallets.
Further, in August 2016, it was reported that almost 120,000 bitcoins worth around $78 million were stolen from Bitfinex, a large digital
asset exchange. The value of bitcoin and other digital assets immediately decreased by more than 10% following reports of the theft at
Bitfinex. In July 2017, FinCEN assessed a $110 million fine against BTC-e, a now-defunct digital asset exchange, for facilitating crimes
such as drug sales and ransomware attacks. In December 2017, Yapian, the operator of Seoul-based cryptocurrency exchange Youbit, suspended
digital asset trading and filed for bankruptcy following a hack that resulted in a loss of 17% of Yapian's assets. Following the
hack, Youbit users were allowed to withdraw approximately 75% of the digital assets in their exchange accounts, with any potential further
distributions to be made following Yapian's pending bankruptcy proceedings. In January 2018, the Japanese digital asset trading
platform, Coincheck was hacked, resulting in losses of approximately $535 million, and in February 2018, the Italian digital asset trading
platform Bitgrail was hacked, resulting in approximately $170 million in losses. In May 2019, one of the world's largest digital
asset trading platforms, Binance, was hacked, resulting in losses of approximately $40 million.
Digital
asset trading platforms may be exposed to fraud and market manipulation.
The
blockchain infrastructure could be used by certain market participants to exploit arbitrage opportunities through schemes such as front-running,
spoofing, pump-and-dump and fraud across different systems, platforms or geographic locations. As a result of reduced oversight, these
schemes may be more prevalent in digital asset markets than in the general market for financial products.
The
SEC has identified possible sources of fraud and manipulation in the Solana market generally, including, among others (1) "wash
trading"; (2) persons with a dominant position in Solana manipulating Solana pricing; (3) hacking of the Solana Network and trading
platforms; (4) malicious control of the Solana Network; (5) trading based on material, non-public information (for example, plans of
market participants to significantly increase or decrease their holdings in Solana, new sources of demand for Solana) or based on the
dissemination of false and misleading information; (6) manipulative activity involving purported "stablecoins," including
Tether (for more information, see "RISK FACTORS—Risk Factors Related to Digital Assets—Prices of Solana may be affected
due to stablecoins (including Tether and US Dollar Coin ("USDC")), the activities of stablecoin issuers and their regulatory
treatment"); and (7) fraud and manipulation at Solana trading platforms. The effect of potential market manipulation, front-running,
wash-trading, and other fraudulent or manipulative trading practices may inflate the volumes actually present in crypto market and/or
cause distortions in price, which could adversely affect the Trust or cause losses to Shareholders.
32
Over
the past several years, some digital asset trading platforms have been closed due to fraud and manipulative activity, business failure
or security breaches. In many of these instances, the customers of such digital asset trading platforms were not compensated or made
whole for the partial or complete losses of their account balances in such digital asset trading platforms. While, generally speaking,
smaller digital asset trading platforms are less likely to have the infrastructure and capitalization that make larger digital asset
trading platforms more stable, larger digital asset trading platforms are more likely to be appealing targets for hackers and malware
and their shortcomings or ultimate failures are more likely to have contagion effects on the digital asset ecosystem, and may be more
likely to be targets of regulatory enforcement action. For example, the collapse of Mt. Gox, which filed for bankruptcy protection in
Japan in late February 2014, demonstrated that even the largest digital asset trading platforms could be subject to abrupt failure with
consequences for both users of digital asset exchanges and the digital asset industry as a whole. In particular, in the two weeks that
followed the February 7, 2014 halt of bitcoin withdrawals from Mt. Gox, the value of one bitcoin fell on other trading platforms from
around $795 on February 6, 2014 to $578 on February 20, 2014. Additionally, in January 2015, Bitstamp announced that approximately 19,000
bitcoin had been stolen from its operational or "hot" wallets. Further, in August 2016, it was reported that almost 120,000
bitcoins worth around $78 million were stolen from Bitfinex. The value of bitcoin and other digital assets immediately decreased over
10% following reports of the theft at Bitfinex. In July 2017, FinCEN assessed a $110 million fine against BTC-E, a now defunct digital
asset trading platform, for facilitating crimes such as drug sales and ransomware attacks. In addition, in December 2017, Yapian, the
operator of Seoul-based cryptocurrency trading platform Youbit, suspended digital asset trading and filed for bankruptcy following a
hack that resulted in a loss of 17% of Yapian's assets. Following the hack, Youbit users were allowed to withdraw approximately
75% of the digital assets in their platform accounts, with any potential further distributions to be made following Yapian's pending
bankruptcy proceedings. In addition, in January 2018, the Japanese digital asset trading platform, Coincheck, was hacked, resulting in
losses of approximately $535 million, and in February 2018, the Italian digital asset trading platform, Bitgrail, was hacked, resulting
in approximately $170 million in losses. In May 2019, one of the world's largest digital asset trading platform, Binance, was hacked,
resulting in losses of approximately $40 million. In November 2022, FTX Trading Ltd. ("FTX"), one of the largest digital
asset trading platform by volume at the time, halted customer withdrawals amid rumors of the company's liquidity issues and likely
insolvency, which were subsequently corroborated by its CEO. Shortly thereafter, FTX's CEO resigned and FTX and many of its affiliates
filed for bankruptcy in the United States, while other affiliates have entered insolvency, liquidation, or similar proceedings around
the globe. The U.S. Department of Justice brought criminal fraud and other charges, and the SEC and CFTC brought civil securities and
commodities fraud charges, against certain of FTX's and its affiliates' senior executives, including its former CEO. Around
the same time, there were reports that approximately $300-600 million of digital assets were removed from FTX and the full facts remain
unknown, including whether such removal was the result of a hack, theft, insider activity, or other improper behavior.
The
potential consequences of a digital asset trading platform failure or failure to prevent market manipulation could adversely affect the
value of the Shares. Manipulative trading or market abuse could create artificial or distorted prices, cause a loss of investor confidence
in Solana, adversely impact pricing trends in Solana markets broadly, and cause losses from an investment in Shares of the Trust.
In
addition, negative perception, a lack of stability and standardized regulation in the digital asset markets and the closure or temporary
shutdown of digital asset trading platforms due to fraud, business failure, security breaches or government mandated regulation, and
associated losses by customers, may reduce confidence in the Solana Network and result in greater volatility or decreases in the prices
of Solana. Furthermore, the closure or temporary shutdown of a digital asset exchange used in calculating the Pricing Benchmark may result
in a loss of confidence in the Trust's ability to determine its NAV on a daily basis. The potential consequences of a digital asset
exchange's failure could adversely affect the value of the Shares.
Digital
asset trading platforms may be exposed to wash trading.
Solana
trading platforms on which Solana trades may be susceptible to wash trading. Wash trading occurs when offsetting trades are entered into
for other than bona fide reasons, such as the desire to inflate reported trading volumes. Wash trading may be motivated by non-economic
reasons, such as a desire for increased visibility on popular websites that monitor markets for digital assets so as to improve their
attractiveness to investors who look for maximum liquidity, or it may be motivated by the ability to attract listing fees from token
issuers who seek the most liquid and high-volume exchanges on which to list their coins. Results of wash trading may include unexpected
obstacles to trade and erroneous investment decisions based on false information. Even in the United States, there have been allegations
of wash trading even on regulated venues. Any actual or perceived false trading in the global digital asset trading market, and any other
fraudulent or manipulative acts and practices, could adversely affect the value of Solana and/or negatively affect the market perception
of Solana. If they were to affect trading at a trading platform which is used to calculate the CME CF Solana – Dollar Reference
Rate – New York Variant, they could cause the Trust's NAV to be calculated incorrectly and cause Shareholders to suffer losses.
To
the extent that wash trading either occurs or appears to occur in Solana trading platforms on which Solana trades, investors may develop
negative perceptions about Solana and the digital assets industry more broadly, which could adversely impact the price of Solana and,
therefore, the price of Shares. Wash trading also may place more legitimate digital asset trading platforms at a relative competitive
disadvantage.
33
Digital
asset trading platforms may be exposed to front-running.
Solana
trading platforms on which Solana trades may be susceptible to "front-running," which refers to the process when someone
uses access to confidential information, or technology or market advantage to get prior knowledge of upcoming transactions. Front-running
is a frequent activity on centralized as well as decentralized exchanges. By using bots functioning on a millisecond-scale timeframe,
bad actors are able to take advantage of the forthcoming price movement and make economic gains at the cost of those who had introduced
these transactions. The objective of a front runner is to buy a chunk of tokens at a low price and later sell them at a higher price
while simultaneously exiting the position. Front-running can occur via manipulation of transaction validation and mining processes, or
the theft or misappropriation of confidential information by insiders. To extent that front-running occurs in Solana markets, it may
result in concerns as to the price integrity of digital asset exchanges and digital assets more generally.
Momentum
pricing.
The
market price of Solana is not based on any kind of claim, nor is it backed by any physical asset. Instead, the market value depends in
part on the expectation of being usable in future transactions and continued interest from investors. This strong correlation between
an expectation and market value is the basis for the current (and probable future) volatility of the market price of Solana and may increase
the likelihood of momentum pricing.
Momentum
pricing typically is associated with growth stocks and other assets whose valuation, as determined by the investing public, is impacted
by appreciation in value. Momentum pricing may result in speculation regarding future appreciation in the value of digital assets, which
inflates prices and leads to increased volatility. As a result, Solana may be more likely to fluctuate in value due to changing investor
confidence in future appreciation or depreciation in prices, which could adversely affect the price of Solana and, in turn, an investment
in the Trust.
The
value of Solana as represented by the Pricing Benchmark may also be subject to momentum pricing due to speculation regarding future appreciation
in value, leading to greater volatility that could adversely affect the value of the Shares. Momentum pricing of Solana has previously
resulted, and may continue to result, in speculation regarding future appreciation or depreciation in the price of Solana, further contributing
to volatility and potentially inflating prices at any given time. These dynamics may impact the value of an investment in Trust.
Some
market observers have asserted that in time, the value of digital assets will fall to a fraction of their current value, or even to zero.
Solana has not been in existence long enough for market participants to assess these predictions with any precision, but if these observers
are even partially correct, an investment in the Shares may turn out to be substantially worthless.
Political
or economic crises may motivate large-scale sales of Solana, which could result in a reduction in the price of Solana and adversely affect
an investment in the Shares.
As
an alternative to fiat currencies that are backed by central governments, Solana is subject to supply and demand forces based upon the
desirability of an alternative, decentralized means of buying and selling goods and services, and it is unclear how such supply and demand
will be impacted by geopolitical events. Nevertheless, political or economic crises may motivate large-scale acquisitions or sales of
Solana, either globally or locally. Large-scale sales of Solana would result in a reduction in its price and adversely affect an investment
in the Shares.
Ownership
of Solana is pseudonymous, and the supply of accessible Solana is unknown. Entities with substantial holdings in Solana may engage in
large-scale sales or distributions, either on nonmarket terms or in the ordinary course, which could result in a reduction in the price
of Solana and adversely affect an investment in the Shares.
There
is no registry showing which individuals or entities own Solana or the quantity of Solana that is owned by any particular person or entity.
It is possible, and in fact, reasonably likely, that a small group of early Solana adopters hold a significant proportion of the Solana
that has been created to date. There are no regulations in place that would prevent a large holder of Solana from selling Solana it holds.
To the extent such large holders of Solana engage in large-scale sales or distributions, either on nonmarket terms or in the ordinary
course, it could result in a reduction in the price of Solana and adversely affect an investment in the Shares.
34
Due
to the nature of private keys, Solana transactions are irrevocable and stolen or incorrectly transferred Solana may be irretrievable.
As a result, any incorrectly executed Solana transactions could adversely affect an investment in the trust.
Solana
transactions are typically not reversible without the consent and active participation of the recipient of the transaction. Once a transaction
has been signed with private keys, verified and recorded in a block that is added to the Solana blockchain, an incorrect transfer of
cryptocurrency, such as Solana, or a theft of Solana generally will not be reversible and the Trust may not be capable of seeking compensation
for any such transfer or theft. Although the Trust's transfers of Solana will regularly be made to or from the Trust's accounts
at the Solana Custodian or the Additional Solana Custodian, it is possible that, through computer or human error, or through theft or
criminal action, the Trust's Solana could be transferred from the Trust's account at the Solana Custodian or the Additional
Solana Custodian in incorrect amounts or to unauthorized third parties, or to uncontrolled accounts. To the extent that the Trust is
unable to successfully seek redress for such error or theft, such loss could adversely affect an investment in the Trust.
The
custody of the Trust's Solana is handled by the Solana Custodian or the Additional Solana Custodian, and the transfer of Solana
to and from Liquidity Providers normally takes place through the Solana Custodian's Clearing Services and is directed by the Administrator
and the Transfer Agent. The Sponsor has evaluated the procedures and internal controls of the Trust's Solana Custodian and the
Additional Solana Custodian to safeguard the Trust's Solana holdings, as well as the procedures and internal controls of the Trust's
Administrator.
However,
it is possible that, through computer or human error, or through theft or criminal action, the Trust's Solana could be transferred
from the Trust's Solana Account or Clearing Account at the Solana Custodian or the Additional Solana Account at the Additional
Solana Custodian in incorrect amounts or to unauthorized third parties, or to incorrect destination addresses on the Solana blockchain.
Alternatively,
if the Solana Custodian's and the Additional Solana Custodian's internal procedures and controls are inadequate to safeguard
the Trust's Solana holdings, and the Trust's private key(s) is (are) lost, destroyed or otherwise compromised and no backup
of the private key(s) is (are) accessible, the Trust will be unable to access its Solana, which could adversely affect an investment
in the Shares of the Trust. In addition, if the Trust's private key(s) is (are) misappropriated and the Trust's Solana holdings
are stolen, including from or by the Solana Custodian or the Additional Solana Custodian, the Trust could lose some or all of its Solana
holdings, which could adversely impact an investment in the Shares of the Trust.
Such
events have occurred in connection with digital assets in the past. For example, in September 2014, the Chinese digital asset exchange
Huobi announced that it had sent approximately 900 bitcoins and 8,000 Litecoins (worth approximately $400,000 at the prevailing market
prices at the time) to the wrong customers. To the extent that the Trust is unable to seek a corrective transaction with such third party
or is incapable of identifying the third party which has received the Trust's Solana through error or theft, the Trust will be
unable to revert or otherwise recover incorrectly transferred Solana. The Trust will also be unable to convert or recover its Solana
transferred to uncontrolled accounts. To the extent that the Trust is unable to seek redress for such error or theft, such loss could
adversely affect the value of the Shares.
A
disruption of the internet may affect Solana Network operations, which may adversely affect the Solana industry and an investment in
the Trust.
The
Solana Network relies on the Internet. A significant disruption of Internet connectivity (i.e., one that affects large numbers of users
or geographic regions) could disrupt the Solana Network's functionality and operations until the disruption of the Internet is
resolved. A disruption of the Internet could adversely affect an investment in the Trust or the ability of the Trust to operate.
35
Decentralized
governance of the Solana Network could have a negative impact on the performance of the Trust.
The
governance of decentralized networks, such as the Solana Network, is by voluntary consensus and open competition. In other words, the
Solana Network has no central decision-making body or clear manner in which participants can come to an agreement other than through
voluntary, widespread consensus. As a result, a lack of widespread consensus in the governance of the Solana Network may adversely affect
the network's utility and ability to adapt and face challenges, including technical and scaling challenges. Historically the development
of the source code of the Solana Network has been overseen by Solana Labs, the Solana Foundation, and other core developers. Core developers'
roles evolve over time, largely based on self-determined participation. If a significant majority of users and validators adopt amendments
to a decentralized network based on the proposals of such core developers, such network will be subject to new protocols that may adversely
affect the value of the relevant digital asset. However, the Solana Network would cease to operate successfully without both validators
and users, and the core developers cannot formally compel them to adopt the changes to the source code desired by core developers, or
to continue to render services or participate in the Solana Network. As a general matter, the governance of the Solana Network generally
depends on most of members of the Solana community ultimately reaching some form of voluntary agreement on significant changes.
The
decentralized governance of the Solana Network may make it difficult to find or implement solutions or marshal sufficient effort to overcome
existing or future problems, especially protracted ones requiring substantial directed effort and resource commitment over a long period
of time, such as scaling challenges. The Solana Network's failure to overcome governance challenges could exacerbate problems experienced
by the network or cause the network to fail to meet the needs of its users, and could cause users, miners, and developer talent to abandon
the Solana Network or to choose competing blockchain protocols, or lead to a drop in speculative interest, which could cause the value
of Solana to decline. If the Solana community is unable to reach consensus in the future, it could have adverse consequences for the
network or lead to a fork, which could affect the value of Solana.
The
open-source structure of the Solana Network protocol means that the core developers and other contributors are generally not directly
compensated for their contributions in maintaining and developing the Solana Network protocol. A failure to properly monitor and upgrade
the Solana Network protocol could damage the Solana Network and an investment in the trust.
The
Solana Network operates based on an open-source protocol maintained by the core developers and other contributors, largely on the GitHub
resource section dedicated to Solana development. As new Solana are rewarded solely for validator activity (other than the 500 million
minted in 2018 upon launch of the Solana testnet) and are not sold on an ongoing basis to generate revenue to support development activity,
and the Solana Network protocol itself is made available for free rather than sold or made available subject to licensing or subscription
fees and its use does not generate revenues for its development team, the core developers are generally not compensated for maintaining
and updating the source code for the Solana Network protocol. Consequently, there is a lack of financial incentive for developers to
maintain or develop the Solana Network and the core developers may lack the resources to adequately address emerging issues with the
Solana Network protocol. Although the Solana Network is currently supported by the core developers, there can be no guarantee that such
support will continue or be sufficient in the future. The perception that high-profile contributors may no longer contribute to the network
may have an adverse effect on the market price of any related digital assets. For example, in June 2017, an unfounded rumor circulated
that Ethereum core developer Vitalik Buterin had died. Following the rumor, the price of ETH decreased approximately 20% before recovering
after Buterin himself dispelled the rumor. Some have speculated that the rumor led to the decrease in the price of ETH. In the event
a high-profile contributor to the Solana Network is perceived as no longer able to contribute to the Solana Network due to death, retirement,
withdrawal, incapacity, or otherwise, whether or not such perception is valid, it could negatively affect the price of Solana, which
could adversely impact the value of the Shares.
In
another example, FTX, one of the largest Digital asset trading platforms at the time, experienced a high-profile collapse in November
2022. Along with its CEO Sam Bankman-Fried and Alameda Research (a digital asset trading firm also owned by Bankman-Fried), FTX had provided
substantial financial and developmental support to the Solana project. Bankman-Fried was also a strong and vocal supporter of Solana
and the Solana Network. It does not appear, however, that FTX, Alameda Research, or any other Bankman-Fried-affiliated entity had a formal
relationship with Solana Labs or the Solana Foundation, or that Solana Labs or the Solana Foundation were involved in any of FTX, Alameda
Research or Bankman-Fried's alleged misconduct. Based on public information it does not appear that FTX or Alameda Research operated
a validator node on the Solana Network. The price of Solana fell severely immediately following the news of FTX's insolvency (although
it has since recovered substantially).
36
In
the event a high-profile contributor to the Solana Network, such as Anatoly Yakovenko, is perceived as no longer contributing to the
Solana Network due to death, retirement, withdrawal, incapacity, or otherwise, whether or not such perception is valid, it could negatively
affect the price of Solana, which could adversely impact the value of the Shares.
Alternatively,
some developers may be funded by entities whose interests are at odds with other participants in the Solana Network.
In
addition, a bad actor could also attempt to interfere with the operation of the Solana Network by attempting to exercise a malign influence
over a core developer. To the extent that material issues arise with the Solana Network protocol and the core developers and open-source
contributors are unable to address the issues adequately or in a timely manner, the Solana Network and an investment in the Trust may
be adversely affected.
Flaws
in source code.
In
the past, flaws in the source code for digital asset networks have been exposed and exploited, including flaws that disabled some functionality
for users, exposed users' personal information and/or resulted in the theft of users' digital assets. Discovery of flaws
in or exploitations of the source code that allow malicious actors to take or create money in contravention of known network rules have
occurred. The cryptography underlying Solana could prove to be flawed or ineffective, or developments in mathematics and/or technology,
such as advances in digital computing, algebraic geometry and quantum computing, could make cryptography ineffective. In any of these
circumstances, a malicious actor may be able to steal Solana held by others, which could adversely affect the demand for Solana and therefore
adversely impact the price of Solana and the value of the Shares. Even if a digital asset other than Solana were affected by similar
circumstances, any reduction in confidence in the robustness of the source code or cryptography underlying digital assets generally could
negatively affect the demand for all digital assets, including Solana, and therefore adversely affect the value of the Shares.
Competition
from the emergence or growth of other digital assets or methods of investing in Solana could have a negative impact on the price of Solana
and adversely affect the value of the Shares.
As
of November 1, 2024, Solana was the 5th largest digital asset by market capitalization, as tracked by CoinMarketCap.com. As of ________,
20__, the alternative digital assets tracked by CoinMarketCap.com had a total market capitalization of approximately $____ billion (including
the approximately $____ billion market cap of Solana), as calculated using market prices and total available supply of each digital asset,
excluding tokens pegged to other assets. Solana faces competition from a wide range of digital assets, including Bitcoin and Ethereum.
Solana is also supported by fewer regulated trading platforms than more established digital assets, such as Bitcoin and Ethereum, which
could impact its liquidity. In addition, Solana is in direct competition to other smart contract platforms, such as Ethereum, Polkadot,
Avalanche and Cardano. Competition from the emergence or growth of alternative digital assets and smart contracts platforms, such as
EOS, Tezos, Tron, and numerous others, could have a negative impact on the demand for, and price of, Solana and thereby adversely affect
the value of the Shares.
In
addition, some digital asset networks, including the Solana Network, may be the target of ill will from users of other digital asset
networks. For example, in July 2016, the Solana Network underwent a contentious hard fork that resulted in the creation of a new digital
asset network called Solana Classic. As a result, some users of the Solana Classic network may harbor ill will toward the Solana Network.
These users may attempt to negatively impact the use or adoption of the Solana Network.
Investors
may invest in Solana through means other than the Shares, including through direct investments in Solana and other potential financial
vehicles, possibly including securities backed by or linked to Solana and digital asset financial vehicles similar to the Trust, or other
futures-based products. Market and financial conditions, and other conditions beyond the Sponsor's control, may make it more attractive
to invest in other financial vehicles or to invest in Solana directly, which could limit the market for, and reduce the liquidity of,
the Shares. In addition, to the extent digital asset financial vehicles other than the Trust tracking the price of Solana are formed
and represent a significant proportion of the demand for Solana, large purchases or redemptions of the securities of these digital asset
financial vehicles, or private funds holding Solana, could negatively affect the Pricing Benchmark, the Trust's Solana holdings,
the price of the Shares, the net asset value of the Trust and the NAV.
37
Congestion
or delay in the Solana Network may delay purchases or sales of Solana by the Trust.
Increased
transaction volume could result in delays in the recording of transactions due to congestion in the Solana Network. Moreover, unforeseen
system failures, disruptions in operations, or poor connectivity may also result in delays in the recording of transactions on the Solana
Network. Any delay in the Solana Network could affect an Authorized Participant's ability to buy or sell Solana Network at an advantageous
price resulting in decreased confidence in the Solana Network. 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.
Risks
Associated with the Pricing Benchmark, SRR and CME Solana Real Time Price
The
Pricing Benchmark, SRR and CME Solana Real Time Price each have a limited history.
The
Pricing Benchmark, which was introduced on September 16, 2024, is based on materially the same methodology (except calculation time)
as the SRR, which was first introduced on April 25, 2022. The Pricing Benchmark and the SRR have a limited history and their value is
an average composite reference rate calculated using volume-weighted trading price data from the Constituent Platforms. A longer history
of actual performance through various economic and market conditions would provide greater and more reliable information for an investor
to assess Pricing Benchmark's performance. The Benchmark Provider has substantial discretion at any time to change the methodology
used to calculate the Pricing Benchmark, including the Constituent Platforms that contribute prices to the Trust's NAV. The Benchmark
Provider does not have any obligation to take into consideration the needs of the Trust, the Shareholders, or anyone else in connection
with such changes. There is no guarantee that the methodology currently used in calculating the Pricing Benchmark will appropriately
track the price of Solana in the future. Neither the CME Group nor the Benchmark Provider has any obligation to take into consideration
the needs of the Trust or the Shareholders in determining, composing, or calculating the Pricing Benchmark or in the selection of the
Constituent Platforms used. The Constituent Platforms are chosen by the Benchmark Provider, under the oversight of the CME CF Cryptocurrency
Pricing Products Oversight Committee.
Although
the Pricing Benchmark is intended to accurately capture the market price of Solana, third parties may be able to purchase and sell Solana
on public or private markets not included among the Constituent Platforms, and such transactions may take place at prices materially
higher or lower than the Pricing Benchmark price. Moreover, there may be variances in the price of Solana on the various Constituent
Platforms, including as a result of differences in fee structures or administrative procedures on different Constituent Platforms. While
the Pricing Benchmark provides a U.S. dollar-denominated price of Solana based on the volume-weighted price of Solana on certain Constituent
Platforms, at any given time, the prices on each such Constituent Platform may not be equal to the price of Solana as represented by
the Pricing Benchmark. It is possible that the price of Solana on the Constituent Platforms could be materially higher or lower than
the Pricing Benchmark price. To the extent the Pricing Benchmark price differs materially from the actual prices available on a Constituent
Platform, or from the global market price of Solana, the price of the Shares may no longer track, whether temporarily or over time, the
global market price of Solana, which could adversely affect an investment in the Trust by reducing investors' confidence in the
Shares' ability to track the market price of Solana. To the extent such prices differ materially from the Pricing Benchmark price,
investors may lose confidence in the Shares' ability to track the market price of Solana, which could adversely affect the value
of the Shares.
The
pricing sources (Constituent Platforms) used by the Pricing Benchmark are digital asset trading venues that facilitate the buying and
selling of Solana and other digital assets. Although many pricing sources refer to themselves as "exchanges," they are not
registered with, or supervised by, the SEC or the CFTC and they do not meet the regulatory standards of a national securities exchange
or designated contract market. For these reasons, among others, purchases and sales of Solana may be subject to temporary distortions
or other disruptions due to various factors, including the lack of liquidity in the markets and government regulation and intervention.
These circumstances could affect the price of Solana used in Pricing Benchmark calculations and, therefore, could adversely affect the
Solana price as reflected by the Pricing Benchmark.
38
The
Constituent Platforms have changed over time. For example, on January 25, 2019, itBit was suspended from the Pricing Benchmark due to
data quality issues, which suspension was lifted on February 1, 2019 after the Benchmark Provider confirmed that data quality assurance
measures were in place to identify the errors that the itBit data contained through a full match of parameters. On August 30, 2019, Gemini
was added to the Pricing Benchmark. On October 28, 2019, Coinbase was added to the Pricing Benchmark. On May 3, 2022, LMAX Digital was
added to the Pricing Benchmark. The Benchmark Provider, under the oversight of the CME CF Cryptocurrency Pricing Products Oversight Committee,
may remove or add Constituent Platforms in the future at its discretion. For more information on the inclusion criteria for Constituent
Platforms in the Pricing Benchmark, see "THE TRUST AND SOLANA PRICES—The CME CF Solana – Dollar Reference Rate –
New York Variant.
"
The
Pricing Benchmark is based on various inputs which may include price data from various third-party digital asset trading platforms. Neither
the CME Group nor the Benchmark Provider guarantees the validity of any of these inputs, which may be subject to technological error,
manipulative activity, or fraudulent reporting from their initial source.
The
Trust utilizes the Pricing Benchmark to establish its NAV and NAV per Share. In the event that the Pricing Benchmark is incorrectly calculated,
is not timely calculated or changes its calculation methodology in the future, such an occurrence may adversely impact an investment
in the Shares or the Trust's operations.
The
CME Solana Real Time Price also has a limited history and shares some of the same structural and methodological features and risks as
the Pricing Benchmark. The Trust utilizes the CME Solana Real Time Price to establish its ITV. While investors are capable of assessing
the intra-day movement of the price of the Shares and the Solana market price of Solana, Shareholders may use the ITV as a data point
in their assessment of the value of the Shares. In the event that the CME Solana Real Time Price is incorrectly calculated, is not timely
calculated or changes its calculation methodology in the future, such an occurrence may adversely impact the utility of the ITV to Shareholders.
Although
the Pricing Benchmark and CME Solana Real Time Price are designed to accurately capture the market price of Solana, third parties may
be able to purchase and sell Solana on public or private markets not included among the Constituent Platforms of the Pricing Benchmark
and CME Solana Real Time Price, and such transactions may take place at prices materially higher or lower than the level of the Pricing
Benchmark used to establish the NAV. To the extent such prices differ materially from the level of the Pricing Benchmark used to establish
the NAV, investors may lose confidence in the Shares' ability to track the market price of Solana, which could adversely affect
an investment in the Shares.
The
Benchmark Provider could experience systems failures or errors.
If
the computers or other facilities of the Benchmark Provider, data providers and/or relevant stock exchange malfunction for any reason,
calculation and dissemination of the Pricing Benchmark may be delayed. Errors in Pricing Benchmark data, the Pricing Benchmark computations
and/or construction may occur from time to time and may not be identified and/or corrected for a period of time or at all, which may
have an adverse impact on the Trust and the Shareholders. Any of the foregoing may lead to errors in the Pricing Benchmark, which may
lead to a different investment outcome for the Trust and its Shareholders than would have been the case had such events not occurred.
The Pricing Benchmark is the reference price for calculating the Trust's NAV. Consequently, losses or costs associated with the
Pricing Benchmark's errors or other risks described above will generally be borne by the Trust and the Shareholders and neither
the Sponsor nor its affiliates or agents make any representations or warranties regarding the foregoing.
If
the Pricing Benchmark is not available, the Trust's holdings may be fair valued in accordance with the policy approved by the Sponsor.
If the Pricing Benchmark is not available, or if the Sponsor determines, in its sole discretion, that the Pricing Benchmark does not
reflect an accurate Solana price, the Trust's holdings may be "fair valued" in accordance with the valuation policies
approved by the Sponsor. Those valuation policies stipulate that when seeking to fair value Solana, the Sponsor may apply all available
factors the Sponsor deems relevant at the time of the determination, and may be based on analytical values determined by the Sponsor
using third-party valuation models. Pursuant thereto, the Sponsor expects to utilize a volume-weighted average price or volume-weighted
median price of Solana provided by a secondary pricing source ("Secondary Source"). If a Secondary Source is not available
or the Sponsor in its sole discretion determines the Secondary Sources are unreliable, the price set by the Trust's principal market
as of 4:00 p.m. ET, on the valuation date would be considered for utilization. In the event the principal market price is not available
or the Sponsor in its sole discretion determines the principal market valuation is unreliable the Sponsor will use its best judgment
to determine a good faith estimate of fair value based upon all available factors. The Sponsor does not anticipate that the need to "fair
value" Solana will be a common occurrence.
39
To
the extent the valuation determined in accordance with the policy approved by the Sponsor differs materially from the actual market price
of Solana, the price of the Shares may no longer track, whether temporarily or over time, the global market price of Solana, which could
adversely affect an investment in the Trust by reducing investors' confidence in the Shares' ability to track the global
market price of Solana. To the extent such prices differ materially from the market price for Solana, investors may lose confidence in
the Shares' ability to track the market price of Solana, which could adversely affect the value of the Shares. The Sponsor does
not anticipate that the need to "fair value" Solana will be a common occurrence.
The
Pricing Benchmark could fail to track the global Solana price, and a failure of the Pricing Benchmark could adversely affect the value
of the Shares.
Although
the Pricing Benchmark is intended to accurately capture the market price of Solana, third parties may be able to purchase and sell Solana
on public or private markets not included among the Constituent Platforms, and such transactions may take place at prices materially
higher or lower than the Pricing Benchmark price. Moreover, there may be variances in the price of Solana on the various Constituent
Platforms, including as a result of differences in fee structures or administrative procedures on different Constituent Platforms. While
the Pricing Benchmark provides a U.S. dollar-denominated composite for the price of Solana based on the volume-weighted price of Solana
on certain Constituent Platforms, at any given time, the prices on each such Constituent Platform or pricing source may not be equal
to the price of Solana as represented by the Pricing Benchmark. It is possible that the price of Solana on the Constituent Platforms
could be materially higher or lower than the Pricing Benchmark price. To the extent the Pricing Benchmark price differs materially from
the actual prices available on a Constituent Platform, or from the global market price of Solana, the price of the Shares may no longer
track, whether temporarily or over time, the global market price of Solana, which could adversely affect an investment in the Trust by
reducing investors' confidence in the Shares' ability to track the market price of Solana. To the extent such prices differ
materially from the Pricing Benchmark price, investors may lose confidence in the Shares' ability to track the market price of
Solana, which could adversely affect the value of the Shares.
The
Sponsor can discontinue using the Pricing Benchmark and use a different pricing or valuation methodology instead.
The
Sponsor, in its sole discretion, may cause the Trust to price its portfolio based upon an index, benchmark or standard other than the
Pricing Benchmark at any time, with prior notice to the Shareholders, if investment conditions change or the Sponsor believes that another
index, benchmark or standard better aligns with the Trust's investment objective and strategy. The Sponsor may make this decision
for a number of reasons, including, but not limited to, a determination that the Pricing Benchmark price of Solana differs materially
from the global market price of Solana and/or that third parties are able to purchase and sell Solana on public or private markets not
included among the Constituent Platforms, and such transactions may take place at prices materially higher or lower than the Pricing
Benchmark price. The Sponsor, however, is under no obligation whatsoever to make such changes in any circumstance. In the event that
the Sponsor intends to establish the Trust's NAV by reference to an index, benchmark or standard other than the Pricing Benchmark,
it will provide Shareholders with notice in a prospectus supplement and/or through a current report on Form 8-K or in the Trust's
annual or quarterly reports.
The
Pricing Benchmark price used to calculate the value of the Trust's Solana may be volatile, adversely affecting the value of the
Shares.
The
price of Solana on public digital asset trading platforms has a limited history, and during this history, Solana prices on the digital
asset markets more generally, and on digital asset trading platforms individually, have been volatile and subject to influence by many
factors, including operational interruptions. While the Pricing Benchmark is designed to limit exposure to the interruption of individual
digital asset trading platforms, the Pricing Benchmark price, and the price of Solana generally, remains subject to volatility experienced
by digital asset exchanges, and such volatility could adversely affect the value of the Shares.
40
Furthermore,
because the number of liquid and credible digital asset trading platforms is limited, the Pricing Benchmark will necessarily be composed
of a limited number of digital asset trading platforms. If a digital asset trading platform were subjected to regulatory, volatility
or other pricing issues, the Benchmark Provider would have limited ability to remove such digital asset trading platform from the Pricing
Benchmark, which could skew the price of Solana as represented by the Pricing Benchmark. Trading on a limited number of digital asset
trading platforms may result in less favorable prices and decreased liquidity of Solana and, therefore, could have an adverse effect
on the value of the Shares.
The
Pricing Benchmark price being used to determine the NAV of the Trust may not be consistent with GAAP. To the extent that the Trust's
financial statements are determined using a different pricing source that is consistent with GAAP, the NAV reported in the Trust's
periodic financial statements may differ, in some cases significantly, from the Trust's NAV determined using the Pricing Benchmark
pricing.
The
Trust will determine the NAV of the Trust on each business day based on the value of Solana as reflected by the Pricing Benchmark. The
methodology used to calculate the Pricing Benchmark price to value Solana in determining the NAV of the Trust may not be deemed consistent
with GAAP. To the extent the methodology used to calculate the Pricing Benchmark is deemed inconsistent with GAAP, the Trust will utilize
an alternative GAAP-consistent pricing source for purposes of the Trust's periodic financial statements. Creation and redemption
of Baskets, the Sponsor Fee and other expenses borne by the Trust will be determined using the Trust's NAV determined daily based
on the Pricing Benchmark. Such NAV of the Trust determined using the Pricing Benchmark price may differ, in some cases significantly,
from the NAV reported in the Trust's periodic financial statements.
Risks
Related to Pricing.
The
Trust's portfolio will be priced, including for purposes of determining the NAV, based upon the Pricing Benchmark. The price of
Solana in U.S. dollars or in other currencies available from other data sources may not be equal to the prices used to calculate the
NAV.
The
NAV of the Trust will change as fluctuations occur in the market price of the Trust's Solana holdings as reflected in the Pricing
Benchmark. Shareholders should be aware that the public trading price per Share may be different from the NAV for a number of reasons,
including price volatility; trading activity; the closing of Solana trading platforms due to fraud, failure, security breaches or otherwise;
and the fact that supply-and-demand forces at work in the secondary trading market for Shares are related, but not identical, to the
supply-and-demand forces influencing the market price of Solana.
Shareholders
also should note that the size of the Trust in terms of total Solana held may change substantially over time and as Baskets are created
and redeemed.
In
the event that the value of the Trust's Solana holdings or Solana holdings per Share is incorrectly calculated, neither the Sponsor
nor the Administrator will be liable for any error and such misreporting of valuation data could adversely affect the value of the Shares.
Risks
Associated with Investing in the Trust
Investment-Related
Risks
.
Investing
in Solana and, consequently, the Trust, is speculative. The price of Solana is volatile, and market movements of Solana are difficult
to predict. Supply-and-demand changes rapidly are affected by a variety of factors, including regulation and general economic trends,
such as interest rates, availability of credit, credit defaults, inflation rates and economic uncertainty. All investments made by the
Trust will risk the loss of capital. Therefore, an investment in the Trust involves a high degree of risk, including the risk that the
entire amount invested may be lost. No guarantee or representation is made that the Trust's investment program will be successful,
that the Trust will achieve its investment objective or that there will be any return of capital invested to investors in the Trust,
and investment results may vary.
The
Trust is subject to market risk.
Market
risk refers to the risk that the market price of Solana held by the Trust will rise or fall, sometimes rapidly or unpredictably. An investment
in the Shares is subject to market risk, including the possible loss of the entire principal of the investment.
41
Different
from directly owning Solana
.
The
performance of the Trust will not reflect the specific return an investor would realize if the investor actually held or purchased Solana
directly. The differences in performance may be due to factors such as fees and transaction costs. Investors will also forgo certain
rights conferred by owning Solana directly, such as the right to claim airdrops. See "RISK FACTORS—Risks Associated with
Investing in the Trust—Shareholders may not receive the benefits of any forks or "airdrops.""
The
Trust is a passive investment vehicle. The Trust is not actively managed and will be affected by a general decline in the price of Solana.
The
Sponsor does not actively manage the Solana held by the Trust. This means that the Sponsor does not sell Solana at times when its price
is high, or acquire Solana at low prices in the expectation of future price increases. It also means that the Sponsor does not make use
of any of the hedging techniques available to professional Solana investors to attempt to reduce the risks of losses resulting from price
decreases. Any losses sustained by the Trust will adversely affect the value of the Shares.
The
value of the Shares may be influenced by a variety of factors unrelated to the price of Solana.
The
value of the Shares may be influenced by a variety of factors unrelated to the price of Solana that may have an adverse effect on the
price of the Shares. These factors include, but are not limited to, the following:
●
Unanticipated
                                            problems or issues with respect to the mechanics of the Trust's operations and the
                                            trading of the Shares may arise, in particular due to the fact that the mechanisms and procedures
                                            governing the creation and offering of the Shares and storage of Solana have been developed
                                            specifically for this product;
●
The
                                            Trust could experience difficulties in operating and maintaining its technical infrastructure,
                                            including in connection with expansions or updates to such infrastructure, which are likely
                                            to be complex and could lead to unanticipated delays, unforeseen expenses and security vulnerabilities;
●
The
                                            Trust could experience unforeseen issues relating to the performance and effectiveness of
                                            the security procedures used to protect the Trust's account with the Solana Custodian,
                                            or the security procedures may not protect against all errors, software flaws or other vulnerabilities
                                            in the Trust's technical infrastructure, which could result in theft, loss or damage
                                            of its assets; or
●
Service
                                            providers may decide to terminate their relationships with the Trust due to concerns that
                                            the introduction of privacy-enhancing features to the Solana Network may increase the potential
                                            for Solana to be used to facilitate crime, exposing such service providers to potential reputational
                                            harm.
Any
of these factors could affect the value of the Shares, either directly or indirectly through their effect on the Trust's assets.
Liquidity
risk.
The
Trust's and the Authorized Participants' ability to buy or sell Solana may be adversely affected by limited trading volume,
lack of a market maker, or legal restrictions. It is also possible that a Solana spot market or governmental authority may suspend or
restrict trading in Solana altogether. Therefore, it may not always be possible to execute a buy or sell order at the desired price or
to liquidate an open position due to market conditions on spot markets, regulatory issues affecting Solana or other issues affecting
counterparties. Solana is a new asset with a very limited trading history. Therefore, the markets for Solana may be less liquid and more
volatile than other markets for more established products.
The
NAV may not always correspond to the market price of Solana and, as a result, Baskets may be created or redeemed at a value that is different
from the market price of the Shares.
The
NAV of the Trust will change as fluctuations occur in the market price of the Trust's Solana holdings. Shareholders should be aware
that the public trading price per Share may be different from the NAV for a number of reasons, including price volatility; trading activity;
the closing of digital asset trading platforms due to fraud, failure, security breaches or otherwise; and the fact that supply-and-demand
forces at work in the secondary trading market for Shares are related, but not identical, to the supply-and-demand forces influencing
the market price of Solana.
42
An Authorized Participant may
be able to create or redeem a Basket at a discount or a premium to the public trading price per Share, and the Trust will therefore maintain
its intended fractional exposure to a specific amount of Solana per Share.
Shareholders also should note
that the size of the Trust in terms of total Solana held may change substantially over time and as Baskets are created and redeemed.
When acquiring Solana, it is possible
that the Trust will pay a higher price for Solana than the value ascribed to Solana by the Pricing Benchmark, the rate used to calculate
the Trust's NAV. This is known as "slippage." While transactions in any asset are subject to the risk of slippage, it
is possible that transactions in digital assets may be more susceptible. The Trust seeks to minimize the risk of slippage by basing the
amount of cash an Authorized Participant is required to deposit to consummate a creation order for Baskets on the price the Trust actually
paid for the Solana rather than on the value of Solana ascribed by the Pricing Benchmark. Nonetheless, there can be no guarantee that
the Trust will not be negatively affected by slippage from time to time.
The Shares may trade
at a discount or premium in the trading price relative to the NAV as a result of non-concurrent trading hours between the Exchange and
digital asset trading platforms. Non-concurrent trading hours may also result in the Shares gapping at the open of trading on the Exchange.
The value of a Share may be influenced
by non-concurrent trading hours between the Exchange and various digital asset trading platforms, including the Constituent Platforms
of the Pricing Benchmark. Additionally, Shares may be traded at other times and in other venues. While U.S. equity markets are open for
trading in the Shares for a limited period each day, the Solana market is a 24-hour marketplace; however, trading volume and liquidity
on the Solana market are not consistent throughout the day and digital asset trading platforms, including the larger-volume markets, have
been known to shut down temporarily or permanently due to security concerns, directed denial-of-service attacks and other reasons. As
a result, during periods when U.S. equity markets are open but large portions of the Solana market are either lightly traded or are closed,
trading spreads and the resulting premium or discount on the Shares may widen and, therefore, increase the difference between the price
of the Shares and the NAV. Premiums or discounts may have an adverse effect on an investment in the Shares if a Shareholder sells or acquires
its Shares during a period of discount or premium, respectively.
During periods when U.S. equity
markets are closed but digital asset trading platforms are open, significant changes in the price of Solana could result in a difference
in performance between the price of Solana and the most recent Share price. To the extent that the price of Solana moves significantly
in a negative direction after the close of U.S. equity markets, the trading price of the Shares may "gap" down to the full
extent of such negative price shift when U.S. equity markets reopen. To the extent that the price of Solana drops significantly during
hours in which U.S. equity markets are closed, investors may not be able to sell their Shares until after the "gap" down has
been fully realized, resulting in an inability to mitigate losses in a rapidly negative market.
Buying and selling
activity associated with the purchase and redemption of Baskets may adversely affect an investment in the Shares.
The Sponsor's purchase of
Solana in connection with Basket purchase orders may cause the price of Solana to increase, which will result in higher prices for the
Shares. Increases in the Solana prices may also occur as a result of Solana purchases by other market participants who attempt to benefit
from an increase in the market price of Solana when Baskets are created. The market price of Solana may therefore decline immediately
after Baskets are created.
Selling activity associated with
sales of Solana by the Sponsor in connection with redemption orders may decrease the Solana prices, which will result in lower prices
for the Shares. Decreases in Solana prices may also occur as a result of selling activity by other market participants.
In addition to the effect that
purchases and sales of Solana by the Sponsor and other market participants may have on the price of Solana, other exchange-traded products
or large private investment vehicles with similar investment objectives (if developed) could represent a substantial portion of demand
for Solana at any given time and the sales and purchases by such investment vehicles may impact the price of Solana. If the price of Solana
declines, the trading price of the Shares will generally also decline.
43
The inability of Authorized
Participants and market makers to hedge their Solana exposure may adversely affect the liquidity of Shares and the value of an investment
in the Shares.
Authorized Participants and market
makers will generally want to hedge their exposure in connection with Basket purchase and redemption orders. To the extent Authorized
Participants and market makers are unable to hedge their exposure due to market conditions (e.g., insufficient Solana liquidity in the
market, inability to locate an appropriate hedge counterparty, extreme volatility in the price of Solana, wide spreads between prices
quoted on different Solana trading platforms, the closing of Solana trading platforms due to fraud, failures, security breaches or otherwise
etc.), such conditions may make it difficult to purchase or redeem Baskets or cause them to not create or redeem Baskets. In addition,
the hedging mechanisms employed by Authorized Participants and market makers to hedge their exposure to Solana may not function as intended,
which may make it more difficult for them to enter into such transactions. Such events could negatively impact the market price of Shares
and the spread at which Shares trade on the open market.
Arbitrage transactions
intended to keep the price of Shares closely linked to the price of Solana may be problematic if the process for the purchase and redemption
of Baskets encounters difficulties, which may adversely affect an investment in the Shares.
If the processes of creation and
redemption of Shares (which depend on timely transfers of Solana to and by the Solana Custodian) encounter any unanticipated difficulties
due to, for example, the price volatility of Solana, the insolvency, business failure or interruption, default, failure to perform, security
breach, or other problems affecting the Prime Execution Agent or Solana Custodian, the closing of Solana trading platforms due to fraud,
failures, security breaches or otherwise, or network outages or congestion, spikes in transaction fees demanded by validators, or other
problems or disruptions affecting the Solana Network, then potential market participants, such as the Authorized Participants and their
customers, who would otherwise be willing to purchase or redeem Baskets to take advantage of any arbitrage opportunity arising from discrepancies
between the price of the Shares and the price of the underlying Solana may not take the risk that, as a result of those difficulties,
they may not be able to realize the profit they expect.
Alternatively, in the case of
a network outage or other problems affecting the Solana Network, the processing of transactions on the Solana Network may be disrupted,
which in turn may prevent Solana Trading Counterparties from depositing or withdrawing Solana from their custody accounts, which in turn
could affect the creation or redemption of Baskets. If this is the case, the liquidity of the Shares may decline and the price of the
Shares may fluctuate independently of the price of Solana and may fall or otherwise diverge from NAV. Furthermore, in the event that the
market for Solana should become relatively illiquid and thereby materially restrict opportunities for arbitraging by delivering Solana
in return for Baskets, the price of Shares may diverge from the price of Solana.
Investors may be adversely
affected by purchase or redemption orders that are subject to postponement, suspension or rejection under certain circumstances.
The Trust may, in its discretion,
suspend the right of purchase or redemption or may postpone the redemption or purchase settlement date, for (1) for any period during
which the Exchange is closed other than customary weekend or holiday closings, or trading on the Exchange is suspended or restricted,
(2) any period during which an emergency exists as a result of which the fulfillment of a purchase order or the redemption distribution
is not reasonably practicable (for example, as a result of an interruption in services or availability of the Prime Execution Agent, Solana
Custodian, Cash Custodian, Administrator, or other service providers to the Trust, act of God, catastrophe, civil disturbance, government
prohibition, war, terrorism, strike or other labor dispute, fire, force majeure, interruption in telecommunications, internet services,
or network provider services, unavailability of Fedwire, SWIFT or banks' payment processes, significant technical failure, bug,
error, disruption or fork of the Solana Network, hacking, cybersecurity breach, or power, internet, or Solana Network outage, or similar
event), or (3) such other period as the Sponsor determines to be necessary for the protection of the Shareholders of the Trust (for example,
where acceptance of the U.S. dollars needed to create each Basket would have certain adverse tax consequences to the Trust or its Shareholders).
In addition, the Trust may reject a redemption order if the order is not in proper form as described in the Authorized Participant Agreement
or if the fulfillment of the order might be unlawful. Any such postponement, suspension or rejection could adversely affect a redeeming
Authorized Participant. Suspension of creation privileges may adversely impact how the Shares are traded and arbitraged in the secondary
market, which could cause Shares to trade at levels materially different (premiums and discounts) from the value of their underlying Solana.
44
Investors may be adversely
affected by an overstatement or understatement of the NAV calculation of the Trust due to the valuation method employed on the date of
the NAV calculation.
In certain circumstances, the
Trust's Solana investments may be valued using techniques other than reliance on the price established by the Pricing Benchmark.
The value established by using the Pricing Benchmark may be different from what would be produced through the use of another methodology.
The value of Solana or other digital asset investments valued using techniques other than those employed by the Pricing Benchmark, including
"fair valuation measures," may differ from the value of Solana determined by reference to the Pricing Benchmark.
If the Pricing Benchmark is not
available, or if the Sponsor determines, in its sole discretion, that the Pricing Benchmark does not reflect an accurate Solana price,
the Trust's holdings may be "fair valued" in accordance with the valuation policies approved by the Sponsor. Those valuation
policies stipulate that when seeking to fair value Solana, the Sponsor may apply all available factors the Sponsor deems relevant at the
time of the determination, and may be based on analytical values determined by the Sponsor using third-party valuation models. Pursuant
thereto, the Sponsor expects to utilize a volume-weighted average price or volume-weighted median price of Solana provided by a Secondary
Source. If a Secondary Source is not available or the Sponsor in its sole discretion determines the Secondary Sources are unreliable,
the price set by the Trust's principal market as of 4:00 p.m. ET, on the valuation date would be considered for utilization. In
the event the principal market price is not available or the Sponsor in its sole discretion determines the principal market valuation
is unreliable the Sponsor will use its best judgment to determine a good faith estimate of fair value based upon all available factors.
The Sponsor does not anticipate that the need to "fair value" Solana will be a common occurrence.
As an owner of Shares,
you will not have the rights normally associated with ownership of other types of shares.
Shares are not entitled to the
same rights as shares issued by a corporation. By acquiring Shares, you are not acquiring the right to elect directors, to receive dividends,
to vote on certain matters regarding the issuer of the Shares or to take other actions normally associated with the ownership of shares.
You will only have the limited rights described under "MANAGEMENT; VOTING BY SHAREHOLDERS."
The Sponsor and the
Trustee may agree to amend the Trust Agreement or Sponsor Agreement without the consent of the Shareholders.
The Sponsor and the Trustee may
agree to amend the Trust Agreement or Sponsor Agreement without Shareholder consent. The Sponsor shall determine the contents and manner
of delivery of any notice of any Trust Agreement amendment. Such notice may be provided on the Trust's website, in a prospectus
supplement, through a current report on Form 8-K and/or in the Trust's annual or quarterly reports. If an amendment to the Trust
Agreement or Sponsor Agreement imposes new fees and charges or increases existing fees or charges, including the Sponsor Fee (except for
taxes and other governmental charges, registration fees or other such expenses), or prejudices a substantial right of Shareholders, it
will become effective for outstanding Shares 30 days after notice of such amendment is given to registered owners. Shareholders that are
not registered owners (which most Shareholders will not be) may not receive specific notice of a fee increase other than through an amendment
to the Prospectus. Moreover, at the time an amendment becomes effective, by continuing to hold Shares, Shareholders are deemed to agree
to the amendment and to be bound by the Trust Agreement and Sponsor Agreement as amended without specific agreement to such increase.
The Trust is subject
to risks due to its concentration of investments in a single asset class.
Unlike other funds that may invest
in diversified assets, the Trust's investment strategy is concentrated in a single asset class: Solana. This concentration maximizes
the degree of the Trust's exposure to a variety of market risks associated with Solana. By concentrating its investment strategy
solely on Solana, any losses suffered as a result of a decrease in the price of Solana can be expected to reduce the value of an interest
in the Trust and will not be offset by other gains if the Trust were to invest in underlying assets that were diversified.
A possible "short
squeeze" due to a sudden increase in demand for the Shares that largely exceeds supply may lead to price volatility in the Shares.
Investors may purchase Shares
to hedge existing Solana or other digital asset, commodity or currency exposure or to speculate on the price of Solana. Speculation on
the price of Solana may involve long and short exposures. To the extent that aggregate short exposure exceeds the number of Shares available
for purchase (for example, in the event that large redemption requests by Authorized Participants dramatically affect Share liquidity),
investors with short exposure may have to pay a premium to repurchase Shares for delivery to Share lenders. Those repurchases may, in
turn, dramatically increase the price of the Shares until additional Shares are created through the creation process. This is often referred
to as a "short squeeze." A short squeeze could lead to volatile price movements in the Shares that are not directly correlated
to the price of Solana.
45
As the Sponsor and
its management have a limited history of operating an investment vehicle like the Trust, their experience may be inadequate or unsuitable
to manage the Trust.
The Sponsor has no history of
past performance in managing a Solana exchange-traded product, which is a novel type of investment product. In addition, the Sponsor is
not, and the Sponsor believes it is not required to be, registered as an investment adviser under the Investment Advisers Act of 1940
(the "Advisers Act") or a commodity pool operator or commodity trading adviser under the Commodity Exchange Act. The past
performances of the Sponsor's management in other positions, including their experiences in private funds that hold Solana and traditional
exchange-traded funds investing in securities, are an imperfect indication of their ability to manage an investment vehicle such as the
Trust. If the experience of the Sponsor and its management is inadequate or unsuitable to manage an investment vehicle such as the Trust,
the operations of the Trust may be adversely affected.
Security threats and
cyber-attacks could result in the halting of Trust operations and a loss of Trust assets or damage to the reputation of the Trust, each
of which could result in a reduction in the price of the Shares.
Security breaches, cyber-attacks,
computer malware and computer hacking attacks have been a prevalent concern in relation to digital assets. Multiple thefts of Solana and
other digital assets from other holders have occurred in the past. Because of the pseudonymous nature of the Solana Network, thefts can
be difficult to trace, which may make Solana a particularly attractive target for theft. Cyber security failures or breaches of one or
more of the Trust's service providers (including, but not limited to, the Transfer Agent, the Marketing Agent, the Administrator,
the Cash Custodian or the Solana Custodian) have the ability to cause disruptions and impact business operations, potentially resulting
in financial losses, violations of applicable privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement
or other compensation costs, and/or additional compliance costs.
The Trust and its service providers'
use of the internet, technology and information systems (including mobile devices and cloud-based service offerings) may expose the Trust
to potential risks linked to cyber-security breaches of those technological or information systems. The Sponsor believes that the Trust's
Solana held in the Trust Solana Account at the Solana Custodian or Trading Balance held with the Prime Execution Agent will be an appealing
target to hackers or malware distributors seeking to destroy, damage or steal the Trust's Solana and will only become more appealing
as the Trust's assets grow. To the extent that the Trust, Sponsor, Solana Custodian or Prime Execution Agent is unable to identify
and mitigate or stop new security threats or otherwise adapt to technological changes in the digital asset industry, the Trust's
Solana may be subject to theft, loss, destruction or other attack.
The Sponsor believes that the
security procedures in place for the Trust, including, but not limited to, offline storage, or cold storage, multiple encrypted private
key "shards," and other measures, are reasonably designed to safeguard the Trust's Solana. Nevertheless, the security
procedures cannot guarantee the prevention of any loss due to a security breach, software defect or act of God that may be borne by the
Trust and the security procedures may not protect against all errors, software flaws or other vulnerabilities in the Trust's technical
infrastructure, which could result in theft, loss or damage of its assets. The Sponsor does not control the Solana Custodian's or
Prime Execution Agent's operations or implementation of such security procedures and there can be no assurance that such security
procedures will actually work as designed or prove to be successful in safeguarding the Trust's assets against all possible sources
of theft, loss or damage. Assets not held in cold storage, such as assets held in a trading account, may be more vulnerable to security
breach, hacking or loss than assets held in cold storage. Furthermore, assets held in a trading account, including the Trust's Trading
Balance at the Prime Execution Agent, are held on an omnibus, rather than segregated basis, which creates greater risk of loss.
The security procedures and operational
infrastructure may be breached due to the actions of outside parties, error or malfeasance of an employee of the Sponsor, Prime Execution
Agent, Solana Custodian, or otherwise, and, as a result, an unauthorized party may obtain access to the Trust Solana Account with the
Solana Custodian or the Trust's Trading Balance with the Prime Execution Agent, the private keys (and therefore Solana) or other
data of the Trust. Additionally, outside parties may attempt to fraudulently induce employees of the Sponsor, Solana Custodian, Prime
Execution Agent or the Trust's other service providers to disclose sensitive information in order to gain access to the Trust's
infrastructure. As the techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently,
or may be designed to remain dormant until a predetermined event and often are not recognized until launched against a target, the Sponsor,
Solana Custodian or Prime Execution Agent may be unable to anticipate these techniques or implement adequate preventative measures.
46
An actual or perceived breach
of the Trust Solana Account with the Solana Custodian or the Trust's Trading Balance with the Prime Execution Agent could harm the
Trust's operations, result in partial or total loss of the Trust's assets, damage the Trust's reputation and negatively
affect the market perception of the effectiveness of the Trust, all of which could in turn reduce demand for the Shares, resulting in
a reduction in the price of the Shares. The Trust may also cease operations, the occurrence of which could similarly result in a reduction
in the price of the Shares.
While the Sponsor and the Trust's
service providers have established business continuity plans and systems that they respectively believe are reasonably designed to prevent
cyber attacks, there are inherent limitations in such plans and systems including the possibility that certain risks have not been, or
cannot be, identified. Service providers may have limited indemnification obligations to the Trust, which could be negatively impacted
as a result.
If the Trust's holdings
of Solana are lost, stolen or destroyed under circumstances rendering a party liable to the Trust, the responsible party may not have
the financial resources sufficient to satisfy the Trust's claim. For example, as to a particular event of loss, the only source
of recovery for the Trust may be limited to the relevant custodian or, to the extent identifiable, other responsible third parties (for
example, a thief or terrorist), any of which may not have the financial resources (including liability insurance coverage) to satisfy
a valid claim of the Trust. Similarly, as noted below, the Solana Custodian and Prime Execution Agent have limited liability to the Trust,
which could adversely affect the Trust's ability to seek recovery from them, even when the Solana Custodian's or Prime Execution
Agent's actions or failure to act are the cause of the Trust's loss.
It may not be possible, either
because of a lack of available policies or because of prohibitive cost, for the Trust to obtain insurance that would cover losses of the
Trust's Solana. If an uninsured loss occurs or a loss exceeds policy limits, the Trust could lose all of its assets.
The Trust's
risk management processes and policies may prove to not be adequate to prevent any loss of the Trust's Solana.
The Sponsor is continuing to monitor
and evaluate the Trust's risk management processes and policies and believes that the current risk management processes and procedures
are reasonably designed and effective. The Sponsor believes that the security procedures that the Sponsor, Solana Custodian and Prime
Execution Agent utilize, such as hardware redundancy, segregation and offline data storage (i.e., the maintenance of data on computers
and/or storage media that is not directly connected to or accessible from the internet and/or networked with other computers, also known
as "cold storage") protocols are reasonably designed to safeguard the Trust's Solana from theft, loss, destruction or
other issues relating to hackers and technological attack. Despite the number of security procedures that the Sponsor, Solana Custodian
and Prime Execution Agent employ, it is impossible to guarantee the prevention of any loss due to a security breach, software defect,
act of God, pandemic or riot that may be borne by the Trust. Notwithstanding the above, the Sponsor, Solana Custodian and Prime Execution
Agent are responsible for their own gross negligence, willful misconduct or bad faith. In the event that the Trust's risk management
processes and policies prove to not be adequate to prevent any loss of the Trust's Solana and such loss is not covered by insurance
or is otherwise recoverable, the value of the Shares will decrease as a result and investors would experience a decrease in the value
of their investment.
The development and
commercialization of the Trust is subject to competitive pressures.
The Trust and the Sponsor face
competition with respect to the creation of competing products. The Sponsor's competitors may have greater financial, technical
and human resources than the Sponsor. These competitors may also compete with the Sponsor in recruiting and retaining qualified personnel.
Smaller or early-stage companies may also prove to be effective competitors, particularly through collaborative arrangements with large
and established companies. If the SEC were to approve many or all of the currently pending applications for such exchange-traded Solana
products, many or all of such products, including the Trust, could fail to acquire substantial assets, initially or at all. The Trust's
competitors may also charge a substantially lower fee than the Sponsor Fee in order to achieve initial market acceptance and scale. Accordingly,
the Sponsor's competitors may commercialize a competing product more rapidly or effectively than the Sponsor is able to, which could
adversely affect the Sponsor's competitive position and the likelihood that the Trust will achieve initial market acceptance, and
could have a detrimental effect on the scale and sustainability of the Trust. For exchange-traded products similar to the Trust, there
have been significant "first-mover" advantages in terms of asset gathering, trading volume and media coverage. In many cases,
the first mover in an asset class has been able to maintain these advantages for extended periods. In the event that the SEC were to approve
other exchange-traded Solana products prior to approving the Trust, the Trust could be significantly negatively affected.
47
If the Trust fails to achieve
sufficient scale due to competition, the Sponsor may have difficulty raising sufficient revenue to cover the costs associated with launching
and maintaining the Trust, and such shortfalls could impact the Sponsor's ability to properly invest in robust ongoing operations
and controls of the Trust to minimize the risk of operating events, errors, or other forms of losses to the Shareholders. In addition,
the Trust may also fail to attract adequate liquidity in the secondary market due to such competition, resulting in a sub-standard number
of Authorized Participants willing to make a market in the Shares, which in turn could result in a significant premium or discount in
the Shares for extended periods and the Trust's failure to reflect the performance of the price of Solana.
In addition, the Trust will compete
with direct investments in Solana, other digital assets and other potential financial vehicles, possibly including securities backed by
or linked to digital assets and other investment vehicles that focus on other digital assets. Market and financial conditions, and other
conditions beyond the Trust's control, may make it more attractive to invest directly or in other vehicles, which could adversely
affect the performance of the Trust.
To the extent that the Trust incurs
transaction expenses in connection with the creation and redemption process, litigation expenses, indemnification obligations under the
Trust's service provider agreements and other extraordinary expenses that are not borne by the Sponsor, such expenses will be borne
by the Trust. To the extent that the Trust fails to attract a sufficiently large amount of investors, the effect of such expenses on the
value of the Shares may be significantly greater than would be the case if the Trust had attracted more assets.
The lack of active
trading markets for the Shares may result in losses on investors' investments at the time of disposition of Shares.
Although Shares are expected to
be publicly listed and traded on the Exchange, there can be no guarantee that an active trading market for the Trust will develop or be
maintained. If investors need to sell their Shares at a time when no active market for them exists, the price investors receive for their
Shares, assuming that investors are able to sell them, likely will be lower than the price that investors would receive if an active market
did exist and, accordingly, a Shareholder may suffer losses.
Possible illiquid
markets may exacerbate losses or increase the variability between the Trust's NAV and its market price.
Solana is a novel asset with a
very limited trading history. Therefore, the markets for Solana may be less liquid and more volatile than other markets for more established
products, such as futures contracts for traditional physical commodities. It may be difficult to execute a Solana trade at a specific
price when there is a relatively small volume of buy and sell orders in the Solana market. A market disruption can also make it more difficult
to liquidate a position or find a suitable counterparty at a reasonable cost.
Market illiquidity may cause losses
for the Trust. The large size of the positions that the Trust may acquire will increase the risk of illiquidity by both making the positions
more difficult to liquidate and increasing the losses incurred while trying to do so should the Trust need to liquidate its Solana. Any
type of disruption or illiquidity will potentially be exacerbated due to the fact that the Trust will typically invest in Solana, which
is highly concentrated.
The Trust's
Solana may be subject to loss, damage, theft or restriction on access.
There is a risk that part or all
of the Trust's Solana could be lost, stolen or destroyed, potentially by the loss or theft of the private keys held by the Solana
Custodian or Prime Execution Agent associated with Trust's Solana. The Sponsor believes that the Solana Custodian's and Prime
Execution Agent's operations are an appealing target to hackers or malware distributors seeking to destroy, damage or steal Solana
or private keys. Although the Solana Custodian and Prime Execution Agent use multiple means and layers of security to minimize the risk
of loss, damage and theft, neither the Solana Custodian, the Prime Execution Agent nor the Sponsor can guarantee that such security will
prevent such loss, damage or theft, whether caused intentionally, accidentally or by act of God. Access to the Trust's Solana could
also be restricted by natural events (such as an earthquake or flood), human actions (such as a terrorist attack) or security or compliance
measures (such as in response to a hard fork). Any of these events may adversely affect the operations of the Trust and, consequently,
an investment in the Shares.
48
Several factors may
affect the Trust's ability to achieve its investment objective on a consistent basis.
There is no guarantee that the
Trust will meet its investment objectives. Factors that may affect the Trust's ability to meet its investment objective include:
(1) the Trust's ability to purchase and sell Solana in an efficient manner to effectuate creation and redemption orders; (2) transaction
fees associated with the Solana Network; (3) the Solana market becoming illiquid or disrupted; (4) the Share prices being rounded to the
nearest cent and/or valuation methodologies; (5) the need to conform the Trust's portfolio holdings to comply with investment restrictions
or policies or regulatory or tax law requirements; (6) early or unanticipated closings of the markets on which Solana trades, resulting
in the inability of the Authorized Participants to execute intended portfolio transactions; (7) operational or methodological issues with
the Pricing Benchmark that result in the benchmark used by the Trust not accurately representing the true value of the Trust's Solana
holdings; and (8) accounting standards.
The amount of Solana
represented by a Share will decline over time.
The amount of Solana represented
by a Share will continue to be reduced during the life of the Trust due to the transfer of the Trust's Solana to pay the Sponsor
Fee and to pay for extraordinary, non-recurring expenses not assumed by the Sponsor. This dynamic will occur irrespective of whether the
trading price of the Shares rises or falls in response to changes in the price of Solana. In addition, in the very rare event that Trade
Credits (as defined below) are utilized in connection with the payment of Trust expenses not assumed by the Sponsor, any interest payable
on the Trade Credits will be the responsibility of the Trust.
Each outstanding Share represents
a unit of undivided beneficial ownership of the Trust. The Trust does not generate any income and transfers Solana to pay the Sponsor
Fee, and to pay for extraordinary, non-recurring expenses not assumed by the Sponsor. Therefore, the amount of Solana represented by each
Share will gradually decline over time. This is also true with respect to Shares that are issued in exchange for additional deposits of
Solana or cash used to acquire Solana over time, as the amount of Solana required to create Shares proportionally reflects the amount
of Solana represented by the Shares outstanding at the time of such Basket being created. Assuming a constant Solana price, the trading
price of the Shares is expected to gradually decline relative to the price of Solana as the amount of Solana represented by the Shares
gradually declines.
Investors should be aware that
the gradual decline in the amount of Solana represented by the Shares will occur regardless of whether the trading price of the Shares
rises or falls in response to changes in the price of Solana.
Extraordinary expenses
resulting from unanticipated events may become payable by the Trust, adversely affecting an investment in the Shares.
In consideration for the Sponsor
Fee, the Sponsor has contractually assumed certain operational and periodic expenses of the Trust. See "ADDITIONAL INFORMATION ABOUT
THE TRUST—The Trust's Fees and Expenses." Extraordinary, non-recurring expenses that are not assumed by the Sponsor
are borne by the Trust and paid through the sale of the Trust's Solana. Any incurring of extraordinary expenses by the Trust could
adversely affect an investment in the Shares.
The value of the Shares
will be adversely affected if the Trust is required to indemnify the Trustee, the Administrator, the Transfer Agent, the Solana Custodian,
the Prime Execution Agent or the Cash Custodian.
Under the Trust Agreement and
the Trust's service provider agreements, each of the Trustee, Administrator, Transfer Agent, Solana Custodian, Prime Execution Agent,
Cash Custodian and Sponsor has a right to be indemnified by the Trust for any liability or expense it incurs, subject to certain exceptions.
Therefore, the Trustee, Administrator, Transfer Agent, Solana Custodian, Prime Execution Agent, Cash Custodian or Sponsor may require
that the assets of the Trust be sold in order to cover losses or liability suffered by it. Any sale of that kind would reduce the net
assets of the Trust and the NAV.
49
Unforeseeable risks
.
Solana
has gained commercial acceptance only within recent years and, as a result, there is little data on its long-term investment potential.
Additionally
, due to the rapidly evolving nature of the Solana market, including advancements in the underlying
technology, changes to Solana may expose investors in the Trust to additional risks that are impossible to predict.
Regulatory Risk
Digital asset markets
in the united states exist in a state of regulatory uncertainty, and adverse legislative or regulatory developments could significantly
harm the value of Solana or the shares, such as by banning, restricting or imposing onerous conditions or prohibitions on the use of Solana,
mining activity, digital wallets, the provision of services related to trading and custodying Solana, the operation of the Solana Network,
or the digital asset markets generally.
There
is a lack of consensus regarding the regulation of digital assets, including Solana, and their markets. As a result of the growth in the
size of the digital asset market, as well as the 2022 Events, the U.S. Congress and a number of U.S. federal and state agencies (including
FinCEN, SEC, OCC, CFTC, FINRA, the Consumer Financial Protection Bureau ("CFPB"), the Department of Justice, the Department
of Homeland Security, the Federal Bureau of Investigation, the IRS, state financial institution regulators, and others) have been examining
the operations of digital asset networks, digital asset users and the digital asset markets. Many of these state and federal agencies
have brought enforcement actions or issued consumer advisories regarding the risks posed by digital assets to investors.
Ongoing
and future regulatory actions with respect to digital assets generally or Solana in particular may alter, perhaps to a materially adverse
extent, the nature of an investment in the Shares or the ability of the Trust to continue to operate.
The
2022 Events, including among others the bankruptcy filings of FTX and its subsidiaries, Three Arrows Capital, Celsius Network, Voyager
Digital, Genesis, BlockFi and others, and other developments in the digital asset markets, have resulted in calls for heightened scrutiny
and regulation of the digital asset industry, with a specific focus on intermediaries such as digital asset exchanges, platforms, and
custodians. Federal and state legislatures and regulatory agencies may introduce and enact new laws and regulations to regulate crypto
asset intermediaries, such as digital asset exchanges and custodians. The March 2023 collapses of Silicon Valley Bank, Silvergate Bank,
and Signature Bank, which in some cases provided services to the digital assets industry, may amplify and/or accelerate these trends.
On January 3, 2023, the federal banking agencies issued a joint statement on crypto-asset risks to banking organizations following events
which exposed vulnerabilities in the crypto-asset sector, including the risk of fraud and scams, legal uncertainties, significant volatility,
and contagion risk. Although banking organizations are not prohibited from crypto-asset related activities, the agencies have expressed
significant safety and soundness concerns with business models that are concentrated in crypto-asset related activities or have concentrated
exposures to the crypto-asset sector.
US
federal and state regulators, as well as the White House, have issued reports and releases concerning crypto assets, including Solana
and crypto asset markets. Further, in 2023 the House of Representatives formed two new subcommittees: the Digital Assets, Financial Technology
and Inclusion Subcommittee and the Commodity Markets, Digital Assets, and Rural Development Subcommittee, each of which were formed in
part to analyze issues concerning crypto assets and demonstrate a legislative intent to develop and consider the adoption of federal legislation
designed to address the perceived need for regulation of and concerns surrounding the crypto industry. However, the extent and content
of any forthcoming laws and regulations are not yet ascertainable with certainty, and it may not be ascertainable in the near future.
A divided Congress makes any prediction difficult. We cannot predict how these and other related events will affect us or the crypto asset
business.
In
August 2021, the chair of the SEC stated that he believed investors using digital asset trading platforms are not adequately protected,
and that activities on the platforms can implicate the securities laws, commodities laws and banking laws, raising a number of issues
related to protecting investors and consumers, guarding against illicit activity, and ensuring financial stability. The chair expressed
a need for the SEC to have additional authorities to prevent transactions, products, and platforms from "falling between regulatory
cracks," as well as for more resources to protect investors in "this growing and volatile sector." The chair called
for federal legislation centering on digital asset trading, lending, and decentralized finance platforms, seeking "additional plenary
authority" to write rules for digital asset trading and lending. Moreover, President Biden's March 9, 2022 Executive Order,
asserting that technological advances and the rapid growth of the digital asset markets "necessitate an evaluation and alignment
of the United States Government approach to digital assets," signals an ongoing focus on digital asset policy and regulation in
the United States. A number of reports issued pursuant to the Executive Order have focused on various risks related to the digital asset
ecosystem, and have recommended additional legislation and regulatory oversight. There have also been several bills introduced in Congress
that propose to establish additional regulation and oversight of the digital asset markets.
50
It
is not possible to predict whether Congress will grant additional authorities to the SEC or other regulators, what the nature of such
additional authorities might be, how they might impact the ability of digital asset markets to function or how any new regulations that
may flow from such authorities might impact the value of digital assets generally and Solana held by the Trust specifically. The consequences
of increased federal regulation of digital assets and digital asset activities could have a material adverse effect on the Trust and the
Shares.
FinCEN
requires any administrator or exchanger of convertible digital assets to register with FinCEN as a money transmitter and comply with the
anti-money laundering regulations applicable to money transmitters. Entities which fail to comply with such regulations are subject to
fines, may be required to cease operations, and could have potential criminal liability. For example, in 2015, FinCEN assessed a $700,000
fine against a sponsor of a digital asset for violating several requirements of the Bank Secrecy Act by acting as an MSB and selling the
digital asset without registering with FinCEN, and by failing to implement and maintain an adequate anti-money laundering program. In
2017, FinCEN assessed a $110 million fine against BTC-e, a now defunct digital asset exchange, for similar violations. The requirement
that exchangers that do business in the U.S. register with FinCEN and comply with anti-money laundering regulations may increase the cost
of buying and selling Solana and therefore may adversely affect the price of Solana and an investment in the Shares.
The
Office of Foreign Assets Control ("OFAC") of the U.S. Department of the Treasury (the "U.S. Treasury Department")
has added digital currency addresses, including on the Solana blockchain, to the list of Specially Designated Nationals whose assets are
blocked, and with whom U.S. persons are generally prohibited from dealing. Such actions by OFAC, or by similar organizations in other
jurisdictions, may introduce uncertainty in the market as to whether Solana that has been associated with such addresses in the past can
be easily sold. This "tainted" Solana may trade at a substantial discount to untainted Solana. Reduced fungibility in the
Solana markets may reduce the liquidity of Solana and therefore adversely affect their price.
In
February 2020, then-U.S. Treasury Secretary Steven Mnuchin stated that digital assets were a "crucial area" on which the U.S.
Treasury Department has spent significant time. Secretary Mnuchin announced that the U.S. Treasury Department is preparing significant
new regulations governing digital asset activities to address concerns regarding the potential use for facilitating money laundering and
other illicit activities. In December 2020, FinCEN, a bureau within the U.S. Treasury Department, proposed a rule that would require financial
institutions to submit reports, keep records, and verify the identity of customers for certain transactions to or from so-called "unhosted"
wallets, also commonly referred to as self-hosted wallets. In January 2021, U.S. Treasury Secretary nominee Janet Yellen stated her belief
that regulators should "look closely at how to encourage the use of digital assets for legitimate activities while curtailing their
use for malign and illegal activities."
Under
regulations from the New York State Department of Financial Services ("NYDFS"), businesses involved in digital asset business
activity for third parties in or involving New York, excluding merchants and consumers, must apply for a license, commonly known as a
BitLicense, from the NYDFS and must comply with anti-money laundering, cyber security, consumer protection, and financial and reporting
requirements, among others. As an alternative to a BitLicense, a firm can apply for a charter to become a limited purpose trust company
under New York law qualified to engage in certain digital asset business activities. Other states have considered or approved digital
asset business activity statutes or rules, passing, for example, regulations or guidance indicating that certain digital asset business
activities constitute money transmission requiring licensure.
The
inconsistency in applying money transmitting licensure requirements to certain businesses may make it more difficult for these businesses
to provide services, which may affect consumer adoption of Solana and its price. In an attempt to address these issues, the Uniform Law
Commission passed a model law in July 2017, the Uniform Regulation of Virtual Currency Businesses Act, which has many similarities to
the BitLicense and features a multistate reciprocity licensure feature, wherein a business licensed in one state could apply for accelerated
licensure procedures in other states. It is still unclear, however, how many states, if any, will adopt some or all of the model legislation.
51
Law
enforcement agencies have often relied on the transparency of blockchains to facilitate investigations. However, certain privacy-enhancing
features have been, or are expected to be, introduced to a number of digital asset networks. If the Solana Network were to adopt any of
these features, these features may provide law enforcement agencies with less visibility into transaction-level data. For example, "privacy
pools," zero knowledge proofs, and other technologies that could enhance privacy have been discussed by participants in the Solana
Network. Europol, the European Union's law enforcement agency, released a report in October 2017 noting the increased use of privacy-enhancing
digital assets like Zcash and Monero in criminal activity on the internet. In August 2022, OFAC banned all U.S. citizens from using Tornado
Cash, a digital asset protocol designed to obfuscate blockchain transactions, by adding certain Solana wallet addresses associated with
the protocol to its Specially Designated Nationals list. On October 19, 2023, FinCEN published a proposed rulemaking to apply the authorities
in Section 311 of the USA PATRIOT Act to impose requirements on financial institutions that engage in convertible virtual currency ("CVC")
transactions with CVC mixers. The proposed rule, if adopted, would require covered financial institutions to report to FinCEN any CVC
transactions they process that involves CVC mixing within or involving a jurisdiction outside the United States. The term "CVC mixing"
covers more than just transactions that involve CVC mixers like Tornado Cash, and seemingly could cover a broader range of conduct involving
technologies, services, or methods that have the effect of obfuscating the source, destination, or amount of a CVC transaction, whether
or not the obfuscation was intentional. If the rule were to be adopted as proposed and if the Solana Network were to be deemed to or were
to adopt features which come within the rule's ambit, it could cause covered financial institutions – such as many virtual
currency exchanges, or the Trust's service providers, such as the Cash Custodian – to reduce support for or cease offering
services for Solana or to the Trust, which could impair the utility of Solana, the value of the Shares and the Trust's ability to
operate in compliance with new laws and regulations.
Future and current
regulations by a U.S. or foreign government or quasi-governmental agency could have an adverse effect on an investment in the Trust.
The regulation of Solana and related
products and services continues to evolve, may take many different forms and will, therefore, impact the Solana Network and Solana and
their usage in a variety of manners. The inconsistent and sometimes conflicting regulatory landscape may make it more difficult for Solana
businesses to provide services, which may impede the growth of the Solana economy and have an adverse effect on consumer adoption of Solana.
There is a possibility of future regulatory change altering, perhaps to a material extent, the nature of an investment in the Shares or
the ability of the Trust to continue to operate.
Changes to current regulatory
determinations of Solana's status under federal or state securities laws, changes to regulations surrounding Solana futures or related
products, or actions by a U.S. or foreign government or quasi-governmental agency exerting regulatory authority over Solana, the Solana
Network, Solana trading, or related activities impacting other parts of the digital asset market, may adversely impact Solana and therefore
may have an adverse effect on the value of an investment in the Trust.
The Trust is not a
registered investment company and is not subject to the Commodity Exchange Act.
The Trust is not a registered
investment company subject to the Investment Company Act. Consequently, Shareholders of the Trust do not have the regulatory protections
provided to Shareholders in registered and regulated investment companies, which, for example, require investment companies to have a
certain percentage of disinterested directors and regulate the relationship between the investment company and certain of its affiliates.
Further, the Trust will not hold or trade in commodity futures contracts regulated by the Commodity Exchange Act, as administered by the
CFTC. The Trust will not engage in "retail commodity transactions"— any Solana transaction entered into on a leveraged,
margined or financed basis (as described above). Such transactions are deemed to be commodity futures under the Commodity Exchange Act
and subject to CFTC jurisdiction. Furthermore, the Sponsor believes that the Trust is not a commodity pool for purposes of the Commodity
Exchange Act. Consequently, Shareholders will not have the regulatory protections provided to Shareholders in Commodity Exchange Act-regulated
instruments or commodity pools.
52
Trading on digital
asset trading platforms outside the United States is not subject to U.S. regulation and may be less reliable than U.S. trading platforms.
To the extent any of the Trust's
trading is conducted on digital asset trading platforms outside the United States, trading on such trading platforms is not regulated
by any U.S. governmental agency and may involve certain risks not applicable to trading on U.S. trading platforms. Certain foreign markets
may be more susceptible to disruption than U.S. trading platforms. These factors could adversely affect the performance of the Trust.
As Solana and the
broader digital assets ecosystem have grown, they have begun to attract more regulatory attention around the globe. The future regulatory
environment is uncertain and may vary by country or even within countries. Failure to appropriately regulate the digital assets ecosystem
could stifle innovation, which could adversely impact the value of the Shares.
Current and future legislation,
CFTC and SEC rulemaking, and other regulatory developments may impact the manner in which Solana is treated for classification and clearing
purposes. In particular, Solana may be classified by the CFTC as a "commodity interest" under the Commodity Exchange Act and
certain transactions in Solana may be deemed to be commodity futures or Solana may be classified by the SEC as a "security"
under U.S. federal securities laws. As of the date of this Prospectus, the Sponsor is not aware of any rules that have been proposed to
regulate Solana as a commodity interest or a security. Although the federal district court in the S.D.N.Y. has recently held that under
certain transaction structures that Solana is not a security, this ruling is not yet definitive and the Sponsor and the Trust cannot be
certain as to how future regulatory developments will impact the treatment of Solana under U.S. law. In the face of such developments,
the required registrations and compliance steps may result in extraordinary, non-recurring expenses to the Trust. If the Sponsor decides
to terminate the Trust in response to the changed regulatory circumstances, the Trust may be dissolved or liquidated at a time that is
disadvantageous to Shareholders.
To the extent that Solana is deemed
to fall within the definition of a "commodity interest" under the Commodity Exchange Act, the Trust and the Sponsor may be
subject to additional regulation under the Commodity Exchange Act and CFTC regulations. These additional requirements may result in extraordinary,
recurring and/or non-recurring expenses of the Trust, thereby materially and adversely impacting the Shares. If the Sponsor and/or the
Trust determines not to comply with such additional regulatory and registration requirements, the Sponsor may terminate the Trust. Any
such termination could result in the liquidation of the Trust's Solana at a time that is disadvantageous to Shareholders.
Further, if any other digital
asset with widespread markets is determined to be a "commodity interest" under the Commodity Exchange Act, it may have material
adverse consequences for Solana as a digital asset due to negative publicity or a decline in the general acceptance of digital assets.
In addition, trading platforms that feature digital assets that are determined to be commodity interests may face penalties or be required
to shut down if they do not have the licenses required to facilitate the trading and clearance of such commodity interests, which could
result in a reduction of the liquidity of Solana markets.
Solana and other digital assets
currently face an uncertain regulatory landscape in many foreign jurisdictions such as the European Union, China, the United Kingdom,
Australia, Russia, Israel, Poland, India and Canada. Cybersecurity attacks by state actors, particularly for the purpose of evading international
economic sanctions, are likely to attract additional regulatory scrutiny to the acquisition, ownership, sale and use of digital assets,
including Solana. The effect of any existing regulation or future regulatory change on the Trust or Solana is impossible to predict, but
such change could be substantial and adverse to the Trust and the value of the Shares. Various foreign jurisdictions have adopted, and
may continue to adopt in the near future, laws, regulations or directives that affect digital assets, particularly with respect to digital
asset exchanges, trading venues and service providers that fall within such jurisdictions' regulatory scope. For example, on May
21, 2021, Chinese Vice Premier Liu He and the State Council issued a statement aiming to crack down on bitcoin mining in China. Over the
subsequent weeks, multiple regions began to shut down mining operations, including what was estimated to be the three largest Chinese
mining regions in Xinjiang, Sichuan, and Inner Mongolia. This resulted in a material decrease in the global bitcoin hash rate. Such laws,
regulations or directives may conflict with those of the United States and may negatively impact the acceptance of digital assets by users,
merchants and service providers outside the United States and may therefore impede the growth or sustainability of the digital assets
economy in these jurisdictions as well as in the United States and elsewhere, or otherwise negatively affect the value of digital assets,
including Solana, and, in turn, the value of the Shares.
53
It may be illegal
now, or in the future, to acquire, own, hold, sell or use Solana in one or more countries, and ownership of, holding or trading in the
Shares may also be considered illegal and subject to sanction.
Although currently Solana is not
regulated or is lightly regulated in most countries, including the United States, one or more countries such as China, India or Russia
may take regulatory actions in the future that severely restricts the right to acquire, own, hold, sell or use Solana or to exchange Solana
for fiat currency. Such an action may also result in the restriction of ownership, holding or trading in the Shares. Such a restriction
could result in the termination and liquidation of the Trust at a time that is disadvantageous to Shareholders, or may adversely affect
an investment in the Shares.
Future legal or regulatory
developments may negatively affect the value of Solana or require the Trust or the Sponsor to become registered with the SEC or CFTC,
which may cause the Trust to liquidate.
Current and future legislation,
SEC and CFTC rulemaking, and other regulatory developments may impact the manner in which Solana are treated for classification and clearing
purposes. In particular, Solana itself in the future might be classified by the CFTC as a "commodity interest" under the CEA,
subjecting all transactions in Solana to full CFTC regulatory jurisdiction. Alternatively, in the future Solana might be classified by
a court as a "security" under U.S. federal securities laws. The Sponsor and the Trust cannot be certain as to how future regulatory
developments will impact the treatment of Solana under the law. In the face of such developments, the required registrations and compliance
steps may result in extraordinary, nonrecurring expenses to the Trust. If the Sponsor decides to terminate the Trust in response to the
changed regulatory circumstances, the Trust may be dissolved or liquidated at a time that is disadvantageous to Shareholders.
The SEC has stated that certain
digital assets may be considered "securities" under the federal securities laws. The test for determining whether a particular
digital asset is a "security" is complex and the outcome is difficult to predict. If Solana is in the future determined to
be a "security" under federal or state securities laws by the SEC or any other agency, or in a proceeding in a court of law
or otherwise, it would likely have material adverse consequences for the value of Solana. For example, it may become more difficult or
impossible for Solana to be traded, cleared and custodied in the United States as compared to other digital assets that are not considered
to be securities, which could in turn negatively affect the liquidity and general acceptance of Solana and cause users to migrate to other
digital assets.
To the extent that Solana is determined
to be a security, the Trust and the Sponsor may also be subject to additional regulatory requirements, including under the 1940 Act, and
the Sponsor may be required to register as an investment adviser under the Investment Advisers Act of 1940, as amended (the "Advisers
Act"). If the Sponsor determines not to comply with such additional regulatory and registration requirements, the Sponsor will terminate
the Trust. Any such termination could result in the liquidation of the Trust's Solana at a time that is disadvantageous to Shareholders.
To the extent that Solana is deemed
to fall within the definition of a "commodity interest" under the CEA, the Trust and the Sponsor may be subject to additional
regulation under the CEA and CFTC regulations. These additional requirements may result in extraordinary, recurring and/or nonrecurring
expenses of the Trust, thereby materially and adversely impacting the Shares. If the Sponsor and/or the Trust determines not to comply
with such additional regulatory and registration requirements, the Sponsor may terminate the Trust. Any such termination could result
in the liquidation of the Trust's Solana at a time that is disadvantageous to Shareholders.
The SEC has recently proposed
amendments to the custody rules under Rule 406(4)-2 of the Advisers Act. The proposed rule changes would amend the definition of a "qualified
custodian" under Rule 206(4)-2(d)(6) and expand the current custody rule in 406(4)-2 to cover all digital assets, including Solana,
and related advisory activities. If enacted as proposed, these rules would likely impose additional regulatory requirements with respect
to the custody and storage of digital assets, including Solana. The Sponsor is studying the impact that such amendments may have on the
Trust and its arrangements with the Solana Custodian. It is possible that such amendments, if adopted, could prevent the Solana Custodian
from serving as service providers to the Trust, or require potentially significant modifications to existing arrangements under the Custody
Agreement, which could cause the Trust to bear potentially significant increased costs. If the Sponsor is unable to make such modifications
or appoint successor service providers to fill the role that the Solana Custodian currently plays, the Trust's operations (including
in relation to creations and redemptions of Baskets and the holding of Solana) could be negatively affected, the Trust could dissolve
(including at a time that is potentially disadvantageous to Shareholders), and the value of the Shares or an investment in the Trust could
be affected.
54
Further, the proposed amendments
could have a severe negative impact on the price of Solana and therefore the value of the Shares if enacted, by, among other things, making
it more difficult for investors to gain access to Solana, or causing certain holders of Solana to sell their holdings.
Tax Risk
The IRS may disagree
with or seek to challenge the Trust's treatment as a grantor trust.
The Sponsor intends to take the
position that the Trust is properly treated as a grantor trust for U.S. federal income tax purposes. Assuming that the Trust is a grantor
trust, the Trust will not be subject to U.S. federal income tax. Rather, if the Trust is a grantor trust, each beneficial owner of Shares
will be treated as directly owning its pro rata share of the Trust's assets and a pro rata portion of the Trust's income,
gain, losses and deductions will "flow through" to each beneficial owner of Shares.
Shareholders could
incur a tax liability without an associated distribution of the Trust.
In the normal course of business,
it is possible that the Trust could incur a taxable gain in connection with the sale of Solana (including deemed sales of Solana as a
result of the Trust using Solana to pay its expenses, including the Sponsor Fee) that is otherwise not associated with a distribution
to Shareholders, or in connection with the receipt cash from the Sponsor in connection with the Sponsor's sale of Incidental Right(s)
and/or IR Asset(s). Shareholders may be subject to tax due to the grantor trust status of the Trust even though there is not a corresponding
distribution from the Trust.
The tax treatment
of Solana and transactions involving Solana for U.S. federal income tax purposes may change.
The tax treatment of digital assets
is still evolving and subject to change. Current IRS guidance indicates that Solana should be treated as property for federal income tax
purposes and that transactions involving the exchange of Solana in return for goods and services should be treated as barter exchanges.
Such guidance allows transactions in Solana to qualify for beneficial capital gains treatment. However, because Solana is a new technological
innovation, the U.S. federal income tax treatment of an investment in Solana or in transactions relating to investments in Solana, including
without limitation the tax treatment of a fork or airdrop, may evolve and change from those described in this Prospectus, possibly with
retroactive effect. For example, current guidance indicates that digital asset currencies are neither collectibles nor currencies for
the purposes of determining the applicable tax rate; however, the IRS has statutory authority to change its position. If the IRS were
to determine that digital assets were collectibles or a currency, the tax rate incurred by investors would be higher. Additional disclosure
requirements may also apply to an investment in digital assets. Investors should consult their individual tax advisers to determine if
such disclosure requirements apply to them.
Any change in the U.S. federal
income tax treatment of Solana may have a negative effect on the price of Solana and may adversely affect the value of the Shares. Whether
any additional guidance will adversely affect the U.S. federal income tax treatment of an investment in Solana or in transactions relating
to investments in Solana is unknown. There can be no assurance that the IRS will not alter its position with respect to digital assets
in the future or that a court would uphold the treatment set forth in the Notice and the Rulings & FAQs.
The tax treatment
of Solana and transactions involving Solana for state and local tax purposes is not settled.
Because Solana is a new technological
innovation, the tax treatment of Solana for state and local tax purposes, including without limitation state and local income and sales
and use taxes, is not settled. It is uncertain what guidance, if any, on the treatment of Solana for state and local tax purposes may
be issued in the future. A state or local government authority's treatment of Solana may have negative consequences, including the
imposition of a greater tax burden on investors in Solana or the imposition of a greater cost on the acquisition and disposition of Solana
generally. Any such treatment may have a negative effect on the price of Solana and may adversely affect the value of the Shares.
55
A "fork"
of the Solana blockchain or an airdrop could result in Shareholders incurring a tax liability.
If a fork occurs in the Solana
blockchain, the Trust Agreement requires that the Sponsor analyze the transaction according to several criteria and promptly determine
which digital asset network is generally accepted as the Solana Network and should therefore be considered the appropriate network for
the Trust's purposes. The Sponsor will base its determination on a variety of then-relevant factors, including, but not limited
to, the Sponsor's beliefs regarding expectations of the core developers of Solana, users, services, businesses, validators and other
constituencies, as well as the actual continued acceptance of, validating power on, and community engagement with, the Solana Network.
The outcome of such determination shall determine which asset is "Solana" and which is the Forked Asset, an IR Asset. Pursuant
to the Trust Agreement, the Trust has explicitly disclaimed all Incidental Rights and IR Assets, including Forked Assets. Such assets
are not considered assets of the Trust at any point in time. Once it has been determined by the Sponsor which asset is Solana and which
is the Forked Asset, the Sponsor will, as soon as practicable, and, if possible, immediately, distribute the Forked Asset to the Sponsor.
Once acquired, the Sponsor may take any lawful action necessary or desirable in connection with its acquisition of such asset. In the
event that the Sponsor decides to sell the Forked Asset, it will seek to do so for cash. This may be a sale of the Forked Asset directly
in exchange for cash, or in exchange for another digital asset which may subsequently be exchanged for cash. The Sponsor would then contribute
that cash back to the Trust, which in turn would distribute the cash to DTC to be distributed to Shareholders in proportion to the number
of Shares owned. The receipt of cash in connection with this distribution may cause Shareholders to incur a U.S. federal, state, local,
or foreign tax liability. In addition, the IRS may not accept the Trust's position that disclaimed Incidental Rights or IR Assets
do not represent a taxable incident. Any tax liability could adversely impact an investment in the Shares and may require Shareholders
to prepare and file tax returns. Any tax liability could adversely impact an investment in the Shares and may require Shareholders to
prepare and file tax returns.
Under the IRS guidance on digital
assets, hard forks, airdrops and similar occurrences with respect to digital assets will under certain circumstances be treated as taxable
events giving rise to ordinary income. In the absence of guidance to the contrary, it is possible that any such income recognized by a
U.S. tax-exempt Shareholder would constitute "unrelated business taxable income" ("UBTI"). A tax-exempt Shareholder
should consult its tax adviser regarding whether such Shareholder may recognize UBTI as a consequence of an investment in Shares.
Non-U.S. Holders may
be subject to U.S. federal withholding tax on income derived from forks, airdrops and similar occurrences.
IRS guidance on digital assets
does not address whether income recognized by a non-U.S. person as a result of a fork, airdrop or similar occurrence could be subject
to the 30% withholding tax imposed on U.S.-source "fixed or determinable annual or periodical" income. Non-U.S. Shareholders
should assume that, in the absence of guidance, a withholding agent (including the Sponsor) is likely to withhold 30% of any such income
recognized by a non-U.S. Shareholder in respect of its Shares, including by deducting such withheld amounts from proceeds that such non-U.S.
Shareholder would otherwise be entitled to receive in connection with a distribution of cash in connection with the Sponsor's sale
of an IR Right and/or IR Asset and contributing such cash back to the Trust.
The intended tax treatment
of the Trust will limit the flexibility of the Trust's investment decisions.
The Trust is intended to be a
grantor trust for Federal income tax purposes. A grantor trust is not permitted to change the investment of the Shareholders to take advantage
of market fluctuations. Thus, the Sponsor may allow the Trust to hold when an actively managed fund would sell. The Sponsor may distribute
proceeds when an actively managed fund would reinvest the proceeds. In addition, a fund treated as a grantor trust may not participate
in trading or lending activity without raising a risk of change in status. This means that the returns of the Trust may be less than a
successfully actively managed fund.
56
Other Risks
As a new fund, there
is no guarantee that an active trading market for the Shares will develop. To the extent that no active trading market develops and the
assets of the Trust do not reach a viable size, the liquidity of the Shares may be limited or the Trust may be terminated at the option
of the Sponsor.
As a new fund, there can be no
assurance that the Trust will grow to or maintain an economically viable size, in which case the Sponsor may elect to terminate the Trust,
which could result in the liquidation of the Trust's Solana at a time that is disadvantageous to an investor in the Shares. If the
Trust fails to achieve sufficient scale due to competition, the Sponsor may have difficulty raising sufficient revenue to cover the costs
associated with launching and maintaining the Trust, and such shortfalls could impact the Sponsor's ability to properly invest in
robust ongoing operations and controls of the Trust to minimize the risk of operating events, errors, or other forms of losses to the
Shareholders.
In addition, the Trust may also
fail to attract adequate liquidity in the secondary market due to such competition, resulting in a sub-standard number of Authorized Participants
willing to make a market in the Shares, which in turn could result in a significant premium or discount in the Shares for extended periods
and the Trust's failure to reflect the performance of the price of Solana.
The Trust may be required
to terminate and liquidate at a time that is disadvantageous to Shareholders.
If the Trust is required to terminate
and liquidate, such termination and liquidation could occur at a time that is disadvantageous to Shareholders, such as when the price
of Solana is lower than it was at the time when Shareholders purchased their Shares. In such a case, when the Trust's Solana is
sold as part of the Trust's liquidation, the resulting proceeds distributed to Shareholders will be less than if the price of Solana
were higher at the time of sale. See "ADDITIONAL INFORMATION ABOUT THE TRUST—Termination of the Trust" for more information
about the termination of the Trust, including when the termination of the Trust may be triggered by events outside the direct control
of the Sponsor, the Trustee or Shareholders.
The Exchange on which
the Shares are listed may halt trading in the Shares, which would adversely impact an investor's ability to sell Shares.
The Shares are listed for trading
on the Exchange under the market symbol "____." Trading in Shares may be halted due to market conditions or, in light of the
Exchange rules and procedures, for reasons that, in the view of the Exchange, make trading in Shares inadvisable. In addition, trading
is subject to trading halts caused by extraordinary market volatility pursuant to "circuit breaker" rules that require trading
to be halted for a specified period based on a specified market decline. Additionally, there can be no assurance that the requirements
necessary to maintain the listing of the Shares will continue to be met or will remain unchanged.
The liquidity of the
Shares may also be affected by the withdrawal from participation of Authorized Participants, which could adversely affect the market price
of the Shares.
In the event that one or more
Authorized Participants or market makers that have substantial interests in the Shares withdraw or "step away" from participation
in the purchase (creation) or sale (redemption) of the Shares, the liquidity of the Shares will likely decrease, which could adversely
affect the market price of the Shares and result in investors incurring a loss on their investment.
The market infrastructure
of the Solana spot market could result in the absence of active Authorized Participants able to support the trading activity of the Trust.
Solana is extremely volatile,
and concerns exist about the stability, reliability and robustness of many digital asset trading platforms where Solana trades. In a highly
volatile market, or if one or more digital asset trading platforms supporting the Solana market face an issue, it could be extremely challenging
for any Authorized Participants to provide continuous liquidity in the Shares. There can be no guarantee that the Sponsor will be able
to find an Authorized Participant to actively and continuously support the Trust.
57
Digital asset trading
platforms are not subject to the same regulatory oversight as traditional equity exchanges, which could negatively impact the ability
of Authorized Participants to implement arbitrage mechanisms.
The trading for Solana occurs
on multiple digital asset trading platforms that have various levels and types of regulation, but are not regulated in the same manner
as traditional stock and bond exchanges. If these digital asset trading platforms do not operate smoothly or face technical, security
or regulatory issues, that could impact the ability of Authorized Participants to make markets in the Shares. In such an event, trading
in the Shares could occur at a material premium or discount against the NAV.
The Authorized Participants
serve in such capacity for several competing exchange-traded Solana products, which could adversely affect the market for the Shares.
Only an Authorized Participant
may engage in creation or redemption transactions directly with the Trust. Some or all of the Trust's Authorized Participants are
expected to serve as authorized participants or market makers for one or more exchange-traded Solana products that compete with the Trust.
This may make it more difficult to engage or retain Authorized Participants for the Trust. Furthermore, because there is no obligation
on the part of the Authorized Participants to engage in creation and redemption or market making activities with respect to the Trust's
Shares, decisions by the Authorized Participants to not engage with the Trust or its Shares may result in a decline in the liquidity of
the Shares and the price of the Shares may fluctuate independently of the price of Trust's Solana (i.e., at a greater premium or
discount to the Trust's NAV).
Shareholders that
are not Authorized Participants may only purchase or sell their Shares in secondary trading markets, and the conditions associated with
trading in secondary markets may adversely affect investors' investment in the Shares.
Only Authorized Participants may
purchase or redeem Baskets. All other investors that desire to purchase or sell Shares must do so through the Exchange or in other markets,
if any, in which the Shares may be traded. Shares may trade at a premium or discount to the NAV per Share.
The Sponsor is leanly
staffed and relies heavily on key personnel to manage its activities.
The Sponsor is leanly staffed
and relies heavily on key personnel to manage its activities. These key personnel intend to allocate their time managing the Trust in
a manner that they deem appropriate. If such key personnel were to leave or be unable to carry out their present responsibilities, it
may have an adverse effect on the management of the Sponsor.
Conducting creations
and redemptions for cash has drawbacks.
In the near term, the Trust will
effect all of its creations and redemptions for cash, rather than in kind. The use of cash creations and redemptions may cause Shares
to trade in the market at greater bid-ask spreads or greater premiums or discounts to their NAV per Share. The use of cash for redemptions
will also limit the tax efficiency of the Trust. Additionally, the Trust's need to purchase Solana in connection with creation orders
introduces the possibility that the Trust will pay a higher price for Solana than the value ascribed to Solana by the Pricing Benchmark,
the rate used to calculate the Trust's NAV. This is known as "slippage." While transactions in any asset are subject
to the risk of slippage, it is possible that transactions in digital assets may be more susceptible. The Trust seeks to minimize the risk
of slippage by basing the amount of cash an Authorized Participant is required to deposit to consummate a creation order for Baskets on
the price the Trust actually paid for the Solana rather than on the value of Solana ascribed by the Pricing Benchmark. Nonetheless, there
can be no guarantee that the Trust will not be negatively affected by slippage from time to time. The Trust will also incur transaction
costs it would not otherwise have incurred if it received and distributed Solana in kind and was not required to purchase and sell Solana
in connection with creation and redemption orders.
As of the date of this prospectus,
the Trust only creates and redeems Shares in exchange for cash. If the Trust were to create or redeem Shares in exchange for Solana, the
Trust would first need to seek certain regulatory approvals, including an amendment to Exchange's listing rules and an amendment
to the Trust's registration statement of which this prospectus forms a part. There can be no guarantee that the Trust will be successful
in obtaining such regulatory approvals, and the timing of any such approvals is unknown. If the Trust is successful in obtaining the necessary
regulatory approvals to allow for creations and redemptions in-kind, the Trust will notify Shareholders in a prospectus supplement and/or
a current report on Form 8-K or in its annual or quarterly reports.
58
Potential conflicts
of interest may arise among the Sponsor or its affiliates and the Trust.
The Trust operations will be managed
by the Sponsor. It is possible that conflicts may arise between the Sponsor, affiliates, the Trust and its Shareholders.
In resolving conflicts of interest,
the Sponsor is allowed to take into account the interests of other parties. Conflicts of interest may arise as a result of:
●
Sponsor and its affiliates will be indemnified pursuant to the Trust Agreement;
●
The Sponsor's allocation of resources (including the time and attention of management and business
development) among different clients and potential future business ventures, to each of which they may owe fiduciary duties, the determination
of which is the responsibility of the Sponsor and its affiliates;
●
The staff of the Sponsor may also directly or indirectly serve affiliates and clients of the Sponsor;
●
The Trust Agreement does not prohibit the Sponsor, its respective affiliates and their respective officers
and employees from engaging in other businesses or activities that might be in direct competition with the Trust;
●
The Sponsor and its staff may take direct positions in Solana or in other investments, or may advise other
clients to take such positions, that may be in conflict with the investment objective of the Shares or that may be of a size that could
impact the price of Solana;
●
There has been no independent due diligence conducted with respect to this offering, where applicable,
and there is an absence of arm's-length negotiation with respect to certain terms of the Trust;
●
The Sponsor decides whether to obtain third-party services for the Trust.
By investing in the Shares, investors
agree and consent to the provisions set forth in the Trust Agreement.
For a further discussion of the
conflicts of interest among the Sponsor, Solana Custodian, Cash Custodian, Trust and others, see "CONFLICTS OF INTEREST."
The Sponsor's policies
and procedures may not fully mitigate the risk of conflicts of interest.
The Sponsor does not have operating
practices that require personnel to pre-clear personal trading activity in which Solana is the referenced asset. In general, pre-clearance
policies prohibit employees and agents from engaging in certain personal trading activity without first obtaining pre-clearance of the
transaction from the firm's chief compliance officer, chief financial officer, or some senior officer with similar responsibilities.
Without implementing pre-clearance
requirements, the Sponsor may not be able to fully mitigate the risk of conflicts of interest or avoid the appearance of impropriety in
connection with the purchase and sale of Solana. There is no guarantee that every employee, officer, director, or similar person associated
with the Sponsor, or its affiliates will refrain from engaging in insider trading in violation of their duties to the Trust and Sponsor.
This risk is present in traditional
financial markets and is not unique to Solana. If such employees or others affiliated with the Sponsor engage in illegal conduct or conduct
which fails to meet applicable regulatory standards, the Sponsor and its affiliates could be the target of civil or criminal fines, penalties,
punishments, or other regulatory sanctions or lawsuits or could be the target of an investigation. Any of these outcomes could cause the
Trust and Shareholders to suffer harm.
The Sponsor and its affiliates
may also participate in transactions related to Solana, either for their own account (subject to certain internal employee trading operating
practices) or for the account of others, such as clients, and such transactions may occur prior to, during, or after the commencement
of this offering. Such transactions may not serve to benefit the Shareholders of the Trust and may have a positive or negative effect
on the value of the Solana held by the Trust and, consequently, on the market value of Solana.
The Trust is new,
and if it is not profitable, the Trust may terminate and liquidate at a time that is disadvantageous to Shareholders.
The Trust is new. If the Trust
does not attract sufficient assets to remain open, then the Trust could be terminated and liquidated at the direction of the Sponsor.
Termination and liquidation of the Trust could occur at a time that is disadvantageous to Shareholders. When the Trust's assets
are sold as part of the Trust's liquidation, the resulting proceeds distributed to Shareholders may be less than those that may
be realized in a sale outside of a liquidation context. Investors may be adversely affected by redemption or creation orders that are
subject to postponement, suspension or rejection under certain circumstances.
59
The Sponsor may discontinue
its services, which may be detrimental to the Trust.
Sponsor may be unwilling or unable
to continue to serve as sponsor to the Trust for any length of time. If the Sponsor discontinues its activities and is unable to be replaced,
the Trust may have to terminate and liquidate the Solana held by the Trust. A substitute sponsor's appointment will not guarantee
the Trust's continued operation even if a substitute sponsor is found, the appointment of a substitute sponsor may not necessarily
be beneficial to the Trust or an investment in the Shares and the Trust may terminate.
Any of the service
providers could resign or be removed by the Trust, which could trigger early termination of the Trust.
Any service provider may resign
or be removed under its respective governing agreement. The Trust may dissolve in accordance with the terms of the Trust Agreement if
any service provider resigns or is removed and is unable to be replaced.
The lack of independent
advisers representing investors in the Trust may cause Shareholders to be adversely affected.
Counsel, accountants and other
advisers have been consulted by the Sponsor regarding the formation and operation of the Trust. Potential investors should consult their
own legal, tax and financial advisers regarding the desirability of an investment in the Shares. No counsel has been appointed to represent
an investor in connection with the offering of the Shares. Failure to consult with their own legal, tax and financial advisers may lead
to Shareholders making an undesirable investment decision with respect to investment in the Shares.
No separate counsel;
no responsibility or independent verification.
Chapman and Cutler LLP represents
the Sponsor. The Trust does not have counsel separate and independent from counsel to the Sponsor. Chapman and Cutler LLP does not represent
Shareholders, and no independent counsel has been retained to represent Shareholders. Chapman and Cutler LLP is not responsible for any
acts or omissions of the Sponsor, the Administrator, the Trustee, the Solana Custodian, the Cash Custodian, the Prime Execution Agent,
a Solana Trading Counterparty, the Transfer Agent or the Trust (including their compliance with any guidelines, policies, restrictions
or applicable law, or the selection, suitability or advisability of their investment activities) or any administrator, accountant, custodian
or other service provider to the Sponsor, Trustee or the Trust. This Prospectus was prepared based on information provided by the Sponsor,
the Administrator, the Solana Custodian, the Cash Custodian, the Prime Execution Agent, the Transfer Agent, and the Trustee, in good faith
and based on reasonable best efforts to ensure the information is accurate as of the date of this Prospectus, and Chapman and Cutler LLP
has not independently verified such information.
Shareholders do not
have the rights enjoyed by investors in certain other vehicles and may be adversely affected by a lack of statutory rights and by limited
voting and distribution rights.
The Shares have limited voting
and distribution rights under the Trust Agreement. For example, except as required under applicable federal law or under the rules or
regulations of the Exchange, Shareholders have no voting rights and take no part in the management or control of, and have no voice in,
the Trust's operations or business. The Trust may enact splits or reverse splits without Shareholder approval, and the Trust is
not required to pay regular distributions. The Trust will not have regular Shareholder meetings. The right to authorize actions, appoint
service providers or take other actions will not be held by Shareholders, unlike shareholders of other trusts.
The Trust Agreement includes
provisions that limit Shareholders' voting rights and restrict Shareholders' right to bring a derivative action.
Under the Trust Agreement, Shareholders
generally have no voting rights and the Trust will not have regular Shareholder meetings. Shareholders take no part in the management
or control of the Trust. Accordingly, Shareholders do not have the right to authorize actions, appoint service providers or take other
actions as may be taken by shareholders of other trusts or companies where shares carry such rights. The Sponsor may take actions in the
operation of the Trust that may be adverse to the interests of Shareholders and may adversely affect the value of the Shares.
60
Moreover, pursuant to the terms
of the Trust Agreement, Shareholders' statutory right under Delaware law to bring a derivative action (i.e., to initiate a lawsuit
in the name of the Trust in order to assert a claim belonging to the Trust against a fiduciary of the Trust or against a third-party when
the Trust's management has refused to do so) is restricted. Under Delaware law, a shareholder may bring a derivative action if the
shareholder is a shareholder at the time the action is brought and either (i) was a shareholder at the time of the transaction at issue
or (ii) acquired the status of shareholder by operation of law or the Trust's governing instrument from a person who was a shareholder
at the time of the transaction at issue. Additionally, Section 3816(e) of the Delaware Statutory Trust Act specifically provides that
a "beneficial owner's right to bring a derivative action may be subject to such additional standards and restrictions, if
any, as are set forth in the governing instrument of the statutory trust, including, without limitation, the requirement that beneficial
owners owning a specified beneficial interest in the statutory trust join in the bringing of the derivative action." In addition
to the requirements of applicable law and in accordance with Section 3816(e), the Trust Agreement provides that no Shareholder will have
the right, power or authority to bring or maintain a derivative action, suit or other proceeding on behalf of the Trust unless two or
more Shareholders who (i) are not "Affiliates" (as defined in the Trust Agreement) of one another and (ii) collectively hold
at least 10.0% of the outstanding Shares join in the bringing or maintaining of such action, suit or other proceeding. This provision
applies to any derivative actions brought in the name of the Trust other than claims under the federal securities laws and the rules and
regulations thereunder.
Due to this additional requirement,
a Shareholder attempting to bring or maintain a derivative action in the name of the Trust will be required to locate other Shareholders
with which it is not affiliated and that have sufficient Shares to meet the 10.0% threshold based on the number of Shares outstanding
on the date the claim is brought and thereafter throughout the duration of the action, suit or proceeding. This may be difficult and may
result in increased costs to a Shareholder attempting to seek redress in the name of the Trust in court. Moreover, if Shareholders bringing
a derivative action, suit or proceeding pursuant to this provision of the Trust Agreement do not hold 10.0% of the outstanding Shares
on the date such an action, suit or proceeding is brought, or such Shareholders are unable to maintain Share ownership meeting the 10.0%
threshold throughout the duration of the action, suit or proceeding, such Shareholders' derivative action may be subject to dismissal.
As a result, the Trust Agreement limits the likelihood that a Shareholder will be able to successfully assert a derivative action in the
name of the Trust, even if such Shareholder believes that he or she has a valid derivative action, suit or other proceeding to bring on
behalf of the Trust.
An investment in the
Trust may be adversely affected by competition from other investment vehicles focused on Solana or other digital assets.
The Trust will compete with direct
investments in Solana, other digital assets and other potential financial vehicles, possibly including securities backed by or linked
to digital assets and other investment vehicles that focus on other digital assets. Market and financial conditions, and other conditions
beyond the Trust's control, may make it more attractive to invest in other vehicles, which could adversely affect the performance
of the Trust.
Investors cannot be
assured of the Sponsor's continued services, the discontinuance of which may be detrimental to the Trust.
Investors cannot be assured that
the Sponsor will be able to continue to service the Trust for any length of time. If the Sponsor discontinues its activities on behalf
of the Trust, the Trust may be adversely affected, as there may be no entity servicing the Trust for a period of time. Such an event could
result in termination of the Trust.
The liability of the
Sponsor and the Trustee is limited, and the value of the Shares will be adversely affected if the Trust is required to indemnify the Trustee
or the Sponsor.
Under the Trust Agreement, the
Trustee and the Sponsor are not liable, and have the right to be indemnified, for any liability or expense incurred absent gross negligence
or willful misconduct on the part of the Trustee or the Sponsor or breach by the Sponsor of the Trust Agreement, as the case may be. As
a result, the Sponsor may require the assets of the Trust to be sold in order to cover losses or liability suffered by it. Any sale of
that kind would reduce the NAV of the Trust and the value of its Shares.
61
Shareholders'
limited rights of legal recourse against the Trust, Sponsor, Administrator, Transfer Agent, Cash Custodian, Prime Execution Agent and
Solana Custodian and the Trust's lack of direct insurance protection expose the Trust and its Shareholders to the risk of loss of
the Trust's Solana for which no person is liable.
The Trust is not a banking institution
and is not a member of the FDIC or Securities Investor Protection Corporation ("SIPC") and, therefore, investments in the
Trust are not subject to the protections enjoyed by depositors with FDIC or SIPC member institutions. Likewise, the Solana Custodian is
not a depository institution and is not a member of the FDIC or SIPC and, therefore, the Trust's assets held with the Solana Custodian
are not subject to FDIC or SIPC insurance coverage. In addition, neither the Trust nor the Sponsor insures the Trust's Solana. The
Solana Custodian's parent, [Solana Custodian's Parent] ("[Solana Custodian's Parent]"), maintains a commercial
crime insurance policy of up to $___ million, which is intended to cover the loss of client assets held by [Solana Custodian's Parent]
and all of its subsidiaries, including the Solana Custodian and the Prime Execution Agent (collectively, [Solana Custodian Entities] and
its subsidiaries are referred to as the "[Insured Entities]"), including from employee collusion or fraud, physical loss including
theft, damage of key material, security breach or hack, and fraudulent transfer. The insurance maintained by [Solana Custodian's
Parent] is shared among all of [Solana Custodian Entities - Short Name]'s customers, is not specific to the Trust or to customers
holding Solana with the Solana Custodian or Prime Execution Agent, and may not be available or sufficient to protect the Trust from all
possible losses or sources of losses. [Solana Custodian's Parent]'s insurance may not cover the type of losses experienced
by the Trust. Alternatively, the Trust may be forced to share such insurance proceeds with other clients or customers of the [Insured
Entities], which could reduce the amount of such proceeds that are available to the Trust. In addition, the Solana insurance market is
limited, and the level of insurance maintained by [Solana Custodian's Parent] may be substantially lower than the assets of the
Trust. While the Solana Custodian maintains certain capital reserve requirements depending on the assets under custody, and such capital
reserves may provide additional means to cover client asset losses, the Trust cannot be assured that the Solana Custodian will maintain
capital reserves sufficient to cover actual or potential losses with respect to the Trust's digital assets.
Furthermore, under the Solana
Custody Agreement, the Solana Custodian's liability is limited as follows, among others: (i) other than with respect to claims and
losses arising from spot trading of Solana, or fraud or willful misconduct, the Mutually Capped Liabilities (defined below), the Solana
Custodian's aggregate liability under the Solana Custody Agreement shall not exceed the greater of (A) the greater of (x) $5 million
and (y) the aggregate fees paid by the Trust to the Solana Custodian in the 12 months prior to the event giving rise to the Solana Custodian's
liability, and (B) the value of the affected Solana or cash giving rise to the Solana Custodian's liability; (ii) in respect of
the Solana Custodian's obligations to indemnify the Trust and its affiliates against third-party claims and losses to the extent
arising out of or relating to, among others, the Solana Custodian's gross negligence, violation of its confidentiality, data protection
and/or information security obligations, or violation of any law, rule or regulation with respect to the provision of its services (the
"Mutually Capped Liabilities"), the Solana Custodian's liability shall not exceed the greater of (A) $5 million and
(B) the aggregate fees paid by the Trust to the Solana Custodian in the 12 months prior to the event giving rise to the Solana Custodian's
liability; and (iii) in respect of any incidental, indirect, special, punitive, consequential or similar losses, the Solana Custodian
is not liable, even if the Solana Custodian has been advised of or knew or should have known of the possibility thereof. In general, the
Solana Custodian is not liable under the Solana Custody Agreement unless in the event of its negligence, fraud, material violation of
applicable law or willful misconduct. The Solana Custodian is not liable for delays, suspension of operations, failure in performance,
or interruption of service to the extent it is directly due to a cause or condition beyond the reasonable control of the Solana Custodian.
In the event of potential losses incurred by the Trust as a result of the Solana Custodian losing control of the Trust's Solana
or failing to properly execute instructions on behalf of the Trust, the Solana Custodian's liability with respect to the Trust will
be subject to certain limitations which may allow it to avoid liability for potential losses or may be insufficient to cover the value
of such potential losses, even if the Solana Custodian directly caused such losses.
62
Similarly, under the Prime Execution
Agreement, the Prime Execution Agent's liability is limited as follows, among others: (i) other than with respect to claims and
losses arising from spot trading of Solana, or fraud or willful misconduct, or the PB Mutually Capped Liabilities (defined below), the
Prime Execution Agent's aggregate liability shall not exceed the greater of (A) the greater of (x) $5 million and (y) the aggregate
fees paid by the Trust to the Prime Execution Agent in the 12 months prior to the event giving rise to the Prime Execution Agent's
liability, and (B) the value of the cash or affected Solana giving rise to the Prime Execution Agent's liability; (ii) in respect
of the Prime Execution Agent's obligations to indemnify the Trust and its affiliates against third-party claims and losses to the
extent arising out of or relating to, among others, the Prime Execution Agent's gross negligence, violation of its confidentiality,
data protection and/or information security obligations, violation of any law, rule or regulation with respect to the provision of its
services, or the full amount of the Trust's assets lost due to the insolvency of or security event at a Connected Trading Venue
(as defined below) (the "PB Mutually Capped Liabilities"), the Prime Execution Agent's liability shall not exceed the
greater of (A) $5 million and (B) the aggregate fees paid by the Trust to the Prime Execution Agent in the 12 months prior to the event
giving rise to the Prime Execution Agent's liability; and (iii) in respect of any incidental, indirect, special, punitive, consequential
or similar losses, the Prime Execution Agent is not liable, even if the Prime Execution Agent has been advised of or knew or should have
known of the possibility thereof. In general, with limited exceptions (such as for failing to execute an order), the Prime Execution Agent
is not liable under the Prime Execution Agreement unless in the event of its gross negligence, fraud, material violation of applicable
law or willful misconduct. The Prime Execution Agent is not liable for delays, suspension of operations, failure in performance, or interruption
of service to the extent it is directly due to a cause or condition beyond the reasonable control of the Prime Execution Agent. These
and the other limitations on the Prime Execution Agent's liability may allow it to avoid liability for potential losses or may be
insufficient to cover the value of such potential losses, even if the Prime Execution Agent directly caused such losses. Both the Trust
and the Prime Execution Agent and its affiliates (including the Solana Custodian) are required to indemnify each other under certain circumstances.
Moreover, in the event of an insolvency
or bankruptcy of the Prime Execution Agent (in the case of the Trading Balance) or the Solana Custodian (in the case of the Trust Solana
Account) in the future, given that the contractual protections and legal rights of customers with respect to digital assets held on their
behalf by third parties are relatively untested in a bankruptcy of an entity such as the Solana Custodian or Prime Execution Agent in
the virtual currency industry, there is a risk that customers' assets—including the Trust's assets—may be considered
the property of the bankruptcy estate of the Prime Execution Agent (in the case of the Trading Balance) or the Solana Custodian (in the
case of the Trust Solana Account), and customers—including the Trust—may be at risk of being treated as general unsecured
creditors of such entities and subject to the risk of total loss or markdowns on value of such assets.
The Solana Custody Agreement contains
an agreement by the parties to treat the Solana credited to the Trust Solana Account as financial assets under Article 8 of the New York
Uniform Commercial Code ("Article 8"), in addition to stating that the Solana Custodian will serve as fiduciary and custodian
on the Trust's behalf. The Solana Custodian's parent, _____, has stated in its most recent public securities filings that
in light of the inclusion in its custody agreements of provisions relating to Article 8 it believes that a court would not treat custodied
digital assets as part of its general estate in the event the Solana Custodian were to experience insolvency. However, due to the novelty
of digital asset custodial arrangements courts have not yet considered this type of treatment for custodied digital assets and it is not
possible to predict with certainty how they would rule in such a scenario. If the Solana Custodian became subject to insolvency proceedings
and a court were to rule that the custodied Solana were part of the Solana Custodian's general estate and not the property of the
Trust, then the Trust would be treated as a general unsecured creditor in the Solana Custodian's insolvency proceedings and the
Trust could be subject to the loss of all or a significant portion of its assets. Moreover, in the event of the bankruptcy of the Solana
Custodian, an automatic stay could go into effect and protracted litigation could be required in order to recover the assets held with
the Solana Custodian, all of which could significantly and negatively impact the Trust's operations and the value of the Shares.
With respect to the Prime Execution
Agreement, there is a risk that the Trading Balance, in which the Trust's Solana and cash is held in omnibus accounts by the Prime
Execution Agent (in the latter case, as described below in "RISK FACTORS—Loss of a critical banking relationship for, or the
failure of a bank used by, the Prime Execution Agent could adversely impact the Trust's ability to create or redeem Baskets, or
could cause losses to the Trust"), could be considered part of the Prime Execution Agent's bankruptcy estate in the event
of the Prime Execution Agent's bankruptcy. The Prime Execution Agreement contains an Article 8 opt-in clause with respect to the
Trust's assets held in the Trading Balance.
63
The Prime Execution Agent is not
required to hold any of the Solana or cash in the Trust's Trading Balance in segregation. Within the Trading Balance, the Prime
Execution Agreement provides that the Trust does not have an identifiable claim to any particular Solana (and cash). Instead, the Trust's
Trading Balance represents an entitlement to a pro rata share of the Solana (and cash) the Prime Execution Agent has allocated to the
omnibus wallets the Prime Execution Agent holds, as well as the accounts in the Prime Execution Agent's name that the Prime Execution
Agent maintains at Connected Trading Venues (the "Connected Trading Venue") (which are typically held on an omnibus, rather
than segregated, basis). If the Prime Execution Agent suffers an insolvency event, there is a risk that the Trust's assets held
in the Trading Balance could be considered part of the Prime Execution Agent's bankruptcy estate and the Trust could be treated
as a general unsecured creditor of the Prime Execution Agent, which could result in losses for the Trust and Shareholders. Moreover, in
the event of the bankruptcy of the Prime Execution Agent, an automatic stay could go into effect and protracted litigation could be required
in order to recover the assets held with the Prime Execution Agent, all of which could significantly and negatively impact the Trust's
operations and the value of the Shares.
Under the Trust Agreement, the
Sponsor will not be liable for any liability or expense incurred, including, without limitation, as a result of any loss of Solana by
the Solana Custodian or Prime Execution Agent, absent gross negligence, bad faith or willful misconduct on the part of the Sponsor. As
a result, the recourse of the Trust or the Shareholders to the Sponsor, including in the event of a loss of Solana by the Solana Custodian
or Prime Execution Agent, is limited.
The Shareholders' recourse
against the Sponsor and the Trust's other service providers for the services they provide to the Trust, including, without limitation,
those relating to the holding of Solana or the provision of instructions relating to the movement of Solana, is limited. For the avoidance
of doubt, neither the Sponsor, the Trustee, nor any of their affiliates nor any other party has guaranteed the assets or liabilities,
or otherwise assumed the liabilities, of the Trust, or the obligations or liabilities of any service provider to the Trust, including,
without limitation, the Solana Custodian and Prime Execution Agent. The Prime Execution Agreement and Solana Custody Agreement provide
that neither the Sponsor nor its affiliates shall have any obligation of any kind or nature whatsoever, by guaranty, enforcement or otherwise,
with respect to the performance of any of the Trust's obligations, agreements, representations or warranties under the Prime Execution
Agreement or Solana Custody Agreement or any transaction thereunder. Consequently, a loss may be suffered with respect to the Trust's
Solana that is not covered by _____'s insurance and for which no person is liable in damages. As a result, the recourse of the Trust
or the Shareholders, under applicable law, is limited.
During the rare and
limited circumstances when the Trust utilizes the Agent Execution Model, it may utilize Trade Credits. If the Trade Credits are not available
or become exhausted, the Trust may face delays in buying or selling Solana that may adversely impact Shareholders; if the Trust does not
repay the Trade Credits on time, its assets may be liquidated by the Trade Credit Lender and its affiliates.
During the rare and limited circumstances
when the Trust utilizes the Agent Execution Model, it may utilize Trade Credits (defined below). To avoid having to pre-fund purchases
or sales of Solana, the Trust may borrow Solana or cash as trade credit ("Trade Credit") from _____ (the "Trade Credit
Lender") on a short-term basis pursuant to the _____(the "Trade Financing Agreement"). The Trade Credit Lender is only
required to extend Trade Credits to the Trust to the extent such Solana or cash is actually available to the Trade Credit Lender. To the
extent that Trade Credits are not available or become exhausted, (1) there may be delays in the buying and selling of Solana related to
cash creations and redemptions or the selling of Solana related to paying Trust expenses not assumed by the Sponsor, to the extent applicable,
(2) Trust assets may be in held the Trading Balance for a longer duration than if Trade Credits were available, and (3) the execution
price associated with such trades may deviate significantly from the Pricing Benchmark price used to determine the NAV of the Trust. To
the extent that the execution price for purchases and sales of Solana deviate significantly from the Pricing Benchmark price used to determine
the Trust's NAV, Shareholders may be negatively impacted because the added costs of such price deviations would be incurred by the
Authorized Participants and may be passed onto the Shareholders in the secondary market.
64
To the extent the Trust
utilizes Trade Credits when using the Agent Execution Model, such Trade Credits are secured by the Trust's assets, including any
cash and Solana held in the Trading Balance with the Prime Execution Agent and the Trust Solana Account held with the Solana Custodian,
and such assets may be liquidated by the Trade Credit Lender to repay Trade Credit debt owed by the Trust in the event the Trust fails
to repay the Trade Credit debt.
During the rare and limited circumstances
when the Trust utilizes the Agent Execution Model, it may utilize Trade Credits. The Trust generally must repay Trade Credits by 6:00
p.m. ET on the calendar day immediately following the day the Trade Credit was extended by the Trade Credit Lender to the Trust (or, if
such day is not a business day, on the next business day). Pursuant to the Trade Financing Agreement, the Trust has granted a security
interest, lien on, and right of set off against all of the Trust's right, title and interest, in the Trust's Trading Balance
and Trust Solana Account established pursuant to the Prime Execution Agreement and Solana Custody Agreement, in order to secure the repayment
by the Trust of the Trade Credits and financing fees to the Trade Credit Lender. Upon a Termination for Cause, as defined in the Prime
Execution Agreement, which includes a failure by the Trust to pay and settle in full its obligations to the Trade Credit Lender in respect
of the financing it provides to the Trust in the form of Trade Credits, the Solana Custodian and the Prime Execution Agent have agreed
to comply with instructions from the Trade Credit Lender with respect to the disposition of the assets in the Trust Solana Account and
Trading Balance respectively without further consent by the Trust. If the Trust fails to repay the Trade Credits to the Trade Credit Lender
on time and in full, the Trade Credit Lender can take control of the Trust's assets and liquidate them to repay the Trade Credit
debt owed by the Trust to the Trade Credit Lender.
Loss of a critical
banking relationship for, or the failure of a bank used by, the Prime Execution Agent could adversely impact the Trust's ability
to create or redeem Baskets, or could cause losses to the Trust, in the limited circumstances when the Trust utilizes the Agent Execution
Model.
The Prime Execution Agent relies
on bank accounts to provide its trading platform services and including temporarily holding any cash related to a customer's purchase
or sale of Solana. In particular, the Prime Execution Agent has disclosed that customer cash held by the Prime Execution Agent, including
the cash associated with the Trust's Trading Balance, is held in one or more banks' accounts for the benefit of the Prime
Execution Agent's customers, or in money market funds in compliance with Rule 2a-7 under the Investment Company Act and rated "AAA"
by S&P (or the equivalent from any eligible rating service), provided that such investments are held in accounts in [Solana Custodian
Entities – Short Name]'s name for the benefit of customers and are permitted and held in accordance with state money transmitter
laws ("Money Market Funds"). The Prime Execution Agent has represented to the Sponsor that it has implemented the following
policy with respect to the cash associated with the Trust's Trading Balance. First, any cash related to the Trust's purchase
or sale of Solana will be held in an omnibus account in the Prime Execution Agent's name for the benefit of ("FBO")
its customers at each of multiple FDIC-insured banks (an "FBO Account"), or in a Money Market Fund. The amount of Trust cash
held at each FBO Account shall be in an amount at each bank that is the lower of (i) the FDIC insurance limit for deposit insurance and
(ii) any bank-specific limit set by the Prime Execution Agent for the applicable bank. Deposit insurance does not apply to cash held in
a Money Market Fund. The Prime Execution Agent has agreed to title the accounts in a manner designed to enable receipt of FDIC deposit
insurance where applicable on a pass-through basis, but does not guarantee that pass-through insurance will apply since such insurance
is dependent on the compliance of the bank. Second, to the extent the Trust's cash in the Trading Balance in aggregate exceeds the
amounts that can be maintained at the banks on the foregoing basis, the Prime Execution Agent has represented that it currently conducts
an overnight sweep of the excess into U.S. government money market funds. The Sponsor has not independently verified the Prime Execution
Agent's representations. To the extent that the Prime Execution Agent faces difficulty establishing or maintaining banking relationships,
the loss of the Prime Execution Agent's banking partners or the imposition of operational restrictions by these banking partners
and the inability of the Prime Execution Agent to utilize other financial institutions may result in a disruption of creation and redemption
activity of the Trust, or cause other operational disruptions or adverse effects for the Trust. In the future, it is possible that the
Prime Execution Agent could be unable to establish accounts at new banking partners or establish new banking relationships, or that the
banks with which the Prime Execution Agent is able to establish relationships may not be as large or well-capitalized or subject to the
same degree of prudential supervision as the existing providers.
The Trust could also suffer losses
in the event that a bank in which the Prime Execution Agent holds customer cash, including the cash associated with the Trust's
Trading Balance (which is used by the Prime Execution Agent to move cash flows associated with the Trust's orders to sell Solana
in connection with payment of Trust expenses not assumed by the Sponsor), fails, becomes insolvent, enters receivership, is taken over
by regulators, enters financial distress, or otherwise suffers adverse effects to its financial condition or operational status. Recently,
some banks have experienced financial distress. For example, on March 8, 2023, the California Department of Financial Protection and Innovation
("DFPI") announced that Silvergate Bank had entered voluntary liquidation, and on March 10, 2023, Silicon Valley Bank ("SVB")
was closed by the DFPI, which appointed the FDIC as receiver. Similarly, on March 12, 2023, the New York Department of Financial Services
took possession of Signature Bank and appointed the FDIC as receiver. A joint statement by the Department of the Treasury, the Federal
Reserve and the FDIC on March 12, 2023, stated that depositors in Signature and SVB will have access to all of their funds, including
funds held in deposit accounts, in excess of the insured amount. On May 1, 2023, First Republic Bank was closed by the California Department
of Financial Protection and Innovation, which appointed the FDIC as receiver. Following a bidding process, the FDIC entered into a purchase
and assumption agreement with JPMorgan Chase Bank, National Association, to acquire the substantial majority of the assets and assume
certain liabilities of First Republic Bank from the FDIC.
65
The Prime Execution Agent has
historically maintained banking relationships with Silvergate Bank and Signature Bank. While the Sponsor does not believe there is a direct
risk to the Trust's assets from the failures of Silvergate Bank or Signature Bank, in the future, changing circumstances and market
conditions, some of which may be beyond the Trust's or the Sponsor's control, could impair the Trust's ability to access
the Trust's cash held with the Prime Execution Agent in the Trust's Trading Balance or associated with the Trust's orders
to sell Solana in connection with payment of Trust expenses not assumed by the Sponsor. If the Prime Execution Agent were to experience
financial distress or its financial condition is otherwise affected by the failure of its banking partners, the Prime Execution Agent's
ability to provide services to the Trust could be affected. Moreover, the future failure of a bank at which the Prime Execution Agent
maintains customer cash, in the Trust's Trading Balance associated with the Trust's orders to sell Solana in connection with
payment of Trust expenses not assumed by the Sponsor, could result in losses to the Trust, to the extent the balances are not subject
to deposit insurance, notwithstanding the regulatory requirements to which the Prime Execution Agent is subject or other potential protections.
Although the Prime Execution Agent has made certain representations to the Sponsor regarding the Prime Execution Agent's maintenance
of records in a manner reasonably designed to qualify for FDIC insurance on a pass-through basis in connection with the accounts in which
the Prime Execution Agent maintains cash on behalf of its customers (including the Trust), there can be no assurance that such pass-through
insurance will ultimately be made available. In addition, the Trust may maintain cash balances with the Prime Execution Agent that are
not insured or are in excess of the FDIC's insurance limits, or which are maintained by the Prime Execution Agent at Money Market
Funds and subject to the attendant risks (e.g., "breaking the buck"). As a result, the Trust could suffer losses.
The Prime Execution
Agent routes orders through Connected Trading Venues in connection with trading services under the Prime Execution Agreement. The loss
or failure of any such Connected Trading Venues may adversely affect the Prime Execution Agent's business and cause losses for the
Trust.
In connection with trading services
under the Prime Execution Agreement, the Prime Execution Agent routinely routes customer orders to Connected Trading Venues, which are
third-party platforms or other trading venues (including the trading venue operated by the Prime Execution Agent). In connection with
these activities, the Prime Execution Agent may hold Solana with such Connected Trading Venues in order to effect customer orders, including
the Trust's orders. However, the Prime Execution Agent has represented to the Sponsor that no customer cash is held at Connected
Trading Venues. If the Prime Execution Agent were to experience a disruption in the Prime Execution Agent's access to these Connected
Trading Venues, the Prime Execution Agent's trading services under the Prime Execution Agreement could be adversely affected to
the extent that the Prime Execution Agent is limited in its ability to execute order flow for its customers, including the Trust. In addition,
while the Prime Execution Agent has policies and procedures to help mitigate the Prime Execution Agent's risks related to routing
orders through third-party trading venues, if any of these third-party trading venues experience any technical, legal, regulatory or other
adverse events, such as shutdowns, delays, system failures, suspension of withdrawals, illiquidity, insolvency, or loss of customer assets,
the Prime Execution Agent might not be able to fully recover the customer's Solana that the Prime Execution Agent has deposited
with these third parties. As a result, the Prime Execution Agent's business, operating results and financial condition could be
adversely affected, potentially resulting in its failure to provide services to the Trust or perform its obligations under the Prime Execution
Agreement, and the Trust could suffer resulting losses or disruptions to its operations. The failure of a Connected Trading Venue at which
the Prime Execution Agent maintains customer Solana, including Solana associated with the Trust, could result in losses to the Trust,
notwithstanding the regulatory requirements to which the Prime Execution Agent is subject or other potential protections.
A loss of confidence
or breach of the Solana Custodian may adversely affect the Trust and the value of an investment in the Shares.
Custody and security services
for the Trust's Solana are provided by [Solana Custodian], although the Trust may retain one or more additional custodians at a
later date. Solana held by the Trust may be custodied or secured in different ways (for example, a portion of the Trust's Solana
holdings may be custodied by [Solana Custodian] and another portion by another third-party custodian). Over time, the Trust may change
the custody or security arrangement for all or a portion of its holdings. The Sponsor will decide the appropriate custody and arrangements
based on, among other factors, the availability of experienced custodians and the Trust's ability to securely safeguard the Solana.
66
If the Solana Custody
Agreement or Prime Execution Agreement is terminated or the Solana Custodian or Prime Execution Agent fails to provide services as required,
the Sponsor may need to find and appoint a replacement custodian or prime broker, which could pose a challenge to the safekeeping of the
Trust's Solana, and the Trust's ability to continue to operate may be adversely affected.
The Trust is dependent on the
Solana Custodian, which is [Solana Custodian], and to a lesser extent, the Prime Execution Agent, [Prime Execution Agent] to operate.
[Solana Custodian] performs essential functions in terms of safekeeping the Trust's Solana in the Trust Solana Account, and its
affiliate, [Prime Execution Agent], in its capacity as Prime Execution Agent under the Agent Execution Model. If [Solana Custodian] or
[Prime Execution Agent] fails to perform the functions they perform for the Trust, the Trust may be unable to operate or create or redeem
Baskets, which could force the Trust to liquidate or adversely affect the price of the Shares.
The Sponsor may not be able to
find a party willing to serve as the custodian of the Trust's Solana or as the Trust's prime execution agent under the same
terms as the current Solana Custody Agreement or Prime Execution Agreement or at all. To the extent that Sponsor is not able to find a
suitable party willing to serve as the custodian or prime execution agent, the Sponsor may be required to terminate the Trust and liquidate
the Trust's Solana. In addition, to the extent that the Sponsor finds a suitable party but must enter into a modified Solana Custody
Agreement or Prime Execution Agreement that is less favorable for the Trust, the value of the Shares could be adversely affected. If the
Trust is unable to find a replacement prime execution agent, its operations could be adversely affected.
The Sponsor may need
to find and appoint a replacement Solana Custodian or Cash Custodian quickly, which could pose a challenge to the safekeeping of the Trust's
Solana and cash.
The Sponsor may need to replace
[Solana Custodian] as the Solana custodian of the Trust's Solana or BNY Mellon as the cash custodian of the Trust's cash and
cash equivalents as a result of the insolvency, business failure or interruption, default, failure to perform, security breach or other
problems. Transferring maintenance responsibilities of the Trust's accounts with the Solana Custodian and/or Cash Custodian to another
party will likely be complex and could subject the Trust's Solana to the risk of loss during the transfer, which could have a negative
impact on the performance of the Shares or result in loss of the Trust's assets. The Sponsor may not be able to find a party willing
to serve as the Solana Custodian or Cash Custodian under the same terms as the current Solana Custody Agreement or Cash Custody Agreement,
respectively. To the extent that Sponsor is not able to find a suitable party willing to serve as the Solana Custodian or Cash Custodian,
as applicable, the Sponsor may be required to terminate the Trust and liquidate the Trust's Solana. In addition, to the extent that
the Sponsor finds a suitable party but must enter into modified custodial services agreements that cost more, the value of the Shares
could be adversely affected.
The Solana Custodian
could become insolvent.
The Trust's assets will
be held in one or more accounts maintained for the Trust by the Solana Custodian and Cash Custodian. The Solana Custodian is not a depository
institution as it is not insured by the FDIC. The insolvency of the Solana Custodian or of any broker, custodian bank or clearing corporation
used by the Solana Custodian, may result in the loss of all or a substantial portion of the Trust's assets or in a significant delay
in the Trust having access to those assets. Additionally, custody of digital assets presents inherent and unique risks relating to access,
loss, theft and means of recourse in such scenarios. These risks are applicable to the Trust's use of [Solana Custodian].
Solana held by the
Trust is not subject to FDIC or SIPC protections.
The Trust is not a banking institution
or otherwise a member of the FDIC or SIPC and, therefore, deposits held with or assets held by the Trust are not subject to the protections
enjoyed by depositors with FDIC or SIPC member institutions. The undivided interests in the Trust's Solana represented by the Shares
in the Trust are not insured.
67
Third parties
may infringe upon or otherwise violate intellectual property rights or assert that the Sponsor has infringed or otherwise violated their
intellectual property rights, which may result in significant costs and diverted attention.
It is possible that third
parties might utilize the Trust's intellectual property or technology, including the use of its business methods and trademarks,
without permission. However, the Trust may not have adequate resources to implement procedures for monitoring unauthorized uses of their
trademarks, proprietary software and other technology. Also, third parties may independently develop business methods, trademarks or proprietary
software and other technology similar to that of the Trust or claim that the Trust has violated their intellectual property rights, including
their copyrights, trademark rights, trade names, trade secrets and patent rights. As a result, the Trust may have to litigate in the future
to protect its trade secrets, determine the validity and scope of other parties' proprietary rights, defend itself against claims
that it has infringed or otherwise violated other parties' rights, or defend itself against claims that its rights are invalid.
Any litigation of this type, even if the Trust is successful and regardless of the merits, may result in significant costs, divert its
resources from the Trust, or require it to change its proprietary software and other technology or enter into royalty or licensing agreements.
Due to the increased
use of technologies, intentional and unintentional cyber-attacks pose operational and information security risks.
With the increased use of
technologies such as the internet and the dependence on computer systems to perform necessary business functions, the Trust is susceptible
to operational and information security risks. In general, cyber incidents can result from deliberate attacks or unintentional events.
Cyber-attacks include, but are not limited to, gaining unauthorized access to digital systems for purposes of misappropriating assets
or sensitive information, corrupting data, or causing operational disruption. Cyber-attacks may also be carried out in a manner that does
not require gaining unauthorized access, such as causing denial-of-service attacks on websites. Cyber security failures or breaches of
one or more of the Trust's third-party service providers (including, but not limited to, the Administrator, Transfer Agent, the
Sponsor, the Solana Custodian and the Cash Custodian) have the ability to cause disruptions and impact business operations, potentially
resulting in financial losses, the inability of the Shareholders to transact business, violations of applicable privacy and other laws,
regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, and/or additional compliance costs.
In addition, substantial costs
may be incurred in order to prevent any cyber incidents in the future. The Trust and its Shareholders could be negatively impacted as
a result. While the Trust has established business continuity plans, there are inherent limitations in such plans.
The Trust faces
risks related to the novel coronavirus (COVID-19) outbreak, which could negatively impact the value of the Trust's holdings and
significantly disrupt its operations.
Health crises caused by the
outbreak of infectious diseases or other public health issues, may exacerbate other pre-existing political, social, economic, market and
financial risks. The impact of any such events, could negatively affect the global economy, as well as the economies of individual countries
or regions, the financial performance of individual companies, sectors and industries, and the markets in general in significant and unforeseen
ways. Any such impact could adversely affect the prices and liquidity of the Shares.
For example, an outbreak of
a respiratory disease designated as COVID-19 was first detected in China in December 2019 and subsequently spread internationally. The
transmission of COVID-19 and efforts to contain its spread resulted in international, national and local border closings and other significant
travel restrictions and disruptions, significant disruptions to business operations, supply chains and customer activity, event cancellations
and restrictions, service cancellations, reductions and other changes, significant challenges in healthcare service preparation and delivery,
and quarantines, as well as general concern and uncertainty that negatively affected the economic environment. These impacts also caused
significant volatility and declines in global financial markets, including increased volatility and uncertainty in crypto markets, which
have caused losses for investors. The emergence of new COVID variants or other infectious diseases could result in a substantial economic
downturn or recession.
In addition, the operations
of the Trust, the Sponsor and other service providers may be significantly impacted, or even temporarily or permanently halted, as a result
of government quarantine measures, voluntary and precautionary restrictions on travel or meetings and other factors related to a public
health emergency, including its potential adverse impact on the health of any such entity's personnel. Any disruption of operations
could adversely impact the price and liquidity of the Shares, including, without limitation, the Trust's ability to process orders
for Baskets.
68
Solana, Solana
MARKET AND REGULATION OF Solana
Solana and the Solana Network
Solana is a digital asset
that is created and transmitted through the operations of a peer-to-peer, decentralized network of computers that operates on cryptographic
protocols (the Solana Network). No single entity is known to own or operate the Solana Network, the infrastructure of which is collectively
maintained by what is understood to be a decentralized user base. The Solana Network allows people to exchange tokens of value, called
Solana, which are recorded on a public transaction ledger known as a blockchain. Solana can be used to pay for goods and services, including
computational power on the Solana Network, or it can be converted to fiat currencies, such as the U.S. dollar, at rates determined on
digital asset trading platforms or in individual end-user-to-end-user transactions under a barter system. Furthermore, the Solana Network
was designed to allow users to write and implement smart contracts—that is, general-purpose code that executes on every computer
in the network and can instruct the transmission of information and value based on a sophisticated set of logical conditions. Using smart
contracts, users can create markets, store registries of debts or promises, represent the ownership of property, move funds in accordance
with conditional instructions and create digital assets other than Solana on the Solana Network. Smart contract operations are executed
on the Solana blockchain in exchange for payment of Solana. Like the Ethereum network, the Solana Network is one of a number of projects
intended to expand blockchain use beyond just a peer-to-peer money system.
The Solana protocol introduced
the Proof-of-History (PoH) timestamping mechanism. PoH automatically orders on-chain transactions by creating a historical record that
proves an event has occurred at a specific moment in time. PoH is intended to provide a transaction processing speed and capacity advantage
over other blockchain networks like Bitcoin and Ethereum, which rely on sequential production of blocks and can lead to delays caused
by validator confirmations. PoH is a new blockchain technology that is not widely used. PoH may not function as intended. For example,
it may require more specialized equipment to participate in the network and fail to attract a significant number of users, or may be subject
to outages or fail to function as intended. In addition, there may be flaws in the cryptography underlying PoH, including flaws that affect
functionality of the Solana Network or make the network vulnerable to attack.
In addition to the PoH mechanism
described above, the Solana Network uses a proof-of-stake consensus mechanism to incentivize Solana holders to validate transactions.
Unlike proof-of-work, in which miners expend computational resources to compete to validate transactions and are rewarded coins in proportion
to the amount of computational resources expended, in proof-of-stake, validators risk or "stake" coins to compete to be randomly
selected to validate transactions and are rewarded coins in proportion to the amount of coins staked. Any malicious activity, such as
disagreeing with the eventual consensus or otherwise violating protocol rules, results in the forfeiture or "slashing" of
a portion of the staked coins. Proof-of-stake is viewed as more energy efficient and scalable than proof-of-work and is sometimes referred
to as "virtual mining."
The Solana protocol was first
conceived by Anatoly Yakovenko in a 2017 whitepaper. Development of the Solana Network is overseen by the Solana Foundation, a Swiss non-profit
organization, and Solana Labs, Inc. (Solana Labs), a Delaware corporation, which administered the original network launch and token distribution.
Although Solana Labs and the Solana Foundation continue to exert significant influence over the direction of the development of Solana,
the Solana Network, like the Ethereum network, is understood to be decentralized and does not require governmental authorities or financial
institution intermediaries to create, transmit or determine the value of Solana.
In order to own, transfer
or use Solana directly on the Solana Network (as opposed to through an intermediary, such as a custodian), a person generally must have
internet access to connect to the Solana Network. Solana transactions may be made directly between end-users without the need for a third-party
intermediary. To prevent the possibility of double-spending Solana, a user must notify the Solana Network of the transaction by broadcasting
the transaction data to its network peers. The Solana Network provides confirmation against double-spending by memorializing every transaction
in the Solana blockchain, which is publicly accessible and transparent. This memorialization and verification against double-spending
is accomplished through the Solana Network validation process, which adds "blocks" of data, including recent transaction information,
to the Solana blockchain. Unlike other blockchains that rely solely on sequential production of blocks through proof-of-work or proof-of-stake
mechanisms, however, the Solana Network introduces PoH, which creates a historical record that proves an event has occurred at a specific
moment in time.
69
Smart Contracts and Development
on the Solana Network
Smart contracts are programs
that run on a blockchain that can execute automatically when certain conditions are met. Smart contracts facilitate the exchange of anything
representative of value, such as money, information, property, or voting rights.
Using smart contracts, users
can send or receive digital assets, create markets, store registries of debts or promises, represent ownership of property or a company,
move funds in accordance with conditional instructions and create new digital assets.
Development on the Solana
Network involves building more complex tools on top of smart contracts, such as decentralized apps ("DApps") and organizations
that are autonomous, known as decentralized autonomous organizations ("DAOs"). For example, a company that distributes charitable
donations on behalf of users could hold donated funds in smart contracts that are paid to charities only if the charity satisfies certain
pre-defined conditions.
In total, as of November 1,
2024, more than 400 DApps are currently built on the Solana Network, including DApps in the collectible non-fungible token, gaming, music
streaming, and decentralized finance categories.
Additionally, the Solana Network
has been used for decentralized finance ("DeFi"), or open finance platforms, which seek to democratize access to financial
services, such as borrowing, lending, custody, trading, derivatives and insurance, by removing third-party intermediaries. DeFi can allow
users to lend and earn interest on their digital assets, exchange one digital asset for another and create derivative digital assets such
as stablecoins, which are digital assets pegged to a reserve asset such as fiat currency.
In addition, the Solana Network
and other smart contract platforms have been used for creating non-fungible tokens ("NFTs").
Unlike digital assets native
to smart contract platforms which are fungible and enable the payment of fees for smart contract execution. Instead, NFTs allow for digital
ownership of assets that convey certain rights to other digital or real world assets. This new paradigm allows users to own rights to
other assets through NFTs, which enable users to trade them with others on the Solana Network. For example, an NFT may convey rights to
a digital asset that exists in an online game or a DApp, and users can trade their NFT in the DApp or game, and carry them to other digital
experiences, creating an entirely new free-market internet-native economy that can be monetized in the physical world.
Summary of a Solana Transaction
Prior to engaging in Solana
transactions directly on the Solana Network, a user generally must first install on its computer or mobile device a Solana Network software
program that will allow the user to generate a private and public key pair associated with a Solana address. The Solana Network software
program and the Solana address also enable the user to connect to the Solana Network and transfer Solana to, and receive Solana from,
other users.
Each Solana Network address,
or wallet, is associated with a unique "public key" and "private key" pair. To receive Solana, the Solana recipient
must provide its public key to the party initiating the transfer. This activity is analogous to a recipient for a transaction in U.S.
dollars providing a routing address in wire instructions to the payor so that cash may be wired to the recipient's account. The
payor approves the transfer to the address provided by the recipient by "signing" a transaction that consists of the recipient's
public key with the private key of the address from where the payor is transferring the Solana. The recipient, however, does not make
public or provide to the sender its related private key.
Neither the recipient nor
the sender reveal their private keys in a transaction, because the private key authorizes transfer of the funds in that address to other
users. Therefore, if a user loses his or her private key, the user may permanently lose access to the Solana contained in the associated
address. Likewise, Solana is irretrievably lost if the private key associated with them is deleted and no backup has been made. When sending
Solana, a user's Solana Network software program must validate the transaction with the associated private key. In addition, since
every computation on the Solana Network requires processing power, there is a transaction fee involved with the transfer that is paid
by the payor the resulting digitally validated transaction is sent by the user's Solana Network software program to the Solana Network
validators to allow transaction confirmation.
70
Solana Network validators
record and confirm transactions when they validate and add blocks of information to the Solana blockchain. When a validator is selected
to validate a block, it creates that block, which includes data relating to (i) the verification of newly submitted and accepted transactions
and (ii) a reference to the prior block in the Solana blockchain to which the new block is being added. The validator becomes aware of
outstanding, unrecorded transactions through the data packet transmission and distribution discussed above.
Upon the addition of a block
of Solana transactions, the Solana Network software program of both the spending party and the receiving party will show confirmation
of the transaction on the Solana blockchain and reflect an adjustment to the Solana balance in each party's Solana Network public
key, completing the Solana transaction. Once a transaction is confirmed on the Solana blockchain, it is irreversible.
Some Solana transactions are
conducted "off-blockchain" and are therefore not recorded in the Solana blockchain. These "off-blockchain transactions"
involve the transfer of control over, or ownership of, a specific digital wallet holding Solana or the reallocation of ownership of certain
Solana in a pooled-ownership digital wallet, such as a digital wallet owned by a digital asset trading platform. In contrast to on-blockchain
transactions, which are publicly recorded on the Solana blockchain, information and data regarding off-blockchain transactions are generally
not publicly available. Therefore, off-blockchain transactions are not truly Solana transactions in that they do not involve the transfer
of transaction data on the Solana Network and do not reflect a movement of Solana between addresses recorded in the Solana blockchain.
For these reasons, off-blockchain transactions are subject to risks as any such transfer of Solana ownership is not protected by the protocol
behind the Solana Network or recorded in, and validated through, the blockchain mechanism.
Solana Market and Solana Digital Asset Trading
Platforms
Solana can be transferred
in direct peer-to-peer transactions through the direct sending of Solana over the Solana blockchain from one Solana address to another.
Among end-users, Solana can be used to pay other members of the Solana Network for goods and services under what resembles a barter system.
Consumers can also pay merchants and other commercial businesses for goods or services through direct peer-to-peer transactions on the
Solana blockchain or through third-party service providers.
In addition to using Solana
to engage in transactions, investors may purchase and sell Solana to speculate as to the value of Solana in the Solana market, or as a
long-term investment to diversify their portfolio. The value of Solana within the market is determined, in part, by the supply of and
demand for Solana in the global Solana market, market expectations for the adoption of Solana as a store of value, the number of merchants
that accept Solana as a form of payment, and the volume of peer-to-peer transactions, among other factors.
Solana spot markets provide
investors with a website that permits investors to open accounts with the spot market and then purchase and sell Solana. Prices for trades
on Solana spot markets are typically reported publicly. An investor opening a trading account must deposit an accepted government-issued
currency into their account with the spot market, or a previously acquired digital asset, before they can purchase or sell assets on the
spot market. The process of establishing an account with a Solana spot market and trading Solana is different from, and should not be
confused with, the process of users sending Solana from one Solana address to another Solana address on the Solana blockchain. This latter
process is an activity that occurs on the Solana Network, while the former is an activity that occurs entirely on the private website
operated by the spot market. The spot market typically records the investor's ownership of Solana in its internal books and records,
rather than on the Solana blockchain. The spot market ordinarily does not transfer Solana to the investor on the Solana blockchain unless
the investor makes a request to the spot market to withdraw the Solana in their exchange account to an off-exchange Solana wallet.
Outside of spot markets, Solana
can be traded OTC in transactions that are not publicly reported. The OTC market is largely institutional in nature, and OTC market participants
generally consist of institutional entities, such as firms that offer two-sided liquidity for Solana, investment managers, proprietary
trading firms, high-net-worth individuals that trade Solana on a proprietary basis, entities with sizeable Solana holdings, and family
offices. The OTC market provides a relatively flexible market in terms of quotes, price, quantity, and other factors, although it tends
to involve large blocks of Solana. The OTC market has no formal structure and no open-outcry meeting place. Parties engaging in OTC transactions
will agree upon a price—often via phone or email—and then one of the two parties will then initiate the transaction. For example,
a seller of Solana could initiate the transaction by sending the Solana to the buyer's Solana address. The buyer would then wire
U.S. dollars to the seller's bank account. OTC trades are sometimes hedged and eventually settled with concomitant trades on Solana
spot markets.
71
Authorized Participants will
deliver, or facilitate the delivery of, Solana or cash to the Trust's account with the Solana Custodian in exchange for Shares of
the Trust, and the Trust, through the Solana Custodian, will deliver Solana or cash when such Authorized Participants redeem Shares of
the Trust. See
"The Trust and SOLANA Prices"
for more information.
Creation of New Solana
Initial Creation of
Solana
Unlike other digital assets
such as bitcoin, which are solely created through a progressive mining process, 500 million Solana were created in connection with the
launch of the Solana Network. The initial 500 million Solana were distributed as follows:
Investors
:
189 million Solana, or 37.8% of the supply, was sold in private sales to venture capital and other investors conducted between 2018 to
2021.
Solana Foundation
:
52 million Solana, or 10.4% of the supply, was distributed to the Solana Foundation for operational costs incurred in the development
of the Solana Network.
Solana Labs, Inc.
:
64 million Solana, or 12.8% of the supply, was retained by Solana Labs to be used, at least in part, to compensate the employees of Solana
Labs.
Community
: 195 million Solana, or 39.0% of the supply, was distributed to the Solana Foundation to be deployed
as bounties, incentive programs, marketing and grants.
Following the launch of the
Solana Network, Solana supply increases through a progressive minting process
.
Proof-of-Stake Process
Unlike proof-of-work, in which
validators expend computational resources to compete to validate transactions and are rewarded coins in proportion to the amount of computational
resources expended, in proof-of-stake, validators risk or "stake" coins to compete to be randomly selected to validate transactions
and are rewarded coins in proportion to the amount of coins staked. Any malicious activity, such as validating multiple blocks, disagreeing
with the eventual consensus or otherwise violating protocol rules, results in the forfeiture or "slashing" of a portion of
the staked coins. Proof-of-stake is believed by some to be more energy efficient and scalable than proof-of-work. Every 12 seconds, approximately,
a new block is added to the Solana blockchain with the latest transactions processed by the network, and the validator that generated
this block is awarded Solana.
Limits on Solana Supply
The rate at which new Solana
supply has been minted and put into circulation has varied since network launch. Additionally, the Solana protocol reduces the Solana
supply by eliminating 50% of transaction fees paid to the network. As a result, net changes in Solana supply are expected to vary in the
future.
At network launch, the Solana
circulating supply was 8 million Solana. Between network launch and December 31, 2023, the circulating supply of Solana increased by roughly
5,266% to approximately 429 million Solana.
In
February 2021, the Solana supply inflation rate was changed from 0.1% to a new initial inflation rate of 8%. The 8% initial inflation
rate is scheduled to decline in 15% increments until a long-term inflation rate of 1.5% is reached. As of November 1, 2024, the Solana
supply issuance rate was approximately 4.978% on an annual basis before any offsets for eliminated transaction fees.
Solana Protocol Development and Modifications
Historically the Solana Network's
development has been overseen by Solana Labs, the Solana Foundation and other core developers. The Solana Foundation and core developers
are able to access and alter the Solana Network source code and, as a result, they are responsible for quasi-official releases of updates
and other changes to the Solana Network's source code.
72
For example, in March 2020,
the Solana Network launched the Mainnet Beta version of the Solana Network, one month after launching the testnet, Tour de SOL. Solana
Labs led the development of these reference implementations.
The release of updates to
the Solana Network's source code does not guarantee that the updates will be automatically adopted. Users and nodes must accept
any changes made to the Solana source code by downloading the proposed modification of the Solana Network's source code. A modification
of the Solana Network's source code is only effective with respect to the Solana users that download it. If a modification is accepted
only by a percentage of users and validators, a division in the Solana Network will occur such that one network will run the pre-modification
source code and the other network will run the modified source code. Such a division is known as a "fork." See "RISK
FACTORS—Risks Associated with Solana and the Solana Network — A temporary or permanent "fork" or a "clone"
of the Solana Network could adversely affect the value of the Shares." Consequently, as a practical matter, a modification to the
source code become part of the Solana Network only if accepted by participants collectively having a majority of the processing power
on the Solana Network.
Core development of the Solana
source code has increasingly focused on modifications of the Solana protocol to increase speed and scalability and also allow for financial
and non-financial next generation uses. The Trust's activities will not directly relate to such projects, though such projects may
utilize Solana as tokens for the facilitation of their non-financial uses, thereby potentially increasing demand for Solana and the utility
of the Solana Network as a whole. Conversely, projects that operate and are built within the Solana blockchain may increase the data flow
on the Solana Network and could either "bloat" the size of the Solana blockchain or slow confirmation times.
Forms of Attack Against the Solana Network
All networked systems are
vulnerable to various kinds of attacks. As with any computer network, the Solana Network contains certain flaws. For example, the Solana
Network is currently vulnerable to a "51% attack" (though the numerical thresholds vary in proof-of-stake) where, if a party
or group were to gain control of more than the relevant threshold of the staked Solana, a malicious actor would be able to gain full control
of the network and the ability to manipulate the Solana blockchain. As of November 1, 2024, the top three largest staking pools controlled
approximately 68% of the Solana staked on the Solana Network.
In addition, many digital
asset networks have been subjected to a number of denial of service attacks, which has led to temporary delays in block creation and in
the transfer of Solana.
For example, on September
14, 2021, the Solana Network experienced a significant disruption, later attributed to a type of denial of service attack, and was offline
for 17 hours, only returning to full functionality 24 hours later. While persons associated with Solana Labs and/or the Solana Foundation
are understood to have played a key role in bringing the network back online, the broader community also played a key role, as Solana
validators coordinated to upgrade and restart the network. Any similar attacks on the Solana Network that impact the ability to transfer
Solana could have a material adverse effect on the price of Solana and the value of the Shares.
This
is not intended as an exhaustive list of all forms of attack against the Solana Network. For additional information, see the "RISK
FACTORS" section of this Prospectus.
Market Participants
Validators
Validators range from Solana
enthusiasts to professional operations that design and build dedicated machines and data centers, including "clusters," which
are groups of validators that act cohesively and combine their processing to confirm transactions. When a validator confirms a transaction,
the validator and any associated stakers receive a fee. During the course of ordering transactions and validating blocks, validators may
be able to prioritize certain transactions in return for increased transaction fees, an incentive system known as "Maximal Extractable
Value" or MEV. For example, in blockchain networks that facilitate DeFi protocols in particular, such as the Ethereum Network, users
may attempt to gain an advantage over other users by offering greater transaction fees. Validators less commonly capture MEV in the Solana
Network because, unlike the Ethereum Network, it does not publicly expose transactions before they are accepted by a validator. However,
some efforts are underway to help Solana Validators consistently capture MEV. See "SOLANA, SOLANA MARKET AND REGULATION OF SOLANA—Summary
of a Solana Transaction" below.
73
Investment and Speculative
Sector
This sector includes the investment
and trading activities of both private and professional investors and speculators. Historically, larger financial services institutions
are publicly reported to have limited involvement in investment and trading in digital assets, although the participation landscape is
beginning to change. Currently, there is relatively limited use of digital assets in the retail and commercial marketplace in comparison
to relatively extensive use by speculators, and a significant portion of demand for digital assets is generated by speculators and investors
seeking to profit from the short- or long-term holding of digital assets.
Retail Sector
The retail sector includes
users transacting in direct peer-to-peer Solana transactions through the direct sending of Solana over the Solana Network. The retail
sector also includes transactions in which consumers purchase goods and services from commercial or service businesses through direct
transactions or third-party service providers, although the use of Solana as a means of payment is still developing and has not yet been
accepted in the same manner as Bitcoin or Ethereum due to its infancy and because Solana has a different purpose than Bitcoin and Ethereum.
Service Sector
This sector includes companies
that provide a variety of services including the buying, selling, payment processing and storing of Solana. As Solana continues to grow
in acceptance, it is anticipated that service providers will expand the currently available range of services and that additional parties
will enter the service sector for Solana.
Competition
As of November 1, 2024, more
than 8,000 other digital assets, as tracked by CoinMarketCap.com, have been developed since the inception of bitcoin, which is currently
the most developed digital asset because of the length of time it has been in existence, the investment in the infrastructure that supports
it, and the network of individuals and entities that are using bitcoin in transactions. While Solana has enjoyed some success in its limited
history, the aggregate value of outstanding Solana is smaller than that of bitcoin and may be eclipsed by the more rapid development of
other digital assets.
Regulation of Solana and Government Oversight
As digital assets have grown
in both popularity and market size, the U.S. Congress and a number of U.S. federal and state agencies (including FinCEN, SEC, CFTC, FINRA,
the Consumer Financial Protection Bureau ("CFPB"), of Investigation, the IRS, the Office of the Comptroller of the Currency,
the Federal Deposit Insurance Corporation, the Federal Reserve and state financial institution and securities regulators) have been examining
the operations of digital asset networks, digital asset users and the digital asset exchange markets, with particular focus on the extent
to which digital assets can be used to launder the proceeds of illegal activities or fund criminal or terrorist enterprises and the safety
and soundness of exchanges or other service-providers that hold or custody digital assets for users. Many of these state and federal agencies
have issued consumer advisories regarding the risks posed by digital assets to investors. In addition, federal and state agencies, and
other countries have issued rules or guidance about the treatment of digital asset transactions or requirements for businesses engaged
in digital asset activity. President Biden's March 9, 2022 Executive Order, asserting that technological advances and the rapid
growth of the digital asset markets "necessitate an evaluation and alignment of the United States Government approach to digital
assets," signals an ongoing focus on digital asset policy and regulation in the United States. A number of reports issued pursuant
to the Executive Order have focused on various risks related to the digital asset ecosystem, and have recommended additional legislation
and regulatory oversight. In addition, federal and state agencies, and other countries and international bodies have issued rules or guidance
about the treatment of digital asset transactions or requirements for businesses engaged in digital asset activity. Moreover, the failure
of FTX Trading Ltd. ("FTX") in November 2022 and the resulting market turmoil substantially increased regulatory scrutiny
in the United States and globally and led to SEC and criminal investigations, enforcement actions and other regulatory activity across
the digital asset ecosystem.
74
In addition, the SEC, U.S.
state securities regulators and several foreign governments have issued warnings and instituted legal proceedings in which they argue
that certain digital assets may be classified as securities and that both those digital assets and any related initial coin offerings
or other primary and secondary market transactions are subject to securities regulations. For example, in June 2023, the SEC brought charges
against Binance and Coinbase, and in November 2023, the SEC brought charges against Kraken, alleging that they operated unregistered securities
exchanges, brokerages and clearing agencies. In its complaints, the SEC asserted that several digital assets are securities under the
federal securities laws, including Solana. The outcomes of these proceedings, as well as ongoing and future regulatory actions, have had
a material adverse effect on the digital asset industry as a whole and on the price of Solana, and may alter, perhaps to a materially
adverse extent, the nature of an investment in the Shares and/or the ability of the Trust to continue to operate. Additionally, U.S. state
and federal, and foreign regulators and legislatures have taken action against virtual currency businesses or enacted restrictive regimes
in response to adverse publicity arising from hacks, consumer harm, or criminal activity stemming from virtual currency activity.
In August 2021, the chair
of the SEC stated that he believed investors using digital asset trading platforms are not adequately protected, and that activities on
the platforms can implicate the securities laws, commodities laws and banking laws, raising a number of issues related to protecting investors
and consumers, guarding against illicit activity, and ensuring financial stability. The chair expressed a need for the SEC to have additional
authorities to prevent transactions, products, and platforms from "falling between regulatory cracks," as well as for more
resources to protect investors in "this growing and volatile sector." The chair called for federal legislation centering on
digital asset trading, lending, and decentralized finance platforms, seeking "additional plenary authority" to write rules
for digital asset trading and lending. At the same time, the chair has also stated that the SEC has authority under existing laws to regulate
the digital asset sector and several enforcement actions were filed against digital asset trading platforms during the first half of 2023.
The SEC has also recently
proposed amendments to the custody rules under Rule 406(4)-2 of the Investment Advisers Act. The proposed rule changes would amend the
definition of a "qualified custodian" under Rule 206(4)-2(d)(6) and expand the current custody rule under Rule 406(4)-2 to
cover digital assets and related advisory activities. If enacted as proposed, these rules would likely impose additional regulatory requirements
with respect to the custody and storage of digital assets and could lead to additional regulatory oversight of the digital asset ecosystem
more broadly.
Various foreign jurisdictions
have, and may continue to, in the near future, adopt laws, regulations or directives that affect a digital asset network, the Digital
Asset Markets, and their users, particularly digital asset trading platforms and service providers that fall within such jurisdictions'
regulatory scope. For example:
●
China has made transacting in cryptocurrencies illegal for Chinese citizens in mainland China, and additional restrictions may follow.
China has banned initial coin offerings and there have been reports that Chinese regulators have taken action to shut down a number of
China-based digital asset trading platforms.
●
South Korea determined to amend its Financial Information Act in March 2020 to require virtual asset service providers to register
and comply with its AML and counter-terrorism funding framework. These measures also provide the government with the authority to close
digital asset trading platforms that do not comply with specified processes. South Korea has also banned initial coin offerings.
●
The Reserve Bank of India in April 2018 banned the entities it regulates from providing services to any individuals or business entities
dealing with or settling digital assets. In March 2020, this ban was overturned in the Indian Supreme Court, although the Reserve Bank
of India is currently challenging this ruling.
●
The United Kingdom's Financial Conduct Authority published final rules in October 2020 banning the sale of derivatives and exchange-traded
notes that reference certain types of digital assets, contending that they are "ill-suited" to retail investors citing extreme
volatility, valuation challenges and association with financial crime. A new law, the Financial Services and Markets Act 2023 ("FSMA"),
received royal assent in June 2023. The FSMA brings digital asset activities within the scope of existing laws governing financial institutions,
markets and assets.
●
The Parliament of the European Union approved the text of the Markets in Crypto-Assets Regulation ("MiCA") in April 2023,
establishing a regulatory framework for digital asset services across the European Union. MiCA is intended to serve as a comprehensive
regulation of digital asset markets and imposes various obligations on digital asset issuers and service providers. The main aims of MiCA
are industry regulation, consumer protection, prevention of market abuse and upholding the integrity of digital asset markets. MiCA was
formally approved by the European Union's member states in 2023 and is expected to come into effect in 2024.
75
There remains significant
uncertainty regarding foreign governments' future actions with respect to the regulation of digital assets and digital asset trading
platforms. Such laws, regulations or directives may conflict with those of the United States and may negatively impact the acceptance
of Solana by users, merchants and service providers outside the United States and may therefore impede the growth or sustainability of
the Solana ecosystem in the United States and globally, or otherwise negatively affect the value of Solana held by the Trust. The effect
of any future regulatory change on the Trust or the Solana held by the Trust is impossible to predict, but such change could be substantial
and adverse to the Trust and the value of the Shares.
THE TRUST AND Solana
PRICES
Overview of the Trust
The Trust's investment
objective is to seek to provide exposure to the value of Solana held by the Trust, less the expenses of the Trust's operations.
In seeking to achieve its investment objective, the Trust will hold Solana and will value its net assets and the Shares daily based on
the Pricing Benchmark. Solana will be the only digital asset held by the Trust.
The Sponsor believes that
the Trust will provide a cost-efficient way for investors to implement strategic and tactical asset allocation strategies that use Solana
by investing in the Shares rather than purchasing, holding and trading Solana directly. The latter alternative would require an investor
to acquire Solana by selecting a digital asset trading platform and opening an account or arranging a private transaction, and initiating
a fiat transaction to initiate or settle such acquisition. An investor would then also be required to custody such Solana by selecting
a retail or institutional custodial platform or establishing a personal computer or hardware security module-based system capable of transacting
directly on the blockchain, and incurring the risk associated with cybersecurity and maintaining a private key that is irrecoverable if
lost, among other difficulties.
Purchase and Sale of Solana
Because the Trust will conduct
creations and redemptions of Shares for cash, it will be responsible for purchasing and selling Solana in connection with those creation
and redemption orders. The Trust may also be required to sell Solana to pay certain extraordinary, non-recurring expenses that are not
assumed by the Sponsor.
The Sponsor, on behalf of
the Trust, will typically seek to buy and sell Solana at a price as close to the Pricing Benchmark as practical. When choosing between
potential counterparties, the Sponsor may consider factors other than simply the most favorable price. However, the most favorable price
will be the predominant factor in determining the counterparty with which the Sponsor effectuates the contemplated transaction. Other
factors that the Sponsor may consider include the size of the proposed order, as well as a counterparty's execution capabilities,
reliability and responsiveness.
The Trust's purchase
and sale of Solana may be conducted pursuant to either of two models: (i) the "Trust-Directed Trade Model"; or the (ii) the
"Agent Execution Model." The Trust intends to utilize the Trust-Directed Trade Model for all purchases and sales of Solana
and will only utilize the Agent Execution Model in the event that no Solana Trading Counterparty is able or willing to effectuate the
Trust's purchase or sale of Solana.
Whether utilizing either the
Trust-Directed Trade Model or the Agent Execution Model, the Authorized Participants will deliver only cash to create Shares and will
receive only cash when redeeming Shares. Further, Authorized Participants will not directly or indirectly purchase, hold, deliver, or
receive Solana as part of the creation or redemption process or otherwise direct the Trust or a third party with respect to purchasing,
holding, delivering, or receiving Solana as part of the creation or redemption process. Additionally, under both the Trust-Directed Trade
Model and the Agent Execution Model, the Trust will create Shares by receiving Solana from a third party that is not the Authorized Participant,
and the Sponsor, on behalf of the Trust—not the Authorized Participant—is responsible for selecting the third party to deliver
the Solana. Further, the third party will not be acting as an agent of the Authorized Participant with respect to the delivery of the
Solana to the Trust or acting at the direction of the Authorized Participant with respect to the delivery of the Solana to the Trust.
Additionally, the Trust will redeem Shares by delivering Solana to a third party that is not the Authorized Participant and the Sponsor,
on behalf of the Trust—not the Authorized Participant—is responsible for selecting the third party to receive the Solana.
Further, the third party will not be acting as an agent of the Authorized Participant with respect to the receipt of the Solana from the
Trust or acting at the direction of the Authorized Participant with respect to the receipt of the Solana from the Trust.
76
Trust-Directed Trade Model
Under the Trust-Directed Trade
Model, the Sponsor, on behalf of the Trust, is responsible for acquiring Solana from a Solana trading counterparty that has been approved
by the Sponsor (each, a Solana Trading Counterparty). The Sponsor has entered into contractual agreements with the Solana Trading Counterparties,
and these agreements set forth the general parameters under which a transaction in Solana will be effectuated, should any transaction
with a Solana Trading Counterparty occur. These agreements do not require the Sponsor to utilize any particular Solana Trading Counterparty,
and do not create any contractual obligations on the part of any Solana Trading Counterparty to participate in cash orders for creations
or redemptions. All transactions between the Sponsor, on behalf of the Trust, and a Solana Trading Counterparty will be done on an arm's-length
basis.
While it is expected and intended
that the Solana Trading Counterparties are unaffiliated third-parties it is possible that a Solana Trading Counterparty may on any given
day be or become considered an affiliate of the Trust if it acquires Shares in an amount that would cause it to become considered an affiliate
of the Trust, as the Shares are publicly traded. Solana Trading Counterparties are not required to have a custody account with the Solana
Custodian. When seeking to purchase or sell Solana on behalf of the Trust, the Sponsor will typically seek to buy and sell Solana at a
price as close to the Pricing Benchmark as practical from any of the approved Solana Trading Counterparties. Upon notification that the
Trust needs to purchase or sell Solana, the Sponsor will obtain indicative prices from multiple Solana Trading Counterparties at which
they would be willing to execute the contemplated transaction. The Sponsor then determines the Solana Trading Counterparty with which
it wishes to transact and records the rationale for that determination. Once agreed upon, the transaction will generally occur on an "over-the-counter"
basis. Transfers of Solana to and from the Trust Solana Account to the Solana Trading Counterparty are "on-chain" transactions
represented on the Solana Network. Transfer fees with respect to this on-chain transfer of Solana will be paid by the Solana Custodian.
The Sponsor maintains a process
for approving and monitoring Solana Trading Counterparties, which is overseen by the Bitwise Portfolio Oversight Committee, which is responsible
for investment activities and related risk, as well as counterparty risk. All Solana Trading Counterparties must be approved by the Bitwise
Portfolio Oversight Committee before the Sponsor, on behalf of the Trust, will engage in transactions with the entity. The Bitwise Portfolio
Oversight Committee continuously reviews all approved Solana Trading Counterparties at its quarterly meetings and will reject the approval
of any previously approved Solana Trading Counterparty if new information arises regarding the entity that puts the appropriateness of
that entity as an approved Solana trading counterparty in doubt. In considering which Solana Trading Counterparties to approve, the Bitwise
Portfolio Oversight Committee has instituted rigorous policies and procedures that include, but are not limited to, (i) a review of all
sanctioned entities, including, but not limited to, the various categories of sanctioned persons and entities identified by the Office
of Foreign Assets Control; (ii) a review of all publicly available information regarding the entity, including a review of all information
that has been filed pursuant to the requirements of U.S. or non-U.S. regulators, with a particular emphasis on the identity of the entity's
owners, disclosure events and reports of disciplinary action; and (iii) a review of the entity's policies and procedures regarding
various topics, including, but not limited to, anti-money laundering and "know-your-customer" requirements, trade surveillance,
auditing and testing and cybersecurity capabilities.
As of _______________, _________________________________
have been approved as Solana Trading Counterparties.
Agent Execution Model
In the event that every Solana
Trading Counterparty is either unable or unwilling to effectuate the Trust's purchase or sale of Solana, the Sponsor, on behalf
of the Trust, may execute the trade using the Agent Execution Model.
77
Under the Agent Execution
Model, the Prime Execution Agent, an affiliate of the Solana Custodian, acting in an agency capacity, conducts Solana purchases and sales
on behalf of the Trust with third parties through its [Prime service] pursuant to the Prime Execution Agreement. To avoid having to pre-fund
purchases or sales of Solana, the Trust may borrow Solana or cash as Trade Credit from the Trade Credit Lender on a short-term basis pursuant
to the Trade Financing Agreement. As the Trust intends to conduct nearly all purchases and sales of Solana pursuant to the Trust-Directed
Trade Model, under normal conditions, it expects to keep very little or no Solana in the Trading Balance with the Prime Execution Agent.
In the case of a purchase
of Solana, the extension of Trade Credits allows the Trust to purchase Solana through the Prime Execution Agent on the date the Trust
wishes to effectuate the transaction (for instance, on the evening of the day when an order to create Shares is received), with such Solana
being deposited in the Trust's Trading Balance. On the day following a trade when Trade Credits have been utilized, the Trust uses
cash (for instance, from the Authorized Participant who submitted the creation order) to repay the Trade Credits borrowed from the Trade
Credit Lender. The Solana purchased by the Trust is then swept from the Trust's Trading Balance with the Prime Execution Agent to
the Trust Solana Account with the Solana Custodian pursuant to a regular end-of-day sweep process. Transfers of Solana into the Trust's
Trading Balance are off-chain transactions and transfers from the Trust's Trading Balance to the Trust Solana Account are "on-chain"
transactions represented on the Solana Network. Any financing fee owed to the Trade Credit Lender is deemed part of trade execution costs
and embedded in the trade price for each transaction.
In the case of a sale of Solana,
the Trust enters into a transaction to sell Solana through the Prime Execution Agent for cash. The Trust's Trading Balance with
the Prime Execution Agent may not be funded with Solana on the date the Trust wishes to effectuate the transaction (for instance, on the
evening a day when an order to redeem Shares is received) because the Solana remains in the Trust Solana Account with the Solana Custodian.
In those circumstances the Trust may borrow Trade Credits in the form of Solana from the Trade Credit Lender, which allows the Trust to
sell Solana through the Prime Execution Agent at the desired time, and the cash proceeds are deposited in the Trust's Trading Balance
with the Prime Execution Agent. On the business day following the trade, the Trust will use the Solana that is moved from the Trust Solana
Account with the Solana Custodian to the Trading Balance with the Prime Execution Agent to repay the Trade Credits borrowed from the Trade
Credit Lender. Transfers of Solana from the Trust Solana Account to the Trust's Trading Balance are "on-chain" transactions
represented on the Solana Network. Any financing fee owed to the Trade Credit Lender is deemed part of trade execution costs and embedded
in the trade price for each transaction.
The CME CF Solana – Dollar Reference
Rate – New York Variant
The net assets of the Trust
and its Shares are valued on a daily basis with reference to the CME CF Solana – Dollar Reference Rate – New York Variant,
the Pricing Benchmark, a standardized reference rate published by CF Benchmarks Ltd., the Benchmark Provider, that is designed to reflect
the performance of Solana in U.S. dollars. The Pricing Benchmark was created to facilitate financial products based on Solana. It serves
as a once-a-day benchmark rate of the U.S. dollar price of Solana (USD/SOL), calculated as of 4:00 p.m. ET. The Pricing Benchmark aggregates
the trade flow of several major Solana trading venues, during an observation window between 3:00 p.m. and 4:00 p.m. ET into the U.S. dollar
price of one Solana at 4:00 p.m. ET. The Pricing Benchmark currently uses substantially the same methodology as the CME CF Solana Reference
Rate, the SRR, including utilizing the same constituent Solana exchanges, except that the Pricing Benchmark is calculated as of 4:00 p.m.
ET, whereas the SRR is calculated as of 4:00 p.m. London time. The Pricing Benchmark, which was introduced on September 16, 2024, is based
on materially the same methodology (except calculation time) as the SRR, which was first introduced on April 25, 2022.
The Pricing Benchmark is designed
based on the IOSCO Principals for Financial Benchmarks. The Trust uses the Pricing Benchmark to calculate its NAV, which is the aggregate
U.S. dollar value of Solana in the Trust, based on the Pricing Benchmark, less its liabilities and expenses. "NAV per Share"
is calculated by dividing NAV by the number of Shares currently outstanding. NAV and NAV per Share are not measures calculated in accordance
with GAAP. NAV is not intended to be a substitute for the Trust's Principal Market NAV calculated in accordance with GAAP, and NAV
per Share is not intended to be a substitute for the Trust's Principal Market NAV per Share calculated in accordance with GAAP.
78
The Sponsor, in its sole discretion,
may cause the Trust to price its portfolio based upon an index, benchmark or standard other than the Pricing Benchmark at any time, with
prior notice to the Shareholders, if investment conditions change or the Sponsor believes that another index, benchmark or standard better
aligns with the Trust's investment objective and strategy. The Sponsor may make this decision for a number of reasons, including,
but not limited to, a determination that the Pricing Benchmark price of Solana differs materially from the global market price of Solana
and/or that third parties are able to purchase and sell Solana on public or private markets not included among the Constituent Platforms,
and such transactions may take place at prices materially higher or lower than the Pricing Benchmark price. The Sponsor, however, is under
no obligation whatsoever to make such changes in any circumstance. In the event that the Sponsor intends to establish the Trust's
NAV by reference to an index, benchmark or standard other than the Pricing Benchmark, it will provide Shareholders with notice in a prospectus
supplement and/or through a current report on Form 8-K or in the Trust's annual or quarterly reports.
Pricing Benchmark Methodology
The Pricing Benchmark is calculated
based on the "Relevant Transactions" (as defined below) of all of its constituent Solana trading venues (the "Constituent
Platforms") as follows:
●
All Relevant Transactions are added to a joint list, recording the time of execution, trade price and
size for each transaction.
●
The list is partitioned by timestamp into twelve (12) equally sized time intervals of five (5) minutes
in length.
●
For each partition separately, the volume-weighted median trade price is calculated from the trade prices
and sizes of all Relevant Transactions, i.e., across all Constituent Platforms. A volume-weighted median differs from a standard median
in that a weighting factor, in this case trade size, is factored into the calculation.
●
The Pricing Benchmark is then determined by the equally weighted average of the volume medians of all
partitions.
As of November 1, 2024, the
Constituent Platforms included in the Pricing Benchmark are Bitstamp, Coinbase, Gemini, itBit, Kraken, and LMAX Digital.
●
Bitstamp
: A U.K.-based exchange registered as an MSB with FinCEN and licensed as a virtual currency
business under the NYDFS BitLicense as well as a money transmitter in various U.S. states. It is also regulated as a Payments Institution
within the European Union and is registered as a Crypto Asset business with the U.K. FCA.
●
Coinbase
: A U.S.-based exchange registered as an MSB with FinCEN and licensed as a virtual currency
business under the NYDFS BitLicense as well as a money transmitter in various U.S. states. Subsidiaries operating internationally are
further regulated as e-money providers (Republic of Ireland, Central Bank of Ireland) and Major Payment Institutions (Singapore, Monetary
Authority of Singapore).
●
Gemini
: A U.S.-based exchange that is licensed as a virtual currency business under the NYDFS BitLicense.
It is also registered with FinCEN as an MSB and is licensed as a money transmitter in various U.S. states. It is also registered with
the FCA as a Crypto Asset Business.
●
itBit
: A U.S.-based exchange that is licensed as a virtual currency business under the NYDFS BitLicense.
It is also registered FinCEN as an MSB and is licensed as a money transmitter in various U.S. states.
●
Kraken
: A U.S.-based exchange that is registered as an MSB with FinCEN in various U.S. states,
Kraken is registered with the FCA as a Crypto Asset Business and is authorized by the Central Bank of Ireland as a Virtual Asset Service
Provider. Kraken also holds a variety of other licenses and regulatory approvals, including from the Canadian Securities Administrators.
●
LMAX Digital
: A Gibraltar-based exchange regulated by the Gibraltar Financial Services Commission
as a DLT provider for execution and custody services. LMAX Digital does not hold a BitLicense and is part of LMAX Group, a U.K.-based
operator of an FCA-regulated Multilateral Trading Facility and Broker-Dealer.
An oversight function is implemented
by the Benchmark Provider in seeking to ensure that the Pricing Benchmark is administered through the Benchmark Provider's codified
policies for index integrity. The Pricing Benchmark is administered through the Benchmark Provider's codified policies for index
integrity, including a conflicts-of-interest policy, a control framework, an accountability framework, and an input data policy. It is
also subject to the U.K. BMR regulations, compliance with which regulations has been subject to a Limited Assurance Audit under the ISAE
3000 standard as of September 12, 2022, which is publicly available.
79
The Pricing Benchmark is subject
to oversight by the CME CF Oversight Committee. The CME CF Oversight Committee shall be comprised of at least five members, including
at least: (i) two who are representatives of CME; (ii) one who is a representative of CF Benchmarks Ltd.; and (iii) two who bring expertise
and industry knowledge relating to benchmark determination, issuance and operations. The CME CF Oversight Committee meets no less frequently
than quarterly. The CME CF Oversight Committee's Founding Charter and quarterly meeting minutes are publicly available.
In the event that there are
errors or irregularities in the calculation and publication of the Pricing Benchmark, including delayed, missing data or erroneous data,
the Benchmark Provider will apply the "Contingency Calculation Rules" as they relate to the Pricing Benchmark that are set
forth on the Benchmark Provider's website. Such rules dictate how the Benchmark Provider will calculate the Pricing Benchmark, depending
upon the type of error or irregularity. For instance, in the event that no Relevant Transaction occurs on a Constituent Platform on a
given day, or one or more Relevant Transactions do occur on the Constituent Platform but cannot be retrieved by the Benchmark Provider,
the Constituent Platform is disregarded in the calculation of the Pricing Benchmark for that day. In addition, all Relevant Transactions
are subject to automated screening for erroneous data. Relevant Transactions that have been flagged as erroneous pursuant to the automated
screening and the Contingency Calculation Rules are disregarded in the calculation of the Pricing Benchmark for a given day. If, for whatever
reason, the Benchmark Provider is unable to calculate and publish the Pricing Benchmark by the stipulated dissemination time, it shall
publish a notification on its website informing Pricing Benchmark users, including the Trust, the calculation and publication have been
delayed.
Since the creation of the
Pricing Benchmark, there have been several changes to Constituent Platforms comprising the Pricing Benchmark, most recently in May 2022.
Once it has actual knowledge of changes to the Constituent Platforms used to calculate the Pricing Benchmark, or other material changes
to the Pricing Benchmark calculation methodology, the Trust will notify Shareholders in a prospectus supplement and a current report on
Form 8-K or in its annual or quarterly reports.
A trading venue is eligible
as a "Constituent Platform" in any of the CME CF Cryptocurrency Pricing Products if it offers a market that facilitates the
spot trading of the relevant cryptocurrency base asset against the corresponding quote asset, including markets where the quote asset
is made fungible with Accepted Assets (the "Relevant Pair") and makes trade data and order data available through an Automatic
Programming Interface ("API") with sufficient reliability, detail and timeliness. The CME CF Oversight Committee considers
a trading venue to offer sufficiently reliable, detailed and timely trade data and order data through an API when: (i) the API for the
"Constituent Platform" does not fall or become unavailable to a degree that impacts the integrity of the Pricing Benchmark
given the frequency of calculation; (ii) the data published is at the resolution required so that the benchmark can be calculated, with
the frequency and dissemination precision required; and (iii) the data is broadcast and available for retrieval at the required frequency
(and not negatively impacted by latency) to allow the methodologies to be applied as intended.
Furthermore, it must, in the
opinion of the CME CF Oversight Committee, fulfill the following criteria:
1.
The venue's Relevant Pair spot trading volume for an index must meet the minimum thresholds as detailed
below for it to be admitted as a Constituent Platform: the average daily volume the venue would have contributed during the observation
window for the Reference Rate of the Relevant Pair exceeds 3% for two consecutive calendar quarters.
2.
The venue has policies to ensure fair and transparent market conditions at all times and has processes
in place to identify and impede illegal, unfair or manipulative trading practices.
3.
The venue does not impose undue barriers to entry or restrictions on market participants, and utilizing
the venue does not expose market participants to undue credit risk, operational risk, legal risk or other risks.
4.
The venue complies with applicable laws and regulations, including, but not limited to, capital markets
regulations, money-transmission regulations, client money custody regulations, and KYC and AML regulations.
5.
The venue cooperates with inquiries and investigations of regulators and the Administrator upon request
and must execute data-sharing agreements with CME Group. Once admitted, a Constituent Platform must demonstrate that it continues to fulfill
criteria 2 to 5 inclusive. Should the average daily contribution of a Constituent Platform fall below 3% for any Reference Rate, then
the continued inclusion of the venue as a Constituent Platform to the Relevant Pair shall be assessed by the CME CF Oversight Committee.
80
Additionally, a trading venue
may be nominated for inclusion in the list of Constituent Platforms by any member of the public, any exchange or the Oversight Committee.
Pricing Benchmark data and
the description of the Pricing Benchmark are based on information made publicly available by the Benchmark Provider on its website at
https://www.cfbenchmarks.com. None of the information on the Benchmark Provider's website is incorporated by reference into this
Prospectus.
The six Constituent Platforms
that contribute transaction data to the Pricing Benchmark with the aggregate volumes traded on their respective SOL-USD markets over the
preceding four calendar quarters are listed in the table below:
The six Constituent Platforms
that contribute transaction data to the Pricing Benchmark with the aggregate volumes traded on their respective SOL-USD markets over the
preceding four calendar quarters are listed in the table below:
Aggregate
                                            Trading Volume of SOL-USD Markets of
Pricing
                                            Benchmark Constituent Platforms
Period
Bitstamp
Coinbase
Gemini
Kraken
LMAX
    Digital
itBit
2023
    Q3
$
$
$
$
$
$
2023
    Q4
$
$
$
$
$
$
2024
    Q1
$
$
$
$
$
$
2024
    Q2
$
$
$
$
$
$
The
    market share for SOL-USD trading of the six Constituent Platforms over the past four calendar quarters is shown in the table below:
Solana
    Trading Platform Market Share of SOL-USD Trading
Period
Bitstamp
Coinbase
Gemini
Kraken
LMAX
    Digital
itBit
2023
    Q3
%
%
%
%
%
%
2023
    Q4
%
%
%
%
%
%
2024
    Q1
%
%
%
%
%
%
2024
    Q2
%
%
%
%
%
%
CF BENCHMARKS LTD. DATA
IS USED UNDER LICENSE AS A SOURCE OF INFORMATION FOR THE TRUST'S PRODUCTS. CF BENCHMARKS LTD., ITS AGENTS AND LICENSORS HAVE NO
OTHER CONNECTION TO THE TRUST'S PRODUCTS AND SERVICES AND DOES NOT SPONSOR, ENDORSE, RECOMMEND OR PROMOTE ANY OF THE TRUST'S
PRODUCTS OR SERVICES. CF BENCHMARKS LTD., ITS AGENTS AND LICENSORS HAVE NO OBLIGATION OR LIABILITY IN CONNECTION WITH THE TRUST'S
PRODUCTS AND SERVICES. CF BENCHMARKS LTD., ITS AGENTS AND LICENSORS DO NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF ANY INDEX
LICENSED TO THE TRUST AND SHALL NOT HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN.
Trust Structure
The Trust is a statutory trust
formed under the Delaware Statutory Trust Act, and the Trust Agreement constitutes the "governing instrument" of the Trust
under the laws of the State of Delaware relating to statutory trusts. The Trust holds Solana and is expected from time to time to issue
Baskets in exchange for deposits of cash and to distribute cash in connection with redemptions of Baskets. The Trust's investment
objective is to seek to provide exposure to the value of Solana held by the Trust, less the expenses of the Trust's operations and
other liabilities. In seeking to achieve its investment objective, the Trust will hold Solana and establish its NAV by reference to the
Pricing Benchmark.
81
The Sponsor believes the Trust's
is a straight-forward solution to seek its investment objective. Besides cash received in connection with purchase orders of Baskets,
the Trust's sole asset is expected to be Solana held with the Solana Custodian. The Sponsor believes that the Pricing Benchmark
is a representative value for the SOL-USD price of Solana, based on the methodology administered by the Benchmark Provider.
The Trust processes and pays
its only ordinary expense (the Sponsor Fee) in Solana. The Trust will only sell Solana (1) in connection with the redemption of Baskets
for cash, (2) on an as-needed basis to pay Trust expenses not assumed by the Sponsor, (3) in the event the Trust terminates and liquidates
its assets, or (4) as otherwise required by law or regulation. This restriction provides protection against potential attempts by bad
actors to manipulate the operation of the Trust based on how the Trust calculates its NAV.
Investors may obtain on a
24-hour basis Solana pricing information based on the spot price for one Solana from various financial information service providers.
Current spot prices are also generally available with bid/ask spreads from digital asset trading platforms, including the Constituent
Platforms. Market prices for the Shares are available from a variety of sources including brokerage firms, information websites and other
information service providers. The NAV of the Trust is published by the Sponsor at the Trust's website (_______.com) on each day
that the Exchange is open for regular trading and is posted on the Trust's website.
Calculation of
NAV
Under normal circumstances,
the Trust's only asset will be Solana and, under limited circumstances, cash. The Trust's Solana is carried, for financial
statement purposes, at fair value, as required by the U.S. generally accepted accounting principles ("GAAP"). The Trust's
NAV will be determined by the Administrator once each Exchange trading day at 4:00 p.m. Eastern time ("ET"), or as soon thereafter
as practicable. The NAV for a normal trading day will be released after 4:00 p.m. ET. Trading during the core trading session on the Exchange
typically closes at 4:00 p.m. ET. However, NAVs are not officially struck until later in the day (often by 5:30 p.m. and almost always
by 8:00 p.m.). The pause between 4:00 p.m. and 5:30 p.m. (or later) provides an opportunity for the Sponsor to algorithmically detect,
flag, investigate, and correct unusual pricing should it occur.
The Administrator will calculate
the NAV of the Trust by multiplying the number of Solana held by the Trust by the Pricing Benchmark 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 is calculated
by dividing the Trust's NAV by the number of Shares then outstanding. The Administrator will determine the price of the Trust's
Solana by reference to the Pricing Benchmark, which is published between 4:00 p.m. and 4:30 p.m. ET on every calendar day. The methodology
used to calculate the Pricing Benchmark price to value Solana in determining the NAV of the Trust may not be deemed consistent with GAAP.
To the extent the methodology used to calculate the Pricing Benchmark is deemed inconsistent with GAAP, the Trust will utilize an alternative
GAAP-consistent pricing source for purposes of the Trust's periodic financial statements.
The Sponsor has the exclusive
authority to determine the NAV of the Trust. The Sponsor has delegated to the Administrator the responsibility to calculate the NAV of
the Trust and the NAV, based on a pricing source selected by the Sponsor (the Pricing Benchmark). The Administrator will determine the
NAV of the Trust each business day. In determining the NAV of the Trust, the Administrator values the Solana held by the Trust based on
the Pricing Benchmark, unless otherwise determined by the Sponsor in its sole discretion. If the Pricing Benchmark is not available or
the Sponsor in its sole discretion determines that the Pricing Benchmark should not be used, the Trust's holdings may be fair valued
in accordance with the policy approved by the Sponsor. The Sponsor does not anticipate that the need to "fair value" Solana
will be a common occurrence.
82
The ITV will be calculated
by using the prior day's closing NAV per Share of the Trust as a base and updating that value throughout the trading day to reflect
changes in the most recently reported price level of the CME Solana Real Time Price. The ITV disseminated during the Exchange core trading
session hours should not be viewed as an actual real-time update of the NAV, because NAV per Share is calculated only once at the end
of each trading day based upon the relevant end-of-day values of the Trust's investments. The ITV will be disseminated on a per-Share
basis every 15 seconds during regular Exchange core trading session hours of 9:30 a.m. ET to 4:00 p.m. ET. The Exchange will disseminate
the ITV value through the facilities of CTA/CQ High Speed Lines that allow for high-speed data transmission. In addition, the ITV will
be published on the Exchange's website and will be available through online information services such as Bloomberg and Reuters.
The ITV (which is based upon the CME Solana Real Time Price) may differ from the NAV (which is based upon the Pricing Benchmark) due to
differences in how the CME Solana Real Time Price and Pricing Benchmark are calculated. While the Pricing Benchmark is calculated as described
in the section above entitled "THE TRUST AND SOLANA PRICES—–The CME CF Solana – Dollar Reference Rate –
New York Variant," the CME Solana Real Time Price is calculated once per second, in real time by utilizing the order books of Solana—U.S.
dollar trading pairs operated by all Constituent Platforms. An "order book" is a list of buy and sell orders with associated
limit prices and sizes that have not yet been matched, that is reported and disseminated by CF Benchmarks Ltd., as the CME Solana Real
Time Price calculation agent. The order books are aggregated into one consolidated order book by the CME Solana Real Time Price calculation
agent and the bid-price volume curve, ask-price volume curve, mid-price volume curve and mid-spread volume curve are calculated. The mid-price
volume curve is the average of the bid-price volume curve (which maps transaction volume to the marginal price per cryptocurrency unit
a seller is required to accept in order to sell this volume to the consolidated order book) and the ask-price volume curve (which maps
a transaction volume to the marginal price per cryptocurrency unit a buyer is required to pay in order to purchase this volume from the
consolidated order book). The mid-price volume curve is weighted by the normalized probability density of the exponential distribution
up to the utilized depth (utilized depth being calculated as the maximum cumulative volume for which the mid-spread volume curve does
not exceed a certain percentage deviation from the mid price). The CME Solana Real Time Price is then given by the sum of the weighted
mid-price volume curve obtained in the previous step.
Dissemination of the ITV provides
additional information that is not otherwise available to the public and may be useful to investors and market professionals in connection
with the trading of the Shares on the Exchange. Investors and market professionals will be able throughout the trading day to compare
the market price of the Trust and the ITV. If the market price of the Shares diverges significantly from the ITV, market professionals
will have an incentive to execute arbitrage trades. For example, if the Trust appears to be trading at a discount compared to the ITV,
a market professional could buy the Shares on the Exchange and sell short futures contracts. Such arbitrage trades can tighten the tracking
between the market price of the Trust and the ITV and thus can be beneficial to all market participants.
The Sponsor reserves the right
to adjust the Share price of the Trust in the future to maintain convenient trading ranges for investors. Any adjustments would be accomplished
through stock splits or reverse stock splits. Such splits would decrease (in the case of a split) or increase (in the case of a reverse
split) the proportionate NAV per Share, but would have no effect on the net assets of the Trust or the proportionate voting rights of
Shareholders or the value of any Shareholder's investment.
The Trust's periodic
financial statements may not utilize the NAV of the Trust determined by reference to the Pricing Benchmark to the extent the methodology
used to calculate the Pricing Benchmark is deemed not to be consistent with GAAP. The Trust's periodic financial statements will
be prepared in accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 820,
"Fair Value Measurements and Disclosures" ("ASC Topic 820") and utilize an exchange-traded price from the Trust's
principal market for Solana on the Trust's financial statement measurement date. The Sponsor will determine in its sole discretion
the valuation sources and policies used to prepare the Trust's financial statements in accordance with GAAP. The Trust intends to
engage a third-party vendor to obtain a price from a principal market for Solana, which will be determined and designated by such third-party
vendor daily based on its consideration of several exchange characteristics, including oversight, and the volume and frequency of trades.
Under GAAP, such a price is expected to be deemed a Level 1 input in accordance with the ASC Topic 820 because it is expected to be a
quoted price in active markets for identical assets or liabilities.
83
To determine which market
is the Trust's principal market (or in the absence of a principal market, the most advantageous market) for purposes of calculating
the Trust's financial statements, the Trust follows ASC 820-10, which outlines the application of fair value accounting. ASC 820-10
determines fair value to be the price that would be received for Solana 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 Solana 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 may transact
through Solana Trading Counterparties, in multiple markets, and its application of ASC 820-10 reflects this fact. The Trust anticipates
that, while multiple venues and types of markets will be available to the Solana Trading Counterparties from whom the Sponsor acquires
or disposes of the Trust's Solana, the principal market in each scenario is determined by looking at the market-based level of volume
and Solana trading activity. Solana Trading Counterparties may transact in a Brokered Market, a Dealer Market, Principal-to-Principal
Markets and Exchange Markets, each as defined in the FASB ASC Master Glossary. Based on information reasonably available to the Trust,
Exchange Markets have the greatest volume and level of activity for the asset. The Trust therefore looks to accessible Exchange Markets
as opposed to the Brokered Market, Dealer Market and Principal-to-Principal Markets to determine its principal market. As a result of
the aforementioned analysis, an Exchange Market has been selected as the Trust's principal market. The Trust determines its principal
market (or in the absence of a principal market the most advantageous market) on a quarterly basis to determine which market is its Principal
Market for the purpose of calculating fair value for the creation of quarterly and annual financial statements.
The process that the Sponsor
has developed for identifying a principal market, as prescribed in ASC 820-10, which outlines the application of fair value accounting.
The process begins by identifying publicly available, well established and reputable Solana trading venues (Exchange Markets, as defined
in the FASB ASC Master Glossary), which are selected by the Sponsor and its affiliates in their sole discretion. Those markets include
Binance, Bitfinex, Bitflyer, Bitstamp, Coinbase Pro, Crypto.com, Gemini, HitBTC, Huobi, Kraken, KuCoin, OKEx, Poloniex. The Sponsor then,
through a service provider, calculates on each valuation period, the highest volume venue during the 60-minute period prior to 4:00 ET
for Solana. The Sponsor then identifies that market as the principal market for Solana during that period, and uses the price for Solana
from that venue at 4:00 ET as the principal market price.
Additional Information
About The trust
The Trust
The Trust is a Delaware statutory
trust, formed pursuant to the Delaware Statutory Trust Act. The Trust continuously issues common shares representing units of undivided
beneficial ownership of the Trust that may be purchased and sold on the Exchange. The Trust operates pursuant to the First Amended and
Restated Trust Agreement dated as of _____________. Delaware Trust Company, a Delaware trust company, is the Delaware trustee of the Trust.
The Trust is managed and controlled by the Sponsor. The Sponsor is a limited liability company formed in the State of Delaware on June
4, 2018.
The Trust is passively managed
and does not pursue active management investment strategies. Additionally, the Sponsor does not actively manage the Solana held by the
Trust. This means that the Sponsor does not sell Solana at times when its price is high or acquire Solana at low prices in the expectation
of future price increases. It also means that the Sponsor does not make use of any of the hedging techniques available to professional
Solana investors to attempt to reduce the risks of losses resulting from price decreases. The Solana held by the Trust will only be delivered
to pay its only ordinary expense (the Sponsor Fee) in Solana. The Trust will only sell Solana (1) in connection with the redemption of
Baskets for cash, (2) on an as-needed basis to pay Trust expenses not assumed by the Sponsor, (3) in the event the Trust terminates
and liquidates its assets, or (4) as otherwise required by law or regulation. The delivery or sale of Solana to pay fees and expenses
by the Trust is a taxable event to Shareholders. See "
United States Federal Income Tax Consequences
."
The Trust is not registered
as an investment company under the Investment Company Act and the Sponsor believes the Trust is not required to register under such act.
The Trust does not hold or trade in commodity futures contracts, "commodity interests" or any other instruments regulated
by the Commodity Exchange Act, as administered by the CFTC or National Futures Association. The Sponsor believes that the Trust is not
a commodity pool for purposes of the Commodity Exchange Act, and that neither the Sponsor nor the Trustee is subject to regulation as
a commodity pool operator or a commodity trading adviser in connection with the operation of the Trust.
The number of outstanding
Shares is expected to increase and decrease from time to time as a result of the purchase and redemption of Baskets.
The Trust has no fixed termination
date.
84
The Trust's Fees and Expenses
The Trust will pay the unitary
Sponsor Fee of 0.___% per annum of the Trust's Solana holdings.
The Sponsor Fee is paid by
the Trust to the Sponsor as compensation for services performed under the Trust Agreement and Sponsor Agreement. Except during periods
in which all or a portion of the Sponsor Fee is being waived, the Sponsor Fee will accrue daily and will be payable in Solana monthly
in arrears. The Administrator will calculate the Sponsor Fee on a daily basis by applying a 0.___% annualized rate to the Trust's
total Solana holdings, and the amount of Solana payable in respect of each daily accrual shall be determined by reference to the Pricing
Benchmark. The NAV of the Trust is reduced each day by the amount of the Sponsor Fee calculated each day. On or about the last day of
each month, an amount of Solana will be transferred from the Trust Solana Account to the Sponsor Solana Account equal to the sum of all
daily Sponsor Fees accrued for the month in U.S. dollars divided by the Pricing Benchmark on the last day of the month. The Trust is not
responsible for paying any fees or costs associated with the transfer of Solana to the Sponsor. In exchange for the Sponsor Fee, the Sponsor
has agreed to assume and pay the normal operating expenses of the Trust, which include the Trustee's monthly fee and out-of-pocket
expenses, the fees of the Trust's regular service providers (Cash Custodian, Solana Custodian, Prime Execution Agent, Marketing
Agent, Transfer Agent and Administrator), exchange listing fees, tax reporting fees, SEC registration fees, printing and mailing costs,
audit fees and up to $500,000 per annum in ordinary legal fees and expenses. The Sponsor may determine in its sole discretion to assume
legal fees and expenses of the Trust in excess of $500,000 per annum. The Sponsor will also pay the costs of the Trust's organization.
The Trust may incur certain
extraordinary, non-recurring expenses that are not assumed by the Sponsor, including, but not limited to, taxes and governmental charges,
any applicable brokerage commissions, financing fees, Solana Network fees and similar transaction fees, expenses and costs of any extraordinary
services performed by the Sponsor (or any other service provider) on behalf of the Trust to protect the Trust or the Shareholders (including,
for example, in connection with any fork of the Solana Network, any Incidental Rights (as defined below) and any IR Asset (as defined
below)), any indemnification of the Cash Custodian, Solana Custodian, Prime Execution Agent, Transfer Agent, Administrator or other agents,
service providers or counterparties of the Trust, and extraordinary legal fees and expenses, including any legal fees and expenses incurred
in connection with litigation, regulatory enforcement or investigation matters.
The Sponsor, from time to
time, may temporarily waive all or a portion of the Sponsor Fee in its sole discretion. To the extent not already disclosed in the Prospectus,
the Sponsor may notify Shareholders of its intent to commence, or cease, waiving the Sponsor Fee on the Trust's website, in a prospectus
supplement, through a current report on Form 8-K and/or in the Trust's annual or quarterly reports.
The Administrator and/or the
Sponsor will direct the Solana Custodian to transfer Solana from the Trust Solana Account to the Sponsor Solana Account to pay the Sponsor
Fee and any other Trust expenses not assumed by the Sponsor. To pay for expenses not assumed by the Sponsor that are denominated in U.S.
dollars, the Sponsor, on behalf of the Trust, may sell the Trust's Solana as necessary to pay such expenses. The Sponsor, on behalf
of the Trust, will typically seek to buy and sell Solana at a price as close to the Pricing Benchmark as practical. Such sales will be
undertaken pursuant to the Trust-Directed Trade Model unless no Solana Trading Counterparty is willing or able to effectuate the trade.
Transfers of Solana from the Trust Solana Account to the Sponsor Solana Account, and from the Sponsor Solana Account to the Solana Trading
Counterparty are "on-chain" transactions represented on the Solana Network. Transfer fees with respect to this on-chain transfer
of Solana will be paid by the Solana Custodian. The cash proceeds of the sale will be sent to the Sponsor, which will use such proceeds
to pay the expenses. Any remaining cash will be distributed back to the Cash Custodian. To the extent that the Trust must utilize the
Agent Execution Model to undertake Solana sales to pay for expenses not assumed by the Sponsor, the Prime Execution Agent, acting in an
agency capacity, would conduct the sale on behalf of the Trust with third parties through its [Prime service] pursuant to the Prime Execution
Agreement. Transfers of Solana from the Trust Solana Account to the Trust's Trading Balance in connection with such sales are "on-chain"
transactions represented on the Solana Network. Each delivery or sale of Solana by the Trust to pay the Sponsor Fee or other Trust expenses
will be a taxable event to Shareholders. See
"United States Federal Income Tax Consequences."
The Trust does not engage
in any activity designed to derive a profit from changes in the price of Solana. Solana not needed to redeem Baskets, or to cover the
Sponsor Fee and Trust expenses not assumed by the Sponsor, is held by the Solana Custodian or Prime Execution Agent. As a result of the
recurring deliveries of Solana necessary to pay the Sponsor Fee and potential sales of Solana to pay in cash the Trust expenses not assumed
by the Sponsor, the NAV of the Trust and, correspondingly, the amount of Solana represented by each Share will decrease proportionately
over the life of the Trust. New deposits of Solana, purchased with the cash received in connection with purchases of Baskets, will not
reverse this trend.
85
Distributions
Pursuant to the terms of the
Trust Agreement, the Trust may make distributions on the Shares in cash or potentially in kind.
If the Trust is required to
terminate and liquidate, or the Sponsor determines in accordance with the terms of the Trust Agreement that it is appropriate to terminate
and liquidate the Trust, the Sponsor will sell the Trust's Solana and will distribute to the Shareholders any amounts of the cash
proceeds of the liquidation remaining after the satisfaction of all outstanding liabilities of the Trust and the establishment of reserves
for applicable taxes, other governmental charges and contingent or future liabilities as the Sponsor will determine. Under no circumstances
will the Trust distribute Solana to Shareholders.
See "ADDITIONAL INFORMATION
ABOUT THE TRUST—Termination of the Trust." Shareholders of record on the record date fixed by the Transfer Agent for a distribution
will be entitled to receive their pro rata portions of any distribution.
Incidental Rights and IR Assets
From time to time, the Trust
may come into possession of rights incident to its ownership of Solana, which permit the Trust to acquire, or otherwise establish dominion
and control over, other digital assets. These rights are generally expected to be Forked Assets that arise in connection with hard forks
in the Solana Network, airdrops offered to holders of Solana and digital assets arising from other similar events without any action of
the Trust or of the Sponsor or Trustee on behalf of the Trust. These rights are referred to as "Incidental Rights" and any
digital assets acquired through Incidental Rights are referred to as "IR Assets." Pursuant to the Trust Agreement, the Trust
has explicitly disclaimed all Incidental Rights and IR Assets. Such assets are not considered assets of the Trust at any point in time
and will not be taken into account for purposes of determining the Trust's NAV and the NAV per Share.
Pursuant to the Trust Agreement,
to the extent that the Trust involuntarily receives such assets in a Trust wallet, it will, as soon as practicable, and, if possible,
immediately, distribute such assets to the Sponsor. At such time, the Incidental Right(s) and/or IR Asset(s) will be the property of the
Sponsor. Once acquired, the Sponsor, subject to a reasonable, good faith determination, may take any lawful action necessary or desirable
in connection with its acquisition of such assets. In the event that the Sponsor decides to sell the Incidental Right(s) and/or IR Asset(s),
it will seek to do so for cash. This may be a sale of the Incidental Right(s) and/or IR Asset(s) directly in exchange for cash, or in
exchange for another digital asset which may subsequently be exchanged for cash. The Sponsor would then contribute that cash back to the
Trust, which in turn would distribute the cash to the Depository Trust Company ("DTC") to be distributed to Shareholders in
proportion to the number of Shares owned.
Although the Sponsor intends,
if possible, to arrange for the sale of any Incidental Right(s) and/or IR Asset(s) it receives from the Trust and subsequently contribute
such cash proceeds back to the Trust, it is under no obligation to do so. There are likely to be operational, tax, securities law, regulatory,
legal and practical issues that significantly limit, or prevent entirely, the Sponsor's ability to realize a benefit from any such
Incidental Right(s) and/or IR Asset(s). The Sponsor may choose to evaluate any such fork, airdrop or similar occurrence on a case-by-case
basis in consultation with its legal advisers, tax consultants and custodian. In determining whether to attempt to acquire and/or retain
any Incidental Right(s) and/or IR Asset(s), the Sponsor expects to take into consideration whatever factors it deems relevant in its discretion,
including, without limitation:
●
the availability of a safe and practical way to custody the Incidental Right or IR Asset;
●
the cost or operational burden of taking possession and/or maintaining ownership of the Incidental Right
or IR Asset and whether such cost or burden exceed the benefits of owning such Incidental Rights or IR Asset or the proceeds that would
be realized from a sale thereof;
●
whether there are any legal or regulatory restrictions on or risks or consequences arising from, or tax
implications with respect to, the acceptance, retention, ownership, sale, transfer, abandonment, distribution or disposal or disposition
of the Incidental Right or IR Asset, regardless of whether there is a safe and practical way to custody and secure such Incidental Right
or IR Asset;
86
●
the existence of a suitable market into which the Incidental Right or IR Asset may be sold; and
●
whether claiming, owning, selling, or otherwise taking any action in respect of Incidental Rights or IR
Asset may create legal or regulatory risks, liability, or burdens of any kind for the Sponsor (including, without limitation, if such
Incidental Right or IR Asset is, or may be, a security under federal securities laws or a commodity interest under the Commodity Exchange
Act).
The Sponsor is under no obligation
to realize any economic benefit from any Incidental Right(s) and/or IR Asset(s) it receives from the Trust. The Sponsor may instead determine,
in its sole discretion, to abandon such Incidental Rights or IR Assets permanently and irrevocably for no consideration. Before the Trust
claims any Incidental Right(s) and/or IR Asset(s) resulting from a fork or airdrop in the Solana Network (other than Solana), the Trust
would need to seek and obtain certain regulatory approvals, including an amendment to the Trust's registration statement of which
this Prospectus is a part and approval of an application by the Exchange to amend its listing rules.
Termination of the Trust
The Sponsor will notify Shareholders
at least 30 days before the date for termination of the Trust Agreement and the Trust if any of the following occurs:
●
Shares are delisted from the Exchange and are not approved for listing on another national securities
exchange within five (5) business days of their delisting;
●
One hundred eighty days have elapsed since the Trustee notified the Sponsor of the Trustee's election
to resign or since the Sponsor removed the Trustee, and a successor trustee has not been appointed or accepted its appointment;
●
The SEC determines that the Trust is an investment company under the Investment Company Act, and the Sponsor
has made the determination that termination of the Trust is advisable;
●
The CFTC determines that the Trust is a commodity pool under the Commodity Exchange Act, and the Sponsor
has made the determination that termination of the Trust is advisable;
●
The Trust is determined to be a "money services business" under the regulations promulgated
by FinCEN under the authority of the Bank Secrecy Act of 1970 and is required to comply with certain FinCEN regulations thereunder or
is determined to be a "money transmitter" (or equivalent designation) under the laws of any state in which the Trust operates
and is required to seek licensing or otherwise comply with state licensing requirements, and the Sponsor has made the determination that
termination of the Trust is advisable;
●
A U.S. regulator requires the Trust to shut down or forces the Trust to liquidate its Solana;
●
Any ongoing event exists that prevents the Trust from making or makes impractical the Trust's reasonable
efforts to make a fair determination of the price of Solana for purposes of determining the NAV of the Trust;
●
The Sponsor determines that the aggregate net assets of the Trust in relation to the operating expenses
of the Trust make it unreasonable or imprudent to continue the business of the Trust;
●
The Trust fails to qualify for treatment, or ceases to be treated, as a "grantor trust" under
the Code or any comparable provision of the laws of any state or other jurisdiction where that treatment is sought, and the Sponsor determines
that, because of that tax treatment or change in tax treatment, termination of the Trust is advisable;
●
Sixty days have elapsed since DTC or another depository has ceased to act as depository with respect to
the Shares, and the Sponsor has not identified another depository that is willing to act in such capacity;
●
The Trustee elects to terminate the Trust after the Sponsor is conclusively deemed to have resigned effective
immediately as a result of the Sponsor being adjudged bankrupt or insolvent, or a receiver of the Sponsor or of its property being appointed,
or a trustee or liquidator or any public officer taking charge or control of the Sponsor or of its property or affairs for the purpose
of rehabilitation, conservation or liquidation and a successor sponsor has not been appointed; or
●
The Sponsor elects to terminate the Trust after the Trustee, Administrator or Solana Custodian (or any
successor trustee, administrator or custodian) resigns or otherwise ceases to be the trustee, administrator or custodian of the Trust,
as applicable, and no replacement trustee, administrator and/or custodian acceptable to the Sponsor is engaged.
87
In addition, the Trust may
be dissolved at any time for any reason by the Sponsor in its sole discretion. In respect of termination events that rely on Sponsor determinations
to terminate the Trust (e.g., if the SEC determines that the Trust is an investment company under the Investment Company Act; the CFTC
determines that the Trust is a commodity pool under the Commodity Exchange Act; the Trust is determined to be a money transmitter under
the regulations promulgated by FinCEN; the Trust fails to qualify for treatment, or ceases to be treated, as a grantor trust for U.S.
federal income tax purposes; or, following resignation by a trustee or custodian, the Sponsor determines that no replacement is acceptable
to it), the Sponsor may consider, without limitation, the profitability to the Sponsor and other service providers of the operation of
the Trust, any obstacles or costs relating to the operation or regulatory compliance of the Trust relating to the determination's
triggering event, and the ability to market the Trust to investors. To the extent that the Sponsor determines to continue operation of
the Trust following a determination's triggering event, the Trust will be required to alter its operations to comply with the triggering
event. In the instance of a determination that the Trust is an investment company, the Trust and Sponsor would have to comply with the
regulations and disclosure and reporting requirements applicable to investment companies and investment advisers. In the instance of a
determination that the Trust is a commodity pool, the Trust and the Sponsor would have to comply with regulations and disclosure and reporting
requirements applicable to commodity pools and commodity pool operators or commodity trading advisers. In the event that the Trust is
determined to be a money transmitter, the Trust and the Sponsor will have to comply with applicable federal and state registration and
regulatory requirements for money transmitters and/or money service businesses. In the event that the Trust ceases to qualify for treatment
as a grantor trust for U.S. federal tax purposes, the Trust will be required to alter its disclosure and tax reporting procedures and
may no longer be able to operate or to rely on pass-through tax treatment. In each such case and in the case of the Sponsor's determination
as to whether a potential successor trustee or custodian is acceptable to it, the Sponsor will not be liable to anyone for its determination
of whether to continue or to terminate the Trust.
Upon the dissolution of the
Trust, the Sponsor (or in the event there is no Sponsor, such person (the "Liquidating Trustee") as the majority of the Shareholders
may propose and approve and who agrees to serve hereunder) shall take full charge of the Trust Property. Any Liquidating Trustee so appointed
shall have and may exercise, without further authorization or approval of any of the parties hereto, all of the powers conferred upon
the Sponsor under the terms of this Trust Agreement, subject to all of the applicable limitations, contractual and otherwise, upon the
exercise of such powers, and provided that the Liquidating Trustee shall not have general liability for the acts, omissions, obligations
and expenses of the Trust. Thereafter, in accordance with Section 3808(e) of the DSTA, the affairs of the Trust shall be wound up and
all Solana owned by the Trust shall be liquidated as promptly as is consistent with obtaining the fair value thereof and in such a manner
so as to effectuate orderly sales and a minimal market impact. The Liquidating Trustee may thereafter hold the net proceeds of any such
sale, together with any other cash then held by it under this Trust Agreement, uninvested and without liability for interest, for the
pro rata benefit of Shareholders that had not theretofore been redeemed. The Liquidating Trustee shall not be liable for or responsible
in any way for depreciation or loss incurred by reason of any sale or sales made in accordance with the provisions of this Section 8.01.
The Liquidating Trustee may suspend its sales of Solana upon the occurrence of unusual or unforeseen circumstances, including, but not
limited to, a suspension in trading of Solana or similar market event. Upon receipt of proceeds from the sale of the last Solana held
hereunder, all proceeds shall be applied and distributed in the following order of priority:
1.
pay to Sponsor from the Trust an amount equal to the sum of (1) any compensation due it for extraordinary
or other services, (2) any advances made but not yet repaid and (3) reimbursement of any other disbursements as provided herein;
2.
deduct from the Trust any amounts that the Liquidating Trustee, in its sole discretion, shall deem necessary
or appropriate to pay on behalf of the Trust any applicable taxes or other governmental charges that may be payable by the Trust and any
other contingent or future liabilities of the Trust; and
3.
distribute each Shareholder's interest in the remaining assets of the Trust. Such distribution shall
consist of cash. Under no circumstances will the Trust distribute Solana to Shareholders.
Following the dissolution
and windup of the Trust, including distribution of the assets of the Trust, the Trust shall terminate and the Sponsor or the Liquidating
Trustee, as the case may be, shall instruct the Trustee to execute and cause such certificate of cancellation of the Certificate of Trust
to be filed in accordance with the DSTA at the expense of the Sponsor or the Liquidating Trustee, as the case may be. Notwithstanding
anything to the contrary contained in this Trust Agreement, the existence of the Trust as a separate legal entity shall continue until
the filing of such certificate of cancellation. Upon the termination of the Trust, the Sponsor will be discharged from all obligations
under the Trust Agreement except for certain of its obligations that survive termination of the Trust Agreement.
88
Amendments
The Trust Agreement can be
amended by the Sponsor in its sole discretion and without the Shareholders' consent by making an amendment, a Trust Agreement supplemental
thereto, or an amended and restated trust agreement. Any such restatement, amendment and/or supplement to the Trust Agreement will be
effective on such date as designated by the Sponsor in its sole discretion. However, any amendment to the Trust Agreement that affects
the duties, liabilities, rights or protections of the Trustee will require the Trustee's prior written consent, which it may grant
or withhold in its sole discretion. Every Shareholder, at the time any amendment so becomes effective, will be deemed, by continuing to
hold any Shares or an interest therein, to consent and agree to such amendment and to be bound by the Trust Agreement as amended thereby.
In no event will any amendment impair the right of Authorized Participants to surrender Baskets and receive therefor the Solana Baskets
represented thereby (less fees in connection with the surrender of Shares and any applicable taxes or other governmental charges), except
in order to comply with mandatory provisions of applicable law.
The Trust's
Service Providers
The Sponsor
Bitwise Investment Advisers,
LLC, as Sponsor, arranged for the creation of the Trust and is responsible for the ongoing registration of the Shares for their public
offering in the United States and the listing of Shares on the Exchange. The Sponsor will not exercise day-to-day oversight over the Trustee,
the Custodian, the Administrator, the Transfer Agent or CF Benchmarks Ltd. The Sponsor will develop a marketing plan for the Trust, will
prepare marketing materials regarding the Shares, and will exercise the marketing plan of the Trust on an ongoing basis.
The principal office of the
Sponsor is 250 Montgomery Street, Suite 200, San Francisco, CA 94104.
Officers of the Sponsor
The following is a biographical
summary of the business experience of each of the officers, directors and other key employees of the Sponsor:
Hunter Horsley
is the
Chief Executive Officer of Bitwise Asset Management, Inc., the parent of the Sponsor, and has served in such role since October 2016.
He serves as President and Treasurer of the Sponsor. Prior to Bitwise, Mr. Horsley was a product manager at Facebook and Instagram leading
efforts in monetization from 2015 to 2016. He graduated from the Wharton School at the University of Pennsylvania with a Bachelor of Science
in Economics in 2015. Mr. Horsley took two years off from school from 2011 to 2013 to be on the founding team of a technology company
called Lore (formerly known as CourseKit) to assist in the development of an online learning tool incorporating social networking features.
Lore raised over $6 million in equity, grew to 20 employees and was sold to Noodle Education, Inc., in 2013.
Paul "Teddy"
Fusaro
is the President of Bitwise Asset Management, Inc., and has served in such capacity since January 2021. Prior to joining Bitwise
in April 2018, Mr. Fusaro was Senior Vice President and Head of Portfolio Management and Capital Markets at IndexIQ, the exchange-traded
fund unit of New York Life Investment Management, a firm with over $550 billion in AUM. In this capacity he oversaw portfolio management,
trading, and operations for a suite of alternative strategy exchange-traded funds, mutual funds, and separately managed accounts. Prior
to that, from 2009 to 2013, Mr. Fusaro was Vice President of Portfolio Management and co-head of Trading and Operations at Direxion Investments,
a $13 billion alternative exchange-traded fund manager. Earlier in his career, Mr. Fusaro spent time in both equity derivatives and
credit derivatives at Goldman Sachs & Co. Mr. Fusaro is a graduate of Providence College.
Katherine Dowling
is
the General Counsel and Chief Compliance Officer of Bitwise Asset Management and has served in such capacity since March 2021. She serves
as the General Counsel, CCO and Vice President of the Sponsor. Prior to Bitwise, Ms. Dowling was the General Counsel and Chief Compliance
Officer for True Capital Management from 2019 to 2021. Before that, Ms. Dowling was a General Partner, as well as Chief Operating Officer
and Chief Compliance Officer of Luminate Capital Partners, from 2015 to 2018. Prior to 2015, Ms. Dowling spent over ten years as an Assistant
U.S. Attorney, most recently in the Economic Crimes Unit of the U.S. Attorney's Office for the Northern District of California.
Ms. Dowling is an Echols Scholar graduate of the University of Virginia and a graduate of Harvard Law School.
89
The following is a biographical
summary of the business experience of certain key officers of Bitwise Asset Management, the parent of the Sponsor:
Matthew "Matt"
Hougan
is the Chief Investment Officer of Bitwise Asset Management and has served in such capacity since October 2020 after joining
Bitwise in February 2018. Prior to Bitwise, Mr. Hougan was the Chief Executive Officer of Inside ETFs and Managing Director of Global
Finance at Informa PLC, an FTSE 100 company. Before that, he was Chief Executive Officer of ETF.com, a venture-backed start-up that was
sold in three separate transactions, with the data business sold to FactSet in 2015, the Events business sold to Informa in 2015, and
the Media business sold to BATS Global Markets in early 2016. Mr. Hougan was also the editor for nine years of the Journal of Indexes.
Mr. Hougan is a three-time member of Barron's ETF Roundtable and co-author of the CFA (Chartered Financial Analyst) Institute's
monograph on exchange-traded funds. Mr. Hougan is a graduate of Bowdoin College.
Hong Kim
is the Chief
Technology Officer of Bitwise Asset Management and has served in such capacity since Bitwise's inception. Prior to Bitwise, Mr.
Kim worked in cybersecurity for the South Korean Military. He later worked on Google's backend infrastructure for Drive. Mr. Kim
attended the University of Pennsylvania where he graduated with a Bachelor of Science in Computer Science.
The Trustee
Delaware Trust Company, a
Delaware trust company, acts as the trustee of the Trust for the purpose of creating a Delaware statutory trust in accordance with the
Delaware Statutory Trust Act (the "DSTA"). The Trustee is appointed to serve as the trustee of the Trust in the State of Delaware
for the sole purpose of satisfying the requirement of Section 3807(a) of the DSTA that the Trust have at least one trustee with a principal
place of business in the State of Delaware.
The principal address of Delaware
Trust Company, as Trustee is 251 Little Falls Drive, Wilmington, DE 19808.
General Duty of Care of Trustee
The Trustee is a fiduciary
under the Trust Agreement; provided, however, that the fiduciary duties and responsibilities and liabilities of the Trustee are limited
by, and are only those specifically set forth in, the Trust Agreement.
Resignation, Discharge or Removal
of Trustee; Successor Trustees
The Trustee may resign at
any time by giving at least 30 days' advance written notice to the Sponsor. The Sponsor may remove the Trustee at any time by giving
at least 30 days' advance written notice to the Trustee. Upon effective resignation or removal, the Trustee will be discharged of
its duties and obligations.
If the Trustee resigns or
is removed, the Sponsor, acting on behalf of the Shareholders, is required to use reasonable efforts to appoint a successor trustee. Any
successor Trustee must satisfy the requirements of Section 3807 of the DSTA. Any resignation or removal of the Trustee and appointment
of a successor Trustee cannot become effective until a written acceptance of appointment is delivered by the successor Trustee to the
outgoing Trustee and the Sponsor and any fees and expenses due to the outgoing Trustee are paid or waived by the outgoing Trustee. Following
compliance with the preceding sentence, the successor will become fully vested with the rights, powers, duties and obligations of the
outgoing Trustee under the Trust Agreement, with like effect as if originally named as Trustee, and the outgoing Trustee shall be discharged
of its duties and obligations herein. If no successor Trustee shall have been appointed and shall have accepted such appointment within
forty-five (45) days after the giving of such notice of resignation or removal, the Trustee may petition any court of competent jurisdiction
for the appointment of a successor Trustee.
If the Trustee resigns and
no successor trustee is appointed within 180 days after the date the Trustee issues its notice of resignation, the Sponsor will terminate
and liquidate the Trust and distribute its remaining assets.
90
The Administrator
Under the Trust Administration
and Accounting Agreement, the Administrator provides necessary administrative, tax and accounting services and financial reporting for
the maintenance and operations of the Trust. In addition, the Administrator makes available the office space, equipment, personnel and
facilities to provide such services.
The principal address of BNY
Mellon, as Administrator, Transfer Agent and Cash Custodian, is 240 Greenwich Street, New York, NY 10286.
The Transfer Agent
The Transfer Agent (1) issues
and redeems Shares of the Trust; (2) responds to correspondence by Shareholders and others relating to its duties; (3) maintains Shareholder
accounts; and (4) makes periodic reports to the Trust.
The Solana Custodian
The Solana Custodian is responsible
for safekeeping the Solana owned by the Trust. The Solana Custodian was selected by the Sponsor. The Solana Custodian has responsibility
for opening the Trust Solana Account and facilitating the transfer of Solana required for the operation of the Trust.
The Sponsor may, in its sole
discretion, add or terminate Solana custodians at any time. The Sponsor may, in its sole discretion, change the custodian of the Trust's
Solana holdings, but it will have no obligation whatsoever to do so or to seek any particular terms for the Trust from other such custodians.
However, the Sponsor will only enter into Solana custody arrangements with custodians that meet the Sponsor's criteria, including
an agreement to maintain Trust assets in a segregated account, to maintain insurance and to store the Trust's private keys in cold
storage or in such other manner as the Sponsor determines provides reasonable protection for the Trust's assets from loss or theft.
The Cash Custodian
The Cash Custodian is the
custodian of the Trust's cash holdings.
The Marketing Agent
The Marketing Agent is responsible
for: (1) working with the Transfer Agent to review and approve, or reject, purchase and redemption orders of Baskets placed by Authorized
Participants with the Transfer Agent; and (2) reviewing and approving the marketing materials prepared by the Trust for compliance with
applicable SEC and FINRA advertising laws, rules, and regulations.
Custody of the
Trust's Assets
The Trust has entered into
an agreement with the Solana Custodian, the Solana Custody Agreement, pursuant to which the Solana Custodian will custody all of the Trust's
Solana in a segregated account from time to time (the Trust Solana Account), other than the Trust's Solana which is temporarily
maintained in the Trading Balance with the Prime Execution Agent as described below in
"
THE PRIME EXECUTION AGENT AND THE
TRADE CREDIT LENDER—The Prime Execution Agent." The Solana Custodian will keep a substantial portion of the private keys associated
with the Trust's Solana in "cold storage" or similarly secure technology (the "Cold Solana Account"), with
any remainder of the Trust Solana Account held as a "Hot Solana Account." The Sponsor expects that all of the Trust's
assets and private keys will be held in cold storage of the Solana Custodian on an ongoing basis.
91
Custody of Solana typically
involves the generation, storage and utilization of private keys. These private keys are used to effect transfer transactions (i.e., transfers
of Solana from an address associated with the private key to another address). Cold storage of private keys may involve keeping such keys
on a non-networked computer or electronic device or storing the private keys on a storage device or printed medium and deleting the keys
from all computers. Cold storage is a safeguarding method with multiple layers of protections and protocols, by which the private key(s)
corresponding to the Trust's Solana is (are) generated and stored in an offline manner. Private keys are generated in offline computers
that are not connected to the internet so that they are resistant to being hacked. By contrast, in hot storage, the private keys are held
online, where they are more accessible, leading to more efficient transfers, though they are potentially more vulnerable to being hacked.
While the Solana Custodian will generally keep all of the Trust's Solana in cold storage on an ongoing basis, it is possible that,
from time to time, portions of the Trust's Solana will be held outside of cold storage temporarily as part of trade facilitation
in connection with creations and redemptions of Baskets, to sell Solana including to pay Trust expenses not assumed by the Sponsor, as
necessary. The Trust's Solana held in the Cold Solana Account by the Solana Custodian are held in segregated wallets and therefore
are not commingled with the Solana Custodian's or other customer assets. The private key materials are stored within secure storage
facilities within the United States and Europe. For security reasons exact locations are never disclosed. A limited number of employees
at the Solana Custodian are involved in private key management operations, and the Solana Custodian has represented that no single individual
has access to full private keys. The Solana Custodian carefully considers the design of the physical, operational and cryptographic systems
for secure storage of the Trust's private keys in an effort to lower the risk of loss or theft. No such system is perfectly secure
and loss or theft due to operational or other failure is always possible.
The Solana Custodian's
internal audit team performs periodic internal audits over custody operations, and the Solana Custodian has represented that Systems and
Organizational Control attestations covering private key management controls are also performed on the Solana Custodian by an external
provider.
Under the terms of the Solana
Custody Agreement, the Sponsor maintains sole discretion in allocating Solana between the Hot Solana Account and the Cold Solana Account.
Solana custodied by the Solana Custodian is not commingled with assets of Solana Custodian or its affiliates or with assets of other customers
of Solana Custodian. Neither the Trust, the Sponsor, nor any other entity is permitted to lend, pledge, hypothecate or rehypothecate any
of the Trust's Solana. The Solana Custodian has also agreed in the Solana Custody Agreement that it will not, directly or indirectly,
lend, pledge, hypothecate or rehypothecate any of the Trust's Solana, and that the Trust's Solana assets are not treated as
general assets of the Solana Custodian but are instead considered custodial assets that remain the Trust's property. Additionally,
the Solana Custodian has agreed to provide the Trust or its authorized independent public accountant with confirmation of or access to
information sufficient to confirm the Solana held by the Solana Custodian for the Trust and that the Trust's Solana is held in a
separate, segregated account under the Trust's name. The Solana Custody Agreement does not require that private key information
with respect to the Trust's Solana be kept in a particular physical location.
The Solana Custodian may receive
deposits of Solana but may not send Solana without use of the corresponding private keys. In order to send Solana when the private keys
are kept in cold storage, unsigned transactions must be physically transferred to the offline cold storage facility and signed using a
software/hardware utility with the corresponding offline keys. At that point, the Solana Custodian can upload the fully signed transaction
to an online network and transfer the Solana. Because the Solana Custodian may need to retrieve private keys from offline storage prior
to initiating transactions, the initiation or crediting of withdrawals or other transactions may be delayed.
Under the Solana Custody Agreement,
the Solana Custodian's liability is limited as follows, among others: (i) other than with respect to claims and losses arising
from spot trading of Solana, or fraud or willful misconduct, among others, the Solana Custodian's aggregate liability under the
Solana Custody Agreement shall not exceed the greater of (A) the greater of (x) $5 million and (y) the aggregate fees paid by the
Trust to the Solana Custodian in the 12 months prior to the event giving rise to the Solana Custodian's liability, and (B) the value
of the affected Solana or cash giving rise to the Solana Custodian's liability; (ii) in respect of the Solana Custodian's
obligations to indemnify the Trust and its affiliates against third-party claims and losses to the extent arising out of or relating to,
among others, the Solana Custodian's violation of any law, rule or regulation with respect to the provision of its services, the
Solana Custodian's liability shall not exceed the greater of (A) $5 million and (B) the aggregate fees paid by the Trust to the
Solana Custodian in the 12 months prior to the event giving rise to the Solana Custodian's liability; and (iii) in respect of any
incidental, indirect, special, punitive, consequential or similar losses, the Solana Custodian is not liable, even if the Solana Custodian
has been advised of or knew or should have known of the possibility thereof. The Solana Custodian is not liable for delays, suspension
of operations, failure in performance, or interruption of service to the extent it is directly due to a cause or condition beyond the
reasonable control of the Solana Custodian. Under the Solana Custody Agreement, except in the case of its negligence, fraud, material
violation of applicable law or willful misconduct, the Solana Custodian shall not have any liability, obligation, or responsibility for
any damage or interruptions caused by any computer viruses, spyware, scareware, Trojan horses, worms or other malware that may affect
the Trust's computer or other equipment, or any phishing, spoofing or other attack, unless the Solana Custodian fails to have commercially
reasonable policies, procedures and technical controls in place to prevent such damages or interruptions.
92
[Solana
Custodian's Parent] maintains a commercial crime insurance policy, which is intended to cover the loss of client assets held by
the [Insured Entities], including from employee collusion or fraud, physical loss including theft, damage of key material, security breach
or hack, and fraudulent transfer. The insurance maintained by the [Insured Entities] is shared among all of [Solana Custodian Entities
– Short Name]'s customers, is not specific to the Trust or to customers holding Solana with the Solana Custodian or Prime
Execution Agent and may not be available or sufficient to protect the Trust from all possible losses or sources of losses.
The
Solana Custodian may terminate the Solana Custody Agreement for any reason upon providing the applicable notice to the Trust, or immediately
for Cause (as defined in the Solana Custody Agreement), including, among others, if the Trust materially breaches the Prime Execution
Agreement and such breach remains uncured, undergoes a bankruptcy event, or fails to repay Trade Credits. The Solana Custodian may terminate
the Solana Custody Agreement for any reason upon providing 180 days' notice to the Trust, or immediately for Cause (as defined
below). The Solana Custody Agreement forms a part of the Prime Execution Agreement, and is subject to the termination provisions in the
Prime Execution Agreement. These termination provisions are described in more detail in
"
THE PRIME EXECUTION AGENT AND THE
TRADE CREDIT LENDER—The Prime Execution Agent" below.
The
Transfer Agent will facilitate the settlement of Shares in response to the placement of creation orders and redemption orders from Authorized
Participants. The Trust has entered into the Cash Custody Agreement with BNY Mellon under which BNY Mellon acts as custodian of the Trust's
cash and cash equivalents.
The
Trust may engage third-party custodians or vendors besides the Solana Custodian and the Cash Custodian to provide custody and security
services for all or a portion of its Solana and/or cash, and the Sponsor will pay the custody fees and any other expenses associated
with any such third-party custodian or vendor. The Sponsor is responsible for overseeing the Solana Custodian and the Trust's other
service providers. The Sponsor may, in its sole discretion, add or terminate Solana custodians at any time. The Sponsor may, in its sole
discretion, change the custodian of the Trust's Solana holdings, but it will have no obligation whatsoever to do so or to seek
any particular terms for the Trust from other such custodians. However, the Sponsor will only enter into Solana custody arrangements
with custodians that meet the Sponsor's criteria, including an agreement to maintain Trust assets in a segregated account, to maintain
insurance and to store the Trust's private keys in cold storage or in such other manner as the Sponsor determines provides reasonable
protection for the Trust's assets from loss or theft.
THE
PRIME EXECUTION AGENT AND THE TRADE CREDIT LENDER
The
following section describe the role of the Prime Execution Agent and Trade Credit Lender. These parties will only be utilized during
the rare and limited circumstances when the Trust buys and sells Solana using the Agent Execution Model. The Trust intends to utilize
the Trust-Directed Trade Model for all purchases and sales of Solana and will only utilize the Agent Execution Model in the event that
no Solana Trading Counterparty is able or willing to effectuate the Trust's purchase or sale of Solana.
The
Prime Execution Agent
Pursuant
to the Prime Execution Agreement, the Trust's Solana holdings and cash holdings from time to time may be temporarily held with
the Prime Execution Agent, an affiliate of the Solana Custodian, in the Trading Balance, for certain limited purposes, including in connection
with creations and redemptions of Baskets and the sale of Solana to pay other Trust expenses not assumed by the Sponsor. The Sponsor
may, in its sole discretion, add or terminate prime execution agents at any time. The Sponsor may, in its sole discretion, change the
prime execution agent for the Trust, but it will have no obligation whatsoever to do so or to seek any particular terms for the Trust
from other such prime execution agents.
Within
the Trust's Trading Balance, the Prime Execution Agreement provides that the Trust does not have an identifiable claim to any particular
Solana (and cash). Instead, the Trust's Trading Balance represents an entitlement to a pro rata share of the Solana (and cash)
the Prime Execution Agent holds on behalf of customers who hold similar entitlements against the Prime Execution Agent. In this way,
the Trust's Trading Balance represents an omnibus claim on the Prime Execution Agent's Solana (and cash) held on behalf of
the Prime Execution Agent's customers. The Prime Execution Agent holds the Solana associated with customer entitlements across
a combination of omnibus cold wallets, omnibus "hot" wallets (meaning wallets whose private keys are generated and stored
online, in internet-connected computers or devices) or in omnibus accounts in the Prime Execution Agent's name on a trading venue
(including third-party venues and the Prime Execution Agent's own execution venue) where the Prime Execution Agent executes orders
to buy and sell Solana on behalf of its clients.
93
Within
such omnibus hot and cold wallets and accounts, the Prime Execution Agent has represented to the Sponsor that it keeps the majority of
assets in cold wallets to promote security, while the balance of assets is kept in hot wallets to facilitate rapid withdrawals. However,
the Sponsor has no control over, and for security reasons the Prime Execution Agent does not disclose to the Sponsor, the percentage
of Solana that the Prime Execution Agent holds for customers holding similar entitlements as the Trust, which are kept in omnibus cold
wallets, as compared to omnibus hot wallets or omnibus accounts in the Prime Execution Agent's name on a trading venue. The Prime
Execution Agent has represented to the Sponsor that the percentage of assets maintained in cold versus hot storage is determined by ongoing
risk analysis and market dynamics, in which the Prime Execution Agent attempts to balance anticipated liquidity needs for its customers
as a class against the anticipated greater security of cold storage.
The
Prime Execution Agent is not required by the Prime Execution Agreement to hold any of the Solana in the Trust's Trading Balance
in cold storage or to hold any such Solana in segregation, and neither the Trust nor the Sponsor can control the method by which the
Prime Execution Agent holds the Solana credited to the Trust's Trading Balance.
The
Prime Execution Agent relies on bank accounts to provide its trading platform services and including temporarily holding any cash related
to a customer's purchase or sale of Solana. In particular, the Prime Execution Agent has disclosed that customer cash held by the
Prime Execution Agent, including the cash associated with the Trust's Trading Balance, is held in one or more banks' accounts
for the benefit of the Prime Execution Agent's customers, or in Money Market Funds in compliance with Rule 2a-7 under the Investment
Company Act of 1940 and rated "AAA" by S&P (or the equivalent from any eligible rating service), provided that such investments
are held in accounts in [Solana Custodian Entities – Short Name]'s name for the benefit of customers and are permitted and
held in accordance with state money-transmitter laws. The Prime Execution Agent has represented to the Sponsor that it has implemented
the following policy with respect to the cash associated with the Trust's Trading Balance. First any cash related to the Trust's
purchase or sale of Solana will be held in an FBO Account or in a Money Market Fund. The amount of Trust cash held at each FBO Account
shall, unless otherwise agreed by the Sponsor in writing, be in an amount at each bank that is the lower of (i) the FDIC insurance limit
for deposit insurance and (ii) any bank-specific limit set by the Prime Execution Agent for the applicable bank. Deposit insurance does
not apply to cash held in a Money Market Fund. The Prime Execution Agent has agreed to title the accounts in a manner designed to enable
receipt of FDIC deposit insurance where applicable on a pass-through basis. Second, to the extent the Trust's cash in the Trading
Balance in aggregate exceeds the amounts that can be maintained at the banks on the foregoing basis, the Prime Execution Agent has represented
that it currently conducts an overnight sweep of the excess into U.S. government Money Market Funds. The Sponsor has not independently
verified the Prime Execution Agent's representations.
To
the extent the Trust sells Solana through the Prime Execution Agent, the Trust's orders will be executed at the Connected Trading
Venues that have been approved in accordance with the Prime Execution Agent's due diligence and risk assessment process. The Prime
Execution Agent has represented that its due diligence on Connected Trading Venues includes reviews conducted by the legal, compliance,
security, privacy and finance and credit-risk teams, The Connected Trading Venues, which are subject to change from time to time, currently
include Bitstamp, LMAX, Kraken, the exchange operated by the Prime Execution Agent, as well as four additional non-bank market makers
("NBMMs"). The Prime Execution Agent has represented to the Trust that it is unable to name the NBMMs due to confidentiality
restrictions.
Pursuant
to the Prime Execution Agreement, the Trust may engage in sales of Solana by placing orders with the Prime Execution Agent. The Prime
Execution Agent will route orders placed by the Sponsor through the prime execution agent execution platform (the "Trading Platform")
to a Connected Trading Venue where the order will be executed. Each order placed by the Sponsor will be sent, processed and settled at
each Connected Trading Venue to which it is routed. The Prime Execution Agreement provides that the Prime Execution Agent is subject
to certain conflicts of interest, including: (i) the Trust's orders may be routed to the Prime Execution Agent's own execution
venue where the Trust's orders may be executed against other customers of the Prime Execution Agent or with the [Prime Execution
Agent] acting as principal, (ii) the beneficial identity of the counterparty purchaser or seller with respect to the Trust's orders
may be unknown and therefore may inadvertently be another client of the Prime Execution Agent, (iii) the Prime Execution Agent does not
engage in front-running, but is aware of the Trust's orders or imminent orders and may execute a trade for its own inventory (or
the account of an affiliate) while in possession of that knowledge and (iv) the Prime Execution Agent may act in a principal capacity
with respect to certain orders. As a result of these and other conflicts, when acting as principal, the Prime Execution Agent may have
an incentive to favor its own interests and the interests of its affiliates over the Trust's interests.
94
Subject
to the foregoing, and to certain policies and procedures that the Prime Execution Agreement requires the Prime Execution Agent to have
in place to mitigate conflicts of interest when executing the Trust's orders, the Prime Execution Agreement provides that the Prime
Execution Agent shall have no liability, obligation, or responsibility whatsoever for the selection or performance of any Connected Trading
Venue, and that other Connected Trading Venues and/or trading venues not used by [Prime Execution Agent] may offer better prices and/or
lower costs than the Connected Trading Venue used to execute the Trust's orders.
[Solana
Custodian's Parent] maintains a commercial crime insurance policy, which is intended to cover the loss of client assets held by
[Solana Custodian's Parent] and all of its subsidiaries, including the Prime Execution Agent, including from employee collusion
or fraud, physical loss including theft, damage of key material, security breach or hack, and fraudulent transfer. The insurance maintained
by the [Insured Entities] is shared among all of [Solana Custodian Entities - Short Name]'s customers, is not specific to the Trust
or to customers holding Solana with the Solana Custodian or Prime Execution Agent and may not be available or sufficient to protect the
Trust from all possible losses or sources of losses.
Once
the Sponsor places an order to purchase or sell Solana on the Trading Platform, the associated Solana or cash used to fund or fill the
order, if any, will be placed on hold and will generally not be eligible for other use or withdrawal from the Trust's Trading Balance.
The Trust Solana Account may be used directly to fund orders. With each Connected Trading Venue, the Prime Execution Agent shall establish
an account in the Prime Execution Agent's name, or in its name for the benefit of clients, to trade on behalf of its clients, including
the Trust, and the Trust will not, by virtue of the Trading Balance the Trust maintains with the Prime Execution Agent, have a direct
legal relationship, or account with, any Connected Trading Venue.
The
Prime Execution Agent is permitted to suspend or terminate the Prime Execution Agreement under certain circumstances. The Prime Execution
Agent, for itself or as agent for the Solana Custodian and Trade Credit Lender, may not terminate the Prime Execution Agreement (including
the Solana Custody Agreement) or suspend, restrict terminate or modify the Prime Execution Agent Services (as defined below) on less
than 180 days' notice, except in the event of (i) a Change in Law or (ii) a Cause event (as defined below).
The
Prime Execution Agreement defines a "Change in Law" as any change in or adoption of any applicable law, rule, or regulation
which, in the reasonable opinion of counsel to the Prime Execution Agent would prohibit or materially impede some or all of the arrangement
contemplated by the Prime Execution Agreement. Upon the occurrence of a Change in Law, the parties will negotiate to agree on modifications
to the Prime Execution Agreement or the Prime Execution Agent Services that would enable compliance with such Change in Law or, in the
case of a material impediment, reduce the impact to the parties of such Change in Law and the [Solana Custodian Entities] shall continue
to provide the Prime Execution Agent Services unless prohibited from doing so by the Change in Law. If the parties cannot agree on modifications
within thirty (30) days following notice from the Prime Execution Agent or if the Change in Law requires that [Prime Execution Agent]
immediately ceases providing any Prime Execution Agent Services, the Prime Execution Agent may, upon written notice, suspend, restrict
or terminate the Prime Execution Agent Services solely to the extent necessary to account for the Change in Law, provided that any such
suspension, restriction, termination or modification is narrowly tailored and, to the extent not prohibited by the Change in Law, the
[Solana Custodian Entities] will continue to provide, at a minimum, the Transition Services (as defined below) following any Change in
Law.
Upon
the occurrence and continuation of a Cause event, and after giving effect to any notice requirement and cure period that may apply, the
Prime Execution Agent may in its reasonable discretion, terminate the Prime Execution Agreement and accelerate the Trust's obligations,
and/or take certain other actions. The Prime Execution Agreement defines "Cause" to mean (i) a material breach of the Prime
Execution Agreement (other than the Solana Custody Agreement) which is uncured for ten (10) days; (ii) a material breach of the Solana
Custody Agreement which is uncured for 30 days; (iii) a Bankruptcy Event (as defined below); and (iv) the failure by the Trust to repay
Trade Credits by the applicable deadline specified in the Trade Financing Agreement which, in the event the failure results solely from
an error or omission of an administrative or operational nature, remains uncured for a period of one (1) business day.
95
Notwithstanding
any termination of the Prime Execution Agreement by the Prime Execution Agent for Cause, during any Transition Period (as defined below)
the [Solana Custodian Entities] (defined in the Prime Execution Agreement as the Prime Execution Agent, Solana Custodian, and Trade Credit
Lender) or their affiliates shall continue to provide the Transition Services (as defined below) and render such assistance as the Trust
may reasonably request to enable the continuation and orderly assumption of the Transition Services to be effected by the Trust, its
affiliate or any alternative service provider and shall continue to provide the Transition Services pursuant to the Prime Execution Agreement,
except to the extent any Transition Service is prohibited under applicable law (including, but not limited to, applicable sanctions programs)
or by a facially valid subpoena, court order, or binding order of a government authority; provided that (i) the [Solana Custodian Entities]
will continue to have the right to exercise their right of set-off under the Prime Execution Agreement with respect to any sale proceeds
during the Transition Period for any fees or other amounts owed by the Trust and (ii), notwithstanding any provision in the Prime Execution
Agreement to the contrary, in no event shall any [Solana Custodian Entity], its affiliates, or their respective officers, directors,
agents, employees and representatives have any liability to the Trust or Sponsor for any claims or losses arising out of or relating
to the Prime Execution Agreement during (A) with respect to any Transition Services described in clause (i) of the definition of Transition
Services, the 91st day through the end of the Transition Period (as defined below) and (B) with respect to any Transition Services described
in clause (ii) of the definition of Transition Services, the 16th day through the end of the Transition Period, which do not result
from its gross negligence, fraud, material violation of applicable law or willful misconduct; provided that throughout the Transition
Period the [Solana Custodian Entities] shall act in good faith and in a commercially reasonable manner to provide the same level of service
with respect to the Transition Services as was provided prior to the start of the Transition Period. For the avoidance of doubt, during
the Transition Period, the fees set forth in the Prime Execution Agreement will continue to apply to the Transition Services.
"Transition
Period" is defined in the Prime Execution Agreement to mean a 180-day period (or such extended period as agreed in writing by the
[Solana Custodian Entities] and the Trust) commencing on the date the Trust is notified of any termination of the Prime Execution Agreement
pursuant to a Cause event.
"Transition
Services" means the Prime Execution Agent services consisting of (i) the custody of the Trust's Solana on the Trust's
behalf, the processing of deposits and withdrawals and other custody transactions, and (ii) access to the Prime Execution Agent's
trading platform and the execution and settlement of all orders for the sale of Solana submitted by the Trust. For the avoidance of doubt,
the Transition Services shall not include the extension of credit, and the obligation to execute and settle any Orders for the purchase
of Digital Assets.
"Bankruptcy
Event" is defined in the Prime Execution Agreement to mean the party is (i) dissolved (other than pursuant to a consolidation,
amalgamation or merger); (ii) becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to
pay its debts as they become due; (iii) makes a general assignment, arrangement or composition with or for the benefit of its creditors;
(iv) institutes or has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any
bankruptcy or insolvency law or other similar law affecting creditors' rights, or a petition is presented for its winding-up or
liquidation, and in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition (I) results
in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation
or (II) is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution or presentation thereof; (v)
has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation
or merger); (vi) seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee,
custodian or other similar official for it or for all or substantially all its assets; (vii) has a secured party take possession of all
or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued
on or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed,
discharged, stayed or restrained, in each case within 30 days thereafter; (viii) causes or is subject to any event with respect to it
which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in clauses (i) to (vii)
(inclusive); or (ix) takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing
acts.
96
The
Trust may terminate the Prime Execution Agreement, including the Solana Custody Agreement, in whole or in part for any reason upon thirty
(30) days' notice to the Prime Execution Agent, for itself or as agent on behalf of the Solana Custodian or Trade Credit Lender,
or upon a [Prime Execution Agent Termination Event]. The Prime Execution Agreement defines a "[Prime Execution Agent Termination
Event]" to mean the occurrence and continuance of (i) a Bankruptcy Event with respect to any [Solana Custodian Entity], (ii) the
failure of any [Solana Custodian Entity] to sell or withdraw or transfer the Trust's Solana in accordance with the Trust's
instructions within the time periods set forth in the Prime Execution Agreement and such failure is not cured within two (2) business
days following the Trust providing written notice to the relevant [Solana Custodian Entity] ("CB Return Cure"); provided,
however, that (A) if, prior to the expiration of the CB Return Cure, the Prime Execution Agent transfers cash to the Trust in an amount
equal to the value of the Solana based on the Benchmark Valuation (defined as the Pricing Benchmark) as of the time that the request
to sell, transfer or withdraw was originally made by the Trust (the "Solana Cash Value") or if the Prime Execution Agent
delivers cash collateral to an account designated by the Trust and in which the Trust has a perfected, first priority security interest
and in an amount equal to the Solana Cash Value until the relevant Solana is sold, withdrawn or transferred or the Trust elects to receive
such amount in cash in lieu of the Prime Execution Agent's obligation to sell, withdraw or transfer the relevant Solana, in each
cash, such failure will be deemed cured; provided, further that, the Trust shall have the right to choose whether to receive the Solana
Cash Value in lieu of the relevant Solana or receive the Solana Cash Value as cash collateral, or (B) if such failure is due to a technology
or security issue where, in the commercially reasonable opinion of the Prime Execution Agent, returning the relevant Solana would result
in material risk to the Trust or the Prime Execution Agent or may result in the relevant Solana being lost or otherwise not successfully
returned and the Prime Execution Agent promptly notifies the Trust promptly upon Client's notice of such failure, (1) the Trust
may request that the Prime Execution Agent still sell, withdraw or transfer the Solana, but the Prime Execution Agent will have no liability
with respect to any such sell, withdrawal or transfer (unless the Prime Execution Agent or any of the [Solana Custodian Entities] act
with negligence unrelated to such technology or security issue) and any failure to withdraw or transfer shall not result in a [Prime
Execution Agent Termination Event ] if the Trust does not receive the withdrawn or transferred Solana or the proceeds of any such sale
due to such technology or security issue, or (2) if the Trust does not elect to have the Prime Execution Agent still make the sale, withdrawal
or transfer, a [Prime Execution Agent Termination Event ] shall not occur while the relevant security or technology event is occurring
and continuing, (iii) the failure of any [Solana Custodian Entity] to withdraw or transfer cash to the Trust in accordance with the Trust's
instructions within the time periods set forth in the Prime Execution Agreement and such failure is not cured within one (1) business
day following the Trust providing written notice to the relevant [Solana Custodian Entity], (iv) a [Solana Custodian Entity] intentionally
or willfully, materially breaches any provision of the Prime Execution Agreement (other than the provisions of the Solana Custody Agreement)
and such breach remains uncured for a period of ten (10) calendar days after notice of such breach is provided by the Trust to the Prime
Execution Agent; or (v) a [Solana Custodian Entity] intentionally or willfully, materially breaches any provision of the Solana Custody
Agreement and such breach remains uncured for a period of 30 calendar days after notice of such breach is provided by the Trust to the
Prime Execution Agent.
The
Prime Execution Agent does not guarantee uninterrupted access to the Trading Platform or the services it provides to the Trust. Under
certain circumstances, the Prime Execution Agent is permitted to halt or suspend trading on the Trading Platform, or impose limits on
the amount or size of, or reject, the Trust's orders, including in the event of, among others, (a) delays, suspension of operations,
failure in performance, or interruption of service that are directly due to a cause or condition beyond the reasonable control of the
Prime Execution Agent, (b) the Trust has engaged in unlawful or abusive activities or fraud, or (c) a security or technology issue occurred
and is continuing that results in the Prime Execution Agent being unable to provide trading services or accept the Trust's order,
in each case, subject to certain protections for the Trust.
Neither
the Prime Execution Agent nor any other [Solana Custodian Entity] is permitted to withdraw the Trust's Solana from the Trust Solana
Account, or loan, hypothecate, pledge or otherwise encumber the Trust's Solana, without the consent of the Trust. The Trading Balance
is subject to the lien to secure outstanding Trade Credits in favor of the Trade Credit Lender discussed below.
97
Under
the Prime Execution Agreement, the Prime Execution Agent's liability is limited as follows, among others: (i) other than with respect
to claims and losses arising from spot trading of Solana, or fraud or willful misconduct, among others, the Prime Execution Agent's
aggregate liability shall not exceed the greater of (A) the greater of (x)  $5 million and (y) the aggregate fees paid by the
Trust to the Prime Execution Agent in the 12 months prior to the event giving rise to the Prime Execution Agent's liability, and
(B) the value of the cash or affected Solana giving rise to the Prime Execution Agent's liability; (ii) in respect of the Prime
Execution Agent's obligations to indemnify the Trust and its affiliates against third-party claims and losses to the extent arising
out of or relating to, among others, the Prime Execution Agent's violation of any law, rule or regulation with respect to the provision
of its services, or the full amount of the Trust's assets lost due to the insolvency of or security event at a Connected Trading
Venue, the Prime Execution Agent's liability shall not exceed the greater of (A) $5 million and (B) the aggregate fees paid by
the Trust to the Prime Execution Agent in the 12 months prior to the event giving rise to the Prime Execution Agent's liability;
and (iii) in respect of any incidental, indirect, special, punitive, consequential or similar losses, the Prime Execution Agent is not
liable, even if the Prime Execution Agent has been advised of or knew or should have known of the possibility thereof. The Prime Execution
Agent is not liable for delays, suspension of operations, failure in performance, or interruption of service to the extent it is directly
due to a cause or condition beyond the reasonable control of the Prime Execution Agent. Both the Trust and the Prime Execution Agent
and its affiliates (including the Solana Custodian) are required to indemnify each other under certain circumstances. The Prime Execution
Agreement is governed by New York law and provides that disputes arising under it are subject to arbitration.
The
Prime Execution Agreement provides that the [Solana Custodian Entities] may have actual or potential conflicts of interest in connection
with providing the Prime Execution Agent Services including that (i) orders to buy or sell Solana may be routed to the Prime Execution
Agent's exchange platform ("[Prime Execution Agent Exchange]") where such orders may be executed against other [Prime
Execution Agent] customers or with [Prime Execution Agent] acting as principal, (ii) the beneficial identity of the purchaser or seller
with respect to an order is unknown and therefore may inadvertently be another [Prime Execution Agent] customer, (iii) the Prime Execution
Agent does not engage in front-running, but is aware of orders or imminent orders and may execute a trade for its own inventory (or the
account of an affiliate) while in possession of that knowledge, and (iv) [Prime Execution Agent] may act in a principal capacity with
respect to certain orders (e.g., to fill residual order size when a portion of an order may be below the minimum size accepted by the
Connected Trading Venues). As a result of these and other conflicts, when acting as principal, the [Solana Custodian Entities] may have
an incentive to favor their own interests and the interests of their affiliates over the Trust's interests and have in place certain
policies and procedures that are designed to mitigate such conflicts. The Prime Execution Agent will maintain appropriate and effective
arrangements to eliminate or manage conflicts of interest, including segregation of duties, information barriers and training. The Prime
Execution Agent will notify the Trust of changes to its business that have a material adverse effect on the Prime Execution Agent's
ability to manage its conflicts of interest. The [Solana Custodian Entities] shall execute trades pursuant to such policies and procedures;
provided that the [Solana Custodian Entities] (a) shall execute in a commercially reasonable amount of time (i) any marketable orders
appropriately entered by the Trust and (ii) any other pending orders by the Trust received by the [Solana Custodian Entities] that become
marketable, (b) for any order that the Prime Execution Agent receives from the Trust, the Prime Execution Agent will make commercially
reasonable efforts to route orders for execution to the Connected Trading Venue offering the highest price for the Trust's Solana
sale orders, including consideration of any gas fees or similar fees related to a particular blockchain at the time that such orders
are routed for execution, and (c) shall not knowingly enter into a transaction for the benefit of (x) the [Solana Custodian Entities],
or (y) any other client received after the Trust's order, ahead of any order received from the Trust. For purposes of the
foregoing, a marketable order is a sell order equivalent to or better than the best bid price on any Connected Trading Venue (or any
venue that a [Solana Custodian Entity] may use) at a given moment. The Prime Execution Agent agrees to direct the Trust's orders
in a manner that does not systematically favor the [Prime Execution Agent Exchange] or Connected Trading Venues that provide financial
incentives to the Prime Execution Agent; provided, however, that under certain circumstances the Prime Execution Agent may choose to
intentionally route to the [Prime Execution Agent Exchange] due to temporary conditions affecting Connected Trading Venues (e.g., connectivity
problems of the Connected Trading Venue or funding constraints).
The
Trade Credit Lender
To
avoid having to pre-fund purchases or sales of Solana when using the Agent Execution Model, the Trust may borrow Solana or cash as Trade
Credit from the Trade Credit Lender on a short-term basis. The Sponsor does not intend to fund the Trading Balance at the Prime Execution
Agent with sufficient cash or Solana to pay fees and expenses and instead intends to utilize the Trade Financing Agreement for such fees
and expenses. This allows the Trust to buy or sell Solana through the Prime Execution Agent in an amount that exceeds the cash or Solana
credited to the Trust's Trading Balance at the Prime Execution Agent at the time such order is submitted to the Prime Execution
Agent, which is expected to facilitate the Trust's ability purchase and sell Solana in a timely manner, rather than waiting for
the cash to be transferred by the Cash Custodian to the Prime Execution Agent prior to purchasing the Solana or for the Solana held in
the Trust Solana Account to be transferred to the Trust's Trading Balance prior to selling Solana. The Trust is required by the
terms of the Trade Financing Agreement, which is part of the Prime Execution Agreement, to repay any extension of Trade Credit by the
Trade Credit Lender by 6:00 p.m. ET on the business day following the day that the Trade Credit was extended to the Trust. The Trade
Credit Lender is only required to extend Trade Credits to the Trust to the extent such Solana or cash is actually available to the Trade
Credit Lender. For example, if the Trade Credit Lender is unable to borrow Solana to lend to the Trust as a Trade Credit, or there is
a material market disruption (as determined by the Trade Credit Lender in good faith and in its sole discretion), the Trade Credit Lender
is not obligated to extend Trade Credits to the Trust. To secure the repayment of Trade Credits, the Trust has granted a first-priority
lien to the Trade Credit Lender over the assets in its Trading Balance and the Trust Solana Account. If the Trust fails to repay a Trade
Credit within the required deadline, the Trade Credit Lender is permitted to take control of Solana or cash credited to the Trust's
Trading Balance and Trust Solana Account (though it is required to exhaust the Trading Balance prior to taking control of assets in the
Trust Solana Account) and liquidate them to repay the outstanding Trade Credit. Trade Credits bear interest. Pursuant to the Trade Financing
Agreement, there is a maximum "Authorized Amount" of Trade Credits that the Trade Credit Lender allows to be outstanding
at any one time, which is determined and may be changed by the Trade Credit Lender in its sole discretion. To the extent the Trade Credit
Lender changes the Authorized Amount, it will give the Trust advance notice if it is feasible to do so.
98
The
entirety of the Trust's Solana holdings is maintained with the Solana Custodian rather than the Prime Execution Agent. Accordingly,
when using the Agent Execution Model, the Trust does expect to utilize Trade Credits. When utilizing Trade Credits in connection with
Purchase Orders and Redemption Orders, any interest payable on Trade Credits will be the responsibility of the Authorized Participants.
In the very rare event that Trade Credits are utilized in connection with the payment of Trust expenses not assumed by the Sponsor, any
interest payable on the Trade Credits will be the responsibility of the Trust. Any such interest payments borne by the Trust will have
the effect of reducing the amount of Solana represented by a Share and the NAV of the Trust. In connection with a Redemption Order or
to pay expenses not assumed by the Sponsor, the Trust will first borrow Solana from the Trade Credit Lender using the Trade Financing
Agreement, and then sell this Solana. In connection with a Purchase Order, the Trust will first borrow cash from the Trade Credit Lender
using the Trade Financing Agreement, and then purchase Solana. The purpose of borrowing the Solana or cash from the Trade Credit Lender
is to lock in the Solana price on the trade date or the payment date, as applicable, rather than waiting for the funds associated with
the creation to be transferred by the Cash Custodian to the Prime Execution Agent prior to purchasing the Solana or for the Solana held
in the Trust Solana Account to be transferred to a Trading Balance prior to selling the Solana (a process that may take up to twenty-four
hours, or longer if the Solana Network is experiencing delays in transaction confirmation, or if there are other delays). To the extent
that the execution price of the Solana acquired exceeds the amount of cash deposited by the Authorized Participant, the Authorized Participant
bears the responsibility for the difference.
In
the event Trade Credits are unavailable from the Trade Credit Lender or become exhausted, the Sponsor would require the Authorized Participant
to deliver cash on the trade date so that a purchase order can be settled in a timely manner. For a Redemption Order under the Agent
Execution Model, the Trust may use financing when the Solana remains in the Trust Solana Account at the point of intended execution of
a sale of Solana. In the event Trade Credits are unavailable or become exhausted in this situation, the Sponsor would instruct the Solana
Custodian to move Solana out of the Trust Solana Account into the Trading Balance so that it could be sold directly in response to a
redemption order or to pay fees and expenses. Under these circumstances, the Trust may not be able to lock in the Solana price on the
trade date or the payment date, as applicable, and would instead have to wait until the transfer from the Trust Solana Account the Trading
Balance was completed before selling the Solana.
Form
of Shares
Registered
Form
Shares
are issued in registered form in accordance with the Trust Agreement. The Transfer Agent has been appointed registrar and transfer agent
for the purpose of transferring Shares in certificated form. The Transfer Agent keeps a record of all Shareholders and holders of the
Shares in certified form in the registry ("Register"). The Sponsor recognizes transfers of Shares in certificated form only
if done in accordance with the Trust Agreement. The beneficial interests in such Shares are held in book-entry form through participants
and/or accountholders in DTC.
99
Book-Entry
Individual
certificates are not issued for the Shares. Instead, Shares are represented by one or more global certificates, which are deposited by
the Transfer Agent with DTC and registered in the name of Cede & Co., as nominee for DTC. The global certificates evidence all of
the Shares outstanding at any time. Shareholders are limited to (1) participants in DTC such as banks, brokers, dealers and trust companies
("DTC Participants"), (2) those who maintain, either directly or indirectly, a custodial relationship with a DTC Participant
("Indirect Participants"), and (3) those who hold interests in the Shares through DTC Participants or Indirect Participants,
in each case who satisfy the requirements for transfers of Shares. DTC Participants acting on behalf of investors holding Shares through
such participants' accounts in DTC will follow the delivery practice applicable to securities eligible for DTC's Same-Day
Funds Settlement System. Shares are credited to DTC Participants' securities accounts following confirmation of receipt of payment.
DTC
DTC
has advised the Sponsor as follows: It is a limited-purpose trust company organized under the laws of the State of New York and is a
member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code
and a "clearing agency" registered pursuant to the provisions of Section 17A of the Exchange Act. DTC holds securities
for DTC Participants and facilitates the clearance and settlement of transactions between DTC Participants through electronic book-entry
changes in accounts of DTC Participants.
Transfer
of Shares
The
Shares are only transferable through the book-entry system of DTC. Shareholders who are not DTC Participants may transfer their Shares
through DTC by instructing the DTC Participant holding their Shares (or by instructing the Indirect Participant or other entity through
which their Shares are held) to transfer the Shares. Transfers are made in accordance with standard securities industry practice.
Transfers
of interests in Shares with DTC are made in accordance with the usual rules and operating procedures of DTC and the nature of the transfer.
DTC has established procedures to facilitate transfers among the participants and/or accountholders of DTC. Because DTC can only act
on behalf of DTC Participants, who in turn act on behalf of Indirect Participants, the ability of a person or entity having an interest
in a global certificate to pledge such interest to persons or entities that do not participate in DTC, or otherwise take actions in respect
of such interest, may be affected by the lack of a certificate or other definitive document representing such interest.
DTC
has advised the Sponsor that it will take any action permitted to be taken by a Shareholder (including, without limitation, the presentation
of a global certificate for exchange) only at the direction of one or more DTC Participants in whose account with DTC interests in global
certificates are credited and only in respect of such portion of the aggregate principal amount of the global certificate as to which
such DTC Participant or Participants has or have given such direction.
SEED
CAPITAL INVESTOR
Bitwise
Asset Management, Inc., the parent of the Sponsor, served as seed capital investor to the Trust (the "Seed Capital Investor").
The Seed Capital Investor agreed to purchase $____ in Shares on __________, and on ______________, took delivery of __ Shares at a per-Share
price of $___ (the "Seed Shares"). The $____ the Trust received in consideration for the sale of the Seed Shares served as
the basis of the audit described in the sections entitled "REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM" and "STATEMENT
OF FINANCIAL CONDITION."
The
Sponsor will not receive from the Trust or any of its affiliates any fee or other compensation in connection with the Seed Capital Investor's
purchase of the Seed Shares.
100
Plan
of Distribution
Buying
and Selling Shares
Most
investors buy and sell Shares in secondary market transactions through brokers. Shares trade on the Exchange under the ticker symbol
"____." Shares are bought and sold throughout the trading day like other publicly traded securities. When buying or selling
Shares through a broker, most investors incur customary brokerage commissions and charges. Shareholders are encouraged to review the
terms of their brokerage account for details on applicable charges.
Bitwise
Investment Manager, LLC, an affiliate of the Sponsor, is expected to purchase the initial Baskets of Shares for $____________, at per-Share
price of $___ for these ________ Shares (the Seed Baskets). Such proceeds are expected to be used by the Trust to purchase Solana at
or prior to the listing of Shares on the Exchange. Bitwise Investment Manager, LLC will act as a statutory underwriter in connection
with the initial purchase of the Seed Baskets.
Authorized
Participants
The
offering of the Shares is a best efforts offering. The Trust continuously offers Baskets consisting of 10,000 Shares to Authorized Participants.
Authorized Participants pay a transaction fee for each order they place to purchase or redeem one or more Baskets. The Sponsor believes
that the Basket size of 10,000 Shares will enable Authorized Participants to manage inventory and facilitate an effective arbitrage mechanism
for the Trust, however, the Sponsor may adjust the Baskets in order to improve the effectiveness of the activities of Authorized Participants
in the secondary market for the Shares if the Sponsor determines it to be necessary or advisable. Because new Shares can be created and
issued on an ongoing basis, at any point during the life of the Trust, a "distribution," as such term is used in the 1933
Act, will be occurring.
The
offering of Baskets is being made in compliance with Conduct Rule 2310 of FINRA. Accordingly, Authorized Participants will not make any
sales to any account over which they have discretionary authority without the prior written approval of a purchaser of Shares.
By
executing an Authorized Participant Agreement, an Authorized Participant becomes part of the group of parties eligible to purchase Baskets
from, and put Baskets for redemption to, the Trust. An Authorized Participant is under no obligation to purchase or redeem Baskets or
to offer to the public Shares of any Basket it does create. As of ___________, 2024, ___________________________ have executed Authorized
Participant Agreements with the Trust.
Because
new Shares can be created and issued on an ongoing basis, at any point during the life of the Trust, a "distribution," as
such term is used in the 1933 Act, will be occurring. Authorized Participants, other broker-dealers and other persons are cautioned that
some of their activities may result in their being deemed participants in a distribution in a manner that would render them statutory
underwriters and subject them to the prospectus-delivery and liability provisions of the 1933 Act. Any purchaser who purchases Shares
with a view toward distribution of such Shares may be deemed to be a statutory underwriter. In addition, an Authorized Participant, other
broker-dealer firm or its client will be deemed a statutory underwriter if it purchases a Basket from the Trust, breaks the Basket down
into the constituent Shares and sells the Shares to its customers; or if it chooses to couple the creation of a supply of new Shares
with an active selling effort involving solicitation of secondary market demand for the Shares. In contrast, Authorized Participants
may engage in secondary market or other transactions in Shares that would not be deemed "underwriting." For example, an Authorized
Participant may act in the capacity of a broker or dealer with respect to Shares that were previously distributed by other Authorized
Participants. A determination of whether a particular market participant is an underwriter must take into account all the facts and circumstances
pertaining to the activities of the broker-dealer or its client in the particular case, and the examples mentioned above should not be
considered a complete description of all the activities that would lead to designation as an underwriter and subject them to the prospectus-delivery
and liability provisions of the 1933 Act.
Dealers
who are neither Authorized Participants nor "underwriters" but are nonetheless participating in a distribution (as contrasted
to ordinary secondary trading transactions), and thus dealing with Shares that are part of an "unsold allotment" within the
meaning of Section 4(3)(C) of the 1933 Act, would be unable to take advantage of the prospectus-delivery exemption provided by Section
4(3) of the 1933 Act.
101
While
the Authorized Participants may be indemnified by the Sponsor, they will not be entitled to receive a discount or commission from the
Trust or the Sponsor for their purchases of Baskets.
Selling
Shareholders
The
Sponsor or its affiliates, or a fund or unit investment trust for which the Sponsor or an affiliate of the Sponsor serves as sponsor
or investment advisor, may purchase Shares of the Trust through a broker-dealer or other investors, including in secondary market transactions,
and because the Sponsor and its affiliates may be deemed affiliates of the Trust, the Shares are being registered to permit the resale
of these Shares by affiliates of the Trust from time to time after any such purchase. The Trust will not receive any of the proceeds
from the resale of such Shares.
Creation
and Redemption of Shares
When
the Trust creates or redeems its Shares, it will do so only in Baskets (blocks of 10,000 Shares) based on the quantity of Solana attributable
to each Share of the Trust (net of accrued but unpaid expenses and liabilities) multiplied by the number of Shares comprising a Basket
(10,000). This is called the "Basket Amount."
Authorized
Participants are the only persons that may place orders to create and redeem Baskets. Authorized Participants must be (1) registered
broker-dealers or other securities market participants, such as banks and other financial institutions, that are not required to register
as broker-dealers to engage in securities transactions described below, and (2) DTC Participants. To become an Authorized Participant,
a person must enter into an Authorized Participant Agreement. The Authorized Participant Agreement provides the procedures for the creation
and redemption of Baskets and for the delivery of the cash or Shares required for such creation and redemptions. The Authorized Participant
Agreement and the related procedures attached thereto may be amended by the Trust, without the consent of any Shareholder or Authorized
Participant. Authorized Participants must pay the Transfer Agent a non-refundable fee for each order they place to create or redeem one
or more Baskets. The transaction fee may be waived, reduced, increased or otherwise changed by the Sponsor in its sole discretion. Authorized
Participants who make deposits with the Trust in exchange for Baskets receive no fees, commissions or other form of compensation or inducement
of any kind from either the Trust or the Sponsor, and no such person will have any obligation or responsibility to the Sponsor or the
Trust to effect any sale or resale of Shares.
Each
Authorized Participant will be required to be registered as a broker-dealer under the Exchange Act and a member in good standing with
FINRA, or exempt from being or otherwise not required to be licensed as a broker-dealer or a member of FINRA, and will be qualified to
act as a broker or dealer in the states or other jurisdictions where the nature of its business so requires. Certain Authorized Participants
may also be regulated under federal and state banking laws and regulations. Each Authorized Participant has its own set of rules and
procedures, internal controls and information barriers as it determines is appropriate in light of its own regulatory regime.
Under
the Authorized Participant Agreement, the Sponsor, and the Trust under limited circumstances, have agreed to indemnify the Authorized
Participants against certain liabilities, including liabilities under the 1933 Act, and to contribute to the payments the Authorized
Participants may be required to make in respect of those liabilities.
The
following description of the procedures for the creation and redemption of Baskets is only a summary and an investor should refer to
the relevant provisions of the Trust Agreement and the form of Authorized Participant Agreement for more detail. The Trust Agreement
and form of Authorized Participant Agreement are filed as exhibits to the registration statement of which this Prospectus is a part.
Determination
of Basket Amount
The
Basket Amount required to create each Basket changes from day to day. On each day that the Exchange is open for regular trading, the
Administrator adjusts the quantity of Solana constituting the Basket Amount as appropriate to reflect accrued expenses and any loss of
Solana that may occur. The computation is made by the Administrator each business day prior to the commencement of trading on the Exchange.
The Administrator determines the Basket Amount for a given day by dividing the number of Solana held by the Trust as of the opening of
business on that business day, adjusted for the amount of Solana constituting estimated accrued but unpaid fees and expenses of the Trust
as of the opening of business on that business day, by the quotient of the number of Shares outstanding at the opening of business, multiplied
by 10,000. Fractions of Solana smaller than ___________ are disregarded for purposes of the computation of the Basket Amount. The Basket
Amount so determined is communicated via electronic mail message to all Authorized Participants and made available on the Sponsor's
website for the Shares. The Exchange also publishes the Basket Amount determined by the Administrator as indicated above.
102
Creation
Procedures
On
any business day, an Authorized Participant may create Shares by placing an order to purchase one or more Baskets with the Transfer Agent
through the Marketing Agent in exchange for cash (a "Purchase Order"). Such orders are subject to approval by the Marketing
Agent and Transfer Agent. Such orders are subject to approval by the Marketing Agent and Transfer Agent. For purposes of processing creation
and redemption orders, a "business day" means any day other than a day when the Exchange is closed for regular trading. Purchase
Orders must be placed by 2:00 p.m., ET, or the close of regular trading on the Exchange, whichever is earlier (the "Order Cut-Off
Time"). The Order Cut-Off time may be modified by the Sponsor in its sole discretion. The day on which a Purchase Order is accepted
by the Transfer Agent is considered the "Purchase Order Date."
The
Sponsor may in its sole discretion limit the number of Shares created pursuant to Purchase Orders on any specified day without notice
to the Authorized Participants and may direct the Marketing Agent to reject any Purchase Orders in excess of such capped amount. The
Sponsor may choose to limit the number of Shares created pursuant to Purchase Orders when it deems so doing to be in the best interest
of Shareholders. It may choose to do so when it believes the market is too volatile to execute a Solana transaction, when it believes
the price of Solana is being inconsistently, irregularly, or discontinuously published from Solana trading venues and other data sources,
or when it believes other similar circumstances may create a scenario in which accepting Purchase Orders would not be in the best interests
of the Shareholders. The Sponsor does not believe that the Trust's ability to arrive at such a determination will have a significant
impact on the Shares in the secondary market because it believes that the ability to create Shares would be reinstated shortly after
such determination is made, and any entity desiring to create Shares would be able to do so once the ability to create Shares is reinstated.
However, it is possible that such a determination would cause the Shares to trade at premiums or discounts relative to the Trust's
NAV on the secondary market if arbitrageurs believe that there is risk that the creation and redemption process is not available, as
this process is a component of keeping the price of the Shares on the secondary market closely aligned to the Trust's NAV.
The
manner by which creations are made is dictated by the terms of the Authorized Participant Agreement. By placing a Purchase Order, an
Authorized Participant agrees to deposit, or cause the deposit of, cash with the Trust in an equivalent amount of cash equal to the required
amount of Solana as described in the "Determination of Required Deposits" sub-section above, multiplied by the Pricing Benchmark
price, plus any additional cash required to account for the price at which the Trust agrees to purchase the requisite amount of Solana
to the extent it is greater than the Pricing Benchmark price on each Purchase Order Date. On each Purchase Order Date, the Administrator
will communicate to the Authorized Participant the full cash amount required to settle the transaction. Authorized Participants may not
withdraw a creation request. If an Authorized Participant fails to consummate the foregoing, the Purchase Order will be cancelled. The
Sponsor causes to be published each night the amount of Solana that will be acquired in exchange for each Purchase Order, from which
can be computed the estimated amount of cash required to create each Basket, prior to accounting for any additional cash required to
acquire the requisite amount of Solana if the price paid by the Trust is in excess of the Pricing Benchmark on each Purchase Order Date.
An
Authorized Participant who places a Purchase Order is responsible for facilitating the delivery of the required amount of cash to the
Cash Custodian by 3:00 p.m. ET, on the business day following the Purchase Order Date. Pursuant to the cash creation and redemption process,
the Trust is responsible for acquiring and selling Solana, which it may do pursuant to two different models: (i) the "Trust-Directed
Trade Model," and the (ii) the "Agent Execution Model."
Under
the Trust-Directed Trade Model, the Sponsor, on behalf of the Trust, is responsible for acquiring Solana from an approved Solana Trading
Counterparty in an amount equal to the Basket Amount. When seeking to purchase Solana on behalf of the Trust, the Sponsor will seek to
purchase Solana at a price as close to the Pricing Benchmark as practical. Once the trade has been agreed upon with a Solana Trading
Counterparty, the transaction will generally occur on an "over-the-counter" basis. Transfers of Solana from the Solana Trading
Counterparty to the Trust Solana Account are "on-chain" transactions represented on the Solana Network. Upon receipt of the
deposit amount of Solana in the Trust Solana Account at the Solana Custodian from the Solana Trading Counterparty, the Solana Custodian
will notify the Sponsor that the Solana has been received. The Sponsor will then notify the Transfer Agent that the Solana has been received,
and the Transfer Agent will direct DTC to credit the number of Shares ordered to the Authorized Participant's DTC account and will
wire the cash previously sent by the Authorized Participant to the Solana Trading Counterparty to complete settlement of the Purchase
Order and the acquisition of the Solana by the Trust. If the Solana Trading Counterparty fails to deliver the Solana to the Solana Custodian,
no cash is sent from the Cash Custodian to the Solana Trading Counterparty, no Shares are transferred to the Authorized Participant's
DTC account, the cash is returned to the Authorized Participant, and the Purchase Order is cancelled.
103
Under
the Agent Execution Model, the Prime Execution Agent, acting in an agency capacity, conducts Solana purchases on behalf of the Trust
with third parties through its [Prime service] pursuant to the Prime Execution Agreement. On the evening of the Purchase Order Date,
the Trust enters into a transaction to buy Solana through the Prime Execution Agent for cash. Because the Trust's Trading Balance
may not be funded with cash on the Purchase Order Date for the purchase of Solana in connection with the Purchase Order under the Agent
Execution Model, the Trust may borrow Trade Credits in the form of cash from the Trade Credit Lender pursuant to the Trade Financing
Agreement or may require the Authorized Participant to deliver the required cash for the Purchase Order on the Purchase Order Date. The
extension of Trade Credits on the Purchase Order Date allows the Trust to purchase Solana through the Prime Execution Agent on the Purchase
Order Date, with such Solana being deposited in the Trust's Trading Balance. On the day following the Purchase Order Date, the
Purchase Order Settlement Date, the Trust delivers Shares to the Authorized Participant's DTC account in exchange for cash received
from the Authorized Participant. Where applicable, the Trust uses the cash to repay the Trade Credits borrowed from the Trade Credit
Lender. On the Purchase Order Settlement Date for a Purchase Order utilizing the Agent Execution Model, the Solana associated with the
Purchase Order and purchased on the Purchase Order Date is swept from the Trust's Trading Balance with the Prime Execution Agent
to the Trust Solana Account with the Solana Custodian pursuant to a regular end-of-day sweep process. Transfers of Solana into the Trust's
Trading Balance are off-chain transactions and transfers from the Trust's Trading Balance to the Trust Solana Account are "on-chain"
transactions represented on the Solana Network. Any financing fee owed to the Trade Credit Lender is deemed part of trade execution costs
and embedded in the trade price for each transaction.
As
between the Trust and the Authorized Participant, the expense and risk of the difference between the price of Solana calculated by the
Administrator for daily valuation using the Pricing Benchmark and the price at which the Trust acquires the Solana will be borne solely
by the Authorized Participant to the extent that the Trust pays more for Solana than the price used by the Trust for daily valuation.
Any such additional cash amount will be included in the amount of cash calculated by the Administrator on the Purchase Order Date, communicated
to the Authorized Participant on the Purchase Order Date, and wired by the Authorized Participant to the Cash Custodian on the Settlement
Date.
Rejection
of Purchase Orders
The
Sponsor or its designee has the absolute right, but does not have any obligation, to reject any purchase order if the Sponsor determines
that:
●
the
                                            Purchase Order is not in proper form;
●
it
                                            would not be in the best interest of the Shareholders;
●
the
                                            acceptance of the Purchase Order would have adverse tax consequences to the Trust or its
                                            Shareholders;
●
the
                                            acceptance or receipt of which would, in the opinion of counsel to the Sponsor, be unlawful;
                                            or
●
circumstances
                                            outside the control of the Trust, the Sponsor, the Marketing Agent, the Transfer Agent, the
                                            Cash Custodian or the Solana Custodian make it, for all practical purposes, not feasible
                                            to process Baskets (including if the Sponsor determines that the investments available to
                                            the Trust at that time will not enable it to meet its investment objective).
None
of the Sponsor, the Marketing Agent, the Cash Custodian or the Solana Custodian will be liable for the rejection of any Purchase Order.
Redemption
Procedures
On
any business day, an Authorized Participant may place an order with the Transfer Agent through the Marketing Agent to redeem one or more
Baskets (a "Redemption Order"). Redemption Orders must be placed by 2:00 p.m. ET (the "Redemption Order Cut-Off Time"),
which may be modified by the Sponsor in its sole discretion. A Redemption Order will be effective on the date it is accepted by the Transfer
Agent ("Redemption Order Date"). The redemption distribution from the Trust in exchange for a redemption of Shares consists
of a movement of cash representing the Basket Amount of Solana, less any trading expenses incurred by the Trust in liquidating the Solana,
to the redeeming Authorized Participant or its designee.
104
Under
the Trust-Directed Trade Model, the procedures by which an Authorized Participant can redeem one or more Baskets mirror the procedures
for the creation of Baskets under the Trust-Directed Trade Model with an additional safeguard on Solana being removed from the Trust
Solana Account, which will not occur until cash has been received by the Cash Custodian in an amount equal to the Basket Amount of Solana
multiplied by the price at which the Trust agrees with the Solana Trading Counterparty to sell the Solana on the Redemption Order Date.
When seeking to sell Solana on behalf of the Trust, the Sponsor will seek to sell Solana at a price as close to the Pricing Benchmark
as practical. Once the trade has been agreed upon with a Solana Trading Counterparty, the transaction will generally occur on an "over-the-counter"
basis. Transfers of Solana from the Trust Solana Account to the Solana Trading Counterparty are "on-chain" transactions represented
on the Solana Network. The Authorized Participant must deliver the Shares represented by the Basket to be redeemed to the Trust's
DTC account by end of day ET on the business day following the Redemption Order Date (the "Redemption Order Settlement Date").
The Solana Custodian will not send the Basket Amount of Solana from the Trust Solana Account to the Solana Trading Counterparty until
the Cash Custodian has received the cash from the Solana Trading Counterparty and is instructed by the Sponsor to make such transfer.
Once the Solana Trading Counterparty has sent the cash to the Cash Custodian in an agreed-upon amount to settle the agreed upon sale
of the Basket Amount of Solana, the Transfer Agent will notify the Sponsor. The Sponsor will then notify the Solana Custodian to transfer
the Solana to the Solana Trading Counterparty, and the Transfer Agent will facilitate the redemption of Shares in exchange for cash.
Once the Authorized Participant has delivered the Shares represented by the Basket to be redeemed to the Trust's DTC account, the
Cash Custodian will wire the requisite amount of cash to the Authorized Participant. Transfers of Solana from the Trust Solana Account
to the Solana Trading Counterparty are "on-chain" transactions represented on the Solana Network. In the event that by the
end of the day on the Redemption Order Settlement Date, the Trust's account at DTC shall not have been credited with the total
number of Shares corresponding to the total number of Baskets to be redeemed pursuant to such Redemption Order the Transfer Agent shall
send to the Authorized Participant, the Sponsor and the Solana Custodian via fax or electronic mail message notice of such fact and the
Authorized Participant shall have two (2) business days following receipt of such notice to correct such failure. If such failure is
not cured within such two (2) business day period, the Transfer Agent (in consultation with the Sponsor) will cancel such Redemption
Order and will send via fax or electronic mail message notice of such cancellation to the Authorized Participant and the Solana Custodian,
and the Authorized Participant will be solely responsible for all costs incurred by the Trust, the Transfer Agent, the Sponsor or the
Solana Custodian related to the cancelled Redemption Order.
For
a redemption of Baskets utilizing the Agent Execution Model, the Authorized Participant may be required to submit a Redemption Order
by an earlier than normal order cutoff time (the "Redemption Early Order Cutoff Time"). The Redemption Early Order Cutoff
Time may be as early as 5:00 p.m. ET on the business day prior to Redemption Order Date. Once a Redemption Order is received, the Sponsor
instructs the Solana Custodian to prepare to transfer the Solana associated with the Redemption Order from the Trust Solana Account with
the Solana Custodian to the Trust's Trading Balance with the Prime Execution Agent. For a Redemption Order utilizing the Agent
Execution Model, on the evening of the Redemption Order Date, the Prime Execution Agent, acting in an agency capacity, conducts Solana
sales on behalf of the Trust with third parties through its [Prime service] in exchange for cash. The Trust's Trading Balance with
the Prime Execution Agent may not be funded with Solana on the evening of the Redemption Order Date at the time of the intended execution
of the sale of Solana in connection with the Redemption Order because such Solana is still in the Trust Solana Account at the Solana
Custodian. In those circumstances the Trust may borrow Trade Credits in the form of Solana from the Trade Credit Lender, which allows
the Trust to sell Solana through the Prime Execution Agent on the evening Redemption Order Date, and the cash proceeds are deposited
in the Trust's Trading Balance with the Prime Execution Agent. Such cash is then transferred to the Cash Custodian. The Trust will
subsequently transfer the Basket Amount of Solana from the Trust Solana Account to the Trust's Trading Balance with the Prime Execution
Agent. Once the Authorized Participant has delivered the Shares represented by the Basket to be redeemed to the Trust's DTC account,
the Cash Custodian will then wire the requisite amount of cash to the Authorized Participant. In the event Trade Credits were used, the
Trust will use the Solana that is moved from the Trust Solana Account with the Solana Custodian to the Trading Balance with the Prime
Execution Agent to repay the Trade Credits borrowed from the Trade Credit Lender. Transfers of Solana from the Trust Solana Account to
the Trust's Trading Balance are "on-chain" transactions represented on the Solana Network.
105
Suspension
or Rejection of Redemption Orders
The
Sponsor may, in its discretion, suspend the right of purchase or redemption or may postpone the Redemption Order Settlement Date, for
(1) for any period during which the Exchange is closed other than customary weekend or holiday closings, or trading on the Exchange is
suspended or restricted, (2) any period during which an emergency exists as a result of which the fulfillment of a purchase order
or the redemption distribution is not reasonably practicable (for example, as a result of an interruption in services or availability
of the Prime Execution Agent, Solana Custodian, Cash Custodian, Administrator, or other service providers to the Trust, act of God, catastrophe,
civil disturbance, government prohibition, war, terrorism, strike or other labor dispute, fire, force majeure, interruption in telecommunications,
internet services, or network provider services, unavailability of Fedwire, SWIFT or banks' payment processes, significant technical
failure, bug, error, disruption or fork of the Solana Network, hacking, cybersecurity breach, or power, internet, or Solana Network outage,
or similar event), or (3) such other period as the Sponsor determines to be necessary for the protection of the Shareholders of the Trust
(for example, where acceptance of the U.S. dollars needed to create each Basket would have certain adverse tax consequences to the Trust
or its Shareholders). For example, the Sponsor may determine that it is necessary to suspend redemptions to allow for the orderly liquidation
of the Trust's assets. If the Sponsor has difficulty liquidating the Trust's positions (e.g., because of a market disruption
event), it may be appropriate to suspend redemptions until such time as such circumstances are rectified. None of the Sponsor, the person
authorized to take Redemption Orders in the manner provided in the Authorized Participant Agreement, the Solana Custodian or the Cash
Custodian will be liable to any person or in any way for any loss or damages that may result from any such suspension or postponement.
Redemption
Orders must be made in whole Baskets. The Sponsor acting by itself or through the person authorized to take Redemption Orders in the
manner provided in the Authorized Participant Agreement may, in its sole discretion, reject any Redemption Order (1) the Sponsor determines
not to be in proper form, (2) the fulfillment of which its counsel advises may be illegal under applicable laws and regulations, or (3)
if circumstances outside the control of the Sponsor, the person authorized to take redemption orders in the manner provided in the Authorized
Participant Agreement or the Solana Custodian make it for all practical purposes not feasible for the Shares to be delivered under the
Redemption Order. The Sponsor may also reject a Redemption Order if the number of Shares being redeemed would reduce the remaining outstanding
Shares to 100,000 Shares (
i.e.
, ten Baskets) or fewer.
Creation
and Redemption Transaction Fee
To
compensate the Transfer Agent for expenses incurred in connection with the creation and redemption of Baskets, an Authorized Participant
is required to pay a transaction fee to the Transfer Agent to create or redeem Baskets, which does not vary in accordance with the number
of Baskets in such order. The transaction fee may be reduced, increased or otherwise changed by the Sponsor.
Tax
Responsibility
Authorized
Participants are responsible for any transfer tax, sales or use tax, stamp tax, recording tax, value added tax or similar tax or governmental
charge applicable to the creation or redemption of Baskets, regardless of whether or not such tax or charge is imposed directly on the
Authorized Participant, and agree to indemnify the Sponsor and the Trust if they are required by law to pay any such tax, together with
any applicable penalties, additions to tax and interest thereon.
Secondary
Market Transactions
As
discussed above, Authorized Participants are the only persons that may place orders to create and redeem Baskets. Authorized Participants
must be registered broker-dealers or other securities market participants, such as banks and other financial institutions that are not
required to register as broker-dealers to engage in securities transactions. An Authorized Participant is under no obligation to create
or redeem Baskets, and an Authorized Participant is under no obligation to offer to the public Shares of any Basket it does create.
Authorized
Participants that do offer to the public Shares from the Basket they create will do so at per-Share offering prices that are expected
to reflect, among other factors, the trading price of the Shares on the Exchange, the NAV of the Trust at the time the Authorized Participant
purchased the Baskets, the NAV of the Shares at the time of the offer of the Shares to the public, the supply of and demand for Shares
at the time of sale, and the liquidity of Solana or other portfolio investments. Baskets are generally expected to be redeemed when the
price per Share is at a discount to the NAV per Share. Shares initially comprising the same Basket but offered by Authorized Participants
to the public at different times may have different offering prices. An order for one or more Baskets may be placed by an Authorized
Participant on behalf of multiple clients. Authorized Participants who make deposits of cash with the Trust in exchange for Baskets receive
no fees, commissions or other forms of compensation or inducement of any kind from either the Trust or the Sponsor, and no such person
has any obligation or responsibility to the Sponsor or the Trust to effect any sale or resale of Shares.
106
Shares
are expected to trade in the secondary market on the Exchange. Shares may trade in the secondary market at prices that are lower or higher
relative to their NAV per Share. The amount of the discount or premium in the trading price relative to the NAV per Share may be influenced
by various factors, including the number of investors who seek to purchase or sell Shares in the secondary market and the liquidity of
Solana.
Use
of Proceeds
Proceeds
received by the Trust from Purchase Orders of Baskets will be used to acquire Solana. Such deposits of cash are held by the Cash Custodian
on behalf of the Trust until (i) used to acquire Solana, (ii) accrued and distributed to pay fees due to the Sponsor and Trust expenses
and liabilities not assumed by the Sponsor, (iii) distributed to Authorized Participant in connection with redemptions of Baskets, or
(iv) disposed of in a liquidation of the Trust.
In
the event that the Trust is terminated and its assets are to be liquidated, all of the Trust's Solana will be sold and the cash
proceeds will be distributed to Shareholders. Under no circumstances will the Trust distribute Solana to Shareholders.
Ownership
oF Beneficial Interest in the Trust
The
beneficial interest in the Trust is divided into Shares. Each Share of the Trust represents an equal beneficial interest in the net assets
of the Trust, and each holder of Shares is entitled to receive such holder's pro rata share of distributions of income and capital
gains, if any.
All
Shares are fully paid and non-assessable. No Share will have any priority or preference over any other Share of the Trust. All distributions,
if any, will be made ratably among all Shareholders from the assets of the Trust according to the number of Shares held of record by
such Shareholders on the record date for any distribution or on the date of termination of the Trust, as the case may be. Except as otherwise
provided by the Sponsor, Shareholders will have no preemptive or other right to subscribe to any additional shares or other securities
issued by the Trust.
The
Sponsor will have full power and authority, in its sole discretion, without seeking the approval of the Trustee or the Shareholders (a)
to establish and designate and to change in any manner and to fix such preferences, voting powers, rights, duties and privileges of the
Trust as the Sponsor may from time to time determine, (b) to divide the beneficial interest in the Trust into an unlimited amount of
Shares, with or without par value, as the Sponsor will determine, (c) to issue Shares without limitation as to number (including fractional
Shares), to such persons and for such amount of consideration, subject to any restriction set forth in the By-Laws, if any, at such time
or times and on such terms as the Sponsor may deem appropriate, (d) to divide or combine the Shares into a greater or lesser number without
thereby materially changing the proportionate beneficial interest of the Shares in the assets held, and (e) to take such other action
with respect to the Shares as the Sponsor may deem desirable. The ownership of Shares will be recorded on the books of the Trust or a
transfer or similar agent for the Trust. No certificates certifying the ownership of Shares will be issued except as the Sponsor may
otherwise determine from time to time. The Sponsor may make such rules as it considers appropriate for the issuance of share certificates,
transfer of Shares and similar matters. The record books of the Trust as kept by the Trust, or any transfer or similar agent, as the
case may be, will be conclusive as to the identity of the Shareholders and as to the number of Shares held from time to time by each.
Conflicts
of Interest
There
are present and potential future conflicts of interest in the Trust's structure and operation you should consider before you purchase
Shares. The Sponsor will use this notice of conflicts as a defense against any claim or other proceeding made. If the Sponsor is not
able to resolve these conflicts of interest adequately, it may impact the Trust's ability to achieve its investment objectives.
107
The
officers, directors and employees of the Sponsor do not devote their time exclusively to the Trust. These persons are directors, officers
or employees of other entities, or otherwise work in respect of other clients, which may compete with the Trust for their services. They
could have a conflict between their responsibilities to the Trust and to those other entities.
The
Sponsor has adopted policies and procedures that identify the conflicts of interest associated with these companies and their principals,
officers, directors and employees when and if trading Solana, Solana futures and related contracts or other Solana-linked derivatives.
These policies are intended to prevent conflicts of interest occurring where the Sponsor or their principals, officers, directors or
employees could give preferential treatment to their own accounts or trade their own accounts ahead of or against the Trust. Pursuant
to these policies, all principals, officers, directors and employees of the Sponsor, and their family members, must receive prior written
clearance from the Sponsor's chief compliance officer before entering into a transaction in Solana, Solana futures or any other
Solana-linked derivative equal if such transaction exceeds $4,999 in current market value. To the extent any such transaction constitutes
a purchase of Solana, Solana futures or other Solana-linked derivative exceeds $4,999 in current market value, the policies require that
such Solana, Solana futures or Solana-linked derivative must be held for 60 days before it can be traded or sold.
The
Sponsor has sole current authority to manage the investments and operations of the Trust, and this may allow it to act in a way that
furthers its own interests, which may create a conflict with a Shareholder's best interests. Except as required under applicable
federal law or under the rules or regulations of the Exchange, Shareholders have no voting rights, which will limit their ability to
influence matters such as amendment of the Trust Agreement, a change in the Trust's basic investment policy, dissolution of the
Trust, or the sale or distribution of the Trust's assets.
The
Sponsor serves as the sponsor for the Trust. The Sponsor may have a conflict to the extent that its trading decisions for the Trust may
be influenced by the effect they would have on the other funds it manages, including, but not limited to, the Bitwise 10 Crypto Index
Fund, LLC; the Bitwise 10 Index Offshore Fund Ltd.; the Digital Asset Index Fund; the Bitwise Bitcoin Fund, LLC; the Bitwise Ethereum
Fund, LLC; the Bitwise DeFi Crypto Index Fund; the Bitwise Bitcoin ETF; and the Bitwise Ethereum ETF. In addition, the Sponsor may be
required to indemnify its officers, directors and key employees with respect to their activities on behalf of the other funds, if the
need for indemnification arises. This potential indemnification could cause the Sponsor's assets to decrease. If the Sponsor's
other sources of income are not sufficient to compensate for the indemnification, it could cease operations, which could in turn result
in Trust losses and/or termination of the Trust.
If
the Sponsor acquires knowledge of a potential transaction or arrangement that may be an opportunity for the Trust, it will have no duty
to offer such opportunity to the Trust. The Sponsor will not be liable to the Trust or the Shareholders for breach of any fiduciary or
other duty if the Sponsor pursues such opportunity or directs it to another person or does not communicate such opportunity to the Trust.
Neither the Trust nor any Shareholder has any rights or obligations by virtue of the Trust Agreement, the trust relationship created
thereby, or this Prospectus in such business ventures or the income or profits derived from such business ventures. The pursuit of such
business ventures, even if competitive with the activities of the Trust, will not be deemed wrongful or improper.
Resolution
of Conflicts Procedures
The
Trust Agreement provides that whenever a conflict of interest exists between the Sponsor or any of its affiliates, on the one hand, and
the Trust or any Shareholders or any other person, on the other hand, the Sponsor will resolve such conflict of interest considering
the relative interest of each party (including its own interest) and the benefits and burdens relating to such interests, any customary
or accepted industry practices, and any applicable accepted accounting practices or principles.
Fiduciary
and Regulatory Duties AND OBLIGATIONS of the Sponsor
The
general fiduciary duties that would otherwise be imposed on the Sponsor (which would make its operation of the Trust as described herein
impracticable due to the strict prohibition imposed by such duties on, for example, conflicts of interest on behalf of a fiduciary in
its dealings with its beneficiaries) are defined and limited in scope by the terms of the Trust Agreement (to which terms all Shareholders,
by subscribing to the Shares, are deemed to consent).
Additionally,
under the Trust Agreement, the Sponsor has the following obligations as a sponsor of the Trust:
●
To
                                            execute, file, record and/or publish all certificates, statements and other documents and
                                            do any and all other things as may be appropriate for the formation, qualification and operation
                                            of the Trust and for the conduct of its business in all appropriate jurisdictions;
108
●
To
                                            retain independent public accountants to audit the accounts of the Trust;
●
To
                                            employ attorneys to represent the Trust;
●
To
                                            select the Trust's Trustee, administrator, transfer agent, custodian(s), digital asset
                                            trading platform counterparties and OTC market participant counterparties, Pricing Benchmark,
                                            Benchmark Provider, marketing agent(s), insurer(s) and any other service provider(s) and
                                            cause the Trust to enter into contracts with such service provider(s);
●
To
                                            negotiate and enter into insurance agreements to secure and maintain the insurance coverage
                                            to the extent described in this Prospectus;
●
To
                                            develop a marketing plan for the Trust on an ongoing basis and prepare marketing materials
                                            regarding the Trust;
●
To
                                            maintain the Trust's website;
●
To
                                            acquire and sell Solana, subject in each instance to the limitations imposed by the Trust
                                            Agreement, with a view to providing Shareholders with exposure to the value of Solana held
                                            by the Trust, less the expenses of the Trust's operations, valuing the Trust's
                                            net assets and the Shares daily with reference to the Pricing Benchmark, or any other pricing
                                            methodology adopted by the Sponsor in its discretion (for the avoidance of doubt, the Sponsor
                                            may select such subsequent pricing methodology without Shareholder approval);
●
In
                                            connection with a hard fork of the Solana Network to which the Sponsor has actual knowledge,
                                            to determine, in good faith, whether the digital asset network running the modified or the
                                            extant Solana Network software is generally accepted to be the Solana Network and should
                                            therefore be considered to be Solana for the purposes of the Trust's ongoing operations;
●
To
                                            enter into an Authorized Participant Agreement with each Authorized Participant and discharge
                                            the duties and responsibilities of the Trust and the Sponsor thereunder;
●
To
                                            receive directly or through its delegates from Authorized Participants and process or cause
                                            its delegates to process properly submitted Purchase Orders, as described in the Trust Agreement
                                            and in the Authorized Participant Agreement;
●
In
                                            connection with Purchase Orders, to receive from Authorized Participants directly or through
                                            its delegates the required amount of cash;
●
In
                                            connection with Purchase Orders, after accepting a Purchase Order and receiving the required
                                            amount of cash, either directly or through its delegates to direct the Transfer Agent to
                                            credit the Baskets to fill the Purchase Order within one (1) business day immediately following
                                            the Purchase Order Date;
●
To
                                            receive directly or through its delegates from Authorized Participants and process or cause
                                            its delegates to process properly submitted Redemption Orders, as described in the Trust
                                            Agreement and in the Authorized Participant Agreement;
●
To
                                            assist in the preparation and filing of reports and proxy statements (if any) to the Shareholders,
                                            the periodic updating of the Registration Statement and this Prospectus and other reports
                                            and documents for the Trust required to be filed by the Trust with the SEC and other governmental
                                            bodies;
●
To
                                            use its best efforts to maintain the status of the Trust as a grantor trust for U.S. federal
                                            income tax purposes, including by making such elections, filing such tax returns, and preparing,
                                            disseminating and filing such tax reports as it is advised by its counsel or accountants
                                            are from time to time required by any statute, rule or regulation of the United States, any
                                            state or political subdivision thereof, or other jurisdiction having taxing authority in
                                            respect of the Trust or its administration; the expense of accountants employed to prepare
                                            such tax returns and tax reports will be an expense of the Trust;
109
●
To
                                            monitor all fees charged to the Trust, and the services rendered by the service providers
                                            to the Trust, to determine whether the fees paid by, and the services rendered to, the Trust
                                            are at competitive rates and are the best price and services available under the circumstances
                                            and, if necessary, to renegotiate the fee structure to obtain such rates and services for
                                            the Trust;
●
To
                                            perform such other services as the Sponsor believes the Trust may from time to time require;
                                            and
●
In
                                            general, to carry out any other business in connection with or incidental to any of the foregoing
                                            powers; to do everything necessary, suitable or proper for the accomplishment of any purpose
                                            or the attainment of any object or the furtherance of any power herein set forth, either
                                            alone or in association with others; and to do every other act or thing incidental or appurtenant
                                            or growing out of or connected with the aforesaid business or purposes, objects or powers.
To
the extent that a law (common or statutory) or in equity, the Sponsor has duties (including fiduciary duties) and liabilities relating
thereto to the Trust, the Shareholders or any other person, the Sponsor will not be liable to the Trust, the Shareholders or to any other
person for its good faith reliance on the provisions of the Trust Agreement or this Prospectus unless such reliance constitutes gross
negligence, bad faith, or willful misconduct on the part of the Sponsor.
Liability
and Indemnification
Trustee
The
Trustee will not be liable for the acts or omissions of the Sponsor, nor will the Trustee be liable for supervising or monitoring the
performance and the duties and obligations of the Sponsor or the Trust under the Trust Agreement. The Trustee will not be personally
liable under any circumstances, except for its own willful misconduct, bad faith or gross negligence. In particular, but not by way of
limitation:
(a)	the
Trustee will not be personally liable for any error of judgment made in good faith except to the extent such error of judgment constitutes
gross negligence on its part;
(b)	no
provision of the Trust Agreement will require the Trustee to expend or risk its personal funds or otherwise incur any financial liability
in the performance of its rights or powers hereunder, if the Trustee shall have reasonable grounds for believing that the payment of
such funds or adequate indemnity against such risk or liability is not reasonably assured or provided to it;
(c)	under
no circumstances will the Trustee be personally liable for any representation, warranty, covenant, agreement, or indebtedness of the
Trust;
(d)	the
Trustee will not be personally responsible for or in respect of the validity or sufficiency of the Trust Agreement or for the due execution
hereof by the Sponsor;
(e)	the
Trustee will incur no liability to anyone in acting upon any signature, instrument, notice, resolution, request, consent, order, certificate,
report, opinion, bond or other document or paper reasonably believed by it to be genuine and reasonably believed by it to be signed by
the proper party or parties. The Trustee may accept a certified copy of a resolution of any governing body of any corporate party as
conclusive evidence that such resolution has been duly adopted by such body and that the same is in full force and effect. As to any
fact or matter the manner of ascertainment of which is not specifically prescribed herein, the Trustee may for all purposes hereof rely
on a certificate, signed by an authorized officer of the Sponsor or any other corresponding directing party, as to such fact or matter,
and such certificate will constitute full protection to the Trustee for any action taken or omitted to be taken by it in good faith in
reliance thereon;
(f)	in
the exercise or administration of the trust hereunder, the Trustee (i) may act directly or through agents or attorneys pursuant to agreements
entered into with any of them, and the Trustee will not be liable for the default or misconduct of such agents or attorneys if such agents
or attorneys will have been selected by the Trustee in good faith and with due care and (ii) may consult with counsel, accountants and
other skilled persons to be selected by it in good faith and with due care and employed by it, and it will not be liable for anything
done, suffered or omitted in good faith by it in accordance with the advice or opinion of any such counsel, accountants or other skilled
persons;
110
(g)	except
as expressly provided in Article III of the Trust Agreement, the Trustee acts solely as a trustee under the Trust Agreement and not in
its individual capacity, and all persons having any claim against the Trustee by reason of the transactions contemplated by the Trust
Agreement will look only to the Trust's property for payment or satisfaction thereof; and
(h)	the
Trustee will not be liable for punitive, exemplary, consequential, special or other similar damages under any circumstances.
The
Trustee or any officer, affiliate, director, employee, or agent of the Trustee (each, an "Indemnified Person") will be entitled
to indemnification from the Sponsor or the Trust, to the fullest extent permitted by law, from and against any and all losses, claims,
taxes, damages, reasonable expenses, and liabilities (including liabilities under state or federal securities laws) of any kind and nature
whatsoever (collectively, "Losses"), to the extent that such Losses arise out of or are imposed upon or asserted against
such Indemnified Persons with respect to the creation, operation or termination of the Trust, the execution, delivery or performance
of the Trust Agreement or the transactions contemplated in the Trust Agreement; provided, however, that the Sponsor and the Trust will
not be required to indemnify any Indemnified Person for any Losses that are a result of the willful misconduct, bad faith or gross negligence
of such Indemnified Person. The obligations of the Sponsor and the Trust to indemnify the Indemnified Persons will survive the termination
of the Trust Agreement.
Sponsor
The
Sponsor will not be under any liability to the Trust, the Trustee or any Shareholder for any action taken or for refraining from the
taking of any action in good faith pursuant to the Trust Agreement, or for errors in judgment or for depreciation or loss incurred by
reason of the sale of any Solana or other assets held in trust hereunder; provided, however, that this provision will not protect the
Sponsor against any liability to which it would otherwise be subject by reason of its own gross negligence, bad faith, or willful misconduct.
The Sponsor may rely in good faith on any paper, order, notice, list, affidavit, receipt, evaluation, opinion, endorsement, assignment,
draft or any other document of any kind prima facie properly executed and submitted to it by the Trustee, the Trustee's counsel
or any other Indemnified Person for any matters arising hereunder. The Sponsor will in no event be deemed to have assumed or incurred
any liability, duty, or obligation to any Shareholder or to the Trustee other than as expressly provided for herein. The Trust will not
incur the cost of that portion of any insurance which insures any party against any liability, the indemnification of which is herein
prohibited.
In
addition, as described in the Trust Agreement, (i) whenever a conflict of interest exists or arises between the Sponsor or any of its
Affiliates, on the one hand, and the Trust, on the other hand; or (ii) whenever the Trust Agreement or any other agreement contemplated
herein or therein provides that the Sponsor will act in a manner that is, or provides terms that are, fair and reasonable to the Trust,
the Sponsor will resolve such conflict of interest, take such action or provide such terms, considering in each case the relative interest
of each party (including its own interest) to such conflict, agreement, transaction or situation and the benefits and burdens relating
to such interests, and any applicable generally accepted accounting practices or principles. In the absence of bad faith by the Sponsor,
the resolution, action or terms so made, taken or provided by the Sponsor will not constitute a breach of the Trust Agreement or any
other agreement contemplated herein or of any duty or obligation of the Sponsor at law or in equity or otherwise.
The
Sponsor and its shareholders, members, directors, officers, employees, Affiliates and subsidiaries (each a "Sponsor Indemnified
Party") will be indemnified by the Trust and held harmless against any loss, liability or expense incurred hereunder without gross
negligence, bad faith, or willful misconduct on the part of such Sponsor Indemnified Party arising out of or in connection with the performance
of its obligations under the Trust Agreement or any actions taken in accordance with the provisions of the Trust Agreement. Any amounts
payable to a Sponsor Indemnified Party under Section 4.06 of the Trust Agreement may be payable in advance or will be secured by a lien
on the Trust. The Sponsor will not be under any obligation to appear in, prosecute or defend any legal action that in its opinion may
involve it in any expense or liability; provided, however, that the Sponsor may, in its discretion, undertake any action that it may
deem necessary or desirable in respect of the Trust Agreement and the rights and duties of the parties hereto and the interests of the
Shareholders and, in such event, the legal expenses and costs of any such action will be expenses and costs of the Trust and the Sponsor
will be entitled to be reimbursed therefor by the Trust. The obligations of the Trust to indemnify the Sponsor Indemnified Parties will
survive the termination of the Trust Agreement.
111
Provisions
of Law
According
to applicable law, indemnification of the Sponsor is payable only if the Sponsor determined, in good faith, that the act, omission or
conduct that gave rise to the claim for indemnification was in the best interest of the Trust and the act, omission or activity that
was the basis for such loss, liability, damage, cost or expense was not the result of negligence or misconduct and such liability or
loss was not the result of negligence or misconduct by the Sponsor, and such indemnification or agreement to hold harmless is recoverable
only out of the assets of the Trust.
Provisions
of Federal and State Securities Laws
This
offering is made pursuant to federal and state securities laws. The SEC and state securities agencies take the position that indemnification
of the Sponsor that arises out of an alleged violation of such laws is prohibited unless certain conditions are met.
These
conditions require that no indemnification of the Sponsor or any underwriter for the Trust may be made in respect of any losses, liabilities
or expenses arising from or out of an alleged violation of federal or state securities laws unless: (i) there has been a successful adjudication
on the merits of each count involving alleged securities law violations as to the party seeking indemnification and the court approves
the indemnification; (ii) such claim has been dismissed with prejudice on the merits by a court of competent jurisdiction as to the party
seeking indemnification; or (iii) a court of competent jurisdiction approves a settlement of the claims against the party seeking indemnification
and finds that indemnification of the settlement and related costs should be made, provided that, before seeking such approval, the Sponsor
or other indemnitee must apprise the court of the position held by regulatory agencies against such indemnification. These agencies are
the SEC and the securities administrator of the state or states in which the plaintiffs claim they were offered or sold interests.
Provisions
of the 1933 Act and NASAA Guidelines
Insofar
as indemnification for liabilities arising under the 1933 Act may be permitted to the Sponsor or its directors, officers, or persons
controlling the Trust, the Trust has been informed that the SEC and the various state administrators believe that such indemnification
is against public policy as expressed in the 1933 Act and the North American Securities Administrators Association, Inc. ("NASAA")
commodity pool guidelines and is therefore unenforceable.
Management;
Voting by Shareholders
Except
as required under applicable federal law or under the rules or regulations of the Exchange, Shareholders shall have no voting rights
hereunder (including with respect to mergers, consolidations or conversions of the Trust or transfers to or domestication in any jurisdiction
by the Trust or any other matters that under the Delaware Act default voting rights are provided to holders of beneficial interests).
The Shareholders shall have the right to vote on other matters only as the Sponsor may consider desirable and so authorize in its sole
discretion. To the extent that federal or Delaware law is amended, modified or interpreted by rule, regulation, order, or no-action letter
to (on a mandatory basis) expand, eliminate or limit Shareholders' right to vote on any specific matter, the Shareholders'
right to vote shall be deemed to be amended, modified or interpreted in accordance therewith without further approval by the Sponsor
or the Shareholders.
Meetings
Meetings
of the Trust's Shareholders may be called by the Sponsor for such purposes as may be prescribed by law or the Trust Agreement.
All notices of meetings will be sent or otherwise given to each Shareholder of record not less than seven nor more than one hundred twenty
days before the date of the meeting in the manner determined by the Sponsor. The notice will specify: (a) the place, date and hour of
the meeting; and (b) the general nature of the business to be transacted. Shareholders may vote in person, by proxy, or in any manner
determined by the Sponsor at any such meeting. Except when a larger quorum is required by applicable law or by the Trust Agreement, the
presence (in person or by ballot) of thirty-three and one-third percent (33 1/3%) of the Shares entitled to vote will constitute a quorum
at a Shareholders' meeting. Any action taken by Shareholders may be taken without a meeting so long as Shareholders holding a majority
of Shares entitled to vote on the matter (or such larger proportion thereof as will be required by any express provision of this Trust
Agreement or federal law) or holding a majority (or such larger proportion as aforesaid) of the Shares entitled to vote separately on
the matter consent to the action in writing or by other electronic means. Such consent will be treated for all purposes as a vote taken
at a meeting of Shareholders.
112
Books
and Records
The
Trust keeps its books of record and account at the office of the Sponsor located at 250 Montgomery Street, Suite 200, San Francisco,
CA 94104, or at the offices of the Administrator, or at such office, including of an administrative agent, as it may subsequently designate
upon notice. The books and records are open to inspection by any person who establishes to the Trust's satisfaction that such person
is a Shareholder upon reasonable advance notice at all reasonable times during usual business hours of the Trust.
The
Trust keeps a copy of the Trust Agreement on file in the Sponsor's office which will be available for inspection by any Shareholder
at all times during the Trust's usual business hours upon reasonable advance notice.
Statements,
Filings, and Reports to Shareholders
After
the end of each fiscal year, the Sponsor will cause to be prepared an annual report for the Trust containing audited financial statements.
The annual report will be in such form and contain such information as will be required by applicable laws, rules and regulations and
may contain such additional information that the Sponsor determines shall be included. The annual report will be filed with the SEC and
the Exchange and will be distributed to such persons and in such manner as is required by applicable laws, rules and regulations.
The
Sponsor is responsible for the registration and qualification of the Shares under federal securities laws. The Sponsor will also prepare,
or cause to be prepared, and file any periodic reports or updates required under the Exchange Act. The Administrator will assist and
support the Sponsor in the preparation of such reports.
The
Administrator will make such elections, file such tax returns, and prepare, disseminate and file such tax reports as it is advised to
by its counsel or accountants or as required from time to time by any applicable statute, rule or regulation.
Fiscal
Year
The
fiscal year of the Trust is the calendar year. The Sponsor may select an alternate fiscal year.
Governing
Law; Consent to Delaware Jurisdiction
The
rights of the Sponsor, the Trust, DTC (as registered owner of the Trust's global certificate for Shares) and the Shareholders are
governed by the laws of the State of Delaware. The Sponsor, the Trust and DTC and, by accepting Shares, each DTC Participant and each
Shareholder consent to the exclusive jurisdiction of the courts of the State of Delaware and any federal courts located in Delaware.
Such consent is not required for any person to assert a claim of Delaware jurisdiction over the Sponsor or the Trust. However, pursuant
to the Trust Agreement, this shall not apply to causes of action for violations of U.S. federal or state securities laws. Section 22
of the 1933 Act creates concurrent jurisdiction for federal and state courts over all suits brought to enforce any duty or liability
created by the 1933 Act or the rules and regulations thereunder. Investors cannot waive compliance with federal securities laws and the
rules and regulations thereunder.
Legal
Matters
Litigation
and Claims
Within
the past five years of the date of this Prospectus, there have been no material administrative, civil or criminal actions against the
Sponsor, the Trust or any principal or affiliate of any of them. This includes any actions pending, on appeal, concluded, threatened,
or otherwise known to them.
113
Legal
Opinion
Chapman
and Cutler LLP has advised the Sponsor in connection with the Shares being offered. Chapman and Cutler LLP also advises the Sponsor with
respect to its responsibilities as sponsor of, and with respect to matters relating to, the Trust. Certain opinions of counsel have been
filed with the SEC as exhibits to the Registration Statement of which this Prospectus is a part.
Experts
________,
_______________, __________________, an independent registered public accounting firm, is hereby named as an expert in auditing and accounting.
Material
Contracts
Fund
Administration and Accounting Agreement
Pursuant
to the Fund Administration and Accounting Agreement, the Administrator is generally responsible for the day-to-day administration of
the Trust. The responsibilities of the Administrator include (i) establishing appropriate expense accruals and computing expense ratios,
maintaining expense files and coordinating the payment of Trust-approved invoices; (ii) calculating Trust-approved income and per Share
amounts required for periodic distributions to be made by the Trust; (iii) calculating total return information; (iv) coordinating the
Trust's annual audit; (v) supplying various normal and customary portfolio and Trust statistical data as requested on an ongoing
basis; and (vi) preparing financial statements for the Trust.
The
responsibilities of the Administrator also include providing various valuation and computation accounting services for the Trust, including
(i) maintaining certain financial books and records for the Trust, including creation and redemptions books and records, and Trust accounting
records; (ii) computing the Trust's NAV; (iii) obtaining quotes from pricing services as directed and approved by the Sponsor
or, if such quotes are unavailable, then obtaining such prices from the Sponsor and, in either case, calculating the market value of
the Trust's assets in accordance with the Trust's valuation policies or guidelines; and (iv) transmitting or making available
a copy of the daily portfolio valuation to the Sponsor.
The
Trust will indemnify the Administrator and any affiliate of the Administrator ("Indemnitees"), and the Indemnitees will incur
no liability for their reliance upon (i) any law, act, regulation or interpretation of the same even though the same may thereafter have
been altered, changed, amended or repealed, (ii) the Trust's offering materials or documents (excluding information provided by
the Administrator), (iii) any instructions, or (iv) any written opinion of legal counsel for the Trust or the Administrator, or arising
out of transactions or other activities of the Trust that occurred prior to the commencement of the Fund Administration and Accounting
Agreement; provided, however, that the Trust shall not indemnify any Indemnitee for any losses arising out of such Indemnitees'
own bad faith, gross negligence or willful misconduct in the performance of the Fund Administration and Accounting Agreement.
The
Fund Administration and Accounting Agreement shall be effective commencing upon regulatory approval by the SEC permitting shares of the
Trust to be offered for sale and, unless terminated pursuant to its terms, shall continue until 11:59 p.m. on the date which is the third
anniversary of such date (the "Initial Term"), at which time such Agreement shall terminate, unless renewed in accordance
with the terms hereof. The Fund Administration and Accounting Agreement shall automatically renew for successive terms of one (1) year
each (each, a "Renewal Term"), unless the Trust or the Administrator gives written notice to the other party of its intent
not to renew and such notice is received by the other party not less than ninety (90) days prior to the expiration of the Initial Term
or the then-current Renewal Term (a "Non-Renewal Notice"). In the event a party provides a Non-Renewal Notice, the Fund Administration
and Accounting Agreement shall terminate at 11:59 p.m. on the last day of the Initial Term or Renewal Term, as applicable.
Transfer
Agency and Service Agreement
Pursuant
to the Transfer Agency and Service Agreement, the Transfer Agent is generally responsible for the day-to-day administration of the Trust.
The responsibilities of the Transfer Agent include: (i) performing and facilitating the performance of purchases and redemption of Baskets;
(ii) preparing and transmitting by means of DTC's book-entry system payments for dividends and distributions on or with respect
to the Shares, if any, declared by the Trust; (iii) maintaining the record of the name and address of the Shareholder and the number
of Shares issued by the Trust and held by the Shareholder; and (iv) recording the issuance of Shares of the Trust and maintain a record
of the total number of Shares of the Trust which are outstanding and authorized, based upon data provided to it by the Trust.
114
The
Transfer Agency and Service Agreement will have a one-year initial term and will automatically be renewed for successive one-year periods,
unless terminated by either party pursuant to the terms of the agreement.
Solana
Custody Agreement
Pursuant
to the Solana Custody Agreement, the Solana Custodian is responsible for providing the Trust with segregated cold wallet digital asset
custody. The Trust's assets with the Solana Custodian are held in segregated wallets and are therefore not commingled with corporate
or other customer assets. The Solana Custodian also segregates each of the accounts (comprising multiple wallets in some cases) that
a client (such as the Trust) may hold with the Solana Custodian, and each such account's balance represents the account's
on-chain balance, which can be independently verified by the client or third-party auditors as needed. This approach applies to each
asset supported by the Solana Custodian.
Private
key materials are generated and subsequently stored in a form whereby no private key is stored in a decrypted format. The private key
materials are stored within the Solana Custodian's secure storage facilities within the United States and Europe. For security
reasons, these exact locations are never disclosed.
Personnel
supporting key operations are very limited and the Solana Custodian requires a background check prior to onboarding, and where required,
annually thereafter. No single individual associated with the Solana Custodian has access to full private keys. Private key decryption
and subsequent transaction signing instead require access to multiple systems and human operators in order to reconstitute a key and
perform an on-chain transaction. For security purposes, the Solana Custodian does not disclose specifics about the roles and numbers
of individuals involved in these processes.
The
Solana Custodian's parent, [Solana Custodian's Parent], maintains a commercial crime insurance policy of up to $___ million,
which is intended to cover the loss of client assets held by [Solana Custodian's Parent] and all of its subsidiaries, including
the [Insured Entities], including from employee collusion or fraud, physical loss including theft, damage of key material, security breach
or hack, and fraudulent transfer.
The
Solana Custodian maintains an Internal Audit team that performs periodic internal audits of custody operations. SOC attestations are
also performed on the Solana Custodian's services. The SOC 1 Type 2 and SOC 2 Type 2 reports produced cover private key management
controls. A SOC 1 Type 2 report addresses the controls at a service organization that are likely to be relevant to user entities'
internal control over financial reporting. A SOC 2 Type 2 report addresses controls at a service organization relevant to security, availability,
processing integrity, confidentiality, or privacy in order to support users' evaluations of their own systems of internal control.
The
Solana Custodian will not be liable for any amount greater than the value of the supported digital assets on deposit in the Trust's
custodial account(s) at the time of the event giving rise to the liability.
The
Solana Custody Agreement, which is a part of the Prime Execution Agreement, was effective as of the Prime Execution Agreement's
execution on ___________, and will remain in effect until terminated by either the Trust, the Solana Custodian or the Prime Execution
Agent. The Solana Custodian may terminate the Solana Custody Agreement for any reason upon providing the applicable notice to the Trust,
or immediately for "Cause" (as defined in the Solana Custody Agreement), including, among others, if the Trust materially
breaches the Prime Execution Agreement and such breach remains uncured, undergoes a bankruptcy event, or fails to repay Trade Credits.
The Solana Custodian may terminate the Solana Custody Agreement for any reason upon providing 180 days' notice to the Trust, or
immediately for "Cause." The Solana Custody Agreement forms a part of the Prime Execution Agreement, and is subject to the
termination provisions in the Prime Execution Agreement.
Neither
the Sponsor nor the Trust has given any instructions to the Solana Custodian as it relates to Incidental Rights and/or IR Assets.
115
Prime
Execution Agreement
Pursuant
to the Prime Execution Agreement, the Trust's Solana holdings and cash holdings from time to time may be temporarily held with
the Prime Execution Agent, an affiliate of the Solana Custodian, in the Trading Balance, for certain limited purposes, including in connection
with creations and redemptions of Baskets and the sale of Solana to pay Trust expenses not assumed by the Sponsor. The Sponsor may, in
its sole discretion, add or terminate prime execution agents at any time. The Sponsor may, in its sole discretion, change the prime execution
agent for the Trust, but it will have no obligation whatsoever to do so or to seek any particular terms for the Trust from other such
prime execution agents.
Within
the Trust's Trading Balance, the Prime Execution Agreement provides that the Trust does not have an identifiable claim to any particular
Solana (and cash). Instead, the Trust's Trading Balance represents an entitlement to a pro rata share of the Solana (and cash)
the Prime Execution Agent holds on behalf of customers who hold similar entitlements against the Prime Execution Agent. In this way,
the Trust's Trading Balance represents an omnibus claim on the Prime Execution Agent's Solana (and cash) held on behalf of
the Prime Execution Agent's customers. The Prime Execution Agent holds the Solana associated with customer entitlements across
a combination of omnibus cold wallets, omnibus "hot" wallets (meaning wallets whose private keys are generated and stored
online, in Internet-connected computers or devices) or in omnibus accounts in the Prime Execution Agent's name on a trading venue
(including third-party venues and the Prime Execution Agent's own execution venue) where the Prime Execution Agent executes orders
to buy and sell Solana on behalf of its clients.
Pursuant
to the Prime Execution Agreement, the Trust may engage in sales of Solana by placing orders with the Prime Execution Agent. The Prime
Execution Agent will route orders placed by the Sponsor through the prime execution agent execution platform (the "Trading Platform")
to a Connected Trading Venue where the order will be executed. Each order placed by the Sponsor will be sent, processed and settled at
each Connected Trading Venue to which it is routed. The Prime Execution Agreement provides that the Prime Execution Agent is subject
to certain conflicts of interest, including: (i) the Trust's orders may be routed to the Prime Execution Agent's own execution
venue where the Trust's orders may be executed against other customers of the Prime Execution Agent or with the [Prime Execution
Agent] acting as principal, (ii) the beneficial identity of the counterparty purchaser or seller with respect to the Trust's orders
may be unknown and therefore may inadvertently be another client of the Prime Execution Agent, (iii) the Prime Execution Agent does
not engage in front-running, but is aware of the Trust's orders or imminent orders and may execute a trade for its own inventory
(or the account of an affiliate) while in possession of that knowledge and (iv) the Prime Execution Agent may act in a principal capacity
with respect to certain orders. As a result of these and other conflicts, when acting as principal, the Prime Execution Agent may have
an incentive to favor its own interests and the interests of its affiliates over the Trust's interests.
The
Prime Execution Agent is permitted to suspend or terminate the Prime Execution Agreement under certain circumstances. The Prime Execution
Agent, for itself or as agent for the Solana Custodian and Trade Credit Lender, may not terminate the Prime Execution Agreement (including
the Solana Custody Agreement) or suspend, restrict terminate or modify the Prime Execution Agent Services (as such term is defined in
the Agreement) on less than 180 days' notice, except in the event of (i) a Change in Law or (ii) a "Cause" event (as
such term is defined in the Agreement). The Prime Execution Agreement defines "Prime Execution Agent Services" as (i) the
custody of the Trust's Solana in the Trust Solana Account, the processing of deposits and withdrawals and other custody transactions,
(ii) access to the Prime Execution Agent's trading platform and the execution and settlement of all orders for the sale of Solana
submitted by the Trust, and (iii) the extension of credit to the Trust by the Trade Credit Lender pursuant to the Trade Financing Agreement.
The
Prime Execution Agreement, including the Solana Custody Agreement, was effective as of its execution on ______________, and will remain
in effect until terminated by either the Trust or the Prime Execution Agent. The Trust may terminate the Prime Execution Agreement, including
the Solana Custody Agreement, in whole or in part for any reason upon 30 days' notice to the Prime Execution Agent, for itself
or as agent on behalf of the Solana Custodian or Trade Credit Lender, or upon a [Prime Execution Agent Termination Event]. The Prime
Execution Agreement defines a "[Prime Execution Agent Termination Event]" to mean the occurrence and continuance of (i) a
Bankruptcy Event with respect to any [Solana Custodian Entity], (ii) the failure of any [Solana Custodian Entity] to sell or withdraw
or transfer the Trust's Solana in accordance with the Trust's instructions within the time periods set forth in the Prime
Execution Agreement and such failure is not cured within two (2) business days following the Trust providing written notice to the relevant
[Solana Custodian Entity] ("CB Return Cure"); provided, however, that (A) if, prior to the expiration of the CB Return Cure,
the Prime Execution Agent transfers cash to the Trust in an amount equal to the value of the Solana based on the Benchmark Valuation
(defined as the Pricing Benchmark) as of the time that the request to sell, transfer or withdraw was originally made by the Trust (the
"Solana Cash Value") or if the Prime Execution Agent delivers cash collateral to an account designated by the Trust and in
which the Trust has a perfected, first priority security interest and in an amount equal to the Solana Cash Value until the relevant
Solana is sold, withdrawn or transferred or the Trust elects to receive such amount in cash in lieu of the Prime Execution Agent's
obligation to sell, withdraw or transfer the relevant Solana, in each cash, such failure will be deemed cured; provided, further that,
the Trust shall have the right to choose whether to receive the Solana Cash Value in lieu of the relevant Solana or receive the Solana
Cash Value as cash collateral, or (B) if such failure is due to a technology or security issue where, in the commercially reasonable
opinion of the Prime Execution Agent, returning the relevant Solana would result in material risk to the Trust or the Prime Execution
Agent or may result in the relevant Solana being lost or otherwise not successfully returned and the Prime Execution Agent promptly notifies
the Trust promptly upon Client's notice of such failure, (1) the Trust may request that the Prime Execution Agent still sell, withdraw
or transfer the Solana, but the Prime Execution Agent will have no liability with respect to any such sell, withdrawal or transfer (unless
the Prime Execution Agent or any of the [Solana Custodian Entities] act with negligence unrelated to such technology or security issue)
and any failure to withdraw or transfer shall not result in a [Prime Execution Agent Termination Event ] if the Trust does not receive
the withdrawn or transferred Solana or the proceeds of any such sale due to such technology or security issue, or (2) if the Trust does
not elect to have the Prime Execution Agent still make the sale, withdrawal or transfer, a [Prime Execution Agent Termination Event ]
shall not occur while the relevant security or technology event is occurring and continuing, (iii) the failure of any [Solana Custodian
Entity] to withdraw or transfer cash to the Trust in accordance with the Trust's instructions within the time periods set forth
in the Prime Execution Agreement and such failure is not cured within one (1) business day following the Trust providing written notice
to the relevant [Solana Custodian Entity], (iv) a [Solana Custodian Entity] intentionally or willfully, materially breaches any provision
of the Prime Execution Agreement (other than the provisions of the Solana Custody Agreement) and such breach remains uncured for a period
of ten (10) calendar days after notice of such breach is provided by the Trust to the Prime Execution Agent; or (v) a [Solana Custodian
Entity] intentionally or willfully, materially breaches any provision of the Solana Custody Agreement and such breach remains uncured
for a period of 30 calendar days after notice of such breach is provided by the Trust to the Prime Execution Agent.
116
Trade
Financing Agreement
The
Trade Financing Agreement was entered into between the Trust (as the "Borrower"), [Lender] (the "Lender"), [Agent]
(the "Agent" or "[Agent]"), and [Solana Custodian] as agent with respect to the Trust's balance of Solana
held in the Trust Solana Account pursuant to the Solana Custody Agreement to govern the extension of credit from [Lender] to the Trust
for use in connection with trading Solana on [Agent]'s Trading Platform.
Pursuant
to the terms of the Trade Financing Agreement, the Lender agrees to lend to the Trust a specific quantity of cash and/or Solana (Trade
Credits) in connection with the purchase or sale of Solana via [Agent]'s Trading Platform for use on the Trading Platform up to
the Authorized Amount. The "Authorized Amount" shall mean the aggregate U.S. dollar notional amount of Trade Credits that
the Lender has agreed to extend to the Trust during any Defined Interval. "Defined Interval" means a twenty-four (24) hour
period starting at 6:00 a.m. ET (or such other time as may be notified by the Lender to the Trust from time to time) on any day that
the Lender has extended Trade Credit to the Trust.
The
Trust and the Lender agree that the Trust may use the Trade Credits exclusively for the purpose of the execution of trades on the Trading
Platform. The Lender is under no obligation to continue to provide Trade Credits and may in its sole discretion impose black-out periods
during which Trade Credits for any or all fiat currencies and/or digital assets (including U.S. dollars and Solana) may be unavailable;
provided, however, that the Lender will provide the Trust with advance notice of such black-out periods if feasible to do so.
The
Lender will establish in the name of the Trust a ledger entry for purposes of tracking Trade Credits extended by the Lender ("Trade
Finance Debit Account"). The Trade Finance Debit Account shall reflect the cumulative Trade Credits that the Lender has extended
during each Defined Interval, both in terms of the aggregate notional value of the Trade Credits and the Trade Credits denominated in
specific digital assets (such as Solana). The Trade Finance Debit Account shall be conclusive, absent manifest error, of the amount of
Trade Credits extended by the Lender to the Trust. "Defined Interval" shall mean a twenty-four-hour period starting at 6:00
a.m. ET (or such other time as may be notified by the Lender to the Trust from time to time) on any day that the Lender has extended
Trade Credit to the Trust. For the avoidance of doubt, in the event that the Lender extends Trade Credit to the Trust prior to 6:00 a.m.
ET on any given day, such notional amount of Trade Credit shall be included in the aggregation of the Authorized Amount for the immediately
prior day. The Lender or the Agent may revise the Defined Interval time period referenced above upon five (5) business days' prior
notice to the Trust.
Under
the Trade Financing Agreement, the Lender and the Trust agreed that any digital assets (including Solana) and any item of property (whether
investment property, financial asset, security, general intangible or instrument (each as defined in the UCC) or cash) and all proceeds
of the foregoing, credited to the Trust's Trading Balance and Trust Solana Account, shall be treated as a "financial asset"
within the meaning of NY UCC §8-102(a)(9). The Trust granted to the Lender and the Agent a continuing first priority security interest
in, lien on and right of set-off against all of the Trust's right, title and interest, whether now owned or existing or hereafter
acquired or arising, in the Trust's Trading Balance and Trust Solana Account together with proceeds thereof, in order to secure
(i) repayment of Trade Credits to the Lender, (ii) payment of all fees and other amounts owed by the Trust to the Lender or the
Agent hereunder, and (iii) all other obligations of the Trust to the Lender and the Agent arising hereunder from time to time. In addition,
the Trust shall execute such documents and take such other actions as the Lender or the Agent shall reasonably request in order to perfect
and maintain the priority of the Lender's and the Agent's security interest with respect to Trust's Trading Balance
and the Trust Solana Account. For purposes of perfecting the Lender's security interest in the Trading Balance, the Agent holds
the Trust's Trading Balance for itself and also as agent for the Lender, and has control over the Trust's Trading Balance
for its own benefit and for the benefit and on behalf of the Lender. The Agent agrees to follow entitlement orders of the Lender as secured
party with respect to the Trading Balance without further consent of the Trust.
117
The
Trust agrees to fully repay to the Lender the Trade Credits extended during a Defined Interval by the Settlement Deadline for that Defined
Interval. The "Settlement Deadline" shall mean 6:00 p.m. ET on the calendar day immediately following the start of a Defined
Interval. The Trust is permitted to repay the Trade Credits at any time during the Defined Interval. Failure of the Trust to fully repay
the Trade Credits by the Settlement Deadline may result in an Event of Default (as such term is defined in the agreement). The Trust
must repay the Lender with the same type of asset that the Lender provided in extending the applicable Trade Credit. The Trust's
repayment obligation shall be satisfied only when the Lender receives good funds for cash Trade Credits or Solana for Solana Trade Credits.
All cash repayments must be made to the Lender in good funds by the Settlement Deadline, regardless of whether the Federal Reserve wire
transfer system is open for business.
Upon
the occurrence of an Event of Default: (a) any outstanding extension of Trade Credit shall be immediately due and payable; (b) in addition
to all rights under the [Prime Execution Agreement], the Lender or the Agent may exercise any rights of a secured creditor with respect
to its interests in the Trust's assets, and may exercise all other rights under agreements between the Trust and the Lender, the
Agent or [Solana Custodian], including the Lender's, the Agent's or the [Solana Custodian]'s rights under the [Prime
Execution Agreement]. The Lender and the Agent agree that they will exercise their secured creditor rights with respect to the Trading
Balance before exercising their secured creditor rights with respect to the Trust Solana Account; (c) the Trust authorizes the Agent,
as securities intermediary with respect to the Trading Balance, to comply with all instructions and entitlement orders from the Lender,
as secured party, with respect to the disposition of assets in the Trust's Trading Balance as contemplated herein without further
consent or direction from the Trust or any other party; the Trust also authorizes [Solana Custodian], as securities intermediary with
respect to the Trust Solana Account, to comply with all instructions and entitlement orders from the Lender or the Agent, as secured
party, with respect to the disposition of assets in the Trust Solana Account; [Solana Custodian] agrees to follow such instructions and
entitlement orders; (d) without prior notice to the Trust, the Lender shall have the right to instruct the Agent (and the Agent agrees
to comply with such instruction) to: (i) transfer the Trust's Client Assets from the Trust's Trading Balance to the Lender
to repay the unpaid Trade Credits, and/or (ii) liquidate or cancel outstanding orders (including Orders that have been submitted or are
in the process of being fulfilled); and (e) without prior notice to the Trust, the Lender may suspend or terminate the Trust's
ability to receive extensions of Trade Credits, regardless of whether the Trust has cured the Event of Default.
If
the above actions are not sufficient to satisfy all obligations of the Trust to the Lender and the Agent, the Lender or the Agent shall
have the right to liquidate any and all of the Trust's assets and positions held with the Lender or the Agent, including the Trading
Balance and the Trust Solana Account, to cover any losses incurred by the Trust's failure to repay the Trade Credits. In connection
with liquidating such assets, the Trust authorizes the Lender or the Agent, on the Lender's behalf, in the Lender's sole
discretion, to liquidate any of the Trust's Solana in a commercially reasonable sale at the market price. The Trust understands
that the price of Solana may rise or fall quickly, and neither the Lender nor the Agent has any obligation to liquidate the Trust's
Solana at a time that provides the best price.
The
parties to the Trade Financing Agreement may terminate the agreement immediately upon giving the other party written notice. Upon notice
of termination, all outstanding extensions of Trade Credits shall become due and payable immediately. All obligations of the Trust with
respect to outstanding Trade Credits and other amounts due hereunder, and rights of the Lender and the Agent in connection therewith
shall survive the termination of the Trade Financing Agreement, including the Lender's and the Agent's security interest
in the Trust Trading Balance and Trust Solana Account and the Lender, the Agent's and [Solana Custodian]'s right of set-off
under the Prime Execution Agreement.
Cash
Custody Agreement
The
Trust has entered into the Cash Custody Agreement with __________ under which __________ acts as custodian of the Trust's cash
and cash equivalents (in such capacity, the "Cash Custodian"). The Cash Custodian has agreed to provide its services under
the Cash Custody Agreement until terminated in accordance with the provisions of the Cash Custody Agreement. Either the Cash Custodian
or the Trust may terminate the Cash Custody Agreement by giving written notice to the counterparty as set forth in the Cash Custody Agreement.
The
fees of the Cash Custodian are paid by the Trust. In addition, the Trust shall reimburse the Cash Custodian for any out-of-pocket and
incidental expenses incurred by the Cash Custodian in connection with the Cash Custody Agreement.
118
The
Cash Custodian shall exercise the standard of care and diligence that a professional custodian would observe in these affairs taking
into account the prevailing rules, practices, procedures and circumstances in the relevant market ("Standard of Care"). Except
as otherwise expressly provided in the Cash Custody Agreement, the Cash Custodian's liability arising out of or relating to the
Cash Custody Agreement shall be limited solely to those direct damages that are caused by the Cash Custodian's failure to perform
its obligations under the Cash Custody Agreement in accordance with the Standard of Care. The Trust agrees to indemnify the Cash Custodian
and hold the Cash Custodian harmless from and against all losses, costs, expenses, damages and liabilities (including reasonable counsel
fees and expenses) incurred by the Cash Custodian arising out of or relating to the Cash Custodian's performance under the Cash
Custody Agreement, except to the extent resulting from the Cash Custodian's failure to perform its obligations under the Cash Custody
Agreement in accordance with the Standard of Care. The Cash Custody Agreement is governed by the substantive laws of the State of New
York.
Marketing
Agent Agreement
Pursuant
to the Marketing Agent Agreement, the Marketing Agent is generally responsible for the day-to-day administration of the Trust. The responsibilities
of the Marketing Agent include (i) at the request of the Trust, assisting the Trust with facilitating Authorized Participant Agreements
between and among Authorized Participants, the Trust, and the applicable Transfer Agent, for the creation and redemption of Baskets of
the Trust; (ii) maintaining copies of confirmations of Basket creation and redemption order acceptances and producing such copies
upon reasonable request from the Trust or Sponsor; (iii) making available copies of this Prospectus to Authorized Participants who have
purchased Baskets in accordance with the Authorized Participant Agreements; (iv) maintaining telephonic, facsimile and/or access to direct
computer communications links with the Transfer Agent; (v) reviewing and approving, prior to use, certain Trust marketing materials submitted
by the Trust for review ("Marketing Materials") for compliance with applicable SEC and FINRA advertising rules, and filing
all such Marketing Materials required to be filed with FINRA; (vi) ensuring that all direct requests by Authorized Participants for copies
of this Prospectus are fulfilled; and (vii) working with the Transfer Agent to review and approve orders placed by Authorized Participants
and transmitted to the Transfer Agent.
The
Trust shall indemnify, defend and hold the Marketing Agent, its affiliates and each of their respective members, managers, directors,
officers, employees, representatives and any person who controls or previously controlled the Marketing Agent within the meaning of Section
15 of the 1933 Act (collectively, the "Marketing Agent Indemnitees"), free and harmless from and against any and all losses,
claims, demands, liabilities, damages and expenses (including the costs of investigating or defending any alleged losses, claims, demands,
liabilities, damages or expenses and any reasonable counsel fees incurred in connection therewith) (collectively, "Losses")
that any Marketing Agent Indemnitee may incur arising out of or relating to (i) the Trust's breach of any of its obligations, representations,
warranties or covenants contained in the Marketing Agent Agreement; (ii) the Trust's failure to comply in all material respects
with any applicable laws, rules or regulations; or (iii) any claim that this Prospectus, sales literature and advertising materials or
other information filed or made public by the Trust (as from time to time amended) includes or included an untrue statement of a material
fact or omits or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein
not misleading provided, however, that the Trust's obligation to indemnify any of the Marketing Agent Indemnitees shall not be
deemed to cover any Losses arising out of any untrue statement or alleged untrue statement or omission or alleged omission made in this
Prospectus or any such advertising materials or sales literature or other information filed or made public by the Trust in reliance upon
and in conformity with information provided by the Marketing Agent to the Trust, in writing, for use in this Prospectus or any such advertising
materials or sales literature.
The
Marketing Agreement shall continue in effect for two years. Thereafter, if not terminated, the Marketing Agreement shall continue automatically
in effect for successive one-year periods.
119
United
States Federal Income Tax Consequences
The
following discussion of the material U.S. federal income tax consequences that generally will apply to the purchase, ownership and disposition
of Shares by a U.S. Shareholder (as defined below), and certain U.S. federal income consequences that may apply to an investment in Shares
by a Non-U.S. Shareholder (as defined below), represents, insofar as it describes conclusions as to U.S. federal income tax law and subject
to the limitations and qualifications described therein, the opinion of Chapman and Cutler LLP, special U.S. federal income tax counsel
to the Sponsor. The discussion below is based on the Internal Revenue Code of 1986 (the "Code"), Treasury Regulations promulgated
thereunder and judicial and administrative interpretations of the Code, all as in effect on the date of this Prospectus and all of which
are subject to change either prospectively or retroactively. The tax treatment of Shareholders may vary depending upon their own particular
circumstances. Certain Shareholders (including, but not limited to, banks, financial institutions, insurance companies, regulated investment
companies, real estate investment trusts, tax-exempt organizations, tax-exempt or tax-advantaged retirement plans or accounts, brokers
or dealers, traders, partnerships for U.S. federal income tax purposes, persons holding Shares as a position in a "hedging,"
"straddle," "conversion," "constructive sale" or other integrated transaction for U.S. federal income
tax purposes, persons whose "functional currency" is not the U.S. dollar, persons with "applicable financial statements"
within the meaning of Section 451(b) of the Code, or other investors with special circumstances) may be subject to special rules not
discussed below. In addition, the following discussion applies only to investors who will hold Shares as "capital assets"
within the meaning of Section 1221 of the Code. Moreover, the discussion below does not address the effect of any state, local or foreign
tax law consequences that may apply to an investment in Shares. Purchasers of Shares are urged to consult their own tax advisers with
respect to all federal, state, local and foreign tax law considerations potentially applicable to their investment in Shares.
For
purposes of this discussion, a "U.S. Shareholder" is a Shareholder that is:
●
an
                                            individual who is treated as a citizen or resident of the United States for U.S. federal
                                            income tax purposes;
●
a
                                            corporation (or entity treated as a corporation for U.S. federal income tax purposes) created
                                            or organized in or under the laws of the United States, any state thereof or the District
                                            of Columbia;
●
an
                                            estate, the income of which is includible in gross income for U.S. federal income tax purposes
                                            regardless of its source; or
●
a
                                            trust, if a court within the United States is able to exercise primary supervision over the
                                            administration of the trust and one or more U.S. persons have the authority to control all
                                            substantial decisions of the trust, or a trust that has made a valid election under applicable
                                            Treasury Regulations to be treated as a domestic trust.
A
Shareholder that is not a U.S. Shareholder as defined above is considered a "Non-U.S. Shareholder" for purposes of this discussion.
If a partnership or other entity or arrangement treated as a partnership for U.S. federal income tax purposes holds Shares, the tax treatment
of a partner generally depends upon the status of the partner and the activities of the partnership. If you are a partner of a partnership
holding Shares, the discussion below may not be applicable and we urge you to consult your own tax adviser for the U.S. federal income
tax implications of the purchase, ownership and disposition of such Shares.
120
Taxation
of the Trust
The
Sponsor and the Trustee will treat the Trust as a "grantor trust" for U.S. federal income tax purposes. In the opinion of
Chapman and Cutler LLP, although not free from doubt due to the lack of directly governing authority, the Trust should be classified
as a "grantor trust" for U.S. federal income tax purposes (and the following discussion assumes such classification). As
a result, the Trust itself should not be subject to U.S. federal income tax. Instead, the Trust's income and expenses should "flow
through" to the Shareholders, and the Trustee will report the Trust's income, gains, losses and deductions to the Internal
Revenue Service (the "IRS") on that basis.
The
opinion of Chapman and Cutler LLP represents only its best legal judgment and is not binding on the IRS or any court. Accordingly, there
can be no assurance that the IRS will agree with the conclusions of counsel's opinion and it is possible that the IRS or another
tax authority could assert a position contrary to one or all of those conclusions and that a court could sustain that contrary position.
Neither the Sponsor nor the Trustee will request a ruling from the IRS with respect to the classification of the Trust for U.S. federal
income tax purposes or with respect to any other matter. Because of the evolving nature of digital assets, it is not possible to predict
potential future developments that may arise with respect to digital assets, including forks, airdrops and other similar occurrences.
Assuming that the Trust is currently a grantor trust for U.S. federal income tax purposes, certain future developments could render it
impossible, or impracticable, for the Trust to continue to be treated as a grantor trust for such purposes. If the IRS were to assert
successfully that the Trust is not classified as a "grantor trust," the Trust would likely be classified as a partnership
for U.S. federal income tax purposes, which may affect the timing and other tax consequences to the Shareholders, and might be classified
as a publicly traded partnership that would be taxable as a corporation for U.S. federal income tax purposes, in which case the Trust
would be taxed in the same manner as a regular corporation on its taxable income and distributions to Shareholders out of the earnings
and profits of the Trust would be taxed to Shareholders as ordinary dividend income.
Uncertainty
Regarding the U.S. Federal Income Tax Treatment of Digital Assets
Each
beneficial owner of Shares will be treated for U.S. federal income tax purposes as the owner of an undivided interest in the Solana held
in the Trust. Due to the new and evolving nature of digital assets and the absence of comprehensive guidance with respect to digital
assets, many significant aspects of the U.S. federal income tax treatment of digital assets are uncertain.
In
2014, the IRS released a notice (the "Notice") discussing certain aspects of the treatment of "convertible virtual
currency" (including, without limitation, Solana) for U.S. federal income tax purposes. In the Notice, the IRS stated that, for
U.S. federal income tax purposes, such digital assets (i) are property, (ii) are not "currency" for purposes of the provisions
of the Code relating to foreign currency gain or loss and (iii) may be held as a capital asset. Later, the IRS released a revenue ruling
and a set of "Frequently Asked Questions" (the "2019 Ruling & FAQs") that provide some additional guidance,
including guidance to the effect that, under certain circumstances, hard forks of digital assets are taxable events giving rise to ordinary
income and guidance with respect to the determination of the tax basis of digital assets. Recently, the IRS released additional guidance
confirming that staking income paid in digital assets is included in gross income (the "2023 Ruling & FAQs"; the 2019
Ruling & FAQs and the 2023 Ruling & FAQs together, the "Rulings & FAQs"). However, the Notice and the Rulings
& FAQs do not address other significant aspects of the U.S. federal income tax treatment of digital assets. Moreover, although the
Rulings & FAQs address the treatment of hard forks, there continues to be significant uncertainty with respect to the timing and
amount of the income inclusions. While the Rulings & FAQs do not address most situations in which airdrops occur, it is clear from
the reasoning of the Rulings & FAQs that the IRS generally would treat an airdrop as a taxable event giving rise to ordinary income.
There
can be no assurance that the IRS will not alter its position with respect to digital assets in the future or that a court would uphold
the treatment set forth in the Notice and the Rulings & FAQs. It is also unclear what additional guidance on the treatment of digital
assets for U.S. federal income tax purposes may be issued in the future. Any such alteration of the current IRS positions or additional
guidance could result in adverse tax consequences for Shareholders and could have an adverse effect on the prices of digital currencies,
including the price of Solana, and therefore could have an adverse effect on the value of Shares. Future developments that may arise
with respect to digital assets may increase the uncertainty with respect to the treatment of digital assets for U.S. federal income tax
purposes.
121
For
example, El Salvador has recently announced that it is making bitcoin legal tender in El Salvador. If the IRS recognizes Solana as a
"foreign currency," the tax consequences of an investment in the Trust will change. Gains or losses in respect of foreign
currencies are generally ordinary gains or losses. In general, entering or acquiring forward contracts, futures contracts, options or
similar financial instruments is treated as a foreign currency contract that produces ordinary gain or loss. However, ordinary gain or
loss treatment does not apply (unless elected) to contracts that require delivery of, or the settlement of which depends on the value
of, a foreign currency in respect of which positions are traded through regulated futures contracts. Instead, such contracts are treated
as having 60% long-term capital gain or loss and 40% short-term capital gain or loss. Such contracts are also required to be marked to
market at the end of each year.
The
remainder of this discussion assumes that Solana, and any Incidental Rights or IR Assets that the Trust may hold, is properly treated
for U.S. federal income tax purposes as property that may be held as a capital asset and that is not currency for purposes of the provisions
of the Code relating to foreign currency gain and loss.
Shareholders
are urged to consult their tax advisers regarding the tax consequences of an investment in the Trust and in digital currencies in general,
including, in the case of Shareholders that are generally exempt from U.S. federal income taxation, whether such Shareholders may recognize
"unrelated business taxable income" ("UBTI") as a consequence of a fork, airdrop or similar occurrence.
Incidental
Rights and IR Assets
From
time to time, the Trust may come into possession of rights incident to its ownership of Solana, which permit the Trust to acquire, or
otherwise establish dominion and control over, other digital assets. These rights are generally expected to be Forked Assets that arise
in connection with hard forks in the Solana Network, airdrops offered to holders of Solana and digital assets arising from other similar
events without any action of the Trust or of the Sponsor or Trustee on behalf of the Trust. These rights are referred to as "Incidental
Rights" and any digital assets acquired through Incidental Rights are referred to as "IR Assets." Pursuant to the Trust
Agreement, the Trust has explicitly disclaimed all Incidental Rights and IR Assets. Such assets are not considered assets of the Trust
at any point in time and will not be taken into account for purposes of determining the Trust's NAV and the NAV per Share.
Pursuant
to the Trust Agreement, to the extent that the Trust receives such assets in a Trust wallet, it will, as soon as practicable, and, if
possible, immediately, distribute such assets to the Sponsor. At such time, the Incidental Right(s) and/or IR Asset(s) will be the property
of the Sponsor. Once acquired, the Sponsor, subject to a reasonable, good faith determination, may take any lawful action necessary or
desirable in connection with its acquisition of such assets. In the event that the Sponsor decides to sell the Incidental Right(s) and/or
IR Asset(s), it will seek to do so for cash. This may be a sale of the Incidental Right(s) and/or IR Asset(s) directly in exchange for
cash, or in exchange for another digital asset that may subsequently be exchanged for cash. The Sponsor would then contribute that cash
back to the Trust, which in turn would distribute the cash to DTC to be distributed to Shareholders in proportion to the number of Shares
owned. Such distribution would generally be a taxable event giving rise to ordinary income for a U.S. Holder.
Taxation
of U.S. Shareholders
Shareholders
will be treated for U.S. federal income tax purposes as if they directly owned a pro rata share of the underlying assets held in the
Trust. Shareholders also will be treated as if they directly received their respective pro rata shares of the Trust's income, if
any, and as if they directly incurred their respective pro rata shares of the Trust's expenses. In the case of a Shareholder that
acquires its Shares as part of the creation of a Basket, the delivery of Solana to the Trust in exchange for a pro rata share of the
underlying Solana represented by the Shares will not be a taxable event to the Shareholder, and the Shareholder's tax basis and
holding period for the Shareholder's pro rata share of the Solana held in the Trust will be the same as its tax basis and holding
period for the Solana delivered in exchange therefor. For purposes of this discussion, and unless stated otherwise, it is assumed that
all of a Shareholder's Shares are acquired on the same date and at the same price per Share. Shareholders that hold multiple lots
of Shares, or that are contemplating acquiring multiple lots of Shares, should consult their own tax advisers as to the determination
of the tax basis and holding period for the underlying Solana related to such Shares.
Solana
may be used to pay certain expenses of the Trust, which under current IRS guidance will be treated as a sale of such Solana. If the Trust
sells Solana (for example to generate cash to pay fees or expenses) or is treated as selling Solana (for example by using Solana to pay
fees or expenses), a Shareholder will recognize gain or loss in an amount equal to the difference between (a) the Shareholder's
pro rata share of the amount realized by the Trust upon the sale and (b) the Shareholder's tax basis for its pro rata share of
the Solana that was sold. A Shareholder's tax basis for its share of any Solana sold by the Trust should generally be determined
by multiplying the Shareholder's total basis for its share of all of the Solana held in the Trust immediately prior to the sale,
by a fraction the numerator of which is the amount of Solana sold, and the denominator of which is the total amount of the Solana held
in the Trust immediately prior to the sale. After any such sale, a Shareholder's tax basis for its pro rata share of the Solana
remaining in the Trust should be equal to its tax basis for its share of the total amount of the Solana held in the Trust immediately
prior to the sale, less the portion of such basis allocable to its share of the Solana that was sold.
122
Shareholders'
pro rata shares of the expenses incurred by the Trust will be treated as "miscellaneous itemized deductions" for U.S. federal
income tax purposes. As a result, for taxable years beginning after December 31, 2017 and before January 1, 2026, a non-corporate U.S.
Shareholder's share of these expenses will not be deductible for U.S. federal income tax purposes. For taxable years beginning
on or after January 1, 2026, a non-corporate U.S. Shareholder's share of these expenses will be deductible for regular U.S. federal
income tax purposes only to the extent that the U.S. Shareholder's share of the expenses, when combined with other "miscellaneous
itemized deductions," exceeds 2% of the U.S. Shareholder's adjusted gross income for the particular year, will not be deductible
for U.S. federal alternative minimum tax purposes and will be subject to certain other limitations on deductibility.
Upon
a Shareholder's sale of some or all of its Shares, the Shareholder will be treated as having sold the portion or all, respectively,
of its pro rata share of the Solana held in the Trust at the time of the sale that is attributable to the Shares sold. Accordingly, the
Shareholder generally will recognize gain or loss on the sale in an amount equal to the difference between (a) the amount realized pursuant
to the sale of the Shares, and (b) the Shareholder's tax basis for the portion of its pro rata share of the Solana held in the
Trust at the time of sale that is attributable to the Shares sold, as determined in the manner described in the preceding paragraph.
Based on current IRS guidance, such gain or loss (as well as any gain or loss realized by a Shareholder on account of the Trust selling
Solana) will generally be long-term or short-term capital gain or loss, depending upon whether the Shareholder has a holding period in
its pro rata share of the Solana that was sold of more than one (1) year.
The
current maximum tax rate for individuals applicable to capital gains is 20% (subject to an additional tax of 3.8% on net investment income).
However, gain from collectibles is subject to a 28% maximum (also subject to the 3.8% additional tax), and currency gain is subject to
tax at ordinary income rates. Current guidance indicates that digital assets are treated neither as collectibles nor as currencies, but
the IRS has the authority to change its position on the treatment of digital assets.
A
redemption of some or all of a Shareholder's Shares in exchange for the underlying Solana represented by the Shares redeemed generally
will not be a taxable event to the Shareholder. The Shareholder's tax basis for the Solana received in the redemption generally
will be the same as the Shareholder's tax basis for the portion of its pro rata share of the Solana held in the Trust immediately
prior to the redemption that is attributable to the Shares redeemed. The Shareholder's holding period with respect to the Solana
received should include the period during which the Shareholder held the Shares redeemed. A subsequent sale of the Solana received by
the Shareholder will be a taxable event, unless a nonrecognition provision of the Code applies to such sale.
After
any sale or redemption of less than all of a Shareholder's Shares, the Shareholder's tax basis for its pro rata share of
the Solana held in the Trust immediately after such sale or redemption generally will be equal to its tax basis for its share of the
total amount of the Solana held in the Trust immediately prior to the sale or redemption, less the portion of such basis that is taken
into account in determining the amount of gain or loss recognized by the Shareholder upon such sale or, in the case of a redemption,
that is treated as the basis of the Solana received by the Shareholder in the redemption.
If
a fork were to occur in the Solana Network, the Trust would hold both the original Solana and the alternative new asset. However, such
Forked Asset would not constitute an asset of the Trust as, pursuant to the Trust Agreement, the Trust has disclaimed all Incidental
Rights and IR Assets, including Forked Assets. The Trust Agreement requires that, if such a transaction occurs, the Trust will, as soon
as possible, distribute the Forked Asset to the Sponsor. The Sponsor may then sell the Forked Asset, at which point it would contribute
the proceeds of that sale back to the Trust, which would distribute the cash to Shareholders. Such distribution would cause Shareholders
to incur a federal income tax liability.
123
Although
the Trust has explicitly disclaimed all Incidental Rights and IR Assets, it is possible that the IRS may not recognize such a disclaimer.
Under such circumstances, the receipt, distribution and/or sale of the Forked Asset may cause Shareholders to incur a federal income
tax liability. The IRS has taken the position in the Rulings & FAQs that, under certain circumstances, a fork constitutes a taxable
event giving rise to ordinary income, and it is clear from the reasoning of the Rulings & FAQs that the IRS generally would treat
an airdrop as a taxable event giving rise to ordinary income. Under the Rulings & FAQs, a U.S. Shareholder will have a basis in any
IR Asset received in a fork or airdrop equal to the amount of income the U.S. Shareholder recognizes as a result of such fork or airdrop
and the U.S. Shareholder's holding period for such IR Asset will begin as of the time it recognizes such income. In the absence
of guidance to the contrary, it is possible that any income recognized by a U.S. tax-exempt Shareholder as a consequence of a hard fork,
airdrop or similar occurrence would constitute UBTI. A tax-exempt Shareholder should consult its tax adviser regarding whether such Shareholder
may recognize some UBTI as a consequence of an investment in Shares.
3.8%
Tax on Net Investment Income
Certain
U.S. Shareholders who are individuals are required to pay a 3.8% tax on the lesser of the excess of their modified adjusted gross income
over a threshold amount ($210,000 for married persons filing jointly and $200,000 for single taxpayers) or their "net investment
income," which generally includes capital gains from the disposition of property. This tax is in addition to any capital gains
taxes due on such investment income. A similar tax applies to estates and trusts. U.S. Shareholders should consult their own tax advisers
regarding the effect, if any, this tax may have on their investment in the Shares.
Brokerage
Fees and Trust Expenses
Any
brokerage or other transaction fee incurred by a Shareholder in purchasing Shares will be treated as part of the Shareholder's
tax basis in the underlying assets of the Trust. Similarly, any brokerage fee incurred by a Shareholder in selling Shares will reduce
the amount realized by the Shareholder with respect to the sale.
Shareholders
will be required to recognize the full amount of gain or loss upon a sale or deemed sale of Solana by the Trust (as discussed above),
even though some or all of the proceeds of such sale are used by the Trustee to pay Trust expenses. Shareholders may deduct their respective
pro rata shares of each expense incurred by the Trust to the same extent as if they directly incurred the expense. Shareholders who are
individuals, estates or trusts, however, may be required to treat some or all of the expenses of the Trust as miscellaneous itemized
deductions. An individual may not deduct miscellaneous itemized deductions for tax years beginning after December 31, 2017 and before
January 1, 2026. For tax years beginning after December 31, 2025, individuals may deduct certain miscellaneous itemized deductions only
to the extent they exceed in the aggregate 2% of the individual's adjusted gross income. Similar rules apply to certain miscellaneous
itemized deductions of estates and trusts. In addition, such deductions may be subject to phase-outs and other limitations under applicable
provisions of the Code.
Investment
by Certain Retirement Plans
Individual
retirement accounts ("IRAs") and participant-directed accounts under tax-qualified retirement plans are limited in the types
of investments they may make under the Code. Potential purchasers of Shares that are IRAs or participant-directed accounts under a Code
section 401(a) plan should consult with their own tax advisers as to the tax consequences of a purchase of Shares.
Taxation
of Non-U.S. Shareholders
A
Non-U.S. Shareholder generally should not be subject to U.S. federal income tax with respect to gain recognized upon the sale or other
disposition of Shares, or upon the sale or disposition of Solana by the Trust, unless (1) the Non-U.S. Shareholder is an individual and
is present in the United States for 183 days or more during the taxable year of the sale or other disposition, and the gain is treated
as being from U.S. sources; or (2) the gain is effectively connected with the conduct by the Non-U.S. Shareholder of a trade or business
in the United States and certain other conditions are met. A Non-U.S. Shareholder also will generally not be subject to U.S. federal
income or withholding tax with respect to any distribution received from the Trust, whether in cash or in kind.
124
Provided
that it does not constitute income that is treated as "effectively connected" with the conduct of a trade or business in
the United States, U.S.-source "fixed or determinable annual or periodical" ("FDAP") income received, or treated
as received, by a Non-U.S. Shareholder will generally be subject to U.S. withholding tax at the rate of 30% (subject to possible reduction
or elimination pursuant to an applicable tax treaty and to statutory exemptions such as the portfolio interest exemption). Although there
is no guidance on point, it is likely that any ordinary income recognized by a Non-U.S. Shareholder as a result of a fork, airdrop or
similar occurrence would constitute FDAP income. It is unclear, however, whether any such FDAP income would be properly treated as U.S.-source
or foreign-source FDAP income. A non-U.S. Shareholder in the Trust should assume that, in the absence of guidance, a withholding agent
(including the Sponsor) is likely to withhold 30% from a Non-U.S. Shareholder's pro rata share of any such income, including by
deducting such withheld amounts from proceeds that such Non-U.S. Shareholder would otherwise be entitled to receive in connection with
a distribution of Incidental Rights, IR Assets or proceeds from the disposition of Incidental Rights or IR Assets by the Sponsor. A Non-U.S.
Shareholder that is a resident of a country that maintains an income tax treaty with the United States may be eligible to claim the benefits
of that treaty to reduce or eliminate, or to obtain a partial or full refund of, the 30% U.S. withholding tax on its share of any such
income, but only if the Non-U.S. Shareholder's home country treats the Trust as "fiscally transparent," as defined
in applicable Treasury Regulations.
Although
the nature of the Incidental Rights and IR Assets that the Trust may hold in the future is uncertain and the Trust has sought to disclaim
such assets, it is unlikely that any such asset would give rise to income that is treated as "effectively connected" with
the conduct of a trade or business in the United States or that any income derived by a Non-U.S. Shareholder from any such asset would
otherwise be subject to U.S. income or withholding tax, except as discussed above in connection with the fork, airdrop or similar occurrence
giving rise to Incidental Rights or IR Assets. There can, however, be no complete assurance in this regard.
U.S.
Information Reporting and Backup Withholding
The
Trustee will file certain information returns with the IRS and provide certain tax-related information to Shareholders in connection
with the Trust. To the extent required by applicable regulations, each Shareholder will be provided with information regarding its allocable
portion of the Trust's annual income, expenses, gains and losses (if any). A U.S. Shareholder may be subject to U.S. backup withholding
tax, at a rate of 24%, in certain circumstances unless it provides its taxpayer identification number and complies with certain certification
procedures. Non-U.S. Shareholders may have to comply with certification procedures to establish that they are not a U.S. person, and
some Non-U.S. Shareholders may be required to meet certain information reporting or certification requirements imposed by the Foreign
Account Tax Compliance Act, in order to avoid certain information reporting and withholding tax requirements.
The
amount of any backup withholding will be allowed as a credit against a Shareholder's U.S. federal income tax liability and may
entitle the Shareholder to a refund, provided that the required information is furnished to the IRS in a timely manner.
Taxation
in Jurisdictions Other Than the United States
Prospective
purchasers of Shares that are based in or acting out of a jurisdiction other than the United States are advised to consult their own
tax advisers as to the tax consequences under the laws of such jurisdiction (or any other jurisdiction other than the United States to
which they are subject) of their purchase, holding, sale and redemption of or any other dealing in Shares and, in particular, as to whether
any value added tax, other consumption tax or any transfer tax is payable in relation to such purchase, holding, sale, redemption or
other dealing.
PROSPECTIVE
SHAREHOLDERS ARE URGED TO CONSULT THEIR TAX ADVISERS BEFORE DECIDING WHETHER TO INVEST IN THE SHARES OF THE TRUST.
Purchases
By Employee Benefit Plans
Although
there can be no assurance that an investment in the Trust will achieve the investment objectives of an employee benefit plan in making
such investment, the Trust has certain features that may be of interest to such a plan. For example, because they are not taxpaying entities,
employee benefit plans are not subject to paying annual tax on profits (if any) of the Trust.
General
The
following section sets forth certain consequences under the Employee Retirement Income Security Act of 1974 ("ERISA") and
the Code, which a fiduciary of an "employee benefit plan" as defined in, and subject to the fiduciary responsibility provisions
of, ERISA or of a "plan" as defined in and subject to Section 4975 of the Code who has investment discretion should
consider before deciding to invest the plan's assets in the Trust (such "employee benefit plans" and "plans"
being referred to herein as "Plans," and such fiduciaries with investment discretion being referred to herein as "Plan
Fiduciaries"). The following summary is intended not to be complete, but only to address certain questions under ERISA and the
Code that are likely to be raised by the Plan Fiduciary's own counsel.
125
In
general, the terms "employee benefit plan" as defined in ERISA and "plan" as defined in Section 4975 of
the Code together refer to any plan or account of various types that provide retirement benefits or welfare benefits to an individual
or to an employer's employees and their beneficiaries. Such plans and accounts include, but are not limited to, corporate pension
and profit sharing plans, "simplified employee pension plans," Keogh plans for self-employed individuals (including partners),
individual retirement accounts described in Section 408 of the Code and medical benefit plans.
Each
Plan Fiduciary must give appropriate consideration to the facts and circumstances that are relevant to an investment in the Trust, including
the role that such an investment in the Trust would play in the Plan's overall investment portfolio. Each Plan Fiduciary, before
deciding to invest in the Trust, must be satisfied that such investment in the Trust is a prudent investment for the Plan, that the investments
of the Plan, including the investment in the Trust, are diversified so as to minimize the risk of large losses and that an investment
in the Trust complies with the documents of the Plan and related trust.
EACH
PLAN FIDUCIARY CONSIDERING ACQUIRING SHARES MUST CONSULT WITH ITS OWN LEGAL AND TAX ADVISERS BEFORE DOING SO. AN INVESTMENT IN THE TRUST
IS SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK. THE TRUST IS NOT INTENDED AS A COMPLETE INVESTMENT PROGRAM.
Plan
Assets
ERISA
and a regulation issued thereunder (the "Plan Asset Rules") contain rules for determining when an investment by a Plan in
an entity will result in the underlying assets of such entity being assets of the Plan for purposes of ERISA and Section 4975 of
the Code (
i.e.
, "plan assets"). Those rules provide that assets of an entity will not be plan assets of a Plan that
purchases an interest therein if certain exceptions apply, including (i) an exception applicable if the equity interest purchased
is a "publicly-offered security" (the "Publicly-Offered Security Exception") and (ii) an exception applicable
if the investment by all "benefit plan investors" is not "significant" or certain other exceptions apply (the
"Insignificant Participation Exception").
The
Publicly-Offered Security Exception applies if the equity interest is a security that is (1) "freely transferable,"
(2) part of a class of securities that is "widely held," and (3) either (a) part of a class of securities
registered under Section 12(b) or 12(g) of the Exchange Act, or (b) sold to the Plan as part of a public offering pursuant to an
effective registration statement under the 1933 Act and the class of which such security is a part is registered under the Exchange Act
within 120 days (or such later time as may be allowed by the SEC) after the end of the fiscal year of the issuer in which the offering
of such security occurred. The Plan Asset Rules state that the determination of whether a security is "freely transferable"
is to be made based on all relevant facts and circumstances. Under the Plan Asset Rules, a class of securities is "widely held"
only if it is of a class of securities owned by 100 or more shareholders independent of the issuer and of each other.
The
Shares of the Trust should be considered to be publicly offered securities. First, the Shares will be sold as part of a public offering
pursuant to an effective registration statement under the 1933 Act, and the Shares will be timely registered under the Exchange Act.
Second, it appears that the Shares will be freely transferable because the Shares of the Trust will be freely tradable on the Exchange
like any other exchange-listed security. Finally, it is anticipated that the Shares will be owned by at least 100 Shareholders independent
of the Trust. Therefore, the underlying assets of the Trust should not be considered to constitute assets of any Plan that purchases
Shares.
Ineligible
Purchasers
In
general, Shares may not be purchased with the assets of a Plan if the Sponsor, the Administrator, the Trustee, the Transfer Agent, the
Solana Custodian, the Marketing Agent, the Exchange, or any of their respective affiliates or any of their respective employees either:
(a) has investment discretion with respect to the investment of such plan assets; (b) has authority or responsibility to give
or regularly gives investment advice with respect to such plan assets, for a fee, and pursuant to an agreement or understanding that
such advice will serve as a primary basis for investment decisions with respect to such plan assets and that such advice will be based
on the particular investment needs of the Plan; or (c) is an employer maintaining or contributing to such Plan. A party that is
described in clause (a) or (b) of the preceding sentence is a fiduciary under ERISA and the Code with respect to the Plan, and any
such purchase might result in a "prohibited transaction" under ERISA and the Code.
126
Except
as otherwise set forth, the foregoing statements regarding the consequences under ERISA and the Code of an investment in the Trust are
based on the provisions of the Code and ERISA as currently in effect, and the existing administrative and judicial interpretations thereunder.
No assurance can be given that administrative, judicial or legislative changes will not occur that will not make the foregoing statements
incorrect or incomplete.
ALLOWING
AN INVESTMENT IN THE TRUST IS NOT TO BE CONSTRUED AS A REPRESENTATION BY THE SPONSOR OR ANY OF ITS AFFILIATES, AGENTS OR EMPLOYEES THAT
THIS INVESTMENT MEETS SOME OR ALL OF THE RELEVANT LEGAL REQUIREMENTS WITH RESPECT TO INVESTMENTS BY ANY PARTICULAR PLAN OR THAT THIS
INVESTMENT IS APPROPRIATE FOR ANY SUCH PARTICULAR PLAN. THE PERSON WITH INVESTMENT DISCRETION SHOULD CONSULT WITH THE PLAN'S ATTORNEY
AND FINANCIAL ADVISERS AS TO THE PROPRIETY OF AN INVESTMENT IN THE TRUST IN LIGHT OF THE CIRCUMSTANCES OF THE PARTICULAR PLAN, CURRENT
TAX LAW AND ERISA.
Information
You Should Know
This
Prospectus contains information investors should consider when making an investment decision about the Shares. Investors should rely
only on the information contained in this Prospectus or any applicable prospectus supplement. None of the Trust or the Sponsor has authorized
any person to provide investors with different information and, if anyone provides investors with different or inconsistent information,
investors should not rely on it. This Prospectus is not an offer to sell the Shares in any jurisdiction where the offer or sale of the
Shares is not permitted.
The
information contained in this Prospectus was obtained from the Sponsor and other sources the Sponsor believed to be reliable.
Investors
should disregard anything we said in an earlier document that is inconsistent with what is included in this Prospectus or any applicable
prospectus supplement. Where the context requires, when the Sponsor refers to this "Prospectus," it is referring to this
Prospectus and (if applicable) the relevant prospectus supplement.
Investors
should not assume that the information in this Prospectus or any applicable prospectus supplement is current as of any date other than
the date on the front page of this Prospectus or the date on the front page of any applicable prospectus supplement.
Cross
references in this Prospectus to captions in these materials indicate where an investor can find further related discussions. The table
of contents assists in locating these captions.
Summary
of Promotional and Sales Material
The
Trust expects to use the following sales material it has prepared:
●
the
                                            Trust's website, ______.com; and
●
the
                                            Trust Fact Sheet found on the Trust's website.
The
materials described above are not a part of this Prospectus or the registration statement of which this Prospectus is a part.
Intellectual
Property
The
Sponsor owns trademark registrations for the Trust. The Sponsor relies upon these trademarks through which it markets its services and
strives to build and maintain brand recognition in the market and among current and potential investors. So long as the Sponsor continues
to use these trademarks to identify its services, without challenge from any third party, and properly maintains and renews the trademark
registrations under applicable laws, rules and regulations, it will continue to have indefinite protection for these trademarks under
current laws, rules and regulations.
127
The
Sponsor also owns trademark registrations for the Sponsor. The Sponsor relies upon these trademarks through which it markets its services
and strives to build and maintain brand recognition in the market and among current and potential investors. So long as the Sponsor continues
to use these trademarks to identify its services, without challenge from any third party, and properly maintains and renews the trademark
registrations under applicable laws, rules and regulations; it will continue to have indefinite protection for these trademarks under
current laws, rules and regulations.
Where
You Can Find More Information
The
Trust has filed a registration statement on Form S-1 with the SEC under the 1933 Act. This Prospectus does not contain all of the information
set forth in the registration statement (including the exhibits to the registration statement), parts of which have been omitted in accordance
with the rules and regulations of the SEC. For further information about the Trust or the Shares, please refer to the registration statement,
which is available online at www.sec.gov.
Information
about the Trust and the Shares can also be obtained from the Trust's website, which is _____.com. The Trust's website address
is only provided here as a convenience and the information contained on or connected to the website is not part of this Prospectus or
the registration statement of which this Prospectus is part. The Trust is subject to the informational requirements of the Exchange Act
and will file certain reports and other information with the SEC under the Exchange Act. The Sponsor will file an updated Prospectus
annually on behalf of the Trust pursuant to the requirements of the 1933 Act.
The
reports and other information are available online at www.sec.gov.
Privacy
Policy
The
Trust and the Sponsor may collect or have access to certain nonpublic personal information about current and former investors. Nonpublic
personal information may include information received from investors, such as an investor's name, social security number and address,
as well as information received from brokerage firms about investor holdings and transactions in Shares.
The
Trust and the Sponsor do not disclose nonpublic personal information except as required by law or as described in their Privacy Policy.
In general, the Trust and the Sponsor restrict access to the nonpublic personal information they collect about investors to those of
their and their affiliates' employees and service providers who need access to such information to provide products and services
to investors.
The
Trust and the Sponsor maintain safeguards that comply with federal law to protect investors' nonpublic personal information. These
safeguards are reasonably designed to (1) ensure the security and confidentiality of investors' records and information, (2) protect
against any anticipated threats or hazards to the security or integrity of investors' records and information, and (3) protect
against unauthorized access to or use of investors' records or information that could result in substantial harm or inconvenience
to any investor.
Third-party
service providers with whom the Trust and the Sponsor share nonpublic personal information about investors must agree to follow appropriate
standards of security and confidentiality, which includes safeguarding such nonpublic personal information physically, electronically
and procedurally.
A
copy of the Sponsor's current Privacy Policy, which is applicable to the Trust, is provided to investors annually and is also available
at _______.com.
128
Report
of independent registered public accounting firm
[To be provided
in a subsequent amendment]
F-
1
Statement
of financial condition
[To be provided
in a subsequent amendment]
F-
2
Bitwise
Solana ETF
shares
prospectus
__________,
2024
Until
_________, 2024 (25 calendar days after the date of this Prospectus) all dealers that effect transactions in these securities, whether
or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation
to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.
PART
II
INFORMATION
NOT REQUIRED IN PROSPECTUS
Item
13. Other Expenses of Issuance and Distribution.
The
Trust shall not bear any expenses incurred in connection with the issuance and distribution of the securities being registered. These
expenses shall be paid by Bitwise Investment Advisers, LLC, the sponsor of the Trust. Except for the Securities and Exchange Commission
Registration Fee and Exchange Listing Fee, all such expenses are estimated:
SEC registration fee (actual)
$
0
*
Listing fee (actual)
$
Auditor's fees and expenses
$
Legal fees and expenses
$
Printing expenses
$
Miscellaneous expenses
$
Total
$
*
An
indeterminate number of the securities is being registered as may from time to time be sold at indeterminate prices. In accordance with
Rules 456(d) and 457(u), the Trust is deferring payment of all of the additional registration fee and will pay the additional registration
fee subsequently on an annual basis.
Item
14. Indemnification of Directors and Officers.
The
Trust Agreement provides that the Sponsor and its shareholders, members, directors, officers, employees, Affiliates and subsidiaries
(each a "Sponsor Indemnified Party") will be indemnified by the Trust and held harmless against any loss, liability or expense
incurred under the Trust Agreement without gross negligence, bad faith, or willful misconduct on the part of such Sponsor Indemnified
Party arising out of or in connection with the performance of its obligations hereunder or any actions taken in accordance with the provisions
of the Trust Agreement. Any amounts payable to a Sponsor Indemnified Party under Section 4.06 of the Trust Agreement may be payable in
advance or will be secured by a lien on the Trust. The Sponsor will not be under any obligation to appear in, prosecute or defend any
legal action that in its opinion may involve it in any expense or liability; provided, however, that the Sponsor may, in its discretion,
undertake any action that it may deem necessary or desirable in respect of the Trust Agreement and the rights and duties of the parties
hereto and the interests of the Shareholders and, in such event, the legal expenses and costs of any such action will be expenses and
costs of the Trust and the Sponsor will be entitled to be reimbursed therefor by the Trust. The obligations of the Trust to indemnify
the Sponsor Indemnified Parties will survive the termination of the Trust Agreement.
Item
15. Recent Sales of Unregistered Securities.
On
May 28, 2024, the Trust sold 8 Shares at a per-Share price of $25to Bitwise Asset Management, Inc., an affiliate of the Sponsor, in a
transaction exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended. No further sales of unregistered
securities are contemplated.
Item
16. Exhibits and Financial Statement Schedules.
(a)
Exhibit.
The
exhibits to this registration statement are listed in the Exhibit Index to this registration statement, which is incorporated herein
by reference.
(b)
Financial
Statement Schedules. Not applicable.
II-
1
Item
17. Undertakings.
The
undersigned registrant hereby undertakes:
(1)
To
                                            file, during any period in which offers or sales are being made, a post-effective amendment
                                            to this registration statement:
(i)
To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;
(ii)
To reflect in the Prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities
offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range
may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
and price represent no more than 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration
Fee" table in the effective registration statement; and
(iii)
To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or
any material change to such information in the registration statement;
Provided,
however, that: (1)(i), (ii), and (iii) of this section do not apply if the registration statement is on Form S-1, Form S-3, Form SF-3
or Form F-3 and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed
with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934
that are incorporated by reference in the registration statement, or, as to a registration statement on Form S-3, Form SF-3 or Form F-3,
is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.
(2)
That,
                                            for the purpose of determining any liability under the Securities Act of 1933, each such
                                            post-effective amendment shall be deemed to be a new registration statement relating to the
                                            securities offered therein, and the offering of such securities at that time shall be deemed
                                            to be the initial bona fide offering thereof.
(3)
To
                                            remove from registration by means of a post-effective amendment any of the securities being
                                            registered that remain unsold at the termination of the offering.
(4)
That,
                                            for the purpose of determining liability under the Securities Act of 1933 to any purchaser:
(i)
If
                                            the registrant is relying on Rule 430B:
(A)
Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the
date the filed prospectus was deemed part of and included in the registration statement; and
(B)
Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on
Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required
by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier
of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the
offering described in the Prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date
an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the
registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial
bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration
statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is
part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or
modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in
any such document immediately prior to such effective date; or
II-
2
(ii)
If
                                            the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as
                                            part of a registration statement relating to an offering, other than registration statements
                                            relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be
                                            deemed to be part of and included in the registration statement as of the date it is first
                                            used after effectiveness; provided, however, that no statement made in a registration statement
                                            or prospectus that is part of the registration statement or made in a document incorporated
                                            or deemed incorporated by reference into the registration statement or prospectus that is
                                            part of the registration statement will, as to a purchaser with a time of contract of sale
                                            prior to such first use, supersede or modify any statement that was made in the registration
                                            statement or prospectus that was part of the registration statement or made in any such document
                                            immediately prior to such date of first use.
(5)
That,
                                            for the purpose of determining the liability of the registrant under the Securities Act of
                                            1933 to any purchaser in the initial distribution of the securities:
The
undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration
statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold
to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will
be considered to offer or sell such securities to such purchaser:
(i)
Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule
424;
(ii)
Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by
the undersigned registrant;
(iii)
The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant
or its securities provided by or on behalf of the undersigned registrant; and
(iv)
Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
(6)
Insofar
                                            as indemnification for liabilities arising under the Securities Act of 1933 may be permitted
                                            to directors, officers and controlling persons of the registrant pursuant to the foregoing
                                            provisions, or otherwise, the registrant has been advised that in the opinion of the Securities
                                            and Exchange Commission such indemnification is against public policy as expressed in the
                                            Act and is, therefore, unenforceable. In the event that a claim for indemnification against
                                            such liabilities (other than the payment by the registrant of expenses incurred or paid by
                                            a director, officer or controlling person of the registrant in the successful defense of
                                            any action, suit or proceeding) is asserted by such director, officer or controlling person
                                            in connection with the securities being registered, the registrant will, unless in the opinion
                                            of its counsel the matter has been settled by controlling precedent, submit to a court of
                                            appropriate jurisdiction the question whether such indemnification by it is against public
                                            policy as expressed in the Act and will be governed by the final adjudication of such issue.
II-
3
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf
by the undersigned, thereunto duly authorized in the City of San Francisco, State of California, on November 21, 2024.
Bitwise Investment Advisers, LLC
Sponsor of the Bitwise Solana ETF
By:
/s/ Hunter Horsley
Name:
Hunter Horsley
Title:
President and Treasurer
Pursuant
to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities*
and on the dates indicated.
Signature
Title
Date
/s/
    Hunter Horsley
President
November 21, 2024
Hunter Horsley
(Principal Executive Officer)*
/s/
    Paul ("Teddy") Fusaro
Chief Operating Officer
November 21, 2024
Paul ("Teddy") Fusaro
(Principal Financial Officer and Principal
    Accounting Officer)*
*
The
registrant is a trust and the persons are signing in their capacities as officers of Bitwise Investment Advisers, LLC, the Sponsor of
the registrant.
II-
4
EXHIBIT
INDEX
Exhibit No.
Exhibit Description
3.1
Trust Agreement
(1)
3.2
Certificate of Trust
(1)
3.3
First Amended and Restated Declaration of Trust and Trust Agreement
(2)
5.1
Opinion of Chapman and Cutler LLP as to legality
(2)
8.1
Opinion of Chapman and Cutler LLP as to tax matters
(2)
10.1
Sponsor Agreement
(2)
10.2
Form of Authorized Participant Agreement
(2)
10.3
Marketing Agreement
(2)
10.4
Prime Execution Agreement (with Solana Custody Agreement and Trade Financing
    Agreement included as exhibits thereto)
(2)
10.5
Cash Custody Agreement
(2)
10.6
Fund Administration and Accounting Agreement
(2)
10.7
Transfer Agency and Service Agreement
(2)
10.8
Form of Master Purchase and Sale Agreement for Digital Assets
(2)
23.1
Consent of Independent Registered Public Accounting Firm
(2)
23.2
Chapman and Cutler LLP (included in Exhibits 5.1 and 8.1)
(2)
107
Filing Fee Table
(1)
(1)
Filed
                                            herewith.
(2)
To
                                            be filed by amendment.
II-5