# 21Shares Solana Staking ETF

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/21Shares Solana Staking ETF).

## Overview

21Shares Solana Staking ETF is a U.S.-organized grantor trust that provides exchange-traded exposure to solana through shares listed on Cboe BZX Exchange under the symbol TSOL. The Trust holds solana with custodians, passively tracks a solana pricing benchmark, and may stake a portion of its holdings to generate rewards for shareholders.

## Products & services

• Exchange-traded spot exposure to solana
• Solana staking and reward generation
• Quarterly staking income distributions
• Daily NAV calculation using a solana benchmark

- **Solana Holdings** (80%) — The Trust holds solana as its principal investment to track the asset's U.S.-dollar performance.
- **Staking Activities** (15%) — A portion of the Trust's solana is delegated to staking providers to generate network rewards.
- **Exchange-Traded Fund Access** (5%) — Listed Shares provide brokerage-account access to solana exposure through a regulated exchange-traded structure.

- Exchange-traded spot exposure to solana
- Staking of a portion of Trust-held solana
- Distribution of earned staking rewards
- Daily NAV and NAV per Share calculation
- Creation and redemption of Shares in baskets

## Customers

The Trust is purchased primarily by investors seeking passive, exchange-traded exposure to solana without directly managing wallets, validators, or blockchain custody. Institutional investors, financial advisers, and individual brokerage customers can use the Shares for digital-asset allocation, while staking rewards provide a potential income component. Authorized participants support the creation and redemption of Shares in baskets, helping connect primary-market activity with secondary-market trading.

- **Retail Brokerage Investors** (primary) — Buy listed Shares to obtain solana exposure without directly operating wallets or handling blockchain custody.
- **Financial Advisers** (primary) — Use the ETF structure to incorporate solana exposure into managed client portfolios and model allocations.
- **Institutional Investors** (secondary) — Access spot solana through an exchange-traded U.S. investment vehicle with defined custody and valuation processes.
- **Authorized Participants** (secondary) — Create or redeem baskets of Shares and facilitate the primary-market liquidity mechanism.
- **Income-Oriented Digital-Asset Investors** (emerging) — Seek exposure to staking rewards distributed by the Trust when rewards are earned.

- Individual investors seeking brokerage-based solana exposure
- Advisers allocating digital assets for client portfolios
- Institutions seeking regulated spot-solana exposure
- Authorized participants creating and redeeming Share baskets
- Yield-oriented investors seeking staking distributions

## Geography

The Trust is organized and listed in the United States, with Shares traded on Cboe BZX Exchange. Its underlying asset is the globally operated Solana network rather than a country-specific operating business, and the available reports do not disclose revenue by country or geographic operating regions. Geographic exposure therefore follows the global trading, custody, validator, and regulatory environment for solana.

- U.S.-organized trust with Shares listed on Cboe BZX
- Solana exposure reflects a globally traded digital asset
- Custody and valuation depend on digital-asset market infrastructure
- Solana network activity spans validators and users worldwide
- No country-level revenue breakdown is disclosed

## Strategy

The Trust's strategy is to maintain passive spot exposure to solana while using staking to enhance shareholder returns when legal, tax, liquidity, and operational conditions permit. It seeks to stake a high proportion of holdings while retaining sufficient unstaked solana for redemptions and other liquidity needs. The structure also prioritizes reliable benchmark-based valuation, regulated exchange access, and periodic distribution of earned staking rewards.

- **Optimize solana staking utilization** (short-term) — Higher staking participation can increase rewards, but excessive staking can constrain redemption liquidity.
- **Preserve benchmark and valuation continuity** (short-term) — Accurate benchmark pricing is central to daily NAV calculation and the Trust's passive tracking objective.
- **Maintain grantor-trust and regulatory status** (long-term) — Staking activities must remain compatible with U.S. tax treatment and applicable securities and digital-asset regulation.
- **Deliver accessible exchange-traded solana exposure** (long-term) — The ETF format broadens access for investors that prefer brokerage accounts over direct digital-asset custody.

- Track solana performance through a daily pricing benchmark
- Stake holdings while preserving liquidity for redemptions
- Balance staking yield against borrowing and liquidity costs
- Distribute earned staking rewards to Shareholders
- Maintain grantor-trust tax and regulatory eligibility
- Use custodians and providers to support secure operations

## Risks

The Trust's results are primarily exposed to solana price volatility, which directly changes NAV and can amplify the effects of creations and redemptions. Staking introduces liquidity, provider, operational, regulatory, and tax risks, while benchmark, custody, and digital-asset market infrastructure failures could impair valuation or access to assets. Shareholders also face uncertain distribution levels and legal limitations under the Trust Agreement.

- **Solana market volatility** [critical] — The Trust holds solana as its principal asset, so price changes flow directly into NAV and returns.
- **Staking liquidity risk** [high] — Staked solana may not be immediately available for redemptions, requiring liquidity planning or asset sales.
- **Grantor-trust tax classification** [high] — If staking activities fall outside permitted treatment, the Trust could face partnership or corporate taxation.
- **Custodian and staking-provider failure** [high] — Loss, interruption, or operational errors at service providers could restrict access to Trust-held solana or rewards.
- **Benchmark disruption** [medium] — Errors or interruptions in the pricing benchmark could affect NAV calculation and tracking performance.
- **Shareholder legal limitations** [medium] — Exclusive-jurisdiction, jury-waiver, and derivative-action provisions may restrict available legal remedies.

- Solana price declines directly reduce NAV and shareholder returns
- Redemptions may require selling solana during adverse markets
- Staking can limit liquidity and delay access to assets
- Tax treatment of staking in a grantor trust remains developing
- Custodian or staking-provider failures could impair assets
- Distributions vary with network rewards and staking participation

## Accounting

The Trust measures solana at fair value under ASC 820 using an exchange-traded price from its principal market at 4:00 p.m. Eastern Time, while daily NAV uses the designated Pricing Benchmark; differences can affect reported valuation and performance. Reported results are highly sensitive to unrealized solana price changes, realized losses from redemptions and distributions, staking rewards, Sponsor Fees, and Staking Fees. Staking distributions are variable and may be affected by the amount staked, network reward rates, participation, and network conditions.

- **Fair value measurement of solana** — Large price movements can dominate reported net asset changes.
- **Benchmark-based NAV valuation** — Benchmark methodology and provider changes can affect tracking and reported valuation.
- **Staking reward recognition** — Investment income and shareholder distributions fluctuate between periods.
- **Sponsor and staking provider fees** — Fees reduce net investment income and distributable rewards.
- **Realized and unrealized solana gains and losses** — Transaction activity can increase earnings volatility and tax reporting complexity.

- ASC 820 fair value drives reported solana investment values
- Principal-market pricing can differ from the NAV benchmark
- Unrealized solana gains and losses dominate operating results
- Staking rewards are recorded net of provider and Sponsor Fees
- Redemptions and distributions can create realized solana losses
- Staking distributions are variable and not guaranteed

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*Last updated: 2026-09-24T11:30:51.068061+00:00*