CoinShares Files S-1/A for Solana Staking ETF, Citing SOL Volatility

TL;DR

**CoinShares is launching a Solana staking ETF, offering yield but beware of SOL's extreme price swings.**

AI Summary

CoinShares Solana Staking ETF (the "Trust") filed an S-1/A on August 29, 2025, outlining its primary objective to track the performance of SOL, the native token of the Solana blockchain, as represented by the CME CF Solana – Dollar Reference Rate – New York Variant Index, less liabilities and expenses. A secondary objective involves staking all of the Trust's SOL, except for amounts reserved for redemptions or expenses, through BitGo, which also serves as the Custodian and Staking Provider. The Trust will receive a portion of the staking rewards generated. The Trust is passively managed and will not use leverage or derivatives. The Shares are expected to be listed on The Nasdaq Stock Market, LLC. The filing notes significant price volatility for SOL, with a drop from $261.87 to $105.71 between January 2025 and April 2025. The Trust is an "emerging growth company" and is not regulated under the 1940 Act or the CEA. An affiliate of the Sponsor, the Seed Capital Investor, purchased an initial Seed Share and later Seed Baskets, with total proceeds to the Trust from the Seed Baskets being $[____] (amount not specified in text).

Why It Matters

This S-1/A filing signals CoinShares' intent to bring a Solana staking ETF to market, offering investors a new, potentially more accessible avenue to gain exposure to SOL and its staking rewards. For investors, this provides a regulated product that combines direct SOL exposure with yield generation, a significant differentiator from non-staking crypto ETFs. However, the inherent volatility of SOL, as evidenced by its 59.6% price drop from $261.87 to $105.71 between January and April 2025, presents substantial risk. This product could intensify competition in the burgeoning crypto ETF space, particularly against existing Bitcoin and Ethereum ETFs, by offering a yield component.

Risk Assessment

Risk Level: high — The filing explicitly states, "AN INVESTMENT IN THE TRUST INVOLVES SIGNIFICANT RISKS AND MAY NOT BE SUITABLE FOR SHAREHOLDERS THAT ARE NOT IN A POSITION TO ACCEPT MORE RISK THAN MAY BE INVOLVED WITH OTHER EXCHANGE-TRADED PRODUCTS THAT DO NOT HOLD SOL OR INTERESTS RELATED TO SOL. THE SHARES ARE SPECULATIVE SECURITIES. THEIR PURCHASE INVOLVES A HIGH DEGREE OF RISK AND YOU COULD LOSE YOUR ENTIRE INVESTMENT." This is further supported by the historical price volatility of SOL, which fell from $261.87 to $105.71 between January 2025 and April 2025.

Analyst Insight

Investors should approach the CoinShares Solana Staking ETF with extreme caution, recognizing the high degree of risk associated with SOL's price volatility. While the staking rewards offer a potential yield, this does not mitigate the fundamental risk of significant capital loss. Consider allocating only a small, speculative portion of your portfolio to this product, and thoroughly understand the mechanics of staking and the associated risks before investing.

Key Numbers

• $261.87 — SOL price high (SOL price in January 2025, before a significant drop)
• $105.71 — SOL price low (SOL price in April 2025, representing a 59.6% decline from January 2025)
• 2025-08-29 — Filing Date (Date S-1/A was filed with the SEC)
• 333-288056 — Registration No. (SEC registration number for the S-1/A filing)

Key Players & Entities

• CoinShares Solana Staking ETF (company) — Registrant and Trust
• CoinShares Co. (company) — Sponsor of the Trust
• SOL (dollar_amount) — Native token of the Solana blockchain, primary asset
• BitGo Trust Company, Inc. (company) — Custodian and Staking Provider of the Trust
• The Nasdaq Stock Market, LLC (company) — Expected listing exchange for the Shares
• SEC (regulator) — Securities and Exchange Commission
• Charles Butler (person) — Contact for CoinShares Co.
• Morrison C. Warren, Esq. (person) — Legal counsel from Chapman and Cutler LLP
• CSC Delaware Trust Company (company) — Trustee of the Trust
• U.S. Bancorp Fund Services, LLC (company) — Transfer Agent and Administrator of the Trust

FAQ

Risk Factors

• SOL Price Volatility [high — market]: The price of SOL has experienced significant volatility, dropping from $261.87 in January 2025 to $105.71 in April 2025, a decline of 59.6%. This high degree of price fluctuation poses a substantial risk to investors in the Trust.
• Lack of 1940 Act or CEA Regulation [medium — regulatory]: The Trust is not registered under the Investment Company Act of 1940 or the Commodity Exchange Act. This means it is not subject to the regulatory oversight and investor protections typically associated with registered investment companies or commodity pools.
• Reliance on Third-Party Custodian and Staking Provider [high — operational]: The Trust relies on BitGo Trust Company, Inc. as both the Custodian for its SOL and the Staking Provider. Any operational failures, security breaches, or insolvency of BitGo could directly impact the Trust's assets and its ability to generate staking rewards.
• Speculative Nature of Investment [high — financial]: The Shares are described as speculative securities, and their purchase involves a high degree of risk, with the potential for complete loss of investment. This is due to the underlying asset being SOL, a digital commodity with inherent price volatility.

Industry Context

The digital asset ETF market is rapidly evolving, with increasing interest in passively managed products that track specific cryptocurrencies. Competitors are likely to offer similar Solana-based or other digital asset tracking products. The success of this ETF will depend on its ability to attract assets under management and generate competitive staking yields while navigating the inherent volatility of the underlying digital asset.

Regulatory Implications

The Trust's classification as an 'emerging growth company' and its exemption from the 1940 Act and CEA mean it operates with fewer regulatory constraints but also offers fewer investor protections than traditional financial products. This regulatory ambiguity could attract scrutiny or lead to future regulatory changes impacting digital asset ETFs.

What Investors Should Do

1. Review SOL Volatility and Staking Risks
2. Understand the Trust's Passive Management and Fee Structure
3. Assess Reliance on Third-Party Providers

Key Dates

• 2025-08-29: Filing of S-1/A Amendment No. 2 — Indicates the Trust is progressing through the registration process for its shares, providing updated information to potential investors.
• 2025-01-XX: SOL Price High — Represents a peak price point for SOL in early 2025, before a significant market downturn.
• 2025-04-XX: SOL Price Low — Represents a trough price point for SOL in early 2025, highlighting the asset's volatility.

Glossary

SOL

The native token of the Solana blockchain, a digital commodity based on cryptographic protocols. (This is the primary digital asset the Trust aims to track and stake.)

CME CF Solana – Dollar Reference Rate – New York Variant Index

The benchmark index used by the Trust to track the performance of SOL. (Defines the specific reference rate for SOL that the Trust's performance will be measured against.)

Staking

The process of actively participating in transaction validation (or a security process) on a proof-of-stake blockchain, for which participants are rewarded. (The Trust's secondary objective is to generate staking rewards by staking its SOL holdings.)

Custodian

An institution that holds and safeguards financial assets on behalf of its clients. (BitGo Trust Company, Inc. will hold the Trust's SOL, making its security and reliability critical.)

Authorized Participant

A financial institution that has the ability to create and redeem large blocks (Baskets) of ETF shares directly with the ETF issuer. (These entities are crucial for the creation and redemption process of the Trust's shares, ensuring liquidity.)

Basket

A block of a specified number of ETF shares that Authorized Participants use to create or redeem shares with the ETF issuer. (Defines the unit of trading for Authorized Participants interacting with the Trust.)

Emerging Growth Company

A company that has total annual gross revenues of less than $1.235 billion (as of 2019) and is eligible for certain reduced reporting requirements under the JOBS Act. (Indicates the Trust may benefit from relaxed regulatory and reporting obligations.)

Year-Over-Year Comparison

This is an S-1/A filing, indicating it is an amendment to a previous registration statement. Specific comparative metrics to a prior filing are not available in this document. However, the filing highlights significant price volatility of SOL in early 2025, with a drop from $261.87 to $105.71, which would be a critical factor influencing investor sentiment and risk assessment compared to any earlier, more optimistic market outlook.

Key Financial Figures

• $261.87 — f SOL fell from a then-all-time high of $261.87 to $105.71. See “Risk Factors.&rd
• $105.71 — from a then-all-time high of $261.87 to $105.71. See “Risk Factors.” The T

Filing Documents

• coinshares_s1a-082925.htm (S-1/A) — 1050KB
• ex107.htm (EX-FILING FEES) — 21KB
• coinshares001.jpg (GRAPHIC) — 18KB
• 0001999371-25-012347.txt ( ) — 1097KB

From the Filing

TO FORM S-1 As filed with the Securities and Exchange Commission on August 29, 2025 Registration No. 333-288056 UNITED SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Amendment No. 2 to FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 COINSHARES SOLANA STAKING ETF (Exact Name of Registrant as Specified in Its Charter) Delaware _____ (State or Other Jurisdiction of Incorporation or Organization) c/o CoinShares Co. Charles Butler 437 Madison Avenue, 28 th Floor New York, NY 10022 (646) 308-1518 (I.R.S. Employer Identification Number) (Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant’s Principal Executive Offices and Agent for Service) Copies to: Morrison C. Warren, Esq. Chapman and Cutler LLP 320 South Canal Street Chicago, Illinois 60606 Approximate date of commencement of proposed sale to the public : As soon as practicable after this registration statement becomes effective. 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 of 1933, 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 of 1933, check the following box and list the Securities Act registration If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act of 1933, check the following box and list the Securities Act registration Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 Securities Exchange Act of 1934. 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 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 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 state where the offer or sale is not permitted. Preliminary Prospectus dated August 29, 2025 COINSHARES SOLANA STAKING ETF Common Shares of Beneficial Interest The CoinShares Solana Staking ETF (the “Trust”) is an exchange-traded fund that issues common shares of beneficial interest (the “Shares”), which represent units of fractional undivided beneficial interest in and ownership of the Trust. The Trust’s purpose is to hold “SOL,” the native token of the Solana blockchain, which is a digital commodity based on the cryptographic protocols used by the decentralized, peer-to-peer computer network. The Trust’s primary investment objective is to seek to track the performance of the value of a SOL as represented by the [CME CF Solana – Dollar Reference Rate – New York Variant] (the “Index”), less the Trust’s liabilities and expenses. As a secondary investment objective, the Sponsor will utilize the services of the Custodian to stake, or cause to be staked, all of the Trust’s SOL except for SOL reserved by the Sponsor in its sole discretion to facilitate foreseeable redemption transactions, pay Trust expenses or otherwise protect the Trust and its assets. The Shares are designed to provide investors with a cost-effective and convenient way to invest in SOL. CoinShares Co. is the Sponsor of the Trust, CSC Delaware Trust Company (formerly Delaware Trust Company) is the trustee of the Trust (the “Trustee”), U.S. Bancorp Fund Services, LLC is the transfer agent of the Trust (in such capacity, the “Transfer Agent”) and the administrator of the Trust (in such capacity,

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