21Shares Solana ETF Files S-1/A, Eyes Staking Rewards

TL;DR

**Get ready for TSOL; 21Shares is bringing a spot Solana ETF with potential staking rewards, making SOL more accessible and potentially more lucrative for mainstream investors.**

AI Summary

The 21Shares Solana ETF (TSOL) filed an S-1/A on November 17, 2025, for an exchange-traded fund designed to track the performance of SOL, the native digital asset of the Solana blockchain, as measured by the CME CF Solana-Dollar Reference Rate - New York Variant. The Trust aims to reflect rewards from staking a portion of its SOL, subject to legal and regulatory risk assessments by the Sponsor, 21Shares US LLC. On October 1, 2025, 21Shares US LLC, as the Initial Seed Creation Investor, purchased 20,000 Initial Seed Creation Baskets for a total of $439,858.60, with the proceeds used to acquire SOL. The Trust previously sold 2 Seed Creation Baskets for $100.00 on September 17, 2025, which were redeemed by September 30, 2025. The Trust will hold SOL with Coinbase Custody Trust Company, LLC, Anchorage Digital Bank N.A., and BitGo Trust Company, Inc. as SOL Custodians. The Pricing Benchmark for SOL was $141.43 on November 14, 2025. The offering is continuous for three years and the Shares are expected to list on the Cboe BZX Exchange, Inc. under the ticker TSOL.

Why It Matters

This S-1/A filing signals the imminent launch of a spot Solana ETF, offering investors direct exposure to SOL without needing to manage private keys, potentially broadening the investor base for Solana. The inclusion of staking rewards, if implemented, could provide an additional yield component, making TSOL more attractive compared to other direct SOL holdings or future competing products. This move by 21Shares US LLC could intensify competition in the crypto ETF space, particularly against other digital asset ETFs, and further legitimize Solana as an institutional-grade asset. For employees, it signifies growth in the digital asset management sector, while customers gain a regulated investment vehicle.

Risk Assessment

Risk Level: high — The filing explicitly states, "AN INVESTMENT IN THE TRUST INVOLVES SIGNIFICANT RISKS AND MAY NOT BE SUITABLE FOR SHAREHOLDERS WHO ARE NOT IN A POSITION TO ACCEPT MORE RISK THAN MAY BE INVOLVED WITH EXCHANGE-TRADED PRODUCTS THAT DO NOT HOLD SOL. THE SHARES ARE SPECULATIVE SECURITIES. THEIR PURCHASE INVOLVES A HIGH DEGREE OF RISK AND YOU COULD LOSE YOUR ENTIRE INVESTMENT." This highlights the inherent volatility and speculative nature of digital assets like SOL, making it a high-risk investment.

Analyst Insight

Investors should carefully review the "RISK FACTORS" section starting on page 18 of the prospectus before considering an investment in TSOL. Given the high-risk nature, allocate only a small, speculative portion of your portfolio to this ETF, and understand that the potential for staking rewards is discretionary and subject to significant legal and regulatory hurdles.

Financial Highlights

debt To Equity

N/A

revenue

$439,858.60

operating Margin

N/A%

total Assets

$N/A

total Debt

$N/A

net Income

$N/A

eps

$N/A

gross Margin

N/A%

cash Position

$N/A

revenue Growth

+N/A%

Key Numbers

• $141.43 — Pricing Benchmark for SOL (As of November 14, 2025)
• $439,858.60 — Total proceeds from Initial Seed Creation Baskets (From the sale of 20,000 Shares on October 1, 2025)
• 20,000 — Number of Initial Seed Creation Baskets (Purchased by 21Shares US LLC on October 1, 2025)
• $100.00 — Total proceeds from Audit Seed Creation Baskets (From the sale of 2 Shares on September 17, 2025)
• 10,000 — Shares per Basket (Standard block size for creation and redemption of Shares)
• 3 — Years for continuous offering (Expected duration of the offering from original date)

Key Players & Entities

• 21Shares Solana ETF (company) — Registrant and issuer of TSOL shares
• 21Shares US LLC (company) — Sponsor of the Trust and Initial Seed Creation Investor
• SOL (dollar_amount) — Native digital asset of the Solana blockchain
• Cboe BZX Exchange, Inc. (company) — Anticipated listing exchange for TSOL shares
• CME CF Solana-Dollar Reference Rate - New York Variant (company) — Pricing Benchmark for SOL performance
• Coinbase Custody Trust Company, LLC (company) — SOL Custodian for the Trust
• Anchorage Digital Bank N.A. (company) — SOL Custodian for the Trust
• BitGo Trust Company, Inc. (company) — SOL Custodian for the Trust
• Russell Barlow (person) — Agent for service for 21Shares US LLC
• Dechert LLP (company) — Legal counsel for the registrant

FAQ

Risk Factors

• Regulatory Uncertainty of SOL [high — regulatory]: The filing highlights significant risks related to the regulatory status of SOL. There is a risk that SOL could be deemed a security by regulatory bodies in various jurisdictions, which could lead to restrictions on trading and holding SOL, impacting the Trust's ability to operate and the value of its holdings. The Sponsor, 21Shares US LLC, will assess legal and regulatory risks before reflecting staking rewards.
• Volatility of SOL Prices [high — market]: The Trust's performance is directly tied to the price of SOL, which is known for its high volatility. The Pricing Benchmark for SOL was $141.43 on November 14, 2025, indicating a significant price point. Fluctuations in SOL's price can lead to substantial losses for investors in the Trust.
• Custody Risks [medium — operational]: The Trust's SOL will be held by Coinbase Custody Trust Company, LLC, Anchorage Digital Bank N.A., and BitGo Trust Company, Inc. While these are established custodians, there remains an inherent risk of loss or theft of digital assets due to cybersecurity breaches or operational failures at the custodian level.
• Seed Creation Investment Risk [medium — financial]: 21Shares US LLC, as the Initial Seed Creation Investor, purchased 20,000 Initial Seed Creation Baskets for $439,858.60 on October 1, 2025. This initial investment is subject to the same market risks as any other investment in the Trust, and its value could decline.
• Legal and Regulatory Risk Assessments for Staking [medium — legal]: The Trust aims to reflect rewards from staking a portion of its SOL, but this is subject to legal and regulatory risk assessments by the Sponsor. Any adverse assessment could prevent the Trust from earning staking rewards, impacting its performance and potentially its ability to meet its investment objective.
• Dependence on CME CF Solana-Dollar Reference Rate [medium — market]: The Trust aims to track the performance of SOL as measured by the CME CF Solana-Dollar Reference Rate - New York Variant. Any inaccuracies, manipulation, or cessation of this reference rate could adversely affect the Trust's ability to accurately track SOL's performance.
• Continuous Offering Duration [low — operational]: The offering is continuous for three years. While this provides flexibility, it also means the Trust will be actively managing creations and redemptions over this period, introducing ongoing operational complexities and potential for errors.
• Redemption of Seed Baskets [low — market]: The Trust previously sold 2 Seed Creation Baskets for $100.00 on September 17, 2025, which were redeemed by September 30, 2025. While this indicates early activity, the small scale and subsequent redemption might suggest initial market testing or adjustments.

Industry Context

The digital asset ETF market is rapidly evolving, with increasing institutional interest in gaining exposure to cryptocurrencies like Solana. Competitors are also launching similar products, necessitating clear differentiation and robust risk management. The performance of Solana's blockchain, its ecosystem development, and broader market sentiment towards digital assets will significantly influence the success of this ETF.

Regulatory Implications

The primary regulatory concern revolves around the classification of SOL as a security. If deemed a security by regulators like the SEC, the Trust could face significant operational hurdles, potential delisting, and increased compliance costs. The Sponsor's proactive assessment of legal and regulatory risks, particularly concerning staking rewards, is crucial for navigating this uncertain landscape.

What Investors Should Do

1. Review the 'Risk Factors' section thoroughly, paying close attention to regulatory and market volatility risks associated with SOL.
2. Understand the role and fees associated with the Trust's service providers, including custodians and the benchmark provider.
3. Evaluate the potential for staking rewards and the associated legal/regulatory risks before investing.
4. Monitor the CME CF Solana-Dollar Reference Rate - New York Variant for any anomalies or changes that could affect the Trust's tracking accuracy.

Key Dates

• 2025-11-17: S-1/A Filing — This is the primary filing for the 21Shares Solana ETF (TSOL), outlining its structure, objectives, risks, and operational details for potential investors.
• 2025-10-01: Initial Seed Creation Baskets Purchase — 21Shares US LLC purchased 20,000 baskets for $439,858.60, providing initial capital to acquire SOL and establishing the Trust's foundation.
• 2025-09-30: Redemption of Audit Seed Creation Baskets — Indicates the completion of an early redemption cycle for a small number of seed baskets, suggesting initial operational testing or adjustments.
• 2025-09-17: Sale of Audit Seed Creation Baskets — The initial sale of 2 seed baskets for $100.00, preceding their redemption, marks an early transaction in the Trust's lifecycle.
• 2025-11-14: SOL Pricing Benchmark — The reference price of $141.43 for SOL on this date provides a key valuation point relevant to the Trust's Net Asset Value (NAV) calculations and the value of its underlying assets.

Glossary

S-1/A

An amended registration statement filed with the U.S. Securities and Exchange Commission (SEC) for a new securities offering. It provides detailed information about the issuer and the securities being offered. (This is the core document detailing the 21Shares Solana ETF's structure, operations, and risks.)

SOL

The native digital asset of the Solana blockchain, used for transaction fees, governance, and staking. (The underlying asset that the 21Shares Solana ETF aims to track the performance of.)

CME CF Solana-Dollar Reference Rate - New York Variant

A benchmark rate that measures the price of SOL against the US Dollar, calculated by CME Group and CF Benchmarks. (This is the specific pricing benchmark the Trust will use to measure the performance of SOL.)

Initial Seed Creation Baskets

A block of ETF shares created by an authorized participant (in this case, 21Shares US LLC) to acquire the underlying assets (SOL) for the Trust. The purchase of 20,000 baskets for $439,858.60 on October 1, 2025, represents the initial capitalization. (This transaction established the initial holdings and capital for the Trust.)

Staking Rewards

In Proof-of-Stake blockchains like Solana, holders can 'stake' their tokens to help secure the network and earn rewards in return. The Trust intends to reflect these rewards. (A potential source of additional return for the Trust, but subject to regulatory assessment.)

SOL Custodians

Entities responsible for securely holding and safeguarding the Trust's SOL assets. The filing names Coinbase Custody Trust Company, LLC, Anchorage Digital Bank N.A., and BitGo Trust Company, Inc. (Ensures the security of the Trust's primary asset, with diversification across multiple custodians.)

Continuous Offering

An offering of securities that is made on an ongoing basis over a specified period, in this case, three years. This allows for the creation and redemption of ETF shares throughout this period. (Defines the active period during which the Trust will facilitate share creation and redemption.)

Cboe BZX Exchange, Inc.

A national securities exchange where the ETF's shares are expected to be listed and traded under the ticker TSOL. (The trading venue for the ETF, impacting liquidity and accessibility for investors.)

Year-Over-Year Comparison

As this is an initial S-1/A filing for the 21Shares Solana ETF (TSOL), there is no prior filing to compare against. Key metrics such as revenue, net income, and margins are not yet established as the ETF has just completed its initial seed creation. New risks related to the specific structure and operation of a Solana-based ETF, including regulatory classification of SOL and custody of digital assets, are being introduced for the first time in this filing.

Key Financial Figures

• $141.43 — ber 14, 2025, the Pricing Benchmark was $141.43. The Sponsor served as the Audit Seed
• $50.00 — rising 2 Shares at a per-Share price of $50.00 as described in “Audit Seed/Initi
• $100.00 — ale of these Seed Creation Baskets were $100.00. Delivery of the Seed Creation Baskets
• $439,858.60 — the Initial Seed Creation Baskets were $439,858.60. On October 1, 2025, the Trust purchase

Filing Documents

• ea0259370-s1a5_21shares.htm (S-1/A) — 1403KB
• ea025937001ex3-3_21shares.htm (EX-3.3) — 296KB
• ea025937001ex8-1_21shares.htm (EX-8.1) — 7KB
• ea025937001ex10-1_21shares.htm (EX-10.1) — 29KB
• ea025937001ex10-2_21shares.htm (EX-10.2) — 123KB
• ea025937001ex10-5_21shares.htm (EX-10.5) — 147KB
• ea025937001ex10-6_21shares.htm (EX-10.6) — 75KB
• ea025937001ex10-7_21shares.htm (EX-10.7) — 138KB
• ea025937001ex10-9_21shares.htm (EX-10.9) — 144KB
• ea025937001ex10-10_21shares.htm (EX-10.10) — 12KB
• ea025937001ex10-11_21shares.htm (EX-10.11) — 19KB
• ea025937001ex10-12_21shares.htm (EX-10.12) — 96KB
• ea025937001ex10-14_21shares.htm (EX-10.14) — 235KB
• ea025937001ex23-1_21shares.htm (EX-23.1) — 2KB
• ex8-1_001.jpg (GRAPHIC) — 3KB
• ex10-9_001.jpg (GRAPHIC) — 6KB
• ex10-14_001.jpg (GRAPHIC) — 14KB
• 0001213900-25-111219.txt ( ) — 2759KB

RISK FACTORS

RISK FACTORS 18 SOL, SOL MARKETS AND REGULATION OF SOL 77 THE TRUST AND SOL PRICES 82 NET ASSET VALUE DETERMINATIONS 85 ADDITIONAL INFORMATION ABOUT THE TRUST 89 THE TRUST’S SERVICE PROVIDERS 93 CUSTODY OF THE TRUST’S ASSETS 95 PRIME BROKER 100 FORM OF SHARES 105 TRANSFER OF SHARES 105 AUDIT SEED/INITIAL SEED CREATION INVESTOR 106 PLAN OF DISTRIBUTION 106 CREATION AND REDEMPTION OF SHARES 108

USE OF PROCEEDS

USE OF PROCEEDS 115 OF BENEFICIAL INTEREST IN THE TRUST 115 CONFLICTS OF INTEREST 116 DUTIES OF THE SPONSOR 118 LIABILITY AND INDEMNIFICATION 120 PROVISIONS OF LAW 122 MANAGEMENT; VOTING BY SHAREHOLDERS 122 BOOKS AND RECORDS 123 FILINGS, AND REPORTS TO SHAREHOLDERS 123 FISCAL YEAR 124 GOVERNING LAW; CONSENT TO DELAWARE JURISDICTION 124 LEGAL MATTERS 124 EXPERTS 124 OTHER MATERIAL CONTRACTS 125 UNITED STATES FEDERAL INCOME TAX CONSEQUENCES 129 PURCHASES BY EMPLOYEE BENEFIT PLANS 134 INFORMATION YOU SHOULD KNOW 135 SUMMARY OF PROMOTIONAL AND SALES MATERIAL 135 INTELLECTUAL PROPERTY 136 WHERE YOU CAN FIND MORE INFORMATION 136 PRIVACY POLICY 137 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM F-2 APPENDIX A A-1 PART II INFORMATION NOT REQUIRED IN PROSPECTUS II-1 -i- This Prospectus contains information you should consider when making an investment decision about the Shares of the Trust. 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. The Shares of the Trust are not registered for public sale in any jurisdiction other than the United States. Until 25 calendar days after the date of this Prospectus, all dealers effecting transactions in the Shares, whether or not participating in this offering, may be required to deliver a prospectus. This requirement is in addition to the dealer’s obligation to deliver a prospectus when acting as underwriters and with respect to unsold allotments or subscriptions. REGARDING FORWARD-LOOKING STATEMENTS This Prospectus includes “forward-looking statements” that generally

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View this S-1/A filing on SEC EDGAR