Fidelity Solana Fund Sees $161K Unrealized Loss in Inaugural Period

TL;DR

**FSOL's debut shows immediate unrealized losses, signaling crypto volatility isn't just for retail investors.**

AI Summary

Fidelity Solana Fund (FSOL) reported total net assets of $4,838,061 as of September 30, 2025, following its seeding date on September 10, 2025. The fund experienced a net decrease in net assets resulting from operations of $161,939, primarily due to a net change in unrealized depreciation on its investment in Solana. The Trust initially purchased 23,402 SOL for a cost of $5,000,000, which had a fair value of $4,838,061 by the end of the reporting period. This represents a 3.24% unrealized loss on its Solana holdings. The fund issued 200,000 shares at $25 per share, totaling $5,000,000 in capital share transactions. The Net Asset Value per share was $24.19 as of September 30, 2025. The Trust's investment objective is to track the performance of Solana, adjusted for expenses and staking rewards.

Why It Matters

This initial 10-Q filing for Fidelity Solana Fund provides the first glimpse into the performance of a new, significant player in the crypto ETF space, backed by Fidelity. For investors, the immediate unrealized loss of 3.24% on its Solana holdings highlights the inherent volatility of digital assets, even for institutional products. Employees of Fidelity and its affiliates involved in the fund's operations will be watching closely as the fund navigates market fluctuations. Competitively, this fund enters a growing market for crypto-backed investment vehicles, putting pressure on existing and prospective Solana ETPs to demonstrate robust performance and competitive fee structures. The broader market will view this as a bellwether for institutional interest and performance in the Solana ecosystem.

Risk Assessment

Risk Level: high — The fund's sole investment is in Solana, a highly volatile digital asset, as evidenced by the $161,939 net change in unrealized depreciation within its first 20 days of operation. This concentrated exposure to a single, non-income producing crypto asset, which experienced a 3.24% decline in value from its $5,000,000 cost to $4,838,061 fair value, indicates significant market risk.

Analyst Insight

Investors should approach FSOL with caution, recognizing the high volatility and concentrated risk associated with Solana. Consider this fund only as a small, speculative portion of a diversified portfolio, and be prepared for significant price swings. Monitor Solana's market performance and regulatory developments closely.

Financial Highlights

debt To Equity

0.0

revenue

$0

operating Margin

N/A

total Assets

$4,838,061

total Debt

$0

net Income

-$161,939

eps

$24.19

gross Margin

N/A

cash Position

$0

revenue Growth

N/A

Key Numbers

• $4.84M — Total Net Assets (As of September 30, 2025, reflecting initial investment and unrealized loss.)
• $161,939 — Net Decrease in Net Assets from Operations (Primarily due to unrealized depreciation on Solana investment.)
• $5.00M — Cost of Investment in Solana (Initial purchase price for 23,402 SOL.)
• $4.84M — Fair Value of Investment in Solana (As of September 30, 2025, reflecting a 3.24% decline from cost.)
• 200,000 — Shares Issued and Outstanding (As of September 30, 2025, following seed basket purchase.)
• $24.19 — Net Asset Value per Share (As of September 30, 2025, down from the initial $25 per share.)
• 23,402 — Quantity of Solana Held (Total Solana tokens held by the Trust as of September 30, 2025.)
• 3.24% — Unrealized Loss Percentage (Percentage decline in Solana's fair value from its cost basis.)
• $5,000,000 — Proceeds from Issuance of Capital Shares (Net capital raised from share transactions.)
• September 10, 2025 — Seeding Date (Start of the operational period for the financial statements.)

Key Players & Entities

• Fidelity Solana Fund (company) — Registrant and investment vehicle
• FD Funds Management LLC (company) — Sponsor of the Trust
• FMR LLC (company) — Parent company of the Sponsor
• CSC Delaware Trust Company (company) — Trustee of the Trust
• FMR Capital, Inc. (company) — Seed Capital Investor, an affiliate of the Sponsor
• Fidelity Service Company, Inc. (company) — Administrator of the Trust
• Fidelity Distributors Company LLC (company) — Distributor of the Trust
• Fidelity Product Services LLC (company) — Index Provider for the Fidelity Solana Reference Rate
• Solana (other) — Underlying digital asset investment
• SEC (regulator) — Securities and Exchange Commission

FAQ

Risk Factors

• Volatility of Solana Investment [high — market]: The Trust's primary asset is an investment in Solana, which experienced a 3.24% unrealized loss, decreasing its fair value from $5,000,000 to $4,838,061 within the first 20 days of operation. This highlights the significant price volatility inherent in digital assets.
• Uncertain Regulatory Landscape for Digital Assets [high — regulatory]: As an exchange-traded product focused on a digital asset like Solana, the Trust is subject to evolving and uncertain regulatory frameworks. Changes in regulations could impact the Trust's ability to operate, its investment strategy, or the valuation of its assets.
• Operational Risks of Digital Asset Custody and Management [medium — operational]: Managing and safeguarding digital assets like Solana involves unique operational risks, including potential cybersecurity threats, custody failures, and the need for specialized technical expertise. The short operating history (since September 10, 2025) means these risks are yet to be fully tested.

Industry Context

The Fidelity Solana Fund operates within the rapidly evolving digital asset investment space. This sector is characterized by high volatility, technological innovation, and increasing institutional interest, alongside significant regulatory scrutiny. Funds tracking specific cryptocurrencies like Solana aim to provide investors with exposure to the performance of these digital assets.

Regulatory Implications

The fund's structure as an exchange-traded product focused on a digital asset exposes it to a complex and evolving regulatory landscape. Compliance with securities laws and potential future regulations concerning digital assets will be critical for its ongoing operations and investor protection.

What Investors Should Do

1. Monitor Solana's Price Volatility
2. Assess Regulatory Developments
3. Understand the Fund's Limited Operating History

Key Dates

• 2025-09-10: Seeding Date — Marks the commencement of the Fidelity Solana Fund's operations and the initial investment in Solana.
• 2025-09-30: Reporting Period End — The date as of which the financial statements (Statement of Assets and Liabilities, Statement of Operations, etc.) are reported.

Glossary

Net Assets

The total value of a fund's assets minus its liabilities. (Represents the total value of the Fidelity Solana Fund, which was $4,838,061 as of September 30, 2025.)

Unrealized Depreciation

A decrease in the value of an asset that has not yet been sold. It represents a paper loss. (The primary driver of the fund's net decrease in assets, amounting to $161,939 due to the decline in Solana's fair value.)

Cost Basis

The original value of an asset for tax purposes, usually the purchase price. (The fund's initial investment in Solana was $5,000,000, serving as the cost basis against which fair value is measured.)

Net Asset Value per Share (NAV per Share)

The market value of a fund's assets minus its liabilities, divided by the number of outstanding shares. (Indicates the per-share value of the fund, which was $24.19 as of September 30, 2025, down from the initial offering price.)

Paid-in-capital

The total amount of money investors have contributed to a company or fund in exchange for stock or shares. (Represents the capital raised by the fund through share issuance, totaling $5,000,000.)

Year-Over-Year Comparison

As this is the initial 10-Q filing following the fund's seeding date on September 10, 2025, there are no prior period comparisons available. The report reflects the fund's inception, initial investment in Solana, and the immediate unrealized depreciation experienced within the first 20 days of operation.

Filing Documents

• fsol-20250930.htm (10-Q) — 432KB
• fsol-ex31_1.htm (EX-31.1) — 18KB
• fsol-ex31_2.htm (EX-31.2) — 18KB
• fsol-ex32_1.htm (EX-32.1) — 12KB
• fsol-ex32_2.htm (EX-32.2) — 12KB
• 0001193125-25-317235.txt ( ) — 2204KB
• fsol-20250930.xsd (EX-101.SCH) — 332KB
• fsol-20250930_htm.xml (XML) — 147KB

Financial Statements

Financial Statements 2 2 3 4 5 Schedule of Investment as of September 30, 2025 (unaudited) 6 Notes to the Financial Statements (unaudited) 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 12 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 14 Item 4.

Controls and Procedures

Controls and Procedures 14 PART II. OTHER INFORMATION 15 Item 1.

Legal Proceedings

Legal Proceedings 15 Item 1A.

Risk Factors

Risk Factors 15 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 15 Item 3. Defaults Upon Senior Securities 15 Item 4. Mine Safety Disclosures 15 Item 5. Other Information 15 Item 6. Exhibits 16

Signatures

Signatures 17 i CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q (this "Quarterly Report") contains "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 Quarterly Report that address activities, events or developments that will or may occur in the future, including such matters as movements in the digital asset markets and indexes that track such movements, Fidelity Solana Fund's (the "Trust") operations, FD Funds Management LLC's (the "Sponsor") 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. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and are difficult to predict, that could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors we identify in this Quarterly Report and in our filings with the Securities and Exchange Commission (the "SEC"). Whether or not actual results and developments will conform to the Sponsor's expectations and predictions, however, is subject to a number of risks and uncertainties, including the special considera

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Fidelity Solana Fund (unaudited) September 30, 2025 Assets Investment in solana, at fair value (cost $ 5,000,000 ) $ 4,838,061 Total Assets $ 4,838,061 Liabilities $ — Commitments and Contingencies (Note 6) Net Assets Shares, no par value ( unlimited shares authorized) 200,000 shares issued and outstanding as of September 30, 2025 — Paid-in-capital 5,000,000 Total distributable earnings (loss) ( 161,939 ) Total Net Assets $ 4,838,061 Net Asset Value per share ( 200,000 shares issued and outstanding as of September 30, 2025) $ 24.19 The accompanying notes are an integral part of these financial statements 2 Fidelity Solana Fund (unaudited) For the period September 10, 2025 (seeding date) through September 30, 2025 Investment Income: Investment Income $ — Expenses: Expenses — Net Investment Income (Loss) $ — Net Realized and Change in Unrealized Gain (Loss) from: Net realized gain (loss) on investment in solana — Net change in unrealized appreciation (depreciation) on investment in solana ( 161,939 ) Net Realized and Change in Unrealized Gain (Loss) on Investment in Solana $ ( 161,939 ) Net Increase (Decrease) in Net Assets Resulting from Operations $ ( 161,939 ) The accompanying notes are an integral part of these financial statements 3 Fidelity Solana Fund (unaudited) For the period September 10, 2025 (seeding date) through September 30, 2025 Net Increase (Decrease) in Net Assets Resulting from Operations: Net investment income (loss) $ — Net realized gain (loss) on investment in solana — Net change in unrealized appreciation (depreciation) on investment in solana ( 161,939 ) Net Increase (Decrease) in Net Assets Resulting from Operations $ ( 161,939 ) Capital Share Transactions: Shar

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. The following discussion and analysis of our financial condition and results of operations should be read together with, and is qualified in its entirety by reference to, our unaudited financial statements and related notes included elsewhere in this Quarterly Report, which have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). The following discussion may contain forward-looking statements based on assumptions we believe to be reasonable. Our actual results could differ materially from those discussed in these forward-looking statements. Overview of the Trust The Fidelity Solana Fund (the "Trust") is an exchange-traded product that issues

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