10-Q: Bitwise Solana Staking ETF Q1 2026 Financial Results

The Bitwise Solana Staking ETF reported a net decrease in assets for Q1 2026, driven primarily by a decline in the market price of Solana.

Summary

• Net assets decreased from $641.3 million on December 31, 2025, to $570.3 million on March 31, 2026.
• The Trust reported a net decrease in assets resulting from operations of $238.1 million for the quarter.
• Net investment income was $9.3 million, derived from $9.9 million in staking rewards, offset by $0.6 million in net expenses.
• The Trust held 6,905,641 Solana as of March 31, 2026.
• The Principal Market NAV per share declined from $16.37 at the end of 2025 to $11.07 as of March 31, 2026.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a neutral-to-negative report, as the decline in net assets is primarily a reflection of market-wide volatility in the price of Solana rather than operational failure.

Positives

• The Trust successfully generated $9.9 million in gross staking rewards during the quarter.
• The Trust maintains a clear and transparent fee structure with a 0.20% annual sponsor fee.
• The Trust continues to operate with high liquidity, facilitating efficient creation and redemption of shares.

Negatives

• The Trust experienced a significant net decrease in net assets resulting from operations of $238.1 million.
• The price of Solana, the Trust's sole asset, depreciated from $123.88 on December 31, 2025, to $82.66 on March 31, 2026.
• The Trust recorded a net realized loss of $42.0 million on the sale of Solana to meet shareholder redemptions.

Risks

• Extreme volatility in the price of Solana directly impacts the value of the Trust's shares.
• The Trust is subject to concentration risk as its sole asset is Solana.
• Potential for regulatory changes or legal developments regarding digital assets and staking activities.
• Operational risks associated with the Solana network, including potential forks or technical failures.
• Reliance on third-party custodians and staking agents for the security and management of assets.

Future Outlook

The Trust intends to continue its primary objective of providing exposure to Solana and its secondary objective of generating additional Solana through staking. The Sponsor notes that future performance remains subject to market conditions and the volatility of the digital asset market.

Management Comments

• Management emphasizes that the Trust is an emerging growth company and may elect to comply with reduced reporting requirements.
• The Sponsor maintains that the Trust provides an efficient means for investors to gain exposure to Solana through traditional brokerage accounts.

Industry Context

StockSavvy.ai notes that the performance of the Bitwise Solana Staking ETF is highly correlated with the broader Solana ecosystem and the general volatility of the crypto-asset market, consistent with other single-asset crypto ETPs.

Comparison to Industry Standards

• The Trust's 0.20% sponsor fee is competitive within the landscape of digital asset ETPs.
• The use of staking to generate additional yield differentiates this product from standard non-staking crypto ETFs.

Corporate Governance

Related Party Transactions

• The Trust pays a 0.20% annual sponsor fee to Bitwise Investment Advisers, LLC.
• Staking expenses are shared between the Staking Agents and the Sponsor.

Stakeholder Impact

• Shareholders are directly impacted by the volatility of the Solana price and the performance of the staking program.
• Authorized Participants continue to facilitate the creation and redemption of shares.

Next Steps

• Continued daily calculation of NAV.
• Ongoing management of staking activities through Staking Agents.
• Compliance with ongoing SEC reporting requirements.

Key Dates

Recommendation

The Trust is a passive vehicle tracking the price of Solana. A hold recommendation is appropriate as the performance is tied to the underlying asset's market movement rather than company-specific operational success or failure.

Keywords

Solana, BSOL, Bitwise, Staking, ETF, Crypto, Digital Assets