10-Q: Canary Marinade Solana ETF Reports Q2 2026 Results

Canary Marinade Solana ETF (SOLC) reported a decrease in Net Asset Value per Share to $14.71 as of June 30, 2026, driven by a significant decline in Solana's price.

Summary

• The Canary Marinade Solana ETF (SOLC) reported its financial results for the quarter ended June 30, 2026.
• Net Asset Value (NAV) per Share decreased to $14.71 from $24.09 at the end of 2025.
• Total Net Assets decreased from $1,926,808 to $1,470,635 during the six-month period.
• The primary driver of this decrease was a significant depreciation in the value of Solana (SOL), which fell by 40.75% during the first six months of 2026.
• The ETF generated $17,646 in staking income for the quarter and $39,621 for the six-month period.
• Sponsor fees were waived entirely until July 1, 2026, but will be reinstated at 0.50% annually thereafter.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative score due to significant unrealized losses and a substantial decrease in Net Asset Value per Share, despite some staking income.

Positives

• The Trust generated staking income of $17,646 for the three months ended June 30, 2026, and $39,621 for the six months ended June 30, 2026.
• The Sponsor waived all Sponsor Fees until July 1, 2026, resulting in 0.00% expense ratio for the period.
• 30,000 Shares were created during the quarter ended June 30, 2026, indicating continued investor interest in creating new units of the ETF.

Negatives

• Net Asset Value per Share decreased significantly by 38.92% from $24.09 at the end of 2025 to $14.71 at June 30, 2026.
• Total Net Assets decreased by $456,173 during the first six months of 2026, from $1,926,808 to $1,470,635.
• The value of the Trust's investment in Solana depreciated by 40.75% during the six-month period.
• The Trust experienced a net realized and unrealized loss on investments of $(144,536) for the quarter and $(718,469) for the six-month period.
• The highest NAV per Share during the six-month period was $28.62 (January 14, 2026), significantly higher than the end-of-period value of $14.71.

Risks

• Substantially all of the Trust's assets are holdings of SOL, creating concentration risk associated with fluctuations in the price of SOL.
• Factors that may cause a decline in SOL price include negative perception of digital assets, lack of stability and regulation, closure of digital asset platforms, and loss of investor confidence.
• The Trust is subject to market risk related to the price of Solana, which has experienced significant depreciation.
• The Sponsor Fee of 0.50% will be reinstated from July 1, 2026, which will increase expenses.

Future Outlook

The Trust's investment objective is to provide exposure to the price of Solana (SOL), less expenses, and to earn additional SOL through staking. Starting July 1, 2026, the Trust will incur the full Sponsor Fee of 0.50% annually, which was previously waived.

Management Comments

• The Sponsor believes the risk of loss under indemnification arrangements to be remote.
• Disclosure controls and procedures were effective as of June 30, 2026.
• There were no changes in internal control over financial reporting that materially affected or are likely to materially affect them during the quarter.

Industry Context

StockSavvy.ai notes that the performance of the Canary Marinade Solana ETF is highly correlated with the price movements of Solana. The significant decline in SOL's price during the period directly impacted the ETF's Net Asset Value, a common characteristic of single-asset cryptocurrency ETFs.

Comparison to Industry Standards

• The expense ratio before waiver was 0.50%, which is standard for many cryptocurrency ETFs.
• The expense ratio after waiver was 0.00%, which is highly competitive and attractive to investors during the waiver period.
• The total return at NAV of -10.14% for the quarter and -38.92% for the six months reflects the volatility inherent in the cryptocurrency market, particularly for assets like Solana during this period.

Legal Proceedings

• None.

Related Party Transactions

• The Sponsor, Canary Capital Group LLC, is considered a related party. The Trust pays the Sponsor an annual unified fee of 0.50% of the Trusts SOL Holdings, though this fee was waived until July 1, 2026.
• Employees of PINE Advisors LLC serve as officers of the Trust, and the Sponsor pays PINE an annual fee and reimburses certain expenses.

Stakeholder Impact

• Shareholders have experienced a significant decrease in the Net Asset Value per Share and overall Net Assets due to the decline in Solana's price.
• The reinstatement of the Sponsor Fee will increase the Trust's expenses, potentially impacting future returns for shareholders.
• The concentration risk in Solana means that any adverse movements in SOL's price will directly affect shareholder value.

Next Steps

• The Trust will continue to seek to provide exposure to the price of Solana.
• The Trust will continue to seek to earn additional SOL through staking.
• The Sponsor Fee of 0.50% will be applied starting July 1, 2026.

Key Dates

Recommendation

The ETF's performance is directly tied to Solana's price, which has shown significant volatility and a recent downward trend. While staking income provides a small offset and the prior fee waiver was beneficial, the substantial unrealized losses and the upcoming fee reinstatement suggest a cautious approach. Investors should monitor Solana's price action and the ETF's expense ratio post-waiver. A 'hold' recommendation reflects the speculative nature of the asset and the current market conditions.

Keywords

Solana ETF, Cryptocurrency ETF, Digital Assets, Solana, Exchange Traded Fund, SEC Filing, Form 10-Q, Canary Marinade