Canary Solana Trust Sings to SEC: Another Crypto Bird Joins the Flock
Published Date: 2/18/2025
Notice
Summary
The Cboe BZX Exchange wants to start listing and trading shares of the Canary Solana Trust, a new fund tied to the Solana cryptocurrency. This change lets investors buy and sell these shares on the exchange, opening up fresh opportunities in crypto investing. The proposal was filed in early 2025 and is now open for public comments before it can go live.
Analyzed Economic Effects
5 provisions identified: 3 benefits, 2 costs, 0 mixed.
Canary Solana Trust Shares May Trade On-Exchange
The Exchange filed to list and trade shares of the Canary Solana Trust so investors may buy and sell shares on the Cboe BZX Exchange once the Trust's Form S-1 registration statement is effective. The filing was made January 28, 2025 and the Trust will not trade until its registration statement is effective; at least 100,000 Shares must be outstanding at the start of listing.
Creations and Redemptions Are Cash-Only (500 Shares)
The Trust will create and redeem shares in cash-only Creation Baskets of 500 Shares; authorized participants will deliver only cash to create Shares and will receive only cash when redeeming Shares. Purchase orders for creations must be placed by 4:00 p.m. ET (or exchange close, if earlier) on the business day.
Custody in Segregated Cold Storage; No Hypothecation
The Trust's Custodian will hold the Trust's SOL in segregated cold storage addresses, safeguard private keys, and will not loan, hypothecate, pledge, withdraw, or otherwise encumber the Trust's SOL without the Trust's instruction. If the custody agreement ends, the Sponsor may appoint a new custodian.
Trust Will Not Stake or Credit Airdrops/Forks
The Trust and Sponsor will not engage in staking or use the Trust's SOL to earn additional SOL or income, and the Trust will disclaim any incidental rights or assets received (for example from forks or airdrops); such assets will not be included in NAV.
Daily NAV and 15-Second Intraday Values Disclosed
The Trust's NAV will be calculated once daily using the CME CF Solana-Dollar Reference Rate as of 4:00 p.m. ET and published daily; an Intraday Indicative Value (IIV) per share will be disseminated every 15 seconds during regular trading hours (9:30 a.m. to 4:00 p.m. ET). Pricing and holdings information will be publicly available on the Sponsor's website and via major market data vendors.
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