Canary Marinade Solana ETF Annual Report - How They Did This Year

I’ve put together this guide to help you understand how the Canary Marinade Solana ETF (ticker: SOLC) performed during its first partial year. My goal is to explain the details in plain English so you can decide if this fits your investment goals.

1. What does this company do?

Think of this ETF as a digital vault for Solana (SOL). Instead of buying, storing, and securing Solana yourself, you can buy shares of this ETF on the Nasdaq.

The Trust has two main goals:

• Track the price: It aims to mirror the price of Solana, minus the 1.25% annual sponsor fee.
• Earn extra rewards: It uses "staking." Think of this like a high-yield savings account for your crypto. By locking up Solana to help the network process transactions, the Trust earns an average annual return of 6.5% to 7.5%. These rewards are converted into more SOL and passed to you after a 0.50% management fee.

2. How did they perform this year?

The Trust started on November 17, 2025. By December 31, 2025, it held $42.5 million in assets. As of March 2026, the Solana network is growing, with over 680 apps and $6.85 billion in value used for decentralized finance. During its initial 44-day period, the Trust tracked the price of Solana closely, with a monthly error rate of less than 0.15%.

3. Financial health and "Safety Net"

The Trust is a Delaware statutory trust that relies on partners to operate:

• BitGo: The custodian that holds your Solana in a secure, offline vault.
• U.S. Bank: Manages the cash and handles share creation.
• Canary Capital Group: The sponsor that manages the strategy and charges a 1.25% fee for operations.

The Trust’s health depends on the value of the Solana it holds. It has no debt, but it does have ongoing costs like insurance and legal fees. The Trust pays these by selling a small amount of its SOL, which slightly reduces the amount of SOL each share represents over time.

4. Key risks

Crypto investments carry unique risks:

• Price Volatility: Solana’s price can swing wildly. Between November and December 2025, the price moved more than 8% in a single day. If the price drops, your shares drop too.
• Technology Risks: The Trust relies on Solana’s network. If the network suffers from congestion or "consensus halts," the Trust might be unable to trade or stake assets.
• Staking Uncertainties: The Trust faces "slashing" risk. If the validators chosen by the Trust fail to stay online or act maliciously, the network can confiscate some of the staked SOL. This would reduce the Trust's total value.
• Regulatory Changes: Laws around crypto are still evolving. Regulators could decide that staking services are unregistered securities, which might force the Trust to stop staking.

5. Future outlook

The Solana network has major upgrades planned for 2026. These include the "Alpenglow" protocol for faster transactions and "SIMD-123" to help validators collect more revenue. These updates could increase the rewards the Trust earns for you. The Trust aims to grow to $250 million in assets by the end of 2026 to lower its custody costs.

Is this right for you? If you are looking for exposure to Solana without the technical hurdles of managing a digital wallet, SOLC offers a regulated way to participate in both price movements and staking yields. However, because this is a new fund in a volatile market, it is best suited for investors who are comfortable with the risks of crypto and the potential for regulatory changes. Always consider how this fits into your broader portfolio before jumping in.