Fidelity Solana Fund Annual Report - How They Did This Year

I’ve put together this guide to help you understand how the Fidelity Solana Fund (FSOL) performed. My goal is to explain the financial details clearly so you can decide if this fund fits your investment goals.

1. What does this fund do?

Think of this fund as a digital vault. Instead of buying, storing, and securing Solana (SOL) yourself—which requires managing complex digital wallets—you can buy shares through your regular brokerage account. The fund holds the actual Solana in secure, offline storage managed by Fidelity Digital Assets. It is a passive investment, meaning the fund does not trade or try to time the market. It simply tracks the Fidelity Solana Reference Rate, minus a 0.39% annual management fee.

2. How did they perform this year?

The fund launched on November 17, 2025. By the end of the year on December 31, 2025, it held about $42.5 million in assets.

The fund uses a strategy called "staking." It stakes 60% to 75% of its Solana holdings to earn network rewards. These rewards, which yield about 6.5% to 7.5% annually on the staked portion, are reinvested into the fund. After paying the 0.39% management fee and small administrative costs, these rewards help offset the fund's expenses. This keeps the fund’s share price closely aligned with the actual price of Solana.

3. Financial health and strategy

The fund keeps a simple, conservative balance sheet. It holds Solana with professional custodians and does not use borrowed money or complex financial bets. The fund’s value is based on a price average from major exchanges to ensure it reflects true market conditions.

The Solana network is busy. By the end of 2025, the ecosystem supported over 300 apps with $9.3 billion in total value. This activity is important because it generates the transaction fees that secure the network and provide the staking rewards the fund earns.

4. Key risks: What could go wrong?

The biggest risk is Solana’s extreme price swings; it has historically dropped more than 50% in a single quarter.

• No Control: You have no voting rights regarding the fund or the Solana network’s updates.
• Tech Risks: Solana’s complex software allows for high speeds, but it also risks network outages or bugs that could freeze the fund’s ability to trade or stake assets.
• Staking Risks: If the validators chosen by the fund act maliciously or go offline, the network may penalize them by confiscating a portion of the staked Solana. This would cause a direct loss for the fund.
• Regulation: Regulators are still deciding how to classify digital assets. If they label Solana an unregistered security, the fund might be forced to close, which could trigger taxes for you.

5. Future outlook

The fund is in its early stages. Management is focused on secure storage and earning steady staking rewards. In 2026, the goal is to keep the fund’s price within 0.50% of the official Solana reference rate. The managers plan to stick to this passive strategy while growing the fund and carefully selecting validators to maximize rewards and minimize risks.

Is this fund right for you? If you want exposure to Solana without the technical headache of managing private keys and wallets, this fund offers a straightforward, regulated path. However, because of the high volatility of the underlying asset and the specific risks associated with staking and network technology, it is best suited for investors who are comfortable with significant price swings and the evolving nature of the crypto market. Always consider how this fits into your broader portfolio before jumping in.