Solana Futures ETFs Launch: Spot ETF Closer?
Volatility Shares is launching the first-ever exchange-traded funds (ETFs) tracking Solana futures, a significant step that could accelerate the approval of a spot Solana ETF.
Key Developments
- Launch Date: Volatility Shares' Solana futures ETFs begin trading tomorrow.
- Bloomberg Prediction: Analysts estimate a 75% probability of spot Solana ETF approval in 2025.
- DTCC Listing: The ETFs secured a listing on the Depository Trust & Clearing Corporation (DTCC) in February, ensuring efficient clearing and settlement.
This follows the established pattern for Bitcoin and Ether ETFs, where futures-based products preceded the approval of spot ETFs.
Volatility Shares' Offerings
Volatility Shares will offer two ETFs:
- Volatility Shares Solana ETF (SOLZ): Tracks Solana futures.
- Volatility Shares 2X Solana ETF (SOLT): Provides twice the leveraged exposure to Solana futures.
Justin Young, CEO of Volatility Shares, stated: "Our launch comes at a time of renewed optimism for cryptocurrency innovation in the US."
Implications for Spot Solana ETFs
While the SEC hasn't yet approved a spot Solana ETF, the launch of these futures-based products suggests growing institutional interest in Solana. The 75% probability of spot ETF approval predicted by Bloomberg Intelligence underscores this potential.
Several asset managers, including Franklin Templeton, Grayscale, VanEck, 21Shares, Bitwise, and Canary, have already filed applications for spot Solana ETFs.
Solana's Current Landscape
Solana, with a market capitalization of approximately $67 billion, initially gained traction due to endorsements from Sam Bankman-Fried. Despite challenges following FTX’s collapse, Solana has shown resilience, attracting users with its lower transaction fees. However, SOL is still down roughly 30% year-to-date. At the time of writing, SOL is trading at $130.
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