Solana futures ETFs go live tomorrow, bringing spot ETF one step closer

Key Takeaways

• After securing a DTCC listing in February, Volatility Shares’ Solana futures ETFs start trading tomorrow.
• Bloomberg analysts estimate a 75% chance of spot Solana ETFs approval this year.

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Volatility Shares is launching the first-ever ETFs tracking Solana futures tomorrow, marking a key milestone that could pave the way for a spot Solana ETF.

The move follows the regulatory playbook seen with Bitcoin and Ether, where futures-based products were approved before spot ETFs gained clearance.

According to a Bloomberg report, Volatility Shares will launch two ETFs: The Volatility Shares Solana ETF (SOLZ), which will track Solana futures, and the Volatility Shares 2X Solana ETF (SOLT), which will offer twice the leveraged exposure. The funds will carry expense ratios of 0.95% and 1.85%, respectively.

“Our launch comes at a time of renewed optimism for cryptocurrency innovation in the US,” said Justin Young, the chief executive officer of Volatility Shares.

While the SEC has yet to approve a spot Solana ETF, the debut of these futures-based products signals increasing institutional demand.

Bloomberg Intelligence analysts estimate a 75% chance that a spot Solana ETF will receive regulatory approval this year.

Volatility Shares’ Solana futures ETFs were first listed on the Depository Trust & Clearing Corporation (DTCC) in February, making them eligible for clearing and settlement.

Now, after initially filing with the SEC in December, the funds are ready to begin trading. The firm also submitted a proposal for a -1x Solana ETF, which would allow investors to short Solana futures.

Solana, which has a market value of about $67 billion, initially gained prominence through Sam Bankman-Fried’s endorsement.

Despite challenges following FTX’s collapse in 2022, the asset has rebounded, drawing users with its lower transaction fees. However, Solana is still down about 30% year-to-date.

The news had no immediate effect on price, with SOL trading at $130 at press time.

Asset managers, including Franklin Templeton, Grayscale, and VanEck, have filed for spot Solana ETFs, along with 21Shares, Bitwise, and Canary.

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