Volatility Shares Goals for Futures Solana ETF: A Potential Step Towards Spot ETF Approval?

• Volatility Shares recordsdata with the SEC for a futures-based Solana ETF providing leveraged and inverse publicity to SOL.
• The ETF will monitor near-term Solana futures, backed by money and high-quality securities.
• Bloomberg’s Eric Balchunas suggests this submitting might enhance the probabilities of future spot Solana ETF approval.

Volatility Shares has formally filed with the U.S. Securities and Trade Fee (SEC) to launch a futures-based Solana ETF. The proposal consists of merchandise providing 1x, 2x leveraged, and -1x inverse publicity to Solana (SOL) Futures. Notably, this is able to enable merchants to revenue from each upward and downward value actions in Solana’s worth.

Particulars about Futures-Based mostly Solana ETF

The brand new Futures ETF would allow buyers to realize publicity to Solana’s value motion via futures contracts, particularly these traded on Commodity Futures Buying and selling Fee (CFTC) registered exchanges. 

The fund will primarily deal with near-term and next-term Solana futures contracts, aiming to copy 100% of SOL returns. To again these investments, the ETF will maintain collateral in money, high-quality securities, and money equivalents, guaranteeing the long run place is correctly supported. 

Notably, Volatility Shares isn’t any stranger to crypto futures ETFs, having beforehand been concerned within the launch of Ethereum futures ETFs. This present transfer strengthens its place within the rising crypto ETF sector.

Business Buzz on Solana ETFs

In the meantime, Eric Balchunas, senior ETF analyst at Bloomberg, weighed in on the submitting, calling it “wild” and highlighting the boldness of together with a leveraged 2x product, particularly as Solana futures are inactive. “Solana futures ETF submitting bf Solana futures even exist,” he stated, “That is wild.”

Balchunas additionally advised that this submitting indicators the near-launch of Solana futures, which might enhance the probability of a spot Solana ETF approval sooner or later.

However, Nate Geraci, president of ETFStore, remarked that the continuing growth suggests the U.S. CFTC might in the end win the regulatory authority over crypto property, probably taking on the SEC. 

Solana Worth Motion

In the meantime, regardless of this newest submitting, Solana’s present market efficiency has remained discouraging. As of the newest knowledge, SOL is buying and selling down 4% at $184, with the coin seeing sideways motion since mid-November. 

Throughout this time, different cryptocurrencies like BNB and XRP have surpassed Solana in market rankings. Some analysts have speculated that if the SEC have been to approve a spot Solana ETF, the worth might surge to as excessive as $1,000.