Key Highlights:
- Volatility Shares LLC is launching two ETFs that will track Solana futures, with SOLZ providing traditional exposure and SOLT offering a leveraged option.
- These are the first ETFs designed to track Solana futures, coinciding with an anticipated decision from the SEC regarding spot Solana ETFs, which analysts estimate have a 75% likelihood of being approved by the end of the year.
- SEC approval for a spot Solana ETF may depend on the presence of a well-established futures market that meets regulatory criteria.
Two exchange-traded funds (ETFs) focusing on Solana (SOL) futures are slated to debut this Thursday. These funds, representing a groundbreaking move, will track futures tied to Solana.
According to a SEC filing, Volatility Shares LLC is introducing two ETFs: the Volatility Shares Solana ETF (SOLZ), which aims to track standard Solana futures, and the Volatility Shares 2X Solana ETF (SOLT), which will offer leveraged exposure. The management fee for SOLZ will be 0.95%, while SOLT will charge traders 1.85% according to the filing.
These funds represent the first attempt to track futures related to Solana, currently valued at $66.5 billion, making it the sixth-largest cryptocurrency. The token has appreciated by 6% in the previous 24 hours, aligning with the overall trends in the cryptocurrency market.
The launch of these products is viewed as integral to the potential approval of a spot Solana ETF, which would directly hold the underlying token. The SEC has indicated a preference for an established futures market as part of its approval criteria for spot products.
Following last year’s launch of spot Bitcoin (BTC) and Ether (ETH) ETFs, there has been a significant push from issuers to introduce additional crypto-related investment products.
Various issuers, including Grayscale, Franklin Templeton, and VanEck, have submitted proposals for a spot Solana ETF, pending review by the SEC. Bloomberg’s ETF analysts project a 75% chance these will be approved by year-end.
However, a ruling is unlikely until Paul Atkins, nominated by President Donald Trump to lead the SEC, is confirmed by the Senate, with no hearing currently scheduled.
