Asset administration firm Volatility Shares has submitted with america Securities and Exchange Commission (SEC) an utility to listing a Solana futures exchange-traded fund (ETF). This strategic transfer comes after a number of asset managers utilized to launch a spot Solana ETF earlier this yr.
Will Volatility Shares Enhance Odds Of Spot ETF Approval?
In a December 27 submit on the X platform, ETF Retailer president Nate Geraci revealed that Volatility Shares has filed for a futures-based Solana ETF with the US SEC. A futures exchange-traded fund gives publicly traded securities that supply publicity to the value actions of a cryptocurrency futures contract (SOL futures contract, on this situation).
For context, futures contracts seek advice from monetary derivatives that enable traders to invest on the long run value of an asset with out immediately proudly owning it. With the Solana futures ETF, Volatility Shares intends to supply merchandise with three completely different leverage sorts, together with 1x, 2x, and -1x publicity.
The SOL futures ETF with 1x publicity will observe the Solana futures value with no leverage, whereas funds with 2x publicity will present leveraged publicity and amplify the value motion by 2x. In the meantime, Solana ETFs with -1x leverage present inverse publicity, that means they achieve worth when the futures contracts decline.
Supply: @NateGeraci/X
Based on Geraci, this Volatility Shares’ utility is likely to be important even for SOL spot exchange-traded funds, contemplating the asset supervisor’s position within the approval of Ether futures ETFs. The asset administration firm pushed the Securities and Trade Fee to greenlight the crypto merchandise in 2023.
The ETF Retailer president highlighted that the submitting particularly states, “Solana futures contracts that commerce solely on an change registered with the Commodity Futures Buying and selling Fee.”
Bloomberg ETF skilled Eric Balchunas additionally commented on Volatility Shares’ future-based Solana ETF utility, stating that it’s a welcome improvement within the crypto house. Based on Balchunas, this newest submitting bodes properly for the success of the spot SOL ETF utility.
That is wild. Solana futures ETF submitting bf Solana futures even exist! Oh and let’s do a 2x whereas we’re. Laborious core.. and prob good signal SOL futures on means which debatable bodes properly for spot odds. And this was alleged to be a quiet week! https://t.co/YiwauQfaji
— Eric Balchunas (@EricBalchunas) December 28, 2024
Solana Value At A Look
As of this writing, the price of SOL stands at round $195, reflecting a 5.5% improve up to now 24 hours. Based on CoinGecko knowledge, SOL’s worth has jumped by practically 6% up to now week.
The worth of SOL on the each day timeframe | Supply: SOLUSDT chart on TradingView
Featured picture from Dreamstime/Aivaras Sakurovas, chart from TradingView
