Volatility Shares’ proposed Solana futures ETFs have been officially listed on the Depository Belief and Clearing Company (DTCC), a key infrastructure supplier for monetary markets.
This itemizing, the primary for any Solana-based exchange-traded product, is being hailed as a vital step that would pave the way in which for the extremely anticipated approval of a spot Solana ETF, mirroring the trail taken by Bitcoin and Ethereum.
For buyers unfamiliar with the intricacies of exchange-traded funds, a futures ETF offers publicity to the long run worth of an asset, on this case, Solana. It does this by investing in futures contracts, agreements to purchase or promote Solana at a predetermined worth on a future date. This differs from a spot ETF, which might straight maintain the underlying asset itself, Solana tokens, providing extra direct worth publicity.
Whereas futures ETFs exist for Bitcoin and Ethereum, the itemizing of Volatility Shares’ Solana ETF (SOLZ) and 2x Solana ETF (SOLT) on the DTCC is a landmark occasion. The DTCC is an important participant within the monetary system, offering clearing and settlement companies for trades, and its itemizing is extensively seen as a mandatory step earlier than an ETF can start buying and selling on exchanges.
This growth has ignited contemporary hopes inside the Solana group for a spot Solana ETF. Earlier this month, the SEC acknowledged spot Solana ETF filings from a number of issuers, together with asset administration giants like 21Shares, Bitwise, Canary, and VanEck, and most recently Franklin Templeton, managing over $1.2 trillion in belongings, additionally joined the race.
Franklin Templeton Joins 21Shares, Bitwise, Canary, VanEck in Solana ETF Race
Franklin Templeton joins the Solana ETF race alongside Grayscale, Bitwise, Canary, and VanEck, while the SEC opens the applications to public comment
The SEC opening these purposes to public remark was already thought of a constructive shift, with some analysts seeing it as a possible “about-turn” from the regulator who had beforehand appeared hesitant in direction of crypto funding merchandise past Bitcoin and Ethereum.
Bloomberg senior ETF analyst Eric Balchunas previously highlighted that Volatility Shares’ transfer to checklist futures ETFs on the DTCC “bodes nicely” for the percentages of spot Solana ETF approval. He famous that whereas DTCC itemizing would not assure instant buying and selling, it indicators that issuers are actively making ready for launch. Drawing parallels to VanEck’s spot Ethereum ETF, which started buying and selling roughly two months after its DTCC itemizing, optimism is constructing {that a} spot Solana ETF may observe an identical trajectory.
The keenness stems from the broader pattern of accelerating regulatory acceptance in direction of cryptocurrency funding merchandise within the US. Following the landmark approval of spot Bitcoin ETFs in January 2024, and the following launch of spot Ethereum ETFs, the market is ripe for growth into different main cryptocurrencies. Issuers are already exploring exchange-traded merchandise based mostly on different altcoins like XRP, Litecoin, and Dogecoin, indicating a rising urge for food for diversified crypto publicity on Wall Road.
Whereas Solana’s worth is presently experiencing a market-wide dip, buying and selling at round $139, or round 19% down previously week, the long-term implications of this ETF progress are overwhelmingly constructive.
