Key Takeaways
- After securing a DTCC itemizing in February, Volatility Shares’ Solana futures ETFs begin buying and selling tomorrow.
- Bloomberg analysts estimate a 75% probability of spot Solana ETFs approval this 12 months.
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Volatility Shares is launching the first-ever ETFs monitoring Solana futures tomorrow, marking a key milestone that might pave the best way for a spot Solana ETF.
The transfer follows the regulatory playbook seen with Bitcoin and Ether, the place futures-based merchandise had been accepted earlier than spot ETFs gained clearance.
In line with a Bloomberg report, Volatility Shares will launch two ETFs: The Volatility Shares Solana ETF (SOLZ), which can monitor Solana futures, and the Volatility Shares 2X Solana ETF (SOLT), which can provide twice the leveraged publicity. 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 within the US,” stated Justin Younger, the chief government officer of Volatility Shares.
Whereas the SEC has but to approve a spot Solana ETF, the debut of those futures-based merchandise indicators rising institutional demand.
Bloomberg Intelligence analysts estimate a 75% probability {that a} spot Solana ETF will obtain regulatory approval this 12 months.
Volatility Shares’ Solana futures ETFs had been first listed on the Depository Belief & Clearing Company (DTCC) in February, making them eligible for clearing and settlement.
Now, after initially submitting with the SEC in December, the funds are prepared to start buying and selling. The agency additionally submitted a proposal for a -1x Solana ETF, which might permit traders to brief Solana futures.
Solana, which has a market worth of about $67 billion, initially gained prominence by way of Sam Bankman-Fried’s endorsement.
Regardless of challenges following FTX’s collapse in 2022, the asset has rebounded, drawing customers with its decrease transaction charges. Nonetheless, Solana continues to be down about 30% year-to-date.
The information had no instant impact on worth, with SOL buying and selling at $130 at press time.
Asset managers, together with Franklin Templeton, Grayscale, and VanEck, have filed for spot Solana ETFs, together with 21Shares, Bitwise, and Canary.
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