Is Solana Futures ETF Coming? Volatility Shares Submits Application To SEC

As a seasoned analyst with over two decades of experience in the financial markets, I have seen numerous applications for innovative investment products come and go. However, the recent filing by Volatility Shares for a Solana futures ETF stands out as an intriguing development that warrants close attention.

Given my background, I have witnessed firsthand the strategic impact asset managers can have on regulatory approval processes. In this case, Volatility Shares’ role in pushing for the approval of Ether futures ETFs in 2023 serves as a compelling precedent. If history repeats itself, their latest move might just be the catalyst that speeds up the process for a spot Solana ETF.

The fact that Volatility Shares is diving headfirst into futures-based products before the existence of SOL futures contracts on regulated exchanges adds an extra layer of interest to this story. As Eric Balchunas, Bloomberg ETF expert, pointed out, it seems we might be in for a wild ride with this one.

In terms of Solana’s current market performance, the price surge over the past 24 hours and week is certainly worth noting. It appears that the Solana community has some exciting times ahead, and I can’t help but wonder if the coin will continue to moon or take a plunge like a certain meme cryptocurrency known for its volatility (you know, the one with the dog face).

In any case, I am keeping a close eye on this development and will update my followers as more information becomes available. Stay tuned!

Volatility Shares, a company dealing with asset management, has filed an application with the U.S. Securities and Exchange Commission (SEC) for listing a futures-based exchange-traded fund (ETF) tied to Solana. This move is part of a strategic plan following numerous asset managers who applied to introduce a Solana spot ETF earlier in 2021.

Will Volatility Shares Increase Odds Of Spot ETF Approval?

On December 27th, Nate Geraci, president of X platform, announced in a post that Volatility Shares had applied for a futures-based Solana ETF with the U.S. Securities and Exchange Commission (SEC). This kind of Exchange Traded Fund (ETF) offers investors publicly traded securities that track the price fluctuations of a Solana cryptocurrency futures contract. In simpler terms, it allows investors to buy and sell shares that correspond to the value changes of a SOL futures contract.

1x for moderate exposure, 2x for double the market movements, and -1x for inverse exposure (opposite of the market’s movements).

An ETF that follows SOL futures with a 1-to-1 ratio (1x) will mirror the price changes of those futures without using borrowed money. On the other hand, ETFs with 2x exposure offer leveraged tracking, which means they multiply the price movements by two. Conversely, ETFs with -1x leverage provide inverse tracking, meaning they increase in value when the futures prices decrease.

Geraci suggests that Volatility Shares could have a notable impact on spot exchange-traded funds for Solana (SOL), given the influence of the asset manager in the approval process for Ether futures ETFs. This influential company was instrumental in persuading the Securities and Exchange Commission to authorize crypto products, such as ETFs tied to Ethereum, in 2023.

According to the president of The ETF Store, the document clearly specifies that Solana futures contracts can be traded exclusively on exchanges approved by the Commodity Futures Trading Commission.

Eric Balchunas, an ETF expert from Bloomberg, commented positively on Volatility Shares’ future-focused Solana ETF submission. He sees this move as a promising sign for the approval process of a spot Solana ETF.

This is quite astonishing! A filing for a Solana futures ETF has been submitted, even though Solana futures haven’t been created yet. Let’s go big with a 2x leveraged ETF, quite intense… and it could be a positive indication that SOL futures are on the horizon, which might suggest a promising future for the spot price. And this was supposed to be a calm week!

— Eric Balchunas (@EricBalchunas) December 28, 2024

Solana Price At A Glance

Currently, the cost of Solana (SOL) is approximately $195, representing a 5.5% rise over the last day. As per information from CoinGecko, its worth has surged about 6% in the past seven days.

 

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2024-12-29 14:11