As a seasoned analyst with over two decades of experience in the financial markets, I find this latest move by Volatility Shares to be quite intriguing. The proposed Solana futures ETF with leveraged options is indeed a bold step, particularly given that Solana futures are not yet live.
Volatility Shares has put forth a plan to the U.S. Securities and Exchange Commission (SEC) for introducing Exchange-Traded Funds (ETFs) that track Solana futures. This proposal includes ETF options with 1x, 2x leverage, and -1x inverse exposure, enabling traders to capitalize on both rising and falling prices of Solana (SOL).
Volatility Shares Futures Solana ETF Come With Leverage Options
A company named Volatility Shares has submitted a proposal for a Solana-focused ETF to the SEC, which includes leveraged options for traders to speculate on price fluctuations of SOL. In essence, this ETF will provide investors with an opportunity to track Solana’s performance through futures contracts. This fund primarily invests in futures contracts that are traded exclusively on exchanges registered with the Commodity Futures Trading Commission (CFTC).
This ETF aims to track exactly the returns of Solana (SOL) by primarily purchasing short-term and long-term Solana futures contracts. To bolster this investment, the fund holds assets such as cash, cash equivalents, and top-tier securities as collateral. Consequently, investors can access SOL price fluctuations through this futures ETF with a systematic approach and within a regulated framework. Additionally, the ETF will ensure appropriate collateral to secure its future position.
On earlier occasions, Volatility Shares has expressed intentions to introduce a cryptocurrency future ETF. In the past, this company was instrumental in promoting the approval of Ether futures ETFs.
Clearing Path for Spot SOL ETF?
Eric Balchunas, Bloomberg’s senior ETF analyst, has expressed his thoughts on the recent application for Solana (SOL) futures-based ETFs by Volatility Shares, describing it as a daring or adventurous move. Balchunas highlighted the unique timing since Solana futures are not yet active, and he found the addition of a 2x leveraged product to be particularly audacious. “This is quite aggressive,” Balchunas stated.
Balchunas also noted that the submission of an ETF is a sign that Solana futures are about to be released, which potentially increases the chances of a future spot Solana ETF being approved. On the other hand, Balchunas had previously speculated that Litecoin and HBAR ETFs would secure approval before Solana ETFs become available.
Currently, at the latest update, Solana’s price is decreasing by 2.87%, sitting at approximately $184. Over the past few weeks, Solana (SOL), along with BNB Coin and XRP, has been holding steady rather than making significant progress in the crypto market rankings. Some market analysts speculate that if the U.S. Securities and Exchange Commission (SEC) approves a spot ETF for Solana, its price could potentially surge to reach $1,000.
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2024-12-28 09:15