The debut of the first-ever U.S.-based Solana [SOL] ETF tracking Futures on the Nasdaq exchange on March 20th has sparked excitement in the cryptocurrency market. The ETF, offered by Volatility Shares LLC, consists of two funds – the Volatility Shares Solana ETF (SOLZ) tracking SOL Futures, and the Volatility Shares 2X Solana ETF (SOLT) providing twice-leveraged exposure to the crypto asset.
Futures markets have allowed investors to speculate on SOL’s future price without owning the physical asset, paving the way for potential growth in the ETF market. However, Bloomberg analyst Eric Balchunas has cautioned that the approval of spot ETFs could impact the success of Futures ETFs, as investors typically prefer holding the physical asset.
There is optimism surrounding the possibility of a spot Solana ETF launching soon, following in the footsteps of Bitcoin and Ethereum ETFs. Nate Geraci pointed out the similarities between the ETH ETF pathway and the potential for a spot SOL ETF to be approved in the near future.
Market predictions from sites like Polymarket indicate an 88% chance of spot SOL ETF approval in 2025, highlighting the positive sentiment surrounding altcoin ETFs. Other altcoins like Cardano, HBAR, Polkadot, Aptos, and Sui have also seen increased speculation for potential ETFs, with companies like Canary Capital filing for an SUI ETF with the SEC.
While SOL has seen a 10% increase in the past 24 hours, it remains consolidated around the 100-Exponential Moving Average on the 4-hour chart. A firm reclaim above this Moving Average could signal further recovery for SOL in the market.
In conclusion, the introduction of the Solana ETF tracking Futures marks a significant development in the cryptocurrency market, with the potential for further growth in the ETF space. Investors are eagerly anticipating the approval of spot ETFs, which could have a significant impact on the future of cryptocurrency ETFs.