Volatility Shares has announced the upcoming launch of the first-ever Solana (SOL) futures exchange-traded fund (ETF) in the United States. According to a report by Bloomberg News, the two new products, Volatility Shares Solana ETF (SOLZ) and Volatility Shares 2X Solana ETF (SOLT), are set to debut on March 20.
The introduction of these ETFs has drawn comparisons to popular Bitcoin (BTC) ETFs like BITO and BITX by Bloomberg ETF analyst Eric Balchunas. However, he noted that the new Solana ETFs may not reach the same level of success as the spot Bitcoin ETFs. Balchunas highlighted the historical preference of ETF investors for physical assets, indicating that the launch of these Solana futures-based funds may face challenges in attracting widespread adoption.
SOLZ will offer exposure to Solana futures, while SOLT will provide leveraged exposure with returns at twice the rate of Solana futures movements. The ETFs come with expense ratios of 0.95% and 1.85%, respectively. Volatility Shares initially submitted its application to the US Securities and Exchange Commission (SEC) in December, aligning with the predicted trend of crypto-based ETFs by experts like Balchunas and James Seyffart.
Volatility Shares CEO Justin Young credited the launch to the positive outlook for crypto innovation in the US under President Donald Trump’s administration. While a spot Solana ETF has not yet been approved by the SEC, industry analysts view these futures-based funds as a stepping stone towards that goal. Similar to Bitcoin and Ethereum, which first introduced futures ETFs before gaining approval for spot ETFs, Solana’s ETF launch could pave the way for broader adoption in the future.
Solana futures trading commenced on the Chicago Mercantile Exchange (CME) on March 17, with initial trading volumes reaching $12.3 million. Despite falling short of BTC’s $102.7 million and ETH’s $31 million in trading volumes, Solana’s futures open interest reached nearly $8 million. K33 head of research Vetle Lunde noted that by normalizing volumes to market caps at launch, Solana’s performance aligns with that of Bitcoin and Ethereum.
In conclusion, the upcoming launch of Solana ETFs marks a significant milestone in the crypto investment landscape, providing investors with new opportunities to gain exposure to the rapidly growing Solana ecosystem. As the industry continues to evolve, these futures-based funds could serve as a precursor to the approval of spot Solana ETFs in the future.