The first-ever Solana futures exchange-traded fund (ETF) in the US will be launched by Volatility Shares on March 20, as reported by Bloomberg News. The issuer will introduce two products: the Volatility Shares Solana ETF (SOLZ) and the Volatility Shares 2X Solana ETF (SOLT). These ETFs will provide exposure to Solana futures, with SOLT offering leveraged exposure at twice the returns of Solana futures movements. The expense ratios for SOLZ and SOLT are 0.95% and 1.85%, respectively.
Volatility Shares initially submitted its application to the US Securities and Exchange Commission (SEC) in December, continuing the trend of crypto-based ETFs predicted by Bloomberg analysts Eric Balchunas and James Seyffart. Volatility Shares CEO Justin Young credited the launch to “renewed optimism for crypto innovation in the US” brought by President Donald Trump’s administration. While the SEC has not approved a spot Solana ETF, industry analysts see these futures-based funds as a potential precursor, similar to the path taken by Bitcoin and Ethereum.
The first Solana futures started trading on the Chicago Mercantile Exchange (CME) on March 17. K33 head of research Vetle Lunde noted that the launch day volumes of SOL futures were lower compared to BTC and ETH. However, by normalizing volumes to the assets’ market caps on launch days, Solana aligns with both Bitcoin and Ethereum. Despite the smaller volumes and open interest, there is potential for growth and interest in Solana futures as investors look for exposure to the cryptocurrency market.
Bloomberg ETF analyst Eric Balchunas compared the launch of the Solana ETFs to Bitcoin ETFs BITO and BITX, noting that historically, ETF investors prefer holding physical assets. While the Solana ETFs may not meet the same standards as spot Bitcoin ETFs, they offer a new investment opportunity in the growing cryptocurrency market. The appetite for futures-based products in the crypto space is evident with the introduction of Solana futures on the CME and the upcoming launch of the Solana ETFs by Volatility Shares.
As the crypto market continues to evolve and gain mainstream acceptance, the introduction of Solana ETFs provides investors with additional options to gain exposure to the digital asset space. Despite initial comparisons to Bitcoin and Ethereum ETFs, the Solana ETFs offer unique value propositions for investors looking to diversify their portfolios with alternative cryptocurrencies. The launch of the Solana ETFs by Volatility Shares signals a new era of innovation and growth in the crypto investment landscape.
