Volatility Shares Aims for Futures Solana ETF: A Potential Step Toward Spot ETF Approval?

• Volatility Shares files with the SEC for a futures-based Solana ETF offering leveraged and inverse exposure to SOL.
• The ETF will track near-term Solana futures, backed by cash and high-quality securities.
• Bloomberg’s Eric Balchunas suggests this filing could increase the chances of future spot Solana ETF approval.

Volatility Shares has officially filed with the U.S. Securities and Exchange Commission (SEC) to launch a futures-based Solana ETF. The proposal includes products offering 1x, 2x leveraged, and -1x inverse exposure to Solana (SOL) Futures. Notably, this would allow traders to profit from both upward and downward price movements in Solana’s value.

Details about Futures-Based Solana ETF

The new Futures ETF would enable investors to gain exposure to Solana’s price action through futures contracts, specifically those traded on Commodity Futures Trading Commission (CFTC) registered exchanges. 

The fund will primarily focus on near-term and next-term Solana futures contracts, aiming to replicate 100% of SOL returns. To back these investments, the ETF will hold collateral in cash, high-quality securities, and cash equivalents, ensuring the future position is properly supported. 

Notably, Volatility Shares is no stranger to crypto futures ETFs, having previously been involved in the launch of Ethereum futures ETFs. This current move strengthens its position in the growing crypto ETF sector.

Industry Buzz on Solana ETFs

Meanwhile, Eric Balchunas, senior ETF analyst at Bloomberg, weighed in on the filing, calling it “wild” and highlighting the boldness of including a leveraged 2x product, especially as Solana futures are inactive. “Solana futures ETF filing bf Solana futures even exist,” he said, “This is wild.”

Balchunas also suggested that this filing signals the near-launch of Solana futures, which could improve the likelihood of a spot Solana ETF approval in the future.

On the other hand, Nate Geraci, president of ETFStore, remarked that the ongoing development suggests the U.S. CFTC may ultimately win the regulatory authority over crypto assets, potentially taking over the SEC. 

Solana Price Action

Meanwhile, despite this latest filing, Solana’s current market performance has remained discouraging. As of the latest data, SOL is trading down 4% at $184, with the coin seeing sideways movement since mid-November. 

During this time, other cryptocurrencies like BNB and XRP have surpassed Solana in market rankings. Some analysts have speculated that if the SEC were to approve a spot Solana ETF, the price could surge to as high as $1,000.

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