Volatility Shares, a growing investment firm, is making history by launching the first ETFs tied to Solana futures. This launch comes at a time when interest in crypto ETFs is increasing.
Volatility Shares' Debut of Solana Futures
As announced, these new funds will begin trading on Thursday. One of the funds, Volatility Shares Solana ETF (SOLZ), will expose investors to Solana futures contracts. Another, Volatility Shares 2X Solana (SOLT), is designed to offer double the daily returns of Solana’s price movements. Recently, Solana futures trading began on the Chicago Mercantile Exchange (CME), but it did not generate as much interest as Bitcoin and Ethereum futures. Despite this, Volatility Shares remains confident in its move, having already listed SOLZ and SOLT on the Depository Trust & Clearing Corporation (DTCC), a crucial step before trading can commence. Unlike spot ETFs, which hold the actual asset directly, Volatility Shares’ new funds are futures-based and track Solana’s price through futures contracts instead of holding Solana tokens directly.
Volatility Shares Leads Competitors
Volatility Shares co-founder and CEO Justin Young highlighted that his firm, managing around $3 billion in assets, was the first to file for these Solana ETFs. This gave the firm an advantage over competitors. The launch of these ETFs is a major milestone for Solana-based investment products. Last December, Volatility Shares filed for three ETFs that would invest in Solana futures contracts, even though no Solana futures were available on CFTC-regulated exchanges at that time. Bloomberg ETF analyst Eric Balchunas called the move 'wild' and suggested it could be a promising sign for a future spot Solana ETF.
Prospects of a Spot Solana ETF
Large investment firms are also moving in on Solana ETFs. Recently, Franklin Templeton, a major asset manager, became the largest firm to file for a Solana ETF. VanEck and 21Shares have also submitted applications, with VanEck being the first to apply to the U.S. Securities and Exchange Commission (SEC) last June. For now, investors can only purchase futures-based Solana ETF products, but many are eagerly waiting for a spot Solana ETF, which would allow direct investment in Solana without futures contracts. If interest in Solana ETFs continues to grow, it may only be a matter of time before a spot Solana ETF becomes reality.
The launch of Solana futures ETFs by Volatility Shares could have a significant impact on the crypto investment market. Successful adoption of Solana futures could pave the way for the emergence of spot ETFs for this asset, enabling investors to participate directly in Solana trading.
