Asset administration firm Volatility Shares has submitted with the USA Securities and Change Fee (SEC) an utility to checklist a Solana futures exchange-traded fund (ETF). This strategic transfer comes after a bunch of asset managers utilized to launch a spot Solana ETF earlier this yr.
Will Volatility Shares Enhance Odds Of Spot ETF Approval?
In a December 27 publish on the X platform, ETF Retailer president Nate Geraci revealed that Volatility Shares has filed for a futures-based Solana ETF with the US SEC. A futures exchange-traded fund supplies publicly traded securities that supply publicity to the value actions of a cryptocurrency futures contract (SOL futures contract, on this state of affairs).
For context, futures contracts discuss with monetary derivatives that permit traders to invest on the long run worth of an asset with out straight proudly owning it. With the Solana futures ETF, Volatility Shares intends to supply merchandise with three completely different leverage sorts, together with 1x, 2x, and -1x publicity.
The SOL futures ETF with 1x publicity will observe the Solana futures worth with no leverage, whereas funds with 2x publicity will present leveraged publicity and amplify the value motion by 2x. In the meantime, Solana ETFs with -1x leverage present inverse publicity, which means they acquire worth when the futures contracts decline.
Supply: @NateGeraci/X
In line with Geraci, this Volatility Shares’ utility may be important even for SOL spot exchange-traded funds, contemplating the asset supervisor’s function within the approval of Ether futures ETFs. The asset administration firm pushed the Securities and Change Fee to greenlight the crypto merchandise in 2023.
The ETF Retailer president highlighted that the submitting particularly states, “Solana futures contracts that commerce solely on an change registered with the Commodity Futures Buying and selling Fee.”
Bloomberg ETF skilled Eric Balchunas additionally commented on Volatility Shares’ future-based Solana ETF utility, stating that it’s a welcome growth within the crypto house. In line with Balchunas, this newest submitting bodes nicely for the success of the spot SOL ETF utility.
That is wild. Solana futures ETF submitting bf Solana futures even exist! Oh and let’s do a 2x whereas we’re. Laborious core.. and prob good signal SOL futures on means which controversial bodes nicely for spot odds. And this was imagined to be a quiet week! https://t.co/YiwauQfaji
— Eric Balchunas (@EricBalchunas) December 28, 2024
Solana Value At A Look
As of this writing, the value of SOL stands at round $195, reflecting a 5.5% enhance prior to now 24 hours. In line with CoinGecko knowledge, SOL’s worth has jumped by practically 6% prior to now week.
The worth of SOL on the day by day timeframe | Supply: SOLUSDT chart on TradingView
Featured picture from Dreamstime/Aivaras Sakurovas, chart from TradingView
