Coinbase has officially launched CFTC-regulated Solana futures contracts, marking a significant step toward potential approval for Solana-based exchange-traded funds (ETFs). This development comes as the first Solana futures ETFs from Volatility Shares are listed on the Depository Trust & Clearing Corporation (DTCC).
New Solana Futures ETFs Available
Volatility Shares has introduced two Solana futures ETFs on the DTCC platform: the Volatility Shares 2x Solana ETF (SOLT) and the Volatility Shares Solana ETF (SOLZ). These ETFs provide 1x and 2x leveraged exposure to Solana futures contracts, offering investors new ways to gain exposure to the cryptocurrency’s price movements.
Listing on the DTCC means these ETFs are eligible for clearing and settlement through the central infrastructure, making trading more efficient and reliable. However, it’s important to note that this listing does not equate to approval by the Securities and Exchange Commission (SEC) for these products.
Volatility Shares’ ETF Filing with the SEC
Last December, Volatility Shares filed with the SEC for three new ETFs designed to track Solana futures contracts. In addition to the two ETFs listed on the DTCC, the firm is also seeking regulatory approval for a -1x Solana ETF. This product would offer inverse exposure, increasing in value when Solana futures contracts decline.
The Path Toward Solana Futures Approval
The move to list Solana futures ETFs sparked curiosity, as there were no Solana futures contracts available on CFTC-regulated exchanges at the time. However, Bloomberg ETF analyst Eric Balchunas suggested that this was a strong signal that Solana futures would soon be available.
Earlier this month, Coinbase Derivatives LLC launched CFTC-regulated Solana futures contracts, which are viewed as a crucial step towards the potential approval of Solana ETFs in the future. This follows a leaked Chicago Mercantile Exchange (CME) staging website, which hinted that XRP and Solana futures could start trading on February 10, pending regulatory approval.
CME Group Clarifies Stance
The CME Group later clarified that no official decision had been made regarding these contracts. A CME spokesperson attributed the leak to an “error” and emphasized that they were still evaluating the potential products.
Impact on Institutional Investors and Crypto Market
The availability of CFTC-regulated Solana futures contracts offers institutional investors a more secure and structured way to trade Solana. This development is seen as bridging the gap between traditional finance and the cryptocurrency market, providing more stability for institutional participation.
Future Prospects for Solana ETFs
The launch of Solana futures contracts and the potential approval of leveraged Solana ETFs may increase the likelihood of a spot Solana ETF being approved in the future. The SEC has already confirmed receipt of multiple filings for spot Solana ETFs from firms such as 21Shares, Bitwise, Canary, and VanEck, signaling further progress in the approval process.
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