Volatility Shares Files for Solana Futures ETF Despite Lack of Contracts
A filing from Volatility Shares appeared on the SEC's database, proposing a Solana futures ETF that would track SOL futures contracts. Currently, no such contracts exist. Analysts suggest this filing indicates potential approval for spot Solana ETFs by 2025.
Bitwise CEO Hunter Horsley noted that with Paul Atkins as SEC chair, more diverse products may be possible, implying a strategic move in the filing. Volatility Shares, based in Palm Beach Gardens, FL, specializes in leveraged ETFs and has influenced regulatory discussions, including Grayscale's argument that its proposed spot bitcoin ETF should be approved due to the risks associated with Volatility Shares' leveraged bitcoin futures ETF.
The proposed Solana futures ETF aims to provide investors with exposure to 2x or inverse daily price changes of SOL futures. Although SOL futures do not currently trade, Bloomberg analyst Eric Balchunas suggested the filing is a sign that such futures may soon emerge. Regulatory approval for spot ETFs could be more likely if a robust market for SOL develops, as seen with bitcoin and ether ETFs, which were approved after CME futures began trading.
Previously, futures were seen as a prerequisite for crypto ETFs; however, this perspective may shift with potential changes in SEC leadership. Five firms have filed for spot SOL ETFs recently, despite the absence of futures contracts. A futures market could enhance the approval chances for spot SOL ETFs.
Nate Geraci, president of The ETF Store, stated a prediction for spot Solana ETF approval in 2025.