Volatility Shares, an asset management firm, recently filed with the United States Securities and Exchange Commission (SEC) an application for a Solana futures exchange-traded fund (ETF). This follows several applications earlier in 2018 from different asset managers who want to launch Solana spot ETFs.
Could Volatility Shares Enhance the Probability of Spot ETF Approval?
Nate Geraci, president of ETF Store and its related firm ETF Store Securities Corp, shared in an update shared via X platform that Volatility Shares is applying to the US SEC for approval of an Solana futures-based ETF. ETFs allow public trading of securities that mimic the price movements of SOL futures contracts, which enable investors to forecast an asset’s future price without necessarily possessing it in its entirety. Volatility Shares seeks to offer products offering three types of leverage – 1x, 2x and -1x – which could help individuals manage risk better. One-x ETF would track Solana futures price without using leverage, two-x funds would provide double exposure to price movements, while three -1x leverage ETFs are designed to provide inverted exposure; their value increases as futures prices fall.
Volatility Shares’s attempt to launch a Solana futures ETF could increase the odds that SOL spot ETFs are approved, given their history in pushing for Ether futures ETFs, which were granted by the Securities Exchange Commission in 2023. Furthermore, their filing explicitly mentions targeting Solana contracts that trade exclusively on exchanges registered with CFTC for approval.
Bloomberg ETF expert Eric Balchunas welcomed the application for a Solana futures-based ETF with open arms, as it represents positive developments for spot SOL ETF approval prospects. Eric described this filing as unexpected given that Nolana futures do not yet exist, suggesting the possibility that futures might emerge and thus improve prospects for spot ETFs.
Solana’s Current Market Performance
As per recent updates, Solana (SOL) stands at approximately $195 and has experienced a 5.5% gain over the last 24 hours and nearly 6% in weekly gains according to CoinGecko data.
