Volatility Shares LLC has proposed a futures-based Solana ETF to the SEC, offering 1x, 2x, and -1x leverage options. The ETF will trade on CFTC-registered exchanges, providing regulated exposure to Solana’s price movements. This move could pave the way for spot Solana ETFs in the future.
Volatility shares propose Solana Futures ETF with leverage options
Volatility Shares recently submitted a proposal to the U.S. Securities and Exchange Commission to create an ETF based on Solana futures. This filing presents new ways for traders to take advantage of Solana (SOL) price changes in both directions. The proposed ETF will be offered in levels of leverage, including 1x, 2x, and -1x, according to risk preference.
Solana ETF Registration Statement | Source: Volatility Shares
The filing is important because investors who want to bet on Solana’s future have more options. Solana is known for its blockchains, which allow for speedy transactions and low fees. Adding the -1x inverse product also allows investors to make money if Solana’s price drops.
Volatility Shares has played a leading role in achieving the approval and launch of Ethereum (ETH) futures ETFs and is dedicated to continuing to pursue new concepts within this space. The company has also led in the creation of asset-class blended ETFs, such as BTC+ETH and S&P+VIX, that can ease the process of diversification for the modern investor.
Impact on Solana and the Crypto ETF Market
The price of Solana has just dropped by 2.87%. Other cryptocurrencies like BNB and XRP have already surpassed Solana in the rankings. Analysts predicted that the price of Solana would surge in the future, particularly if the SEC approves a spot Solana ETF. Market experts believe this approval could take the price of SOL up to $1,000.
Eric Balchunas, a senior ETF analyst at Bloomberg, commented on the filing, saying it was a brave decision. Balchunas said the timing was odd since Solana futures are not yet available. He also mentioned the risk of having a 2x leveraged product that could cause big changes in value.
However, this filing might help approve spot Solana ETFs, which would let people invest directly in the cryptocurrency instead of depending on future contracts. Balchunas said Litecoin and HBAR ETFs might get approved before Solana, making this filing important in the industry.
This proposal is not the first time Volatility Shares LLC has tried to enter the crypto ETF market. Before this, several companies, like VanEck and 21Shares, applied for spot Solana ETFs, but the SEC has not approved any of these products during its current rules.
Considering these challenges, even applying for a Solana futures ETF may be the best decision for Volatility Shares, especially given that regulation changes will likely arrive soon since new leadership at the SEC should be on their way within days.
The Solana futures ETF application was made just days after Christmas, when market activity is often quiet.
The filing from Volatility Shares hints at the rising demand for regulated Solana ETFs. Such products could standardize access to digital assets for diverse investors. The SEC’s decision will determine the course of crypto ETF innovation.
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