Volatility's ETF will allow investors to profit based on the future price of SOL.
On the morning of December 27, Nate Geraci announced on X that Volatility Shares had filed an application with the U.S. Securities and Exchange Commission (SEC) seeking approval for a new ETF based on Solana futures contracts.
This move aims to create new investment opportunities, allowing investors to access Solana's rapidly growing blockchain ecosystem through tightly regulated financial instruments.
According to the filing, the new ETF will focus on Solana futures contracts, offering diverse leverage options, including 1x, 2x, and -1x, to cater to different risk appetites.
Investors can utilize this product to maximize profits or mitigate risks in case of market volatility. This creates a flexible investment environment suitable for both risk-tolerant investors and those seeking safety.
The 1x, 2x, and -1x leverage options in the ETF provide greater flexibility in managing risk and returns.
With 1x, the ETF’s performance will align proportionally with the price of Solana futures contracts. The 2x leverage option doubles the impact, allowing the ETF’s value to rise or fall faster than Solana’s price changes, ideal for those aiming to maximize profits but with higher risk.
Meanwhile, the -1x option enables investors to profit when Solana's price decreases, offering protection against downward market risks.
Under the law, this ETF can only be traded on exchanges registered with the Commodity Futures Trading Commission (CFTC). If approved by the SEC, this ETF will not only enable investors to tap into Solana's potential but also contribute to bolstering the credibility of the digital asset investment sector.
Volatility Shares is not stopping at the Solana ETF; the firm is also known for offering dual-asset ETFs in the past. These products combine two major assets within a single portfolio, such as BTC+ETH, Nasdaq+ETH, or S&P+BTC. This approach makes it easier for investors to diversify their portfolios, bridging the gap between traditional financial markets and digital assets.
Volatility Shares' new proposal marks a significant step in bringing crypto closer to institutional and retail investors through regulated, simplified, and secure financial products.
If implemented, the Solana futures ETF could become a promising investment tool, paving the way for the growth of both the Solana ecosystem and the broader digital asset market.
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