To SEC
Voltality, an asset management firm, has filed an application with the SEC to create a Solana futures exchange-traded fund. The strategic move comes after several asset management firms sought to create a Solana ETF this year.
Will Voltality Increase ETF Approval?
Voltality has filed an application for a Solana futures exchange-traded fund with the U.S. Securities and Exchange Commission (SEC), ETF Store President Nate Geraci said on Dec. 27 on X. The futures exchange-traded fund offers publicly traded securities that track the price of a cryptocurrency futures contract (SOL in this case).
Financial derivatives called futures allow investors to bet on the price of an item without owning it. Voltality plans to offer 1x, 2x and -1x leverage products with its Solana Futures ETF.
A 1x leveraged Solana futures fund tracks the price of unleveraged Solana futures, while funds with 2x leverage multiply the price movement by 2x. The opposite exposure means that Solana ETFs with -1x leverage gain value when futures decline.
Given the asset manager’s involvement in the approval of an Ethereum futures ETF, Geraci believes Voltality’s application could impact Sol’s spot ETFs. The asset manager has asked the SEC to approve crypto products in 2023.
The ETF Store president noted that the document states, “Solana futures contracts are traded only on an exchange registered with the Commodity Futures Trading Commission.”
Voltality’s filing for a Solana futures ETF is a positive step for the crypto space, according to Bloomberg ETF analyst Eric Balchunas. Balchunas believes the new filing will help Sol’s spot ETF proposal.