Volatility Shares has filed an application for Solana futures-based ETFs with the United States Securities and Exchange Commission (SEC). This application includes products offering 1x, 2x leverage and -1x inverse exposure to Solana futures. Thus, investors will have the opportunity to benefit from both the rise and fall of SOL price movements.
Solana Futures ETF with Leveraged Options
Volatility Shares offers investors the opportunity to bet on SOL price fluctuations with the Solana futures ETF filed with the SEC. This futures ETF gives investors access to Solana’s performance through futures contracts. The fund focuses on futures contracts traded only on exchanges registered with the Commodity Futures Trading Commission (CFTC).
The ETF will reflect 100% of SOL returns by investing primarily in short-term and next-term Solana contracts. Additionally, the fund holds collateral in the form of cash, cash equivalents and high-quality securities to support this investment. Thus, the futures ETF aims to gain regular exposure to SOL price movements and provide appropriate collateral to support future positions.
Could Solana Make Way for a Spot ETF?
Bloomberg senior ETF analyst Eric Balchunas called Volatility Shares’ application for the Solana futures ETF a “crazy” move. Balchunas noted that the fact that Solana futures are not yet operational and the inclusion of the 2x leveraged product is a particularly bold step. “This is a serious move,” he shared his opinion.
“This filing signals the imminent launch of Solana futures and may increase the chances of approval of the Solana spot ETF in the future.”
Balchunas stated that this ETF application points to the imminent launch of Solana futures, and this development may increase the possibility of approval of the spot Solana ETF in the future. However, earlier this month Balchunas announced that Litecoin $99.8 and HBAR ETFs would be approved before Solana and XRP ETFs.
At press time, Solana price is trading at $184, down 2.87%. Since mid-November, SOL has remained flat along with other cryptocurrencies and has been outranked by cryptocurrencies such as BNB Coin and XRP. Market analysts predict that the Solana price could rise to $1,000 if the US SEC gives the green light to the spot ETF.
Volatility Shares’ future crypto ETF plans are notable as the firm has also pioneered Ether futures ETFs in the past. This development is considered an important step in the roles of ETFs in the cryptocurrency market and how investors can benefit from these tools.
As developments continue, investors are watching with curiosity how the market dynamics will take shape while they wait for the SEC approval of Solana ETFs.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
