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CoinGape 2024-12-28 06:10:42

Volatility Shares Files Futures Solana ETF, Will It Clear Path for Spot ETF?

Volatility Shares has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) for launching futures-based Solana ETFs. The filing includes products with 1x, 2x leveraged, and -1x inverse exposure to Solana futures. Thus, it will allow traders to benefit from both – upward and downward SOL price movements. Volatility Shares Futures Solana ETF Come With Leverage Options Volatility Shares filed a futures Solana ETF with the SEC offering leveraged options allowing traders to bet on swing movements for SOL price in either direction. Basically, this futures ETF will allow investors exposure to Solana’s performance through futures contracts. The fund focuses on futures contracts traded exclusively on Commodity Futures Trading Commission (CFTC) registered exchanges. The ETF will mirror 100% of SOL returns by primarily investing in near-term and next-term Solana futures contracts. Moreover, to support this investment, the fund maintains collateral in the form of cash, cash equivalents, and high-quality securities. Thus, the futures ETF will provide investors with a structured approach and a regulated way to gain exposure to SOL price movements. It will also maintain appropriate collateral to back its future position. This is not the first time Volatility Shares is planning to launch a future crypto ETF. Previously, the firm played a significant role in pushing forward the Ether futures ETFs. Clearing Path for Spot SOL ETF? Eric Balchunas, Bloomberg’s senior ETF analyst, has weighed in on the recent filing for Solana (SOL) futures-based ETFs by Volatility Shares, calling it a “wild” move. Balchunas pointed out the unusual timing, as Solana futures are not yet live, and noted the inclusion of a leveraged 2x product as particularly bold. “This is hardcore,” Balchunas remarked. Balchunas further stated that the ETF filing marks the imminent launch of Solana futures and that this development could improve the odds of spot Solana ETF approval in the future. However, earlier this month, Balchunas had predicted that Litecoin and HBAR ETFs would get approval even before Solana ETFs hit the market. As of press time, the Solana price is trading down 2.87% at $184. Since mid-November, SOL has been moving sideways with other players like BNB Coin and XRP overtaking it in the crypto ranks. Market analysts predict a Solana price surge to $1,000 in the case if the US SEC gives a green light for spot ETF. The post Volatility Shares Files Futures Solana ETF, Will It Clear Path for Spot ETF? appeared first on CoinGape .

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