Volatility Shares, a leading asset management firm, has recently submitted an application to the U.S. Securities and Exchange Commission (SEC) seeking the approval to list a Solana futures exchange-traded fund (ETF). This strategic decision follows a wave of applications from various asset managers earlier in the year, who were eager to launch a spot Solana ETF.
Could Volatility Shares Boost Spot ETF Approval Chances?
Nate Geraci, President of the ETF Store, shared on December 27 via the X platform that Volatility Shares has lodged an application for a Solana futures-based ETF with the SEC. Such a futures ETF allows investors to trade securities tied to the movements of cryptocurrency futures, in this case, Solana (SOL) futures contracts.
To provide some background, futures contracts are financial tools that enable investors to bet on the future price of an asset without needing to own it directly. Through the Solana futures ETF, Volatility Shares aims to offer three leverage options to investors: 1x, 2x, and -1x.
The SOL futures ETF with 1x exposure tracks Solana’s futures price without any leverage. Meanwhile, the 2x exposure option offers leveraged exposure, effectively doubling the price movements of Solana. On the flip side, the -1x exposure provides inverse returns, gaining value when Solana futures see a drop.
According to Geraci, Volatility Shares’ bid might significantly impact SOL spot ETFs, considering the asset manager’s influential role in the approval of Ether futures ETFs. In 2023, they successfully urged the SEC to approve crypto-related products. Geraci also pointed out that their filing highlighted, “Solana futures contracts that trade only on an exchange registered with the Commodity Futures Trading Commission.”
Eric Balchunas, a well-regarded ETF analyst at Bloomberg, also weighed in on the prospects of Volatility Shares’ futures-based Solana ETF. He welcomed this development as a positive step in the crypto sector. Balchunas expressed optimism, suggesting that this move likely bodes well for the approval of a spot SOL ETF.
An Update on Solana’s Current Price
As of now, Solana (SOL) is trading around $195, marking a 5.5% increase over the last 24 hours. Data from CoinGecko indicates that SOL has appreciated by nearly 6% over the past week.
The recent price data and developments signify a noteworthy trend for Solana, reflecting its ongoing momentum in the market.
