Investment Firm Seeks Approval for Solana Futures ETF

Investment firm Volatility Shares has taken a significant step by filing with the U.S. Securities and Exchange Commission (SEC) to introduce a Solana futures exchange-traded fund (ETF).

This proposal arrives after earlier attempts by various asset managers to launch a spot Solana ETF earlier in the year.

On December 27, Nate Geraci, president of the ETF Store, disclosed on the X platform that Volatility Shares submitted its application for a futures-based Solana ETF.

This type of ETF would allow investors to gain exposure to Solana’s price movements through futures contracts, rather than directly owning the cryptocurrency.

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The application outlines plans for three types of funds:

1x Exposure: Tracks Solana futures prices without leverage.
2x Exposure: Offers leveraged exposure, doubling price movements.
-1x Exposure: Provides inverse exposure, profiting when Solana futures decline.

Geraci noted the potential significance of this move for spot ETFs, given Volatility Shares’ pivotal role in the SEC’s approval of Ether futures ETFs in 2023. The filing specifies that these futures contracts would trade on Commodity Futures Trading Commission-registered exchanges, adding regulatory clarity.

Bloomberg ETF expert Eric Balchunas described the filing as a promising development, suggesting it could positively influence the approval prospects of a spot Solana ETF. Industry experts see this as another step forward in expanding institutional crypto investment options.

Alexander Stefanov