Volatility Shares is set to launch the first-ever exchange-traded funds (ETFs) that track Solana futures. This event is significant as it may lead to the approval of a spot Solana ETF in the future. The launch follows a pattern seen with Bitcoin and Ether, where futures-based products were approved before spot ETFs.
According to a Bloomberg report, Volatility Shares will introduce two ETFs: the Volatility Shares Solana ETF (SOLZ) and the Volatility Shares 2X Solana ETF (SOLT). The SOLZ will track Solana futures, while the SOLT will provide double the leveraged exposure. The expense ratios for these funds are set at 0.95% and 1.85%, respectively.
Justin Young, the CEO of Volatility Shares, expressed optimism about the timing of this launch, highlighting a renewed interest in cryptocurrency innovation in the United States.
Although the Securities and Exchange Commission (SEC) has not yet approved a spot Solana ETF, the introduction of these futures-based products indicates a growing demand from institutional investors. Analysts from Bloomberg Intelligence estimate a 75% chance that a spot Solana ETF will gain regulatory approval this year.
The Solana futures ETFs were initially listed on the Depository Trust & Clearing Corporation (DTCC) in February, making them eligible for clearing and settlement. After filing with the SEC in December, the funds are now ready to start trading. Volatility Shares has also proposed a -1x Solana ETF, which would allow investors to short Solana futures.
