YEREVAN (CoinChapter.com) — Solana ETF, a futures-based exchange-traded fund, launched in the U.S. today, March 20, as Solana (SOL) price held above $130.
The debut follows the listing of Solana futures contracts on the Chicago Mercantile Exchange (CME) on March 17.
Volatility Shares, the issuer, introduced two Solana ETFs: the Volatility Shares Solana ETF (SOLZ) and the Volatility Shares 2X Solana ETF (SOLT). These products provide exposure to Solana futures, with SOLT offering leveraged exposure at twice the returns of Solana futures movements. SOLZ carries a 0.95% fee, while SOLT has a 1.85% fee.
Solana ETF Gains Attention After CME Futures Launch
The launch of the Solana ETF comes just three days after CME began trading Solana futures. On its first day, Solana futures trading volume reached $12.3 million, which was lower than Bitcoin (BTC) at $102.7 million and Ethereum (ETH) at $31 million. Open interest for Solana futures stood at nearly $8 million, while BTC and ETH futures exceeded $20 million on their first day.
Bloomberg ETF analyst Eric Balchunas compared Solana ETFs to Bitcoin ETFs BITO and BITX, stating that ETF investors often prefer direct exposure to the asset. Industry analysts see futures-based ETFs as a possible first step toward a spot Solana ETF, similar to how Bitcoin ETFs and Ethereum ETFs developed.
Institutional Interest in Solana ETF Expands
The U.S. Securities and Exchange Commission (SEC) has not yet approved a spot Solana ETF. Still, the introduction of futures-based Solana ETFs shows increasing interest in regulated investment products for altcoins. Volatility Shares CEO Justin Young said the launch aligns with renewed interest in crypto investment in the U.S.
The approval of Bitcoin spot ETFs in 2024 brought significant institutional capital into BTC, while altcoins like Solana lacked similar investment options. With the launch of a Solana ETF, investors now have another way to gain exposure to Solana futures without directly holding the asset.
Founder of Solana-based swap platform Titan, Chris Chung, noted that the introduction of CME Solana futures reflects the increasing maturity of Solana as an institutional asset. He said Solana is expanding beyond its earlier market role, attracting financial institutions seeking crypto exposure.
The launch of the Solana ETF highlights ongoing changes in the U.S. financial landscape. If institutional demand for Solana ETFs increases, market participants expect further development of regulated investment products linked to Solana futures and Solana spot trading.