Volatility Shares, an asset management company, just filed an application with the SEC to launch a Solana futures ETF. This is a pretty big deal, especially since several companies tried to launch a spot Solana ETF earlier this year.
What’s a Futures ETF?
A futures ETF lets you invest in the price movements of a cryptocurrency futures contract without actually owning the cryptocurrency itself. Think of it as a bet on the future price of Solana. Volatility Shares plans to offer ETFs with different levels of leverage:
- 1x: This tracks the Solana futures price directly, no extra risk.
- 2x: This doubles your gains (and losses!). High risk, high reward.
- -1x: This makes money when the price of Solana
goes down. A bet against Solana.
Why is this important?
Nate Geraci, president of ETF Store, thinks this application could help get a spot Solana ETF approved. Volatility Shares successfully pushed for the approval of Ether futures ETFs earlier this year, so they have a good track record. Bloomberg’s Eric Balchunas agrees, calling it a positive development and suggesting it increases the chances of a spot Solana ETF getting the green light. He even tweeted about it, noting the unusual timing and the bold 2x leveraged option.
Solana’s Current Price
At the time of writing, Solana (SOL) is trading around $195, up about 5.5% in the last 24 hours and almost 6% in the last week.
