Volatility Shares launching Solana futures ETFs March 20

Volatility Shares is launching two Solana (SOL) futures exchange-traded funds (ETFs), the Volatility Shares Solana ETF (SOLZ) and the Volatility Shares 2X Solana ETF (SOLT), on March 20.

According to the Securities and Exchange Commission filing, SOLZ will feature a management fee of 0.95% until June 30, 2026, when the management fee will increase to 1.15%.

Volatility Shares’ 2X Solana ETF gives investors twice the leverage and will feature a 1.85% management fee.

Volatility Shares Solana ETF SEC filing. Source: SEC

The filings represent the first Solana-based ETFs in the US and follow the Chicago Mercantile Exchange (CME) Group’s debut of SOL futures contracts.

Following a leadership change at the SEC and the reelection of Donald Trump as president of the United States, asset managers and ETF firms have submitted a torrent of ETF applications to the SEC for approval.

Related: Solana’s 5th birthday: From pandemic origins to US crypto stockpile

SOL futures went live on March 17 with a trading volume of approximately $12.1 million on the first day.

For context, Bitcoin (BTC) futures debuted at over $102 million in volume on the first day of trading, and Ether (ETH) futures garnered over $30 million the day they launched.

Despite the relatively low volume, SOL futures contracts could help boost demand for the cryptocurrency from institutional investors and encourage price discovery.

SOL futures volume and open interest. Source: Chicago Mercantile Exchange

The launch of SOL futures signaled the approval of SOL ETFs in the United States as financial regulators embrace digital assets amid a policy pivot.

According to Chris Chung, founder of Titan — a Solana-based swap platform — the CME’s futures indicate that SOL is now a mature asset capable of attracting institutional interest.

Chung added that the launch of SOL futures and ETFs position Solana as a blockchain network poised for real-world use cases such as payments, not just a memecoin casino.

ETFs could also allow investor capital to flow into SOL, creating a sustained rally in the altcoin that competitors lacking an ETF might miss out on.

The launch of Bitcoin ETFs in 2024 is widely believed to have siloed institutional capital away from the rest of the crypto market, preventing capital rotation from BTC into altcoins and upending altseason.

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