The Depository Trust & Clearing Corporation (DTCC) has introduced the first Solana futures Exchange Traded Funds (ETFs) from Volatility Shares. The listed ETFs include the Volatility Shares 2x Solana ETF (SOLT) and the Volatility Shares Solana ETF (SOLZ).
The inclusion in the DTCC signifies these ETFs’ eligibility for clearing and settlement through this central infrastructure. It is a vital step towards efficient and reliable trading. However, it’s important to note that the listing does not automatically imply approval by the Securities and Exchange Commission (SEC) for these investment products.
Volatility Shares, a firm specializing in ETFs focused on volatility-based investment strategies, made a move to file with the SEC for three new ETFs tracking Solana futures contracts in December of last year.
Apart from the two products now listed on DTCC, the firm is also seeking the green light from regulators for its -1x Solana ETF. This specific ETF would offer inverse exposure, gaining value when Solana futures contracts depreciate.
This move by Volatility Shares stirred the investment world’s curiosity, particularly because there were no Solana futures contracts available on Commodity Futures Trading Commission (CFTC)-regulated exchanges at that time.
Nonetheless, Eric Balchunas, a Bloomberg ETF analyst, interpreted this move as a strong sign that Solana futures were on the horizon.
Coinbase Derivatives LLC launched the anticipated CFTC-regulated Solana futures contracts earlier this month. The arrival of these contracts is seen as a significant stride towards a possible approval of Solana ETFs in the future.
This development followed a leak from a Chicago Mercantile Exchange staging website, hinting that XRP and Solana futures might start trading from February 10, subject to regulatory approval.
However, CME Group clarified that an official decision has not been made regarding these contracts. A spokesperson from CME attributed the leak to an “error” and noted that they are still evaluating these potential products.
The introduction of regulated Solana futures contracts provides institutional investors with a more secure and structured method to trade Solana. This bridges the gap between traditional finance and the cryptocurrency market.
The potential green light for a Solana leveraged ETF could heighten the chances of a spot Solana ETF being approved in the future. The SEC has confirmed receipt of numerous filings for spot Solana ETFs from 21Shares, Bitwise, Canary, and VanEck. As the crypto market continues to mature, the integration with traditional financial structures continues to deepen, offering more opportunities for investors and traders alike.
