A surprising filing appeared in the SEC’s database last Friday. Volatility Shares, an ETF specialist, proposed a Solana futures ETF that would track the price movements of SOL futures contracts traded on a CFTC-registered exchange.
However, there’s one issue—no such futures contracts currently exist. Despite this, ETF analysts believe this filing boosts the chances of spot Solana ETFs gaining approval in 2025.
Why Solana ETFs Could Be Closer to Reality
Volatility Shares’ move comes amid growing speculation about regulatory shifts under SEC Chair Paul Atkins. “Many believe a broader range of products could be approved under Atkins,” stated Hunter Horsley, CEO of Bitwise.
Based in Palm Beach Gardens, FL, Volatility Shares is known for its leveraged ETF offerings. The firm has played a notable role in challenging regulatory standards. For example, Grayscale argued in 2023 that Volatility Shares’ leveraged Bitcoin futures ETF posed more risk than its own proposed spot Bitcoin ETF, strengthening its case for approval.
This time, Volatility Shares is pushing boundaries with a Solana ETF proposal. The product would offer investors exposure to 2x or the inverse of daily SOL futures price changes. While Bitcoin and Ether have futures trading on the CME, SOL futures currently don’t exist. However, Bloomberg analyst Eric Balchunas sees the filing as a sign that SOL futures may be on the horizon.
A Positive Sign for Spot ETFs
A healthy futures market could pave the way for spot ETFs. Leah Wald, CEO of Sol Strategies, explained, “Bitcoin and Ether ETFs only gained approval after CME futures launched.” Similarly, spot Solana ETFs may benefit from the establishment of a robust futures market.
Conventional thinking suggested futures were a prerequisite for crypto ETFs. However, regulatory dynamics may shift further if the political landscape changes, potentially ending Gary Gensler’s tenure as SEC chair. Despite the absence of futures, at least five firms have already filed for spot Solana ETFs in the last six months.
While futures aren’t mandatory, they could improve the likelihood of approval. Nate Geraci, president of The ETF Store, is confident about the future. “Spot Solana ETFs will be approved in 2025,” Geraci predicted on social media.
