Volatility Shares has submitted an application to the United States Securities and Exchange Commission (SEC) for Solana 
$186 futures-based ETFs. This application includes products offering 1x, 2x leveraged, and -1x inverse positions on Solana futures, enabling traders to benefit from both upward and downward price movements of SOL.
Leveraged Options for Solana Futures ETF
With the Solana futures ETF application, Volatility Shares provides traders the opportunity to bet on price fluctuations of SOL. This ETF grants access to Solana’s performance through futures contracts, focusing solely on futures traded on exchanges registered with the Commodity Futures Trading Commission (CFTC).
The ETF aims to reflect 100% of SOL returns by investing in major short-term and next futures contracts. Additionally, the fund maintains collateral in the form of cash, cash-equivalents, and high-quality securities to support this investment, ensuring continued exposure to SOL price movements while providing suitable collateral for future positions.
Could It Pave the Way for a Solana Spot ETF?
Bloomberg’s senior ETF analyst Eric Balchunas described Volatility Shares’ application for the Solana futures ETF as a “crazy” move. He noted that the incorporation of a 2x leveraged product, despite Solana futures not being operational yet, is particularly bold. He stated, “This is a serious move.”
Balchunas indicated that this ETF application signals the imminent launch of Solana futures, potentially increasing the chances for a Solana spot ETF approval in the future. However, he had previously predicted that Litecoin and HBAR ETFs would be approved before those for Solana and XRP.
At the time of publication, the price of Solana was trading at $184, down 2.87%. Since mid-November, SOL has remained stagnant alongside other cryptocurrencies, trailing behind coins like BNB Coin and XRP. Market analysts predict that if the SEC greenlights a spot ETF, Solana’s price could soar up to $1,000.
Volatility Shares’ future plans for crypto ETFs draw attention as the firm previously led the way with Ether futures ETFs. This development is seen as a significant step regarding the roles of ETFs in the cryptocurrency market and how traders can leverage these instruments.
As developments unfold, the market dynamics surrounding Solana ETFs await SEC approval, capturing trader interest and speculation.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
