Daniel Walker
Volatility Shares, a rapidly growing exchange-traded fund (ETF) provider, is set to introduce the first-ever ETFs linked to Solana’s price movement.
According to the Florida-based company’s website, two Solana-focused ETFs will go live on Thursday:
- Volatility Shares Solana ETF (SOLZ): Offers exposure to Solana futures contracts.
- Volatility Shares 2X Solana ETF (SOLT): Designed to deliver twice the daily return of Solana’s price.
While Solana futures ETFs may not attract the same level of investment as spot Bitcoin ETFs, their launch could indicate that spot Solana ETFs may soon follow.
Notably, Franklin Templeton, a global investment giant, recently filed to launch its own Solana-based ETF, making it the largest asset manager to do so.
“We were the first to file for these ETFs, which allows us to be the first to launch,” said Volatility Shares CEO Justin Young, adding that the firm currently manages $3 billion in assets.
Solana Futures Trading Gains Momentum
Earlier this week, Solana futures trading debuted on the Chicago Mercantile Exchange (CME). However, trading activity remains low compared to Bitcoin and Ethereum futures, which have already gained widespread institutional adoption.
Volatility Shares’ Solana ETFs have already been listed on the Depository Trust & Clearing Corporation (DTCC)—a crucial step toward ensuring trading eligibility.
Unlike spot ETFs, which directly hold the underlying cryptocurrency, SOLZ and SOLT are futures-based, meaning they track Solana’s price through futures contracts. The funds will carry expense ratios of 0.95% and 1.85%, respectively.
What’s Next for Solana ETFs?
Back in December, Volatility Shares submitted filings for three Solana futures ETFs with the Commodity Futures Trading Commission (CFTC). At the time, no Solana-based futures products existed on regulated exchanges.
Bloomberg ETF analyst Eric Balchunas called the development “wild”, adding:
“This is a strong indicator that Solana futures are on the way, which could increase the odds of spot ETF approval.”
Several other firms, including 21Shares and VanEck, have also filed applications for spot Solana ETFs. VanEck was the first firm to submit such a request with the U.S. Securities and Exchange Commission (SEC) in June.
With growing institutional interest and increasing regulatory clarity, the crypto market is now watching closely to see if Solana follows Bitcoin and Ethereum in securing spot ETF approval.
