- Volatility Shares has proposed launching leveraged and inverse Solana futures ETFs, targeting upward and downward price movements.
- The firm previously launched Ether futures ETFs and is now aiming for Solana, reflecting its expanding crypto offerings.
- Analysts predict a potential $1,000 price surge for SOL if the SEC approves a spot ETF.
Volatility Shares has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to launch futures-based Solana (SOL) exchange-traded funds (ETFs), which could significantly change crypto trading. The proposal includes ETFs offering 1x, 2x leveraged, and -1x inverse exposure to Solana futures, providing traders with opportunities to benefit from both upward and downward price movements of SOL.
Volatility Shares to Launch Solana ETFs in U.S.
Nate Geraci, president of The ETF Store, confirmed the firm’s application for an exchange-traded, open-end index fund linked to SOL futures. The ETF would be traded exclusively on exchanges registered with the Commodity Futures Trading Commission (CFTC). Leveraged ETFs are popular in traditional markets, offering the opportunity to amplify potential returns or losses. According to ETF Store President Nate Geraci:
“I believe it’s highly likely that Solana ETFs will be approved by the end of next year at the latest.”
The proposed Solana ETFs come at a time when the success of spot Bitcoin and Ethereum ETFs, combined with a more favorable regulatory environment, boost optimism in the crypto market. The growing confidence in the potential approval of cryptocurrency ETFs increases the likelihood that Solana-based products will gain SEC approval soon.
If approved, the Volatility Shares Solana ETFs would be the first leveraged Solana ETFs available in the U.S. market. In May, the company launched the Volatility Shares 2x Ether ETF (ETHU), which became the first leveraged Ethereum ETF in the country. The proposed SOL ETFs are poised to offer similar opportunities for traders looking to capitalize on SOL’s price fluctuations.
SOL Price Surge Predicted with Spot ETF Approval
The ETF is designed to mirror 100% of SOL’s returns, primarily investing in near-term and next-term SOL futures contracts. To support these investments, the fund maintains collateral, including cash, cash equivalents, and high-quality securities. Volatility Shares is a leader in ETF market innovation, having previously launched a unique series of ETFs that simultaneously provide 100% leveraged exposure to two assets.
Bloomberg’s senior ETF analyst, Eric Balchunas, has described the filing for SOL futures-based ETFs as a bold move. He noted that SOL’s future is not yet live, proposing a particularly audacious step. Including a 2x leveraged product is a notable feature, and Balchunas suggests that this filing could signal the imminent launch of SOL futures. He believes this could increase the likelihood of future approval for spot Solana ETFs.
Despite the excitement, SOL has faced a period of sideways movement in its price since mid-November, currently trading down by 2.87% at $184. However, market analysts speculate that if the SEC approves a spot ETF for SOL, its price could surge, potentially reaching $1,000.
Read More: Solana (SOL) Investors Hold Strong as Long-Term Outlook Remains Bullish for 2025
