On Friday, a curious document was found in the SEC database.
A Volatility Shares filing for a Solana ETF was made. This would create securities that follow the price movement of underlying SOL Futures Contracts trading on a CFTC Registered Exchange. The catch is that there are no SOL futures. ETF analysts said, however, that this filing is a good sign for the chances of spot Solana ETFs being approved by 2025.
“Many believe that with Paul Atkins as SEC chair, a wider range of products will be possible. This filing appears to be a bet on that,” Bitwise’s CEO Hunter Horsley sent a message to employees.
Volatility shares is an expert in leveraged ETFs based out of Palm Beach Gardens. Grayscale, a smallish company in Palm Beach Gardens, FL has probably still had a hand in shifting the regulatory overton period: Grayscale claimed that Volatility’s leveraged Bitcoin futures ETF is riskier than Grayscale’s proposed spot bitcoins ETF.
Volatility Shares offers another product that does not follow the consensus in an ETF for Solana, which currently is based around betting. Investors could gain exposure to 2x, or even the inverse daily price changes of SOL Futures through its Solana ETF. SOL’s futures don’t trade yet (but bitcoin and ether have both futures on CME). But Bloomberg analyst Eric Balchunas says the filing could be a sign they will soon. “on the way.”
If they can see spot ETFs, regulators may be more inclined to approve them. “a healthy market that’s liquid enough for SOL to trade,” Sol Strategies CEO Leah Wald stated that CME futures and bitcoin ETFs only became available after the SEC approved them.
It was once believed that the presence of futures would be a requirement for crypto ETFs. But that logic changed after it became apparent that Gary Gensler could lose his job as SEC Chair if Trump wins. Five firms have filed spot SOL funds in the last six months, despite the absence of futures.
A futures market would not hurt spot SOL ETF approval chances.
“Alright, I’ve seen enough…Registering formal prediction,” Nate Geraci of The ETF Store wrote on X. “Spot solana ETFs will be approved in 2025.”
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