Asset administration agency Volatility Shares has filed with the U.S. Securities and Change Fee (SEC) to launch three new exchange-traded funds (ETFs) tied to Solana futures.
Nonetheless, the providing faces a singular hurdle, as no Solana futures merchandise are at present accessible on any Commodity Futures Buying and selling Fee (CFTC)-regulated alternate.
In keeping with the fund’s prospectus, the proposed ETFs would make investments solely in futures contracts traded on CFTC-registered exchanges. That is questionable since Solana futures contracts don’t but exist and there’s no authorised spot Solana ETF.
“That is loopy,” Bloomberg ETF analyst Eric Balchunas mentioned in a submit on social media platform X (previously Twitter). Balchunas added that the submitting may sign that Solana futures may quickly turn out to be a actuality, which “in all probability bodes nicely” for future approval of spot ETFs.
Providing a broader regulatory perspective, Nate Geraci, president of ETF Retailer, steered that the submitting may mirror a shift within the ongoing energy battle between the SEC and CFTC over digital asset oversight. “The CFTC could also be profitable its energy battle with the SEC over digital asset regulation,” Geraci commented.
The transfer additionally reignites hypothesis about which digital asset could possibly be subsequent in line to obtain ETF approval, with some consultants believing Solana may paved the way, whereas others have expressed optimism that XRP or different cryptocurrencies could possibly be thought-about.
Volatility Shares isn’t any stranger to disrupting the ETF area. It launched its first leveraged Bitcoin futures ETF in June 2023, adopted by a 2x Ether ETF a 12 months later. These merchandise have since paved the way in which for different asset managers to discover leveraged funds focusing on cryptocurrency futures.
*This isn’t funding recommendation.
