Volatility Shares will launch the first-ever Solana (SOL) futures exchange-traded fund (ETF) in the US on March 20, Bloomberg News reported on March 19.
The issuer will introduce two products: the Volatility Shares Solana ETF (SOLZ) and the Volatility Shares 2X Solana ETF (SOLT).
Bloomberg ETF analyst Eric Balchunas compared them to Bitcoin (BTC) ETFs BITO and BITX. He also noted that the launch is unlikely to live up to the standards set by spot Bitcoin ETFs.
He added:
“It’s the first altcoin after Ethereum to be approved. But history has shown that ETF investors crave holding the physical asset as much as possible.”
Expanding SOL offering
SOLZ will provide exposure to Solana futures, while SOLT will offer leveraged exposure at twice the returns of Solana futures movements. The ETFs carry expense ratios of 0.95% and 1.85%, respectively.
Volatility Shares initially submitted its application to the US Securities and Exchange Commission (SEC) in December, continuing the trend of crypto-based ETFs predicted by Bloomberg analysts Eric Balchunas and James Seyffart.
Volatility Shares CEO Justin Young credited the launch to “renewed optimism for crypto innovation in the US” brought by President Donald Trump’s administration.
While the SEC has not approved a spot Solana ETF, industry analysts see these futures-based funds as a potential precursor. Bitcoin and Ethereum took a similar path, with issuers introducing futures ETFs before gaining approval for spot ETFs.
Appetite for futures
The first Solana futures started trading on the Chicago Mercantile Exchange (CME) on March 17.
K33 head of research Vetle Lunde highlighted that the launch day volumes of SOL futures reached $12.3 million, significantly below BTC’s $102.7 million and ETH’s $31 million.
Open interest was also substantially smaller, with SOL futures reaching nearly $8 million, while BTC and ETH reached at least $20 million in their launches.
Despite the seemingly lackluster numbers, Lunde said that by normalizing volumes to the assets’ market caps at launch days, Solana aligns with both Bitcoin and Ethereum.
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