(Bloomberg) — An upstart ETF agency is debuting the first-ever funds monitoring futures in Solana, the sixth-largest cryptocurrency, after the blockbuster success of Bitcoin merchandise.
Florida-based Volatility Shares LLC is launching a pair of funds monitoring Solana futures Thursday, in response to an efficient registration assertion. The merchandise would be the first of its type to supply publicity to Solana, which has a market worth of round $67 billion.
The Volatility Shares Solana ETF (ticker SOLZ) will monitor Solana futures whereas the Volatility Shares 2X Solana ETF (SOLT) will supply twice the leveraged publicity. The agency first submitted paperwork to the US Securities and Change Fee for the funds in December. SOLZ and SOLT will carry expense ratios of 0.95% and 1.85%, respectively.
“Our launch comes at a time of renewed optimism for cryptocurrency innovation within the US,” mentioned Justin Younger, the chief government officer of Volatility Shares. “We imagine the Trump administration acknowledges the strategic significance of sustaining American management in monetary know-how.”
The debut of the merchandise follows the launch of Ether choices, which have seen outflows amid the latest market volatility. Whereas Solana ETFs holding the coin immediately aren’t at present obtainable, business watchers view the Volatility Shares funds as an indication {that a} spot fund for the crypto is subsequent up. Each Bitcoin and Ether adopted an analogous path; issuers launched futures merchandise first then spot ETFs.
“It’s the primary altcoin after Ether to be permitted. However historical past has proven that ETF traders crave holding the bodily asset as a lot as doable,” mentioned Bloomberg Intelligence’s Eric Balchunas. “It may have some points when spot is permitted.”
Spot Bitcoin ETFs have amassed $92 billion since their debut in January 2024, information compiled by Bloomberg present. That’s in distinction to Ether’s $6.5 billion, which launched round July final yr. BI’s Balchunas and James Seyffart estimate a 75% probability that spot Solana ETFs will likely be permitted by this yr.
Solana first garnered widespread consideration when it was championed by Sam Bankman-Fried. After his crypto trade FTX and affiliated Alameda Analysis fund imploded in 2022, Solana’s survival was in query. Nevertheless it has since staged a comeback, due to the decrease charges it fees in distinction to its rivals. To date this yr, Solana is down about 30%.
Solana ETFs have lengthy been seen because the most certainly to get permitted since they’ve the very best degree of institutional investor curiosity given the token’s clear narrative.
The brand new funds additionally present how ETF companies are nonetheless pitching choices to speculative traders who proceed to have an urge for food for danger regardless of the latest market meltdown. Issuers are additionally defying naysayers who argue the $10 trillion ETF market is already saturated. This yr has seen extra filings for brand new ETFs that monitor every thing from altcoin Avalanche, to the SUI token that has a $7 billion market worth, to identify Bitcoin and carbon credit score futures.
The launch comes because the Trump administration embraces digital belongings, spurring a slew of recent market initiatives together with contemporary funds and so-called staking. Among the many asset managers which have filed for spot Solana ETFs are Franklin Templeton, Grayscale and VanEck.
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