Two exchange-traded funds (ETFs) that track futures in cryptocurrency Solana (SOL) began trading today (March 20).
Volatility Shares LLC is launching two Solana futures ETFs, the “Volatility Shares Solana ETF” that will track Solana futures, and the “Volatility Shares 2X Solana ETF” that offers investors exposure to leveraged pricing. Solana is a blockchain platform known for its speed and efficiency. It helps to facilitate decentralized finance (DeFi) transactions.
The SOLZ ETF comes with a management fee of 0.95%, while investors will be charged a 1.85% fee on the SOLT ETF, according to a filing with the U.S. Securities and Exchange Commission (SEC). These are the first funds that track futures pricing on Solana, which is currently the sixth largest cryptocurrency with a market capitalization of about $65 billion.
New Crypto Products
Solana’s price has gained 6% in the last 24 hours, largely due to anticipation of the first ETFs hitting the market. The launch of these first ETFs is seen as a precursor to the approval of spot Solana ETFs, which would hold the digital token.
Following the successful launch last year of spot Bitcoin (BTC) and Ethereum (ETH) ETFs, asset managers have been looking to bring other crypto-related funds to market. Issuers such as Grayscale, Franklin Templeton and VanEck have filed paperwork to launch a spot Solana ETF, which have yet to be approved by the SEC.
Bloomberg Intelligence places the odds at 75% that a spot Solana ETF will be approved by year’s end.
Is SOL a Buy?
Most Wall Street firms don’t offer ratings or price targets on Solana, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, SOL’s price has declined 31.80% in the last 12 weeks.
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