The first Solana ETFs in the US are about to hit the market. Volatility Shares LLC, an ETF firm based in Florida, is launching two funds on Thursday that will track Solana futures. This is the first time any ETF in the country has been tied to Solana, the meme coin-drive blockchain with a market value of $67 billion.
According to a report by Bloomberg, the two funds, Volatility Shares Solana ETF (SOLZ) and Volatility Shares 2X Solana ETF (SOLT), will give investors access to Solana futures trading on CME Group. SOLZ will offer standard Solana futures exposure, while SOLT will provide double the leverage. The firm submitted the proposal for approval back in December, and both ETFs will come with expense ratios of 0.95% and 1.85%, respectively.
Solana ETFs debut as futures trading expands
Solana futures recently became available on CME, one of the largest derivatives exchanges. According to Leah Wald, CEO of Sol Strategies, this development means Wall Street institutions will have to take Solana and other altcoins more seriously.
The launch of Solana ETFs follows the Ether futures ETFs, which entered the market recently but struggled with outflows due to market volatility.
Bloomberg ETF analyst Eric Balchunas pointed out that Solana is the first altcoin after Ether to get approval for an ETF, though he also said that once a spot Solana ETF is approved, it could take attention away from futures-based ETFs like SOLZ and SOLT.
Wall Street predicts billions in Solana ETF inflows
Crypto ETFs have already pulled in massive investments. Since launching in January 2024, spot Bitcoin ETFs have reached $92 billion in assets. By comparison, spot Ether ETFs, which debuted in July last year, have gathered $6.5 billion.
Analysts at JPMorgan estimate that if regulators approve spot Solana ETFs, the funds could attract between $3 billion and $6 billion within the first year. In contrast, XRP ETFs—which are also being considered—could bring in $4 billion to $8 billion.
To make these projections, JPMorgan analysts examined the adoption rate of existing crypto ETFs. They found that Bitcoin ETFs currently hold about 6% of Bitcoin’s total market capitalization, while Ether ETFs account for 3% of the Ether market cap.
But Solana has had a complicated history, especially because of its connection to Sam Bankman-Fried. After FTX collapsed in 2022, many thought Solana was done for since it was heavily tied to the exchange, but the blockchain survived largely due to its low transaction fees compared to competitors. Despite that, Solana’s price has dropped 30% this year.
For a long time, Solana was considered the most likely altcoin to get an ETF, given the strong institutional interest, as many asset managers, like Franklin Templeton, Grayscale, and VanEck have already submitted applications for a spot Solana ETF.
The launch of crypto ETFs has accelerated under the Trump administration, which has taken a pro-crypto stance. The administration has supported new investment products such as staking initiatives and fresh crypto funds. One major change was the removal of Gary Gensler as SEC chair, who was replaced by Paul Atkins, a known supporter of crypto-friendly policies.
JPMorgan has warned that while the ETF market beyond Bitcoin and Ether is growing, future approvals may take time due to regulatory uncertainty.
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