Volatility Shares is set to introduce the first-ever Solana (SOL) futures exchange-traded fund (ETF) in the United States on March 20, as reported on March 19.
The company plans to unveil two offerings: the Volatility Shares Solana ETF (SOLZ) and the Volatility Shares 2X Solana ETF (SOLT).
An ETF analyst highlighted similarities between these products and the Bitcoin (BTC) ETFs, BITO and BITX, noting that the reception of this launch may not reach the expectations established by spot Bitcoin ETFs.
The analyst commented:
> “This is the first altcoin approved after Ethereum. However, history indicates that ETF investors prefer to hold the underlying asset whenever feasible.”
### Expanding SOL Offering
SOLZ will give investors exposure to Solana futures, whereas SOLT will provide leveraged returns at twice the rate of Solana futures fluctuations. The expense ratios for these ETFs are set at 0.95% and 1.85%, respectively.
Volatility Shares initially filed its application with the US Securities and Exchange Commission (SEC) in December, aligning with the ongoing trend of crypto-based ETFs anticipated by industry experts.
The CEO of Volatility Shares attributed this launch to a surge of “renewed optimism for crypto innovation in the US,” partly influenced by the prior administration.
While the SEC has not yet greenlighted a spot Solana ETF, many in the industry view these futures-based funds as a potential stepping stone. Bitcoin and Ethereum followed a similar trajectory, introducing futures ETFs before receiving approval for their spot counterparts.
### Appetite for Futures
The inaugural Solana futures began trading on the Chicago Mercantile Exchange (CME) on March 17.
The head of research at K33 pointed out that the trading volume for SOL futures on launch day reached $12.3 million, which is considerably lower than Bitcoin’s $102.7 million and Ethereum’s $31 million.
In terms of open interest, SOL futures attained nearly $8 million, whereas BTC and ETH eclipsed $20 million during their respective launches.
Despite the seemingly modest figures, the research head noted that when adjusting trading volumes to correspond with the assets’ market capitalizations at the time of launch, Solana appears to be in line with both Bitcoin and Ethereum.