Volatility Shares Launches Two Solana Futures ETFs

Volatility Shares will launch two Solana futures ETFs on Thursday, making them the first of their kind in the United States. The Volatility Shares Solana ETF (SOLZ) will provide exposure to Solana futures contracts, while the Volatility Shares 2X Solana ETF (SOLT) will aim for twice the daily return of Solana's price.

Volatility Shares will launch two Solana futures ETFs on Thursday, marking the first of their kind in the United States.

The Volatility Shares Solana ETF (NYSE:SOLZ) will provide exposure to Solana futures contracts, while the Volatility Shares 2x Solana ETF (NYSE:SOLT) will aim for twice the daily return of Solana's (CRYPTO:SOL) price. Both funds are listed on Nasdaq and have already been registered with the Depository Trust & Clearing Corporation.

SOLZ has an expense ratio of 0.95%, and SOLT's is 1.85%. Unlike spot ETFs, which hold the asset directly, these funds track Solana prices through futures contracts traded on Commodity Futures Trading Commission-regulated exchanges.

Solana futures trading began on Monday on the Chicago Mercantile Exchange (CME), with $12.3 million in notional daily volume and $7.8 million in open interest at the close. This initial activity was lower than Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) futures at their launch, but K33 Research noted that Solana's debut was in line with expectations when adjusted for market capitalization.

The launch of these futures ETFs is seen as a step toward potential approval of spot Solana ETFs. Several asset managers, including Franklin Templeton (NYSE:BEN), 21Shares, and VanEck, have already filed for spot Solana ETFs.

Earlier this month, Franklin Templeton, the largest firm to apply for a spot Solana ETF, submitted its filing.

"The existence of futures-based products could be a positive sign for approval of a spot Solana ETF," Bloomberg ETF analyst Eric Balchunas previously said.

In December, Volatility Shares filed for the Solana futures ETFs, stating in its prospectus that the funds would only invest in contracts traded on CFTC-registered exchanges.

"Being the first to file allowed us to be the first to launch," CEO Justin Young said.

Volatility Shares manages $3 billion in assets. Young also confirmed that the firm had filed for a "-1x Solana ETF," which would have allowed investors to bet against Solana's price, but that product has been put on hold.

While the Securities and Exchange Commission has yet to approve any spot Solana ETFs, the launch of futures-based ETFs suggests regulators recognize Solana as a commodity rather than a security.

The approval process for a spot Solana ETF is still uncertain, as ongoing regulatory reviews, enforcement actions, and public comments could impact the decision.

At the same time, Solana removed its "America is Back—Time to Accelerate" ad after criticism from the crypto community. The ad, which was posted Monday before noon in New York and had 1.4 million views by evening, drew criticism on X for being "offensive" and "divisive."