DTCC Lists Solana Futures Exchange-Traded Funds on Their Platform
The Drop:
Volatility Shares Futures SOL-ETF made it onto the DTCC asset list, marking the first-ever financial instrument based on Solana. This move often precedes the launch of similar products, as seen with VanEck's spot Ethereum-ETF. Two months after the DTCC listing in May 2024, the fund started trading on CBOE.
Currently, the funds Volatility Shares Solana ETF and Volatility Shares 2x Solana-ETF, identified by tickers SOLZ and SOLT respectively, are in the works. They'll invest in contracts traded on CFTC-regulated exchanges, with Coinbase being a viable option. Last year, Volatility Shares filed applications for three new SOL-ETF products with leverage options of 1x, 2x, and -1x, but the futures SOL-ETF with a -1x coefficient didn't make the DTCC list.
In December, Bloomberg analyst Eric Balchunas hinted at "good chances" for the approval of a spot SOL-ETF, following Volatility Shares' initiative. In February, the SEC accepted a 19b-4 rule change filing from NYSE Arca that could potentially enable the listing of Grayscale Investments' spot Solana-ETF.
Interestingly, DTCC added Canary Capital's spot Litecoin-ETF to its website on February 21. Balchunas and his colleague James Seyffart estimated the approval probability for exchange-traded funds based on Litecoin, Dogecoin, Solana, and XRP to be between 65-90% by October.
On February 25, Bitwise established the Bitwise Aptos ETF in Delaware, preparing an S-1 registration filing for the SEC. Bitwise had already launched the Aptos Staking ETP on six Swiss exchanges in November, while 21Shares introduced a similar product at the same time.
The SEC is currently reviewing proposals from 21Shares, Bitwise, Canary, and VanEck for various crypto-ETFs, including the much-anticipated spot Solana-ETF. Tuttle Capital Management has submitted a proposal for ten leveraged 2x crypto-ETFs, including products based on notable figures like TRUMP and MELANIA, as well as lesser-known entities like Bonk, BNP, and Chainlink.
Moreover, the SEC is deliberating on the introduction of in-kind redemptions in BTC-ETF and ETH-ETF, as well as staking in ETH-ETF. Hester Peirce, head of the regulator's crypto group, stated that the SEC's focus includes determining which assets are not securities and establishing a clear registration process for new tokens. Stay tuned for updates!
Investors may look forward to the potential launch of the 'Volatility Shares Solana ETF' and 'Volatility Shares 2x Solana-ETF', as they will be investing in technology-based contracts traded on regulated exchanges, similar to the Ethereum-ETF. The approval process for a spot Solana-ETF, as hinted by Bloomberg analyst Eric Balchunas, is also underway, which could further expand the field of finance investing in cryptocurrencies like Solana.
