Volatility Shares, a Florida-based issuer of exchange-traded funds, is set to debut two ETFs that track Solana’s price using futures contracts in the U.S. The Volatility Shares Solana ETF (SOLZ) will monitor Solana futures that recently launched via Coinbase’s derivatives arm, while the accompanying Volatility Shares 2x Solana ETF (SOLT) aims to provide investors with amplified returns. Both funds will be listed on the Nasdaq, creating an exciting opportunity for investors looking to tap into the burgeoning cryptocurrency market.
Justin Young, the co-founder and CEO of Volatility Shares, expressed enthusiasm about this development, explaining, "We launched the first leveraged Bitcoin and Ethereum ETFs in the U.S., so this fits really well into our wheelhouse. It’s really us being first to market again." His remarks underscore the firm's commitment to leading innovations in the financial sector.
The SEC has been deliberating applications from multiple asset managers seeking to establish a spot Solana ETF in the U.S. The introduction of these futures ETFs represents a tacit acknowledgment from the SEC that Solana, the sixth largest cryptocurrency with a market cap of $66.5 billion, is indeed a commodity. The SEC’s stance may be vital in the approval of additional products, given their past requirement for a well-established futures market for cryptocurrencies before considering spot ETFs.
Volatility Shares first filed for a futures-based Solana ETF back in December 2024, and registration statements indicate that these products are “subject to completion.” Originally, the firm had proposed a -1x Solana ETF, but decided to hold off on that offering despite receiving clearance from the SEC.
As of last month, the Depository Trust and Clearing Corporation (DTCC) had listed SOLZ and SOLT, paving the way for their debut. Solana futures began trading on the Chicago Mercantile Exchange (CME) on March 17, 2025, and saw significant activity, generating $12.3 million in notional trading volume. This trading buzz could indicate a warming market for the innovative cryptocurrency.
On March 19, 2025, Solana’s price surged by 5% to $130 amid growing interest, although it has dropped 27% over the preceding month. This fluctuation reflects the volatility that often characterizes cryptocurrency investments, exacerbated by broader economic factors, including recent tariffs announced by U.S. President Donald Trump.
Furthermore, the approval prospects for spot Solana ETFs are predominantly optimistic. Analysts at Bloomberg Intelligence believe there’s a 75% probability these funds could receive approval by the end of 2025. However, it's important to consider the timing: industry expectations are tempered by the need for the Senate to confirm Paul Atkins, nominated by President Trump to chair the SEC, before any significant decisions on these potential spot ETFs are finalized.
The SEC has previously communicated that establishing a solid futures market is a step towards approving spot products. With the approval of the spot Bitcoin (BTC) and Ether (ETH) ETFs last year, many in the cryptocurrency sector are hopeful that these forthcoming approvals will further legitimize the digital asset landscape.
While SOLZ targets standard exposure to Solana futures with a management fee of 0.95%, the SOLT ETF allows traders to access leveraged returns but includes a higher fee structure at 1.85%. This pricing strategy is designed to capture a range of investor preferences in an increasingly competitive market.
In summary, the launch of the Volatility Shares Solana ETFs is not just a financial event; it represents a key moment for the cryptocurrency industry. As both retail and institutional investors gain access to more sophisticated financial products, the relationship between futures and spot market approvals will be closely watched. Investors and market analysts alike will be eager to see how the SEC responds to these developments and what the future holds for Solana and other cryptocurrencies in the expanding asset class.
