CME Group set to launch Solana futures on March 17, strengthening ETF prospects

CME Group revealed the Solana (SOL) futures motorboat connected Mar. 17, pending regulatory approval, citing expanding lawsuit demand. Nate Geraci, CEO of The ETF Store, noted that the improvement “definitely bodes well” for SOL exchange-traded money (ETF) prospects.

According to a Feb. 28 statement, the caller Solana futures contracts volition beryllium disposable successful 2 sizes: a 25 SOL micro-contract and a 500 SOL larger contract. 

CME Group stated that these offerings are designed to accommodate a wide scope of marketplace participants, from organization investors to progressive traders.

Giovanni Vicioso, planetary caput of cryptocurrency products astatine CME Group, highlighted that the motorboat aims to code expanding lawsuit demand. He added:

“As Solana continues to germinate into the level of prime for developers and investors, these caller futures contracts volition supply a capital-efficient instrumentality to enactment their concern and hedging strategies.”

Moreover, manufacture figures specified arsenic Multicoin Capital’s Kyle Samani and Bitwise’s Teddy Fusaro noted that introducing SOL futures is simply a motion of marketplace maturation, arsenic blase tools to negociate crypto vulnerability are needed.

CME Group’s Solana futures volition beryllium cash-settled and benchmarked against the CME CF Solana-Dollar Reference Rate. The notation complaint provides a standardized regular valuation of Solana successful US dollars.

ETF likelihood boosted

Analysts presumption futures contracts arsenic a spot crypto ETF support requirement, arsenic Bitcoin (BTC) and Ethereum (ETH) person followed this path. Gaining futures contracts could boost the chances of an SOL ETF approval.

According to Bloomberg ETF analysts Eric Balchunas and James Seyffart, the likelihood of a Solana ETF being approved successful the US this year are 70%. The SEC precocious acknowledged spot SOL ETF filings from 5 issuers earlier successful February.

The documents were later included successful the Federal Register betwixt Feb. 12 and 18, meaning the SEC present has 240 days to respond to the filings, ending connected Oct. 16. 

JPMorgan’s estimate, based connected Bitcoin and Ethereum ETFs’ flows, predicted that Solana ETFs could capture $3 cardinal to $6 cardinal successful nett flows.

The station CME Group acceptable to motorboat Solana futures connected March 17, strengthening ETF prospects appeared archetypal connected CryptoSlate.