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

CME Group revealed the Solana (SOL) futures launch on Mar. 17, pending regulatory approval, citing rising consumer demand. Nate Geraci, CEO of The ETF Retailer, famous that the event “undoubtedly bodes nicely” for SOL exchange-traded fund (ETF) prospects.

In response to a Feb. 28 assertion, the brand new Solana futures contracts will probably be accessible in two sizes: a 25 SOL micro-contract and a 500 SOL bigger contract. 

CME Group said that these choices are designed to accommodate a variety of market contributors, from institutional traders to energetic merchants.

Giovanni Vicioso, international head of cryptocurrency merchandise at CME Group, highlighted that the launch goals to handle rising consumer demand. He added:

“As Solana continues to evolve into the platform of selection for builders and traders, these new futures contracts will present a capital-efficient device to help their funding and hedging methods.”

Furthermore, business figures reminiscent of Multicoin Capital’s Kyle Samani and Bitwise’s Teddy Fusaro famous that introducing SOL futures is an indication of market maturation, as subtle instruments to handle crypto publicity are wanted.

CME Group’s Solana futures will probably be cash-settled and benchmarked towards the CME CF Solana-Greenback Reference Fee. The reference charge gives a standardized each day valuation of Solana in US {dollars}.

ETF odds boosted

Analysts view futures contracts as a spot crypto ETF approval requirement, as Bitcoin (BTC) and Ethereum (ETH) have adopted this path. Gaining futures contracts may increase the possibilities of an SOL ETF approval.

In response to Bloomberg ETF analysts Eric Balchunas and James Seyffart, the chances of a Solana ETF being authorized within the US this yr are 70%. The SEC just lately acknowledged spot SOL ETF filings from 5 issuers earlier in February.

The paperwork have been later included within the Federal Register between Feb. 12 and 18, that means the SEC now has 240 days to reply to the filings, ending on Oct. 16. 

JPMorgan’s estimate, based mostly on Bitcoin and Ethereum ETFs’ flows, predicted that Solana ETFs may seize $3 billion to $6 billion in web flows.

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