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 growing consumer demand. Nate Geraci, CEO of The ETF Retailer, famous that the event “positively bodes effectively” for SOL exchange-traded fund (ETF) prospects.
Based on a Feb. 28 assertion, the brand new Solana futures contracts might be obtainable in two sizes: a 25 SOL micro-contract and a 500 SOL bigger contract.
CME Group acknowledged that these choices are designed to accommodate a variety of market contributors, from institutional buyers to energetic merchants.
Giovanni Vicioso, world head of cryptocurrency merchandise at CME Group, highlighted that the launch goals to handle growing consumer demand. He added:
“As Solana continues to evolve into the platform of alternative for builders and buyers, these new futures contracts will present a capital-efficient instrument to help their funding and hedging methods.”
Furthermore, business figures equivalent to 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 might be cash-settled and benchmarked towards the CME CF Solana-Greenback Reference Fee. The reference charge offers 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 enhance the probabilities of an SOL ETF approval.
Based on Bloomberg ETF analysts Eric Balchunas and James Seyffart, the percentages of a Solana ETF being accepted within the US this 12 months are 70%. The SEC 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 answer 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 internet flows.
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