Volatility Shares Launches First Solana ETFs in US, 75% Chance for Spot Approval This Year
1min read Volatility Shares LLC, a Florida-based ETF firm, is set to launch the first Solana ETFs in the US on March 20. The two funds, the Volatility Shares Solana ETF (SOLZ) and the Volatility Shares 2X Solana ETF (SOLT), will track Solana futures and offer leveraged exposure, respectively. This marks a significant development in the cryptocurrency market, as Solana has a market value of around US$67 billion. The expense ratios for SOLZ and SOLT are 0.95% and 1.85%, respectively.
The launch of these ETFs comes at a time of renewed optimism for cryptocurrency innovation in the US. Justin Young, the CEO of Volatility Shares, believes that the Trump administration recognizes the strategic importance of maintaining American leadership in financial technology. This optimism is further fueled by the recent success of Bitcoin and Ether products, which have paved the way for other cryptocurrencies to enter the market.
Ask Aime: What are the implications of Volatility Shares LLC launching the first Solana ETFs in the US on March 20?
The debut of Solana ETFs follows the launch of Ether offerings, which have seen outflows amid recent market volatility. While Solana ETFs holding the coin directly aren’t currently available, industry watchers view the Volatility Shares funds as a sign that a spot fund for the crypto is next up. Both Bitcoin and Ether followed a similar path; issuers launched futures products first then spot ETFs. According to the analyst's forecast, there is a 75% chance that spot Solana ETFs will be approved by this year.
Solana first garnered widespread attention when it was championed by Sam Bankman-Fried. After his crypto exchange FTX and affiliated Alameda Research fund imploded in 2022, Solana’s survival was in question. But it has since staged a comeback, thanks to the lower fees it charges in contrast to its rivals. So far this year, Solana is down about 30%.
The new funds also show how ETF firms are still pitching offerings to speculative investors who continue to have an appetite for risk despite the recent market meltdown. Issuers are also defying naysayers who argue the ETF market is already saturated. This year has seen more filings for new ETFs that track everything from altcoin Avalanche, to the SUI token that has a market value, to spot Bitcoin and carbon credit futures.
The launch of Solana ETFs comes as the Trump administration embraces digital assets, spurring a slew of new market initiatives including fresh funds and so-called staking. Among the asset managers that have filed for spot Solana ETFs are Franklin Templeton, Grayscale and VanEck.
