The first-ever U.S.-based Solana (SOL) ETF is set to debut on the Nasdaq exchange on March 20, marking a significant milestone for the altcoin market. According to Bloomberg, Volatility Shares LLC plans to introduce two ETFs tracking SOL futures, reinforcing the growing institutional interest in Solana-based investment products.
Solana Futures ETFs: A Precursor to Spot Approval?
The two ETFs, Volatility Shares Solana ETF (SOLZ) and Volatility Shares 2X Solana ETF (SOLT), will provide exposure to Solana’s futures market. While SOLZ will track SOL futures directly, SOLT will offer leveraged exposure, allowing investors to amplify their positions. Futures ETFs enable speculation on Solana’s price movements without requiring ownership of the actual token.
Historically, the approval of futures ETFs has paved the way for spot ETFs, as seen with Bitcoin (BTC) and Ethereum (ETH). This precedent has sparked speculation about a potential spot Solana ETF in the near future. However, Bloomberg analyst Eric Balchunas warned that while this is a positive step, futures-based products often struggle when spot ETFs become available.
“It’s the first altcoin after Ether to be approved. But history has shown that ETF investors crave holding the physical asset as much as possible…It could have some issues when spot is approved,” Balchunas noted.
Market Optimism for Spot SOL ETF Approval
Nate Geraci, president of ETF Store, highlighted the rapid evolution of the ETF landscape, drawing parallels to Ethereum’s journey. “Less than a year ago, pretty much everyone thought spot ETH ETFs were a pipe dream. Now, we’ll have SOL futures ETFs. Spot SOL ETFs won’t be far behind IMO,” he stated.
Launching tomorrow…
— Nate Geraci (@NateGeraci) March 19, 2025
First solana futures ETFs.
Less than a yr ago, pretty much *everyone* thought spot eth ETFs were a pipe dream.
Now we’ll have sol futures ETFs.
Spot sol ETFs won’t be far behind IMO.@isabelletanlee pic.twitter.com/WHpIbGKmty
According to Polymarket predictions, the probability of a spot Solana ETF approval by 2025 is currently priced at 88%, reflecting strong investor confidence. Additionally, the growing demand for altcoin ETFs extends beyond Solana. Issuers have filed for ETFs tied to Cardano (ADA), Hedera (HBAR), Polkadot (DOT), Aptos (APT), and Sui (SUI), further intensifying the altcoin ETF race.
SOL Price Action and Market Outlook
As anticipation builds, Solana’s price has surged 10% in the past 24 hours. However, at the time of writing, SOL is consolidating near the 100-Exponential Moving Average (EMA) on the 4-hour chart. A successful breakout above this level could reinforce bullish momentum and support further price recovery.
Also Read: Solana Marks 5 Years: Milestones, Growth, and What’s Next for the Blockchain Giant
With the launch of Solana futures ETFs, the crypto investment landscape continues to evolve, potentially setting the stage for a spot ETF in the near future.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
