Volatility Shares is set to launch the first-ever Solana (SOL) futures exchange-traded funds (ETFs) in the U.S. on March 20, 2025. The ETFs will debut just three days after Solana futures began trading on the Chicago Mercantile Exchange (CME).
Key Details of the Solana ETFs
The issuer will introduce two products:
- Volatility Shares Solana ETF (SOLZ): Provides exposure to Solana futures.
- Volatility Shares 2X Solana ETF (SOLT): Offers leveraged exposure at twice the returns of Solana futures movements.
Both ETFs carry expense ratios of 0.95% and 1.85%, respectively. Bloomberg ETF analyst Eric Balchunas compared them to Bitcoin ETFs BITO and BITX but cautioned that the launch may not match the success of spot Bitcoin ETFs.
"It’s the first altcoin after Ethereum to be approved. But history has shown that ETF investors crave holding the physical asset as much as possible."
— Eric Balchunas
Market Reaction and Futures Performance
Solana futures began trading on CME on March 17, with launch-day volumes reaching **$12.3 million**. While this pales in comparison to Bitcoin ($102.7 million) and Ethereum ($31 million), analysts note that Solana’s performance aligns with its market cap at launch.
Key Observations:
- Open interest for SOL futures reached $8 million, lower than BTC and ETH.
- K33’s Vetle Lunde highlighted that normalized volumes (relative to market cap) show Solana’s performance is comparable to Bitcoin and Ethereum.
👉 Discover how Solana ETFs compare to Bitcoin and Ethereum ETFs
Broader Implications for Crypto ETFs
Volatility Shares CEO Justin Young attributed the launch to "renewed optimism for crypto innovation in the U.S." under the current administration. While the SEC has not yet approved a spot Solana ETF, futures-based ETFs could pave the way—just as they did for Bitcoin and Ethereum.
FAQs About Solana ETFs
Q: What is the difference between SOLZ and SOLT?
A: SOLZ tracks Solana futures, while SOLT offers 2x leveraged exposure to futures movements.
Q: Why are futures-based ETFs significant?
A: They often precede spot ETF approvals, as seen with Bitcoin and Ethereum.
Q: How do Solana futures volumes compare to Bitcoin and Ethereum?
A: While absolute volumes are lower, Solana’s normalized performance aligns with its market cap.
👉 Learn more about Solana’s growth potential in 2025
Final Thoughts
The launch of Solana ETFs marks a milestone for altcoin adoption in traditional finance. While initial volumes may seem modest, the broader trend suggests growing institutional interest in crypto derivatives. Investors should watch for further developments, including potential spot ETF approvals.