Solana Future ETF to Launch on Thursday

Solana exchange-traded funds (ETFs) are set to debut, marking a new chapter in crypto investing.

On 20 March 2025, Volatility Shares LLC will launch two Solana futures ETFs: the Volatility Shares Solana ETF (SOLZ), tracking Solana futures, and the Volatility Shares 2X Solana ETF (SOLT), offering leveraged exposure.

According to an SEC filing, SOLZ will carry a 0.95% management fee, while SOLT will charge 1.85%.

Volatility Shares CEO Justin Young said:

“Until now, if you wanted Solana exposure, you had to jump through a bunch of hoops — technical complexity, custody issues, you name it. With SOLZ and SOLT, we’re knocking down those barriers.”

These ETFs are the first of their kind, spotlighting Solana—currently the sixth-largest cryptocurrency with a $66.5 billion market cap.

Solana is trading at $135.43, up 8.21% in the last 24 hours, reflecting broader market momentum.

While these funds may not attract the billions poured into spot Bitcoin and Ethereum ETFs, their successful launch could pave the way for spot Solana ETFs, which analysts believe have a 75% chance of SEC approval by year-end.

Earlier this month, Franklin Templeton became the largest asset manager to file for a Solana ETF.

Overseeing $3 billion in assets under its management, Young expressed:

"We were first to file for these ETFs, which allows us to launch first."

Meanwhile, Solana futures trading debuted Monday on the Chicago Mercantile Exchange (CME), further solidifying institutional interest.

The Rise of Crypto ETFs: Familiarity, Accessibility, and Political Influence

Investors are increasingly seeking exposure to digital assets but within familiar investment structures, notes Young.

This demand for accessibility has been a key driver behind the resounding success of Bitcoin ETFs, which launched in 2024.

With just a few clicks, investors can gain exposure to Bitcoin through platforms they already trust, eliminating the complexities of direct crypto ownership.

The Bitcoin ETF debut in 2024 shattered records, with 11 providers attracting $107 billion in inflows, marking the strongest first year in ETF history.

This success was fuelled not only by Bitcoin’s appeal as an asset class but also by its newfound accessibility.

He noted:

“[Now] Investors can focus on why they want Solana exposure, not how to get it.”

However, another critical factor has been the pro-crypto stance of US President Donald Trump.

Trump’s administration has positioned cryptocurrency as a strategic priority, recognising the importance of American leadership in financial technology.

According to Young, this political climate played a role in Volatility Shares’ decision to launch its Solana ETFs, reinforcing the belief that crypto-backed investment products will continue gaining institutional traction.

He stated:

“We’re committed to developing investment products that expand access while maintaining the guardrails investors deserve.”

The Road to a Spot Solana ETF: A Market in the Making

The launch of Solana futures ETFs could pave the way for a spot Solana ETF, which would hold the token directly.

The SEC has previously emphasized the need for an established futures market before considering spot crypto products, making this a crucial step toward approval.

Following last year’s successful debuts of spot Bitcoin (BTC) and Ether (ETH) ETFs, issuers are eager to expand crypto-related offerings.

Firms like Grayscale, Franklin Templeton, and VanEck have already filed applications for a spot Solana ETF, though the SEC has yet to begin its review.

Bloomberg Intelligence analysts estimate a 75% chance of approval by year-end, but a decision is unlikely before Paul Atkins—President Trump’s nominee for SEC Chair—receives Senate confirmation.

With no hearing currently scheduled, how long will the crypto industry have to wait?