CME Group revealed the Solana (SOL) futures launch on Mar. 17, pending regulatory approval, citing rising consumer demand. Nate Geraci, CEO of The ETF Retailer, famous that the event “undoubtedly bodes nicely” for SOL exchange-traded fund (ETF) prospects.
In response to a Feb. 28 assertion, the brand new Solana futures contracts will likely 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 individuals, from institutional buyers to energetic merchants.
Giovanni Vicioso, world head of cryptocurrency merchandise at CME Group, highlighted that the launch goals to deal with rising consumer demand. He added:
“As Solana continues to evolve into the platform of selection for builders and buyers, these new futures contracts will present a capital-efficient instrument to help their funding and hedging methods.”
Furthermore, trade figures resembling 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 will likely be cash-settled and benchmarked towards the CME CF Solana-Greenback Reference Price. The reference price offers a standardized day by 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 might enhance the possibilities of an SOL ETF approval.
In response to Bloomberg ETF analysts Eric Balchunas and James Seyffart, the chances of a Solana ETF being authorized within the US this yr are 70%. The SEC not too long ago acknowledged spot SOL ETF filings from 5 issuers earlier in February.
The paperwork had been later included in the Federal Register between Feb. 12 and 18, which 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 could capture $3 billion to $6 billion in web flows.
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