Derivatives marketplace CME Group has confirmed plans to launch Solana futures on March 17, pending regulatory approval. The new contracts will be offered in two sizes: a micro-sized contract for 25 Solana (SOL) and a larger-sized contract for 500 SOL. This move expands CME's cryptocurrency derivatives portfolio, which currently includes futures for Bitcoin and Ether. According to Giovanni Vicioso, Global Head of Cryptocurrency Products at CME, the decision responds to increasing demand from clients for regulated products that can help manage the volatility of cryptocurrency prices.
This launch follows earlier speculation after CME's staging website suggested that Solana futures were in the works, pending regulatory approval. Solana’s rising popularity among developers and investors is seen as a key factor in CME’s decision. The new futures contracts are expected to offer a capital-efficient tool for those looking to hedge or trade on the cryptocurrency’s price movements. With Solana’s role in the blockchain space growing, CME aims to provide traders with the necessary financial instruments to manage their positions.
The launch of Solana futures could also pave the way for approval of spot Solana exchange-traded funds (ETFs). Several asset managers, including Franklin Templeton, Bitwise, Grayscale, and 21Shares, have recently filed applications with the U.S. Securities and Exchange Commission (SEC) to launch Solana ETFs. The SEC is expected to decide on these filings later this year, with some analysts optimistic that approval could come soon. In fact, JPMorgan has projected that the introduction of Solana ETFs could draw between $2.7 billion and $5.2 billion in investments during their initial trading months.
Sui Chung, CEO of Kraken-owned CF Benchmarks, noted that the CME’s decision to list Solana futures could significantly increase the chances of SEC approval for spot Solana ETFs. This is because a regulated futures market is often a key requirement for the SEC to approve spot crypto ETFs. The presence of a futures market helps ensure that regulators can track market activity and identify any potential manipulation, thus protecting investors.
Solana’s token has been experiencing a price surge, currently trading around $175, reflecting a 21.3% increase over the past 24 hours. The launch of Solana futures on CME is seen as a significant step toward bringing more regulatory oversight to the cryptocurrency market and potentially making Solana ETFs a reality.
This move also comes as the crypto industry sees an increasing number of ETF filings for various cryptocurrencies, such as XRP and Litecoin. The filings have picked up since the 2024 U.S. presidential election, with many in the industry viewing the current administration as supportive of the crypto market.
