The upcoming introduction of Solana (SOL) futures on the Chicago Mercantile Exchange (CME) indicates that the first U.S. Solana exchange-traded funds (ETFs) might soon be available. Chris Chung, founder of the Solana-oriented swap platform Titan, highlighted this development as a precursor to potential ETF approvals. Set for launch on March 17, the SOL futures contracts will be among the inaugural regulated Solana futures in the U.S. market, following Coinbase’s launch in February.
Chung believes that this move lays the groundwork for the U.S. Securities and Exchange Commission (SEC) to approve proposed spot Solana ETFs from asset managers like VanEck and Canary Capital, possibly by May.
The advent of regulated Solana futures underscores the asset’s maturation, providing reassurance to regulators and paving the way for more financial products of similar risk and nature. Futures contracts play an essential role in cryptocurrency markets. These standardized agreements to buy or sell assets at a predetermined future date help stabilize the market, offering a benchmark for digital asset performance.
Currently, CME lists futures contracts for both Bitcoin and Ether. The approval of ETFs for these cryptocurrencies last year has set a precedent for Solana.
The introduction of Solana futures and ETFs promises not only to broaden Solana’s financial profile beyond the realm of memecoins but will also attract more sustained investment. This could also help develop real-world applications, such as payments and remittances, contributing to stabilizing Solana’s price during market downturns. Though less exciting than memecoins, these use cases provide a dependable revenue source.
At present, memecoin trading—dominated by platforms like Pump.fun—accounts for roughly 80% of the Solana blockchain’s revenue; however, activity decreased in February due to scandals affecting public sentiment.
Despite recent challenges, Solana’s trading volumes remain competitive with Ethereum’s entire ecosystem, including its layer-2 chains. Chung anticipates that Solana ETFs will gain traction among retail investors, particularly in light of Ethereum’s recent troubles post its Dencun upgrade, which decreased transaction fees significantly.
He refers to Solana as an appealing investment option for those reluctant to venture deeply into the cryptocurrency market but seeking alternatives beyond Bitcoin. Despite Ethereum’s struggles since March, Solana’s native SOL token has outperformed Ether in the Marketplace, enhancing its appeal to investors. Bloomberg Intelligence currently estimates a 70% probability that the SEC will approve spot Solana and Litecoin ETFs.
