The SOLZ will carry a management fee of 0.95% until June 30, 2026, after which the fee will rise to 1.15%. The 2X Solana ETF, offering investors double the leverage, will carry a 1.85% management fee. These filings mark the debut of Solana-based ETFs in the United States, following the recent launch of SOL futures contracts by the Chicago Mercantile Exchange (CME) Group.

With a leadership reshuffle at the SEC and Donald Trump’s reelection as US president, there has been a surge of ETF applications submitted to the SEC for approval by asset managers and ETF firms.

SOL futures were launched on March 17 with an approximate trading volume of $12.1 million on the first day. For comparison, Bitcoin (BTC) futures saw over $102 million in volume on their first trading day, while Ether (ETH) futures secured over $30 million on their launch day.

Despite the comparatively low volume, SOL futures contracts could potentially stimulate demand for the cryptocurrency from institutional investors and foster price discovery. The launch of SOL futures indicates the likelihood of SOL ETFs approval in the United States, as financial regulators warm to digital assets amid a policy shift.

Chris Chung, the founder of Titan — a Solana-based swap platform — believes the CME’s futures indicate SOL’s maturity as an asset capable of attracting institutional interest. Chung also claimed that the SOL futures and ETFs launch positions Solana as a blockchain network ready for real-world applications like payments, rather than simply a memecoin casino.

ETFs could further enable investor capital to flow into SOL, potentially sparking a sustained rally in the altcoin that rivals without an ETF might miss. The introduction of Bitcoin ETFs in 2024 is generally considered to have diverted institutional capital away from the broader crypto market, preventing capital rotation from BTC into altcoins and disrupting altseason.

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The maiden ETF, coined as Volatility Shares Solana ETF (ticker SOLZ), grants investors a chance to partake in Solana futures contracts. The second fund, known as Volatility Shares 2X Solana (ticker SOLT), aims at “providing daily investment outcomes…equivalent to twice the return of Solana’s price.”

While it’s improbable that the asset manager could match the billions in funds allocated to spot bitcoin ETFs tracking bitcoin and ether’s prices, a successful launch of Solana-based offerings by Volatility Shares could be an indicator that spot SOL ETFs are imminent. Earlier in the month, Franklin Templeton emerged as the most significant asset manager to register for a Solana-based ETF.

Solana futures trading made its debut on the Chicago Mercantile Exchange, or CME, on Monday. However, futures for the cryptocurrency, which ranks as the sixth most valuable blockchain by market cap, initially garnered little attention from traders, especially when compared to the crypto futures market’s pioneers, bitcoin and ether.

Volatility’s Solana ETFs have already been listed on the Depository Trust & Clearing Corporation (DTCC), a crucial step towards trading eligibility. Unlike spot ETFs that directly hold the underlying asset, these are futures-based, implying they monitor Solana prices via futures contracts instead of directly holding SOL tokens. SOLZ and SOLT will have expense ratios of 0.95% and 1.85%, respectively.

Volatility Shares, in December last year, filed for three new ETFs planning to gain exposure to Solana futures contracts offered on CFTC-regulated exchanges. The fund’s prospectus clarified that the fund would invest in contracts “that trade only on an exchange registered with the Commodity Futures Trading Commission [CFTC],” even though neither such a product, nor a spot Solana ETF, currently exist.

Several other asset managers, including 21 Shares and VanEck, have also applied to list spot SOL ETFs. VanEck was the pioneer firm to submit an application for such a product with the SEC in June.

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