CME Group revealed the Solana (SOL) futures launch on Mar. 17, pending regulatory approval, citing growing consumer demand. Nate Geraci, CEO of The ETF Retailer, famous that the event “undoubtedly bodes properly” for SOL exchange-traded fund (ETF) prospects.
In accordance with a Feb. 28 assertion, the brand new Solana futures contracts can be accessible 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 traders to energetic merchants.
Giovanni Vicioso, world head of cryptocurrency merchandise at CME Group, highlighted that the launch goals to handle growing consumer demand. He added:
“As Solana continues to evolve into the platform of selection for builders and traders, these new futures contracts will present a capital-efficient device to assist their funding and hedging methods.”
Furthermore, business figures comparable to Multicoin Capital’s Kyle Samani and Bitwise’s Teddy Fusaro famous that introducing SOL futures is an indication of market maturation, as refined instruments to handle crypto publicity are wanted.
CME Group’s Solana futures can be cash-settled and benchmarked in opposition to the CME CF Solana-Greenback Reference Charge. The reference charge gives a standardized each 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 may increase the probabilities of an SOL ETF approval.
In accordance with Bloomberg ETF analysts Eric Balchunas and James Seyffart, the percentages of a Solana ETF being authorized within the US this 12 months are 70%. The SEC not too long ago acknowledged spot SOL ETF filings from 5 issuers earlier in February.
The paperwork have been later included within the Federal Register between Feb. 12 and 18, which means the SEC now has 240 days to reply to the filings, ending on Oct. 16.
JPMorgan’s estimate, based mostly on Bitcoin and Ethereum ETFs’ flows, predicted that Solana ETFs may seize $3 billion to $6 billion in internet flows.
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