CME Group revealed the Solana (SOL) futures launch on Mar. 17, pending regulatory approval, citing growing shopper demand. Nate Geraci, CEO of The ETF Retailer, famous that the event “positively bodes properly” for SOL exchange-traded fund (ETF) prospects.
In response to a Feb. 28 assertion, the brand new Solana futures contracts will probably 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 handle growing shopper demand. He added:
“As Solana continues to evolve into the platform of alternative for builders and buyers, these new futures contracts will present a capital-efficient instrument to assist their funding and hedging methods.”
Furthermore, trade figures corresponding 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 will probably be cash-settled and benchmarked in opposition to the CME CF Solana-Greenback Reference Price. The reference price supplies a standardized every 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 authorised 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 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 might seize $3 billion to $6 billion in web flows.
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