Solana Takes One Major Step Closer to a SOL ETF Launch

Solana takes a major step toward securing the SEC approval for a spot ETF as the world’s largest derivatives exchange, CME Group, debuts SOL futures today. 

CME Group is introducing its Solana futures product today, paving the way for the launch of a SOL ETF in the U.S. 

CME Group Solana Futures 

In a recent press release, CME Group noted that its Solana futures consist of two contract sizes: a larger contract covering 500 SOL and a micro-sized contract covering 25 SOL. 

Accordingly, the Solana futures contracts will be settled in cash using the CME CF Solana-Dollar Reference Rate. This indicator provides a daily benchmark price at 4:00 p.m. (London Time). 

The product will be listed under CME Group Rules to ensure compliance with all necessary financial regulations upon approval. 

Notably, The Crypto Basic hinted about the potential launch of Solana Futures in January after CME accidentally posted the product, alongside an XRP Futures, on its beta website. 

Following this mistake, speculation suggested that the derivatives exchange could be preparing to launch futures products for Solana and XRP. 

The scheduled launch of the Solana Futures today confirms our January report. However, it remains to be seen whether CME is also preparing to launch XRP Futures, which could also increase the likelihood of a spot XRP ETF.

Success of CME’s Derivative Products 

It bears mentioning that CME Group offers futures products for two of the world’s largest cryptocurrencies–Bitcoin and Ethereum. In a report published last week, the derivative trading platform claimed that both products have witnessed significant growth since 2024. 

While the products’ average daily contracts surged 73% year-over-year to 202,000 contracts, their average open interest spiked by 56% in the same time frame to 243,600.  

Speaking in a statement, Teddy Fusaro of Bitwise said CME Group’s crypto-related derivatives have led to the birth of other financial products, like ETFs. CEO of Benchmarks Sui Chung also confirmed this claim, suggesting that CME’s Solana futures will increase the likelihood of spot SOL ETF approval. 

Impact of Futures Products on Potential ETF Approval 

For context, several asset managers have filed with the SEC to launch Solana ETF in the U.S. Bitwise, VanEck, Canary, and 21Shares submitted some of these filings. 

Despite the multiple filings, some experts, including Bloomberg’s Eric Balchunas, expressed concerns that the SEC might not approve any of the applications because Solana does not have a futures product.  

They contended that the two cryptos–Bitcoin and Ethereum–approved for spot ETFs already have regulated futures tied to them. 

Hence, they emphasized that Solana must also have at least one futures product to boost its chances of receiving the SEC’s blessing for a SOL ETF. These concerns are now invalid as CME Group prepares to launch Solana futures today. 

SEC Delays Decision on SOL ETF Approval 

Meanwhile, the SEC delayed its decision on whether to approve multiple Solana ETF applications on March 11. 

Consequently, the securities regulator opted for a “longer period” to decide whether to approve or deny the launch of SOL ETFs. It also made a similar decision for other crypto ETFs, including XRP and Litecoin. 

Despite the postponement, Balchunas and his colleague James Seyffart expressed optimism regarding the potential approval of the ETF, including those linked to Solana.