CME Group revealed the Solana (SOL) futures launch on Mar. 17, pending regulatory approval, citing rising consumer demand. Nate Geraci, CEO of The ETF Retailer, famous that the event “undoubtedly bodes effectively” for SOL exchange-traded fund (ETF) prospects.
In line with a Feb. 28 assertion, the brand new Solana futures contracts will probably be accessible in two sizes: a 25 SOL micro-contract and a 500 SOL bigger contract.
CME Group said that these choices are designed to accommodate a variety of market individuals, from institutional traders to lively merchants.
Giovanni Vicioso, world head of cryptocurrency merchandise at CME Group, highlighted that the launch goals to deal with rising 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 instrument to assist their funding and hedging methods.”
Furthermore, trade figures similar 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 towards the CME CF Solana-Greenback Reference Fee. The reference price offers a standardized day by 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 increase the possibilities of an SOL ETF approval.
In line with Bloomberg ETF analysts Eric Balchunas and James Seyffart, the chances 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 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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