Derivative Marketplace CME Group has confirmed plans to launch Solana Futures on March 17, pending regulatory approval. The new contract will be available in two sizes: a micro-sized contract of 25 Solana (SOL) and a large-sized contract of 500 SOL. The move expands CME’s cryptocurrency derivatives portfolio, which currently contains Bitcoin and etheric futures. According to Giovanni Vicioso, CME’s global head of cryptocurrency products, the decision corresponds to an increasing demand from clients for regulated products that help manage cryptocurrency prices volatility.
The launch follows previous speculation after CME’s staging website pending regulatory approval and suggesting that Solana Futures is ongoing. The growing popularity of Solana among developers and investors is seen as a key factor in CME’s decisions. New futures contracts are expected to provide capital-efficient tools to those looking to hedge or trade cryptocurrency price movements. With Solana’s role in the growth of the blockchain space, CME aims to provide traders with the financial products they need to manage their position.
The launch of Solana Futures can also pave the way for approval of Spot Solana Exchange-Traded Funds (ETFs). Several asset managers, including Franklin Templeton, Bitwise, Grayscale and 21Share, recently filed applications to launch the Solana ETF with the U.S. Securities and Exchange Commission (SEC). The SEC is expected to decide on submissions later this year, and some analysts are optimistic that approval could be obtained soon. In fact, JPMorgan predicts that the implementation of Solana ETFs will be able to extract investments of $2.7 billion to $5.2 billion in the first few trading months.
Sui Chung, CEO of Kraken-owned CF Benchmark, said the decision by CME to list Solana Futures could significantly increase the likelihood of SEC approval for Spot Solana ETFs. This is because regulated futures markets are often an important requirement for the SEC to approve Spot Crypto ETFs. The existence of a futures market helps regulators track market activity, identify potential operations, and protect investors.
Solana tokens have experienced a surge in prices, currently trading at around $175, reflecting a 21.3% increase over the last 24 hours. The launch of Solana Futures at CME is seen as an important step that could bring more regulatory oversight to the cryptocurrency market and make Solana ETFs a reality.
The move also means that the crypto industry is increasing the number of ETF filings for various cryptocurrencies, such as XRP and Litecoin. The application has been featured since the 2024 US presidential election, and many in the industry believe the current administration is in favor of the crypto market.