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 nicely” for SOL exchange-traded fund (ETF) prospects.
In accordance with 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 traders to energetic merchants.
Giovanni Vicioso, international head of cryptocurrency merchandise at CME Group, highlighted that the launch goals to deal with 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 instrument to assist their funding and hedging methods.”
Furthermore, business 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 subtle 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 Fee. The reference charge gives 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 enhance the possibilities of an SOL ETF approval.
In accordance with Bloomberg ETF analysts Eric Balchunas and James Seyffart, the percentages of a Solana ETF being accredited 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, that means the SEC now has 240 days to answer the filings, ending on Oct. 16.
JPMorgan’s estimate, primarily based on Bitcoin and Ethereum ETFs’ flows, predicted that Solana ETFs might seize $3 billion to $6 billion in web flows.
The publish CME Group set to launch Solana futures on March 17, strengthening ETF prospects appeared first on CryptoSlate.
