The upcoming launch of Solana (SOL) futures on the Chicago Mercantile Exchange (CME) suggests that U.S. regulators may soon approve the first Solana exchange-traded funds (ETFs), according to Chris Chung, CEO of Titan, a Solana-based swap platform.
Key Developments:
CME to Launch Solana Futures on March 17: This will mark the first U.S.-regulated Solana futures after Coinbase’s introduction in February.
ETF Approval Could Follow Soon: Chung expects the SEC to approve Solana ETFs from VanEck and Canary Capital as early as May.
Regulatory Maturity: The introduction of CME futures reinforces Solana’s status as a maturing asset, improving its chances of regulatory approval.
Role of Futures in ETF Success: CME already lists Bitcoin and Ethereum futures, which preceded the approval of spot ETFs for both assets in the U.S.
Beyond Memecoins: Institutional Capital and Real-World Use Cases
Solana’s ecosystem has been heavily driven by memecoin trading, which accounted for approximately 80% of its network revenue in 2024, according to VanEck. However, institutional products like futures and ETFs could shift Solana’s growth toward long-term use cases such as payments and remittances.
“These products will bring more serious, sticky capital and pave the way for real-world use cases,” Chung stated.
Solana vs. Ethereum: Retail Investors’ Preferred Alternative?
Trading Volumes Rival Ethereum: Despite February’s memecoin-related controversies, Solana’s trading volumes continue to compete with the entire Ethereum ecosystem, including its layer-2 networks.
Stronger Price Performance: Solana has outperformed Ethereum since early 2024. Ethereum’s struggles intensified after the Dencun upgrade in March 2024, which significantly reduced transaction fees but failed to boost ETH’s price.
Retail Investors’ Choice: “With ETH’s weak price action, Solana is now the only option for retail investors seeking exposure beyond Bitcoin without going full degen,” Chung added.
Bloomberg Intelligence estimates a 70% chance of SEC approval for spot Solana and Litecoin ETFs in 2025. If approved, these ETFs could provide mainstream investors with an alternative to Ethereum while accelerating institutional adoption of Solana, according to Cointelegraph.
