The first Solana ETFs #sol in the U.S. are set to debut, marking a significant milestone for the cryptocurrency market. Florida-based ETF firm Volatility Shares LLC is launching two funds on Thursday that will track Solana futures, making them the first ETFs in the country linked to Solana, a blockchain with a $67 billion market cap driven by meme coin enthusiasm.
According to Bloomberg, the new funds—Volatility Shares #sol Solana ETF (SOLZ) and Volatility Shares 2X Solana ETF (SOLT)—will provide investors with access to Solana futures trading on the CME Group. SOLZ will offer standard Solana futures exposure, while SOLT will provide double leverage. The firm submitted its proposal for approval in December, and the ETFs will carry expense ratios of 0.95% and 1.85%, respectively.
Solana ETFs launch amid growing futures market
Solana futures recently became available on CME, one of the largest derivatives exchanges. Leah Wald, CEO of Sol Strategies, believes this milestone will push Wall Street institutions to take Solana and other altcoins more seriously.
The launch of Solana ETFs comes after Ether futures ETFs, which faced outflows due to market volatility.
Bloomberg ETF analyst Eric Balchunas noted that Solana is the first altcoin after Ether to receive ETF approval. However, he also suggested that if a spot Solana ETF gets the green light in the future, it could shift investor interest away from futures-based ETFs like SOLZ and SOLT.
Wall Street predicts billions in Solana ETF inflows
Crypto ETFs have already attracted significant investments. Since their launch in January 2024, spot Bitcoin ETFs have amassed $92 billion in assets, while spot Ether ETFs, which debuted in July 2023, have gathered $6.5 billion.
JPMorgan analysts estimate that if regulators approve spot Solana ETFs, they could draw between $3 billion and $6 billion within the first year. In comparison, XRP ETFs—also under consideration—could attract between $4 billion and $8 billion.
To make these projections, analysts examined the adoption of existing crypto ETFs. Bitcoin ETFs currently hold about 6% of Bitcoin’s total market cap, while Ether ETFs account for 3% of Ether’s market value.
However, Solana’s history has been complicated, particularly due to its ties to Sam Bankman-Fried. After FTX’s collapse in 2022, many believed Solana would fail because of its deep connection to the exchange. Yet, the blockchain endured, largely due to its low transaction fees compared to competitors. Despite its resilience, Solana’s price has dropped 30% this year.
For some time, Solana has been seen as the most likely altcoin to receive an ETF, given strong institutional interest. Major asset managers like Franklin Templeton, Grayscale, and VanEck have already submitted applications for a spot Solana ETF.
