Planned CME solana futures could boost ETF approval odds
CME’s planned product stands to give sophisticated investors a better way to manage volatility in a growing market
Akif CUBUK/Shutterstock modified by Blockworks
This is a segment from the Forward Guidance newsletter. To read full editions, subscribe.
Solana futures are coming March 17, pending regulatory review.
For real this time.
When CME Group’s announcement came through, I made sure to triple-check its validity.
If you recall last month, a beta page from CME Group’s website surfaced; a header on top read, “Introducing SOL and XRP futures.” That was released “in error,” a spokesperson clarified at the time; no decision had been made on such products.
Now, though, the derivatives marketplace is officially moving ahead with cash-settled SOL futures — to be available via a micro-sized contract (25 SOL), and a larger one (500 SOL).
Why does this matter, exactly?
The thought is this type of product gives sophisticated investors (i.e. institutions and active traders) a better way to manage volatility within a growing market. Those unable to hold SOL directly would be able to gain access via a regulated product.
But beyond that, it extends a tool already available for bitcoin and ether to another asset — possibly setting the stage for US solana ETFs.
CME Group launched bitcoin futures and ether futures in 2017 and 2021, respectively. These helped institutionalize crypto as an asset class prior to the US spot bitcoin and ether ETF launches last year.
Industry watchers have questioned the timeline around further spot crypto ETF approvals by the SEC, pointing out the agency has previously wanted to first see a regulated futures market.
The ETF Store president Nate Geraci wrote this morning on X that the planned solana futures launch “definitely bodes well for SOL ETF prospects.”
As for whether XRP futures are next (given the aforementioned beta page), a CME spokesperson told me today: “We do not comment on our product pipeline.”
In addition to SOL futures, the rep added, the company is focused on growing its existing BTC and ETH derivatives suite.
Year to date, average daily volume for CME’s BTC and ETH futures/options is 202,000 contracts — up 73% from a year ago. Average open interest (243,600 contracts) has jumped 55% year over year.
Get the news in your inbox. Explore Blockworks newsletters:
- Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
- Empire: Start your day with top crypto insights from David Canellis and Katherine Ross.
- Forward Guidance: Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin.
- 0xResearch: Get alpha directly in your inbox — market highlights, charts, degen trade ideas, governance updates, and more.
- Lightspeed: All things Solana, in your inbox, every day from Jack Kubinec and Jeff Albus.
- The Drop: The newsletter for crypto collectors and traders, covering games, tokens, apps, memes and more.
