The DTCC has listed the first-ever proposed Solana ETFs with tickers SOLZ and SOLT, looking to provide leveraged exposure to traditional investors.
Altcoin exchange-traded funds (ETFs) have gained momentum following the regulatory approval of similar products for Ethereum. Although they faced roadblocks in the previous administration, the new hierarchy in the Securities and Exchange Commission has warmed up to the prospects of sanctioning these products.
Recently, two Solana ETFs appeared on the Depository Trust and Clearing Corporation’s (DTCC) website, raising market users’ curiosity. Notably, upon approval, these investment products will give traditional investors exposure to the meme-ridden network.
Approval or Just Formalities?
The DTCC listed two Solana futures ETFs from Volatility Shares, a volatility-focused investment firm. The Volatility Shares Solana ETF (SOLZ) and the Volatility Shares 2x Solana ETF (SOLT) appeared on the DTTC’s “active and pre-launch” list.
The addition implies that these ETFs are eligible for clearing and settlement by the agency, which is crucial for effective trading. Notably, this is a notable step indicating progress in an investment product’s approval and listing process.
Nonetheless, their appearance on the DTTC list does not indicate approval for listing by the US SEC. This only means the issuer is preparing for the funds’ trading and settlement when the regulator finally approves them.
Futures ETFs: a Precursor to Spot Products
Volatility Shares filed to list and trade the futures ETF with the SEC in December. Among the three applications, SOLZ and SOLT provide 1x and 2x leveraged exposure to traditional investors, respectively.
Meanwhile, market speculators view futures ETFs as a precursor to spot products. On the basis of an already trading Bitcoin-based futures product, Grayscale pleaded and won its case against the SEC, forcing the agency to approve the spot products in January 2024.
The possible launch of the Solana futures products has raised optimism that the SEC would also sanction its spot counterpart. However, the regulator has yet to nod to any at this time.
Nonetheless, the Wall Street securities watchdog recently acknowledged spot ETF filings from multiple asset managers, including 21 Shares, Grayscale, Canary, Bitwise, and VanEck. Currently, the SEC is still seeking public comments on the products.
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