Coinbase Launches Regulated Solana Futures, Paving Way for US ETF

Coinbase, a leading cryptocurrency exchange, has launched Solana (SOL) futures contracts on its regulated US derivatives exchange, the company announced on Feb. 19. The new products, regulated by the Commodity Futures Trading Commission (CFTC), aim to accelerate institutional adoption of SOL and potentially pave the way for an eventual SOL exchange-traded fund (ETF) launch in the US.

Coinbase's SOL futures products include standard contracts representing 100 SOL and retail-oriented "nano" contracts representing 5 SOL each, or less than $1,000 as of Feb. 19. The exchange also launched futures for Hedera (HBAR), the native currency for Hedera's hashgraph distributed ledger, on the same day.

Futures contracts play a crucial role in supporting spot cryptocurrency ETFs, as they provide a stable benchmark for measuring a digital asset's performance. At least five ETF issuers have filed with the US Securities and Exchange Commission to list spot Solana ETFs, with a final decision expected by October 2025. Bloomberg Intelligence estimates a 70% likelihood of SOL ETF approval, with an ETF using futures to synthetically track SOL's performance expected as soon as March.

US regulators have been softening their stance on crypto oversight, with a flurry of regulatory filings submitted in 2024 for ETFs holding altcoins such as SOL, XRP, and Litecoin. The SEC has already approved spot Bitcoin (BTC) and Ether (ETH) ETFs, as well as ETFs holding a weighted index of those two cryptocurrencies. Cryptocurrency derivatives products have experienced rapid growth, with volumes soaring roughly 10,950% in 2024.

Coinbase launched its derivatives platform in the US in 2022, bringing cryptocurrency futures to tens of millions of US users. The exchange now lists more than half a dozen futures contracts, including those tied to memecoins such as Dogecoin (DOGE) and Shiba Inu (SHIB), as well as commodities like oil and gold.