CME Group Unveils Cash-Settled Solana Futures, Boosting ETF Prospects

CME Group has announced plans to launch cash-settled Solana (SOL) futures on March 17, pending regulatory review. This move could potentially boost the approval odds for U.S. Solana ETFs, as it provides sophisticated investors with a regulated product to manage volatility in the growing market.

The derivatives marketplace will offer SOL futures in two contract sizes: a micro-sized contract (25 SOL) and a larger one (500 SOL). This follows CME Group's successful launch of bitcoin and ether futures, which helped institutionalize crypto as an asset class prior to the U.S. spot bitcoin and ether ETF launches last year.

Industry watchers have speculated that the SEC may be more inclined to approve spot crypto ETFs after seeing a regulated futures market. Nate Geraci, president of The ETF Store, suggested that the planned Solana futures launch "definitely bodes well for SOL ETF prospects."

While CME Group has not commented on the possibility of XRP futures, 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 has increased by 73% compared to last year, reaching 202,000 contracts. Average open interest has also jumped by 55% year over year, reaching 243,600 contracts.