Coinbase Derivatives to Launch Solana Futures, Boosting Market Access

Coinbase Derivatives, a subsidiary of the leading cryptocurrency exchange Coinbase, has filed for self-certification to list Solana (SOL) futures contracts on its platform. The move, pending approval from the U.S. Commodity Futures Trading Commission (CFTC), aims to introduce a new market for traders to engage with Solana price movements through futures trading.

The proposed Solana futures market will offer contracts with a standard size of 100 SOL, currently valued at approximately $23,700. Additionally, smaller "nano" Solana futures contracts, each representing 5 SOL, will be available to cater to different investment sizes. The contracts will be cash-settled on a monthly basis and are set to go on offer from February 18, 2025.

Coinbase Derivatives has revealed that the position limits for the Solana futures will be 30 percent lower than those offered on its Bitcoin (BTC) futures. This decision is part of the company's efforts to manage liquidity and volatility, given Solana's relatively higher volatility compared to Bitcoin and Ethereum (ETH). According to the filing, Solana's 30-day volatility is approximately 3.9%, compared to Bitcoin's 2.3% and Ethereum's 3.1%.

Benchmark rates for settlement will be provided by the German index provider MarketVector Indexes GmbH. This arrangement will place the proposed Solana futures under the regulatory supervision of Germany's Federal Financial Supervisory Authority.

The introduction of Solana futures comes at a time when positive crypto market sentiment has been triggered by U.S. President Donald Trump's executive order declaring crypto as a "national priority." Matt Hougan, chief investment officer at Bitwise, has suggested that the executive order and the general warming of regulatory ties with the crypto industry could extend the current bull run into 2026, potentially breaking Bitcoin's 4-year cycle.