Futures trading for Solana to be introduced by CME
Hear Ye, Hear Ye!
The biggest beast in the derivatives jungle, CME Group, is gearing up to unleash a storm of Solana-backed futures on us mere mortals come March 17th, should the regulatory spirits play ball.
Now, these financial fireworks will come in two flavors:
- Micro Missiles - Each based on a hefty dose of 25 SOL
- Macro Meteors - Those based on a whopping 500 SOL
According to Giovanni Vicioso, the Head of Crypto Products at CME Group, this move is to meet the growing clamor from client tide for regulated tools to safeguard their investments in the wild west of crypto. He additionally mentioned that Solana's surge in popularity among developers and investors makes these derivatives a valuable addition for managing risks.
Market experts have their noses in thewind too, suggesting that the impending debut of these instruments could be a shining signpost on the road to an ETF.
Sui Chung, CEO of CF Benchmarks, was not shy about voicing his opinion, stating, "The inclusion of SOL contracts in CME's portfolio seriously boosts the odds of corresponding spot ETFs sailing through the regulatory shipyard in the foreseeable future."
He pointed out that historically, the Securities and Exchange Commission (SEC) views a regulated futures market as a crucial condition for accepting spot ETFs. This not only helps expose would-be manipulators but also shields the big investor bucks from ruffians lurking in the shadows. Of course, before making their final call, the regulators will likely keep an eye on trading activity at CME for several months.
At the moment, SOL can be had for around a shade over $143, having climbed an impressive 13.7% in the last 24 hours (as reported by CoinGecko).
A peek into the CME Group's secretive subdomain back in January revealed whispers about futures based on not just Solana, but XRP as well.
[1] https://www.cmegroup.com/trading/index-options/cryptocurrency-indexes/solana-sxi.html[4] https://www.cmegroup.com/trading/exchange-traded-products/cryptocurrency/solana.html[Not applicable as not used in this revision]
- The CME Group's plan to introduce Solana-backed futures, in conjunction with the growing demand from clients for regulated crypto investment tools, could be a precursor to the development of a Solana spot ETF.
- The potential debut of Solana-based futures at the CME Group could potentially strengthen the case for a Solana spot ETF, given the historical significance of regulated futures markets for the SEC in considering spot ETF proposals.
