There Is A New Development In The Future Of Solana (SOL)! Bloomberg Analyst Said, "This Madness"!

Asset management firm Volatility Shares has applied to the US Securities and Exchange Commission (SEC) to launch three new exchange-traded funds (ETFs) linked to Solana futures.

However, the proposal faces a unique obstacle, as there are currently no Solana futures products traded on any exchange regulated by the Commodity Futures Trading Commission (CFTC).

According to the fund's prospectus, the proposed ETFs will only invest in futures contracts traded on CFTC-registered exchanges. This raises suspicions as there are currently no Solana futures contracts available and no approved spot Solana ETF.

Bloomberg ETF analyst Eric Balchunas, in a post on the social media platform X (formerly known as Twitter), called it 'crazy'. Balchunas added that the application could signal the future realization of Solana futures and that it is 'probably a good sign' for the approval of spot ETFs in the future.

Nate Geraci, the president of ETF Store, suggested that the application could reflect a change in the ongoing power struggle over digital asset surveillance between the SEC and the CFTC by offering a broader regulatory perspective. Geraci commented that 'the CFTC may be winning the power struggle with the SEC over digital asset regulation'.

This move also reignites speculation about which digital asset could be next in line to receive ETF approval. While some experts believe Solana could lead the way in this regard, others have expressed optimism about the consideration of XRP or other cryptocurrencies.

Volatility Shares is no stranger to breaking new ground in the ETF space. In June 2023, it launched the first leveraged Bitcoin futures ETF, followed by a 2x Ether ETF a year later. These products have since paved the way for other asset managers to explore leveraged funds targeting cryptocurrency futures.