Solana en route to recovery as CME Group prepares to launch SOL futures
- The CME Group is set to launch Solana futures on March 17, which is still subject to a CFTC review.
- The launch of CME Solana futures could increase the chances of SOL ETF approval.
- SOL experienced a slight push, rising over 6% and reclaiming $143 following the announcement.
Solana (SOL) saw a 6% uptick on Friday following plans from the Chicago Mercantile Exchange (CME) Group to launch SOL futures on March 17, subject to review by the Commodity Futures Trading Commission (CFTC). The SOL futures launch could boost the chances of the United States (US) Securities and Exchange Commission (SEC) approving a spot SOL ETF.
CME Group set to launch Solana futures contract, SOL recovers slightly
The CME Group is preparing to launch a Solana futures product, aiming to help investors diversify their digital asset portfolio through exposure to SOL contracts, according to a press release on Friday.
The CME Solana futures will begin trading on March 17, subject to a review by the CFTC.
The exchange claims that the launch of SOL futures is a response to investors' demands for new investment and hedging strategies.
"With the launch of our new SOL futures contracts, we are responding to increasing client demand for a broader set of regulated products to manage cryptocurrency price risk," said Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, in the press release.
CME's Solana futures will allow investors to trade SOL in either micro or large-sized contracts and will be subject to CME trading rules once listed.
The approval and listing of CME SOL futures could pave the way for the SEC to approve spot Solana ETFs.
The SEC had previously highlighted CME's strong surveillance in its Bitcoin and Ethereum futures contracts as partly the reason for approving ETFs for both products.
"With the introduction of Bitcoin and Ether futures, CME Group paved the way for the broader institutionalization of crypto as an asset class and set the stage for more regulated financial products such as ETFs to enter the market," said Teddy Fusaro, President of Bitwise Asset Management.
SOL showed glimpses of a recovery following the announcement, climbing back above the $140 level.
Solana's price could soar when the SOL futures go live in the CME in the next few weeks.
Meanwhile, Ethereum wallet MetaMask revealed it plans to provide support for Solana and Bitcoin.
The update will allow users to buy, sell, hold and explore Solana dapps directly on the MetaMask app, which would help to expand SOL's user base to the Ethereum ecosystem.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
