First U.S.-Listed Solana ETFs Dip In Market Debut
Volatility Shares's new funds, SOLZ and SOLT, offer 1x and 2x exposure to SOL through recently approved Cboe contracts.
The first U.S.-listed Solana ETFs, the Solana ETF (SOLZ) and the 2x Solana ETF (SOLT), dipped in their first day of trading today.
The Volatility Shares funds hold Solana futures contracts, which began trading on the CME earlier this week. SOLZ dipped 0.7% before noon while SOLT lost 1.9%.
Solana is a smart contract platform that competes with Ethereum. Its native cryptocurrency, SOL, has a market capitalization of $68 billion, according to CoinMarketCap—compared to $250 billion for Ether and $1.7 trillion for Bitcoin.
SOL is currently the sixth-most-valuable cryptocurrency by market cap and the fifth-largest when excluding Tether, a dollar-based stablecoin.
Leveraged Crypto ETFs: A Growing Niche
Volatility Shares has carved out a leading position in the leveraged crypto ETF space. Its 2x Bitcoin Strategy ETF (BITX) has nearly $2 billion in AUM, while the 2x Ether ETF (ETHU) has $440 million. Together, these two ETFs make up 80% of the firm’s ETF assets.
The firm hopes to replicate this success with SOLT, which Justin Young, CEO & co-founder of Volatility Shares, believes will appeal to traders looking for short-term opportunities.
"The 2x product is really for people looking to make a trading play on the markets," said Young. "We’ve seen that traders are more interested in leverage when it comes to crypto."
By contrast, SOLZ—the standard 1x ETF—may struggle to accumulate assets, as Young acknowledges.
"The 1x is really more of an investing vehicle and, once spot comes, I think that's the preference for the end investor, and rightfully so," he said.
Futures vs. Spot ETFs
Young is referring to the fact that longer-term investors generally prefer spot crypto ETFs over futures-based products.
For example, the first and largest U.S.-listed 1x Bitcoin futures ETF, the ProShares Bitcoin Strategy ETF (BITO), has $2 billion in AUM, but that's a fraction of the $100 billion invested in Bitcoin ETFs overall.
For Ethereum, the largest 1x Ether futures ETF, the ProShares Ether ETF (EETH), has $44 million in AUM, compared with the $7.2 billion in Ethereum ETFs overall.
That said, there are currently no spot SOL ETFs available, which could give SOLZ an opportunity to accumulate assets in the period before the debut of spot SOL ETFs.
While the industry largely expects the SEC under the Trump administration to approve the trading of spot SOL ETFs, the timing remains uncertain. These products could launch later this year or in 2026, depending on regulatory developments.
Will Volatility Shares Replicate Previous Success?
Regardless of whether spot SOL ETFs launch soon or not, Volatility Shares has a strong chance of making SOLT a success. The firm was the first mover on 2x Bitcoin and Ether ETFs, and that early start paid off.
"We’re a smaller, more nimble firm," said Young. "We know how to work on complex products and get them to market efficiently."
If history repeats itself, SOLT could be the dominant leveraged Solana ETF, even if spot products eventually take center stage.
