Solana futures launching March 17 on CME

CME Group is set to launch Solana (CRYPTO:SOL) futures on March 17, pending regulatory approval, offering both micro (25 SOL) and standard (500 SOL) contracts.

This move aims to provide institutional and retail traders with tools to manage cryptocurrency price risk.

The contracts will be cash-settled based on the CME CF Solana-Dollar Reference Rate, calculated daily.

The introduction of Solana futures reflects increasing client demand for regulated cryptocurrency products.

According to Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, these futures contracts will offer a capital-efficient tool for investment and hedging strategies as Solana evolves.

Teddy Fusaro, President of Bitwise Asset Management, Inc., sees the launch as a significant milestone in the maturation of the cryptocurrency market.

Kyle Samani, Co-Founder and Managing Partner of Multicoin Capital, added that the new crypto derivatives provide investors increased flexibility with less upfront capital.

The launch of Solana futures has been viewed by analysts as potentially strengthening the prospects for a Solana ETF.

Bloomberg ETF analysts estimate a 70% chance of a Solana ETF being approved in the US this year.

JPMorgan estimates that Solana ETFs could capture $3 billion to $6 billion in net flows.

CME Group's existing crypto product suite includes Bitcoin (CRYPTO:BTC) and Ether (CRYPTO:ETH) futures and options futures.

Year-to-date trading highlights include an average daily volume of 202,000 contracts, up 73% year-over-year, and average open interest of 243,600 contracts, up 55% year-over-year.

More than 11,300 unique accounts are currently trading.

At the time of reporting, the Solana (SOL) price was $175.36.