The CME group has introduced plans to launch Solana (SOL) futures on its derivatives market on March 17. This is important as a result of it might simply pave the way in which for the approval of the Solana ETFs.
CME Group To Launch Solana (SOL) Futures On March 17
In a press release, the CME group, the world’s main derivatives market, introduced that it plans to launch Solana (SOL) futures on March 17, topic to regulatory approval. Market members will probably be in a position to commerce each a micro-sized contract (25 SOL) and larger-sized contract (500 SOL).
Speaking on this growth, the CME Group’s Global Head of Cryptocurrency Giovanni Vicioso stated,
With the launch of our new SOL futures contracts, we’re responding to growing shopper demand for a broader set of regulated merchandise to handle cryptocurrency worth danger. As Solana continues to evolve into the platform of selection for builders and traders, these new futures contracts will present a capital-efficient instrument to help their funding and hedging methods.
Per the announcement, the SOL futures will probably be cash-settled and primarily based on the CME CF Solana-Dollar Reference Rate, which serves as a reference price of the Solana price in USD. Solana will grow to be the third crypto on the derivatives platform, alongside Bitcoin and Ethereum.
Significance Of The SOL Futures Launch
The CME Group’s launch of the Solana futures is important because it might pave the way in which for the US SEC to approve the pending SOL ETF purposes. Commenting on this growth, the president of the ETF retailer Nate Geraci, additionally confirmed that the Solana futures launch “bodes well” for SOL ETF prospects.
Before now, the SEC, beneath Gary Gensler, had argued that crypto ETFs are simply prone to market manipulation. However, the courtroom in Grayscale’s case towards the Commission dominated that the futures and spot markets are correlated. If the SOL futures market launches, the Commission has no purpose to deny a Solana spot ETF.
(*17*)Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto information author and editor who has lined subjects that lower throughout DeFi, NFTs, sensible contracts, and blockchain interoperability, amongst others. Boluwatife has a knack for simplifying essentially the most technical ideas and making it straightforward for crypto newbies to perceive. Away from writing, He is an avid basketball lover and a part-time degen.
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