Solana Futures Launch Date: CME Group to Roll Out SOL Futures on March 17

The CME group has announced plans to launch Solana (SOL) futures on its derivatives marketplace on March 17. This is significant because it could easily pave the way 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 leading derivatives marketplace, announced that it plans to launch Solana (SOL) futures on March 17, subject to regulatory approval. Market participants will be able to trade both a micro-sized contract (25 SOL) and larger-sized contract (500 SOL).

Speaking on this development, the CME Group’s Global Head of Cryptocurrency Giovanni Vicioso said,

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. As Solana continues to evolve into the platform of choice for developers and investors, these new futures contracts will provide a capital-efficient tool to support their investment and hedging strategies.

Per the announcement, the SOL futures will be cash-settled and based on the CME CF Solana-Dollar Reference Rate, which serves as a reference rate of the Solana price in USD. Solana will become 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 significant as it could pave the way for the US SEC to approve the pending SOL ETF applications. Commenting on this development, the president of the ETF store Nate Geraci, also confirmed that the Solana futures launch “bodes well” for SOL ETF prospects.

Before now, the SEC, under Gary Gensler, had argued that crypto ETFs are easily susceptible to market manipulation. However, the court in Grayscale’s case against the Commission ruled that the futures and spot markets are correlated. If the SOL futures market launches, the Commission has no reason to deny a Solana spot ETF.

Asset manager Franklin Templeton recently filed the S-1 for its Solana ETF. Other firms, such as Grayscale, Bitwise, Canary Capital, 21Shares, and VanEck, are also seeking to offer an SOL ETF.

The Solana price rose on the back of this development and has reclaimed the $140 support level. A SOL futures launch is undoubtedly bullish for its price since it would inject more liquidity into the Solana ecosystem.

The Solana price had dropped below $130 following the recent crypto market crash. Crypto analyst Ali Martinez warned that SOL bulls must defend the $125 support level or the coin risks dropping to as low as $60.

Meanwhile, despite the Solana price bounce, a CoinGape market analysis has outlined three reasons why it may not yet be the perfect time to buy SOL. One is that Solana has entered a distribution phase. Two, a death cross looms, which could send SOL to as low as $112. Lastly, crypto whales are still offloading SOL amid the $1.8 billion FTX token unlock.