Recent rumors suggest that the Chicago Mercantile Exchange (CME) will not launch a Solana (SOL) futures product, causing a stir in the financial markets.
CME has neither confirmed nor denied these speculations, leaving the market in a state of uncertainty.
Unverified Claims: CME May Not Launch Solana Futures
After the Securities and Exchange Commission (SEC) approved spot Ethereum ETFs, experts began to actively speculate about the next ETF candidate. While many believe Solana could be the perfect fit, others note that filing for a spot ETF for the altcoin might be challenging because CME has not yet listed SOL futures.
Meanwhile, rumors suggest that the CME may refuse to introduce SOL futures. According to a recent DB News X post, sources close to the exchange indicate no immediate plans for this.
However, CME has made no official statements, leaving market participants guessing. The crypto community reacted skeptically to this post, citing the lack of a verified source of information and questioning the relevance of the rumors.
“PERSON CLOSE TO CME HAS PLANS TO BUY SOL CHEAPER. Source: I made it up,” one X user commented.
Read more: Solana (SOL) Price Prediction 2024/2025/2030
Nevertheless, the importance of launching SOL futures cannot be underestimated. ETF analyst Nate Geraci argues that its ETF potential hinges on establishing a Solana futures market on the CME. Without this, regulatory clarity remains elusive.
James Seyffart, an ETF analyst at Bloomberg, shares that view. He noted that Solana ETF would need a futures market regulated by the Commodity Futures Trading Commission (CFTC). Additionally, the SEC currently classifies SOL as a security, complicating its path to ETF approval.
“The question ultimately revolves around whether or not the underlying asset, in this case SOL, represents a commodity or a security. In other words, does a small group enjoy control over the network? If so, then it is a security. Companies like Vanguard are staying away from the Ethereum ETF over these concerns. The same is proving true for Solana. An influential contingent, including former SEC chair Jay Clayton, believes Ethereum has proven to be decentralized enough that it now constitutes a commodity, not a security. This could end up being the story of not only ETH, but a great number of blockchain tokens”, Felix Mohr, Managing Partner at MohrWolfe, told BeInCrypto.
However, there is still hope for a positive outcome. The recent FIT21 bill empowers the CFTC to classify certain altcoins as commodities. If the SEC reclassifies Solana, opportunities for ETF approval may arise. Geoffrey Kendrick, an analyst at Standard Chartered Bank, predicts that ETFs for cryptocurrencies like SOL and XRP might gain approval by 2025.
Read more: Crypto ETN vs. Crypto ETF: What Is the Difference?
The recent rumors that CME won’t launch Solana futures have caused a lot of uncertainty in the market. Due to regulatory hurdles, getting a Solana ETF approved without SOL futures is challenging. Nevertheless, changes in regulations could improve the chances, and the crypto community remains hopeful despite the current problems.
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