Investing.com -- CME Group, a global leader in derivatives marketplaces, today revealed its intention to launch futures contracts for Solana (SOL) on March 17, subject to regulatory approval. Traders will have the option to deal in both a smaller contract, consisting of 25 SOL, and a larger one, containing 500 SOL.
The introduction of these new SOL futures contracts is a response to growing customer demand for a wider range of regulated products to manage cryptocurrency price risk, according to Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group. As Solana gains traction as a popular platform for developers and investors, these futures contracts will offer a capital-efficient tool to aid their investment and hedging strategies.
The SOL futures by CME Group will be cash-settled, based on the CME CF Solana-Dollar Reference Rate. This rate serves as a daily reference for the U.S. dollar price of SOL, calculated every day at 4:00 p.m. London time.
The new SOL futures will join CME Group’s (NASDAQ: CME ) existing suite of crypto products, which includes futures and options futures for Bitcoin and Ether . Highlights of trading so far this year include:
- An average daily volume of 202,000 contracts, a 73% increase from last year
- An average open interest of 243,600 contracts, a 55% increase from last year
- Over 11,300 unique accounts trading
Teddy Fusaro, President of Bitwise Asset Management, Inc., considers the launch of SOL futures a significant step in the ongoing development of the cryptocurrency market. He notes that CME Group’s commitment to and leadership in offering advanced tools for trading and risk management to institutional investors and active traders is evident. The introduction of Bitcoin and Ether futures paved the way for the broader institutionalization of crypto as an asset class and set the stage for more regulated financial products such as ETFs to enter the market.
Kyle Samani, Co-Founder and Managing Partner at Multicoin Capital, commends CME Group’s continued innovation in the digital asset space and is proud to support the launch of their SOL derivatives offering. As the digital asset market matures and demand continues to grow, sophisticated investors need enhanced ways to gain exposure and manage volatility. CME Group’s new crypto derivatives provide just that, offering investors increased flexibility with less upfront capital.
Elad Even-Chen, Group CFO of Plus500 (LON: PLUSP ), believes the new SOL futures contracts are further examples of CME Group innovating in the retail crypto trading space for the benefit of customers. These contracts will bring a new dimension for retail futures traders and will help manage their cryptocurrency portfolios by allowing them to further diversify their holdings. He is proud to be supporting this latest product launch, which is based on scalable, well-established and trusted cryptocurrencies.
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