Bitrabo Editorial
A recent leak from a reliable source suggests that the Chicago Mercantile Exchange (CME) has no intentions to introduce Solana futures. This development deals a significant blow to the hopes of having a Solana Exchange Traded Fund (ETF) in the US markets.
CME HAS NO PLANS TO OFFER SOLANA FUTURES: PERSON FAMILIAR
Source: DB | Coins: SOL
— db (@tier10k) May 29, 2024
Impact on Solana ETF Expectations
Scott Johnsson, a finance lawyer at Van Buren Capital, discussed the regulatory challenges facing Solana. He emphasized that while a Solana ETF does not hinge on CME’s involvement as the designated contract market (DCM), it would require a robust framework with a Custody and Security Services Agreement (CSSA) and adequate liquidity.
Johnsson also highlighted the SEC’s actions against major crypto exchanges like Coinbase and Binance as a hurdle for potential ETFs involving Solana. He suggested that a change in the SEC’s administration or policies would be necessary for Solana to move forward with an ETF.
Johnsson underscored the community’s focus on a futures ETF as a prerequisite to a spot ETF, given the current regulatory landscape. A Bloomberg ETF analyst, James Seyffart, echoed these sentiments, cautioning against registering Solana futures with the CFTC as ‘Commodities Futures’ based on past mistakes with Bitcoin and Ethereum.
The SEC’s classification of Solana as a security in lawsuits against Binance and Coinbase adds further regulatory complexity to the asset’s future. The recent news from the CME has dampened hopes for Solana’s presence in futures markets and cast a shadow over the prospects of a spot ETF in the foreseeable future.
Despite this setback, the SOL price remained stable following the announcement. As of now, SOL is trading at $163.83, in line with the overall market trend.