Coinbase Derivatives has filed with the Commodity Futures Trading Commission (CFTC) to launch Solana Futures, expanding the availability of cryptocurrency derivatives in the U.S. The filing, submitted on January 30, 2025. They proposed a monthly cash-settled Solana futures contract, which will be available for trading starting February 18, 2025.
Coinbase Files for Solana Futures
The decision is due to the rising interest in regulated crypto futures contracts. Besides Bitcoin and Ethereum as investors look for diversified ways to invest in digital assets. If approved, this listing would introduce one of the first Solana futures products on a U.S.-regulated exchange.
Solana Futures is going to be a USD denominated contract based on a specific index. Each contract will be equal to 100 SOL tokens. This contract is quite suitable for institutional and retailer customers who want to trade Solana without actually possessing the asset.
Moreover, Coinbase Derivatives has clearly laid down the risk management measures such as price risks control, limits on positions: 3,500 contracts, and daily settlement mechanisms that help to prevent the instability of the market.
Solana’s Market Growth and Institutional Interest
Solana is one of the biggest blockchain networks used today. It is able to handle more than 65K TPS, it has integrated with DeFi, NFT, and Web3 industries.
The launch of Solana Futures may contribute to boosting institutional activity in the network. Futures help an investor to hedge his investment, to insulate from risk. As well as, to attain access to a particular security without owning it. Thus, with 30 day volatility of Solana amounting to 3.9%. That is higher compared to Bitcoin and Ethereum, the futures market could add liquidity to traders.
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As for Solana Futures, CFTC will assess the filing to see if the contract complies with regulations and standards. If authorized, it would contribute to the increase in trading volume and the effectiveness of operations with Solana as well as provide an opportunity to avoid spot trading for traders.
Coinbase Derivatives has measures in place to prevent the manipulation of the futures contract in accordance with the CFTC Core Principles.
Growing Crypto Futures Market
Exchanges are optimistic about the increasing need for regulated crypto futures & options, with many applying to have futures tied to altcoins. CME has also revealed its plans to launch Bitcoin Friday options in the futures market by the 24th of February, 2025. They are subject to regulatory approval.
The latest derivatives of Bitcoin Friday futures options and Solana Futures only depict the real essence of how cryptocurrencies are embedded firmly in conventional markets with the future.
If approved, Solana Futures by Coinbase Derivatives will be the third asset to enter the regulated futures market. After Bitcoin and Ethereum opening hedging opportunities to institutional investors for Solana.
Source: https://www.thecoinrepublic.com/2025/01/31/coinbase-derivatives-files-with-cftc-to-list-solana-futures-in-february/