The world’s leading derivatives marketplace wants to expand its Solana offerings.
Institutional appetite for Solana, and even its ecosystem altcoins, is swelling. With CME Group announcing plans to launch options of Solana futures, it seems TradFi players are optimizing for efficiency and preparing institutional hedging tools ahead of $SOL ETF approvals.
REX Shares Solana Staking ETF is showing no signs of slowing as fresh inflows drive its AUM to new highs.
Across the Atlantic, European TradFi players have identified Raydium as an attractive investment, launching the world’s first $RAY ETP.
On September 17, CME Group, the world’s largest derivatives marketplace, announced its intention to launch options on Solana and XRP. Pending regulatory reviews, the contracts are expected to go live on October 13.
CME Group has confirmed that clients will be able to trade both $SOL and micro $SOL contracts, with weekly, monthly, and quarterly expiries. By introducing options on Solana futures, CME Group is aiming to give traders more flexible methods of managing their exposure.
“The launch of these options contracts builds on the significant growth and increasing liquidity we have seen across our suite of Solana and XRP futures. Available in two different sizes, these contracts will offer a wide range of market participants – from institutions to sophisticated, active, individual traders – additional choice and greater flexibility to manage their exposure to two market-leading cryptocurrencies.” Giovanni Vicioso, CME Group Global Head of Cryptocurrency Products.
The announcement comes following strong demand and high trading volumes in CME Group’s existing $SOL and $XRP futures markets. However, despite $XRP’s larger market cap, CME’s institutional clients appear to have a preference for trading $SOL. In August, Solana futures witnessed an average daily notional volume of $437.4M, 13.6% higher than the $385M process in XRP futures contracts.
TradFi players have celebrated CME Group’s willingness to adopt a wider range of products for popular crypto assets. DRW Head of Cumberland Options Trading Roman Makarov expressed enthusiasm towards the move, championing the market’s expansion outside of crypto heavyweights like Bitcoin and Ethereum.
“As one of the biggest liquidity providers in the ecosystem, the Cumberland team is excited to support CME Group’s continued expansion of crypto offerings. The launch of options on Solana and XRP futures is the latest example of the move beyond the staples of bitcoin and ether and demonstrates continued demand from the market to have exposure to a broader set of products.” – Roman Makarov, Head of Cumberland Options Trading at DRW.
While one corner of TradFi markets seeks to provide institutional hedging tools, institutional investors continue to pour funds into Wall Street’s sole active $SOL ETF.
REX-Shares Solana Staking ETF, a hybrid fund comprised of native Solana, $SOL LSTs, and $SOL-based digital asset products, continues to record new all-time highs.
Boasting $289M in AUM, $SSK has recorded positive inflows day after day, demonstrating ongoing demand for institutional standard $SOL investment vehicles.
TradFi’s soaring appetite for Solana is extending $SOL itself into the ecosystem’s leading assets. 21Shares EU, the firm’s European arm, has launched the world’s first Raydium ETP, $ARAY, giving EU-based investors access to the native token of one of Solana’s most popular decentralized exchanges.
Launched alongside a slate of altcoins, $ARAY 21Shares’ sizable European offerings, which include 50 crypto ETFs.
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