Solana Price Surges as CME Group Launches Futures Amid Crypto Market Downturn

28 February, 2025 | 3 Min Read

tickers affected by this

ticker	polarity	why?
BTC-USD	positively	The introduction of Solana (SOL) futures by the CME Group could positively affect BTC-USD by increasing overall market stability and providing new investment instruments to hedge BTC risks. Institutional investors who are currently hesitant to go in to crypto for the first time may stay away from Solana drawing in more money for BTC. Additionally, the growing interest in SOL could signal bullish sentiment in the broader crypto market, potentially driving up the price of Bitcoin as part of a wider trend.
ETH-USD	positively	The introduction of Solana futures by CME Group could potentially divert some institutional interest and investment away from Ethereum, as it provides a new regulated avenue for crypto exposure. This could lead to increased competition between the two cryptocurrencies, potentially affecting the price of ETH-USD as investors explore the new opportunities presented by Solana. Additionally, the success of Solana’s futures market could influence the broader crypto market, including Ethereum, by demonstrating the viability of regulated crypto products and potentially attracting more institutional players.

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summary

Solana Price Rebounds as CME Group Debuts Futures to Meet ‘Increasing Client Demand’

Solana (SOL) was trading higher even as most digital assets sank further into negative territory on Friday. By the end of the trading day, SOL was up nearly 11.43%, trading at $143.66 according to data from CoinGecko. The Chicago Mercantile Exchange (CME) Group announced on Friday that it will introduce Solana futures on March 17, pending regulatory approval. This move comes as a response to increasing client demand for a broader set of regulated products to manage cryptocurrency price risk. The CME Group will offer both micro-sized contracts of 25 SOL and larger-sized contracts of 500 SOL, providing U.S. traders with new opportunities to engage with the Solana market. Giovanni Vicioso, CME Group global head of cryptocurrency products, highlighted the significance of this launch in a statement. “If approved, it will be the first time institutions can get exposure to SOL, the sixth biggest cryptocurrency by market cap,” Vicioso said. This development marks a significant milestone for Solana, as it opens the door for institutional investors to participate in the Solana ecosystem. Despite the broader market downturn, SOL’s price increase indicates growing interest and confidence in the cryptocurrency. Sui Chung, CEO of CF Benchmarks, which will provide pricing data to CME Group on SOL, suggested that the approval of these futures could pave the way for a Solana ETF. “A regulated futures market has been the SEC’s primary pre-requisite to approve a spot crypto ETF, as it gives the regulator confidence that perpetrators of market manipulation can be identified, acting as a deterrent, and thus protecting ETF investors,” Chung said. Several investment firms, including Franklin Templeton, Grayscale, Bitwise, Canary, 21Shares, and VanEck, are already seeking SEC approval for Solana-based funds. The success of Bitcoin and Ethereum funds, which started trading last year and now manage over $90 million in assets, has set a precedent for the potential success of a Solana ETF. Solana’s native coin, SOL, is the backbone of the Solana smart contracts blockchain network. Developers use Solana to build decentralized apps and crypto products, competing with Ethereum due to its speed and low cost. Traditional finance firms have taken notice, with Visa announcing plans to use Solana’s technology to accelerate credit card payments. Additionally, Solana Pay has integrated with Shopify, allowing merchants to accept stablecoin USDC via the blockchain.