TL;DR
- CME will launch Solana futures on March 17, with contracts of 25 and 500 SOL settled in cash.
- SOL’s price rose 6% following the announcement but remains far from its pre-February crash levels.
- Analysts warn that the crypto market’s recovery could take until April due to a lack of liquidity.
The Chicago Mercantile Exchange (CME) Group has announced the launch of Solana (SOL) futures contracts starting March 17, pending approval from U.S. financial regulators.
These contracts will be available in two formats: a micro version of 25 SOL and a standard version of 500 SOL, both cash-settled. With this initiative, the platform expands its crypto derivatives offerings, which already include Bitcoin- and Ethereum-based products.
Solana Has a Long Way to Recover
The crypto market has experienced high volatility in recent weeks, and this announcement has led to a rebound in SOL’s price. Following the news release, Solana’s price surged by 6%, though it remains well below its pre-February crash levels. Over the past week, it has dropped nearly 17%, and on a monthly scale, the decline reaches 35%.
Currently, the asset is trading below its 200-day exponential moving average (EMA), a key indicator for technical analysts. Its relative strength index (RSI) is near the oversold zone, suggesting a potential stabilization point.
Institutional interest in cryptocurrency derivatives has been steadily increasing, and CME aims to provide more efficient tools for risk management. Over the past year, the daily trading volume of futures contracts on the platform has grown by 73%, while open interest has risen by 55%. More than 11,300 active accounts have participated in trading these products.
How Will This Product Work?
Solana futures will use the CME CF Solana-Dollar Reference Rate, calculated once daily at 4:00 p.m. London time. Companies like Bitwise Asset Management and Multicoin Capital have highlighted the importance of this product, as it allows investors to manage market volatility with greater flexibility and lower initial capital. Plus500 has also noted that these new contracts will help retail traders diversify their portfolios.
The crypto market is currently experiencing a liquidity reduction, which has stalled the bullish trend that began after Donald Trump’s re-election. Analysts suggest that the sector’s recovery will depend on the entry of new buyers, beyond institutional funds seeking short-term arbitrage profits. A recent report indicates that this corrective phase could extend until April due to macroeconomic factors
