CME Group Adds Solana Futures To Its Suits Of Offerings
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Major derivative exchange CME Group has announced the launch of Solana (SOL) futures trading as it tries to expand its crypto derivatives.
The firm has already completed the first transaction, which was reportedly executed between StoneX and FalconX. According to the firm, the transaction is a significant step in the growth and expansion of regulated cryptocurrency derivatives.
CME Group Wants To Provide More Support For Investors
The launch is coming when more companies are seeing institutional demand for capital-efficient tools for digital asset management.
CME Group’s Global Head of Cryptocurrency Products, Giovanni Vicioso, commented on the development. He stated that the addition of Solana futures to the firm’s range of regulated cryptocurrency suite will offer more capital-efficient tools to investors. It will provide more support for investors looking to improve in the hedging strategies and grow their cryptocurrency investments.
The two new contracts have been launched in two parts: the standard contract (500 SOL) and the micro contract (25 SOL). The company recorded the first trade, which was a blockchain transaction, on March 16.
While the platform has continued to expand its offerings and operations for investors, the SOL token has not reacted positively to the update. As of the time of writing, SOL is trading at $123, representing a 4% drop in the past 24 hours, according to data from Coinmarketcap.
SOL Futures Introduction Reflects A Surge In Institutional Demand
The demand for institutional demand for structured crypto products have increased over the past few months. As a result, the introduction of SOL futures could be a positive catalyst for expanded growth in the Futures market. Companies like Cumberland DRW, StoneX, and FalconX have all added the new offering, which represents a major step in the expansion and growth of the crypto derivatives market.
CME has always showed interest in the continuous growth in the crypto market. The latest SOL futures introduction is another evidence of the firm’s expansion strategies. The contracts will be based on the Solana-Dollar Reference Rate, and will be cash-settled, according to the firm.
The latest addition follows the previous introduction of the Ethereum and Bitcoin futures, which has expanded institutional options in the crypto space. More regulated firms want to take advantage of the increased growth of digital assets and the traditional finance has continued to show more interest. The regulated futures market will play a vital role of ensuring better risk management options and more stability in the industry.
