Is There a 2x Solana ETF?

Investors often ask if there is a way to gain amplified exposure to Solana without directly owning the cryptocurrency. Recently, a 2x leveraged Solana ETF called SOLT has emerged to address this. This article explains what the SOLT ETF is, how it works, and what crucial risks are involved. 

Please note that while such funds may seem attractive, their structure and volatility require deep caution before any decision is made.

What Is SOLT, the 2x Solana ETF?

The SOLT ETF is a financial instrument launched by Volatility Shares to offer investors double the daily price movement of Solana. Unlike traditional ETFs that hold the actual asset, SOLT achieves its exposure through Solana futures contracts rather than direct purchases of Solana coins. This means it does not involve crypto wallets, private keys, or decentralised exchanges.

The ETF was launched on 20 March 2025 with the primary aim to provide tactical traders with a simplified route to leveraged Solana exposure. As of 27 June 2025, SOLT holds net assets of approximately $52 million, trades on NASDAQ under the ticker SOLT, and has an expense ratio of 1.85%. Each share’s net asset value (NAV) is $13.38 with a closing market price of $13.44.

SOLT mainly invests in Solana futures for the upcoming months to mirror daily returns at twice the rate. For example, if Solana increases by 2% in a day, SOLT theoretically gains 4%. However, this is a simplified view as compounding effects and daily resetting can lead to different outcomes over time.

It is important to note that the SOLT ETF does not directly invest in Solana. Instead, it enters into futures contracts, creating exposure based on speculation about Solana’s future price. This structure is designed for sophisticated investors who understand the risks of leverage, daily resetting, and futures-based products.

Furthermore, the ETF’s performance since inception shows a negative return of around -14% despite the general interest in Solana. This illustrates the potential pitfalls of leveraged ETFs, especially when the underlying asset’s performance is volatile or when timing does not align with traders’ expectations.

Read Also: Solana ETF Race Heats Up: Invesco and Galaxy Join 9 Competitors Seeking SEC Approval

How Does the SOLT ETF Work?

The SOLT ETF provides 2x leveraged daily returns by using Solana futures contracts. Futures are agreements to buy or sell Solana at a set price in the future. SOLT purchases these contracts to gain exposure to price changes without owning the asset itself.

This leverage is achieved by holding futures positions worth twice its net assets. As per data from 1 July 2025, SOLT held over $123 million in Solana futures while maintaining around $61 million in cash or cash equivalents. This allows the fund to adjust and maintain its leveraged objective daily.

However, this structure comes with significant risk. Leveraged ETFs are rebalanced daily, meaning returns are based on each day’s movement rather than cumulative market trends. Over time, compounding and volatility decay can result in returns that diverge significantly from the expected multiple of Solana’s performance.

For example, if Solana moves up and down repeatedly within a week without a clear trend, the ETF can lose value despite Solana’s price ending up close to its starting point. This characteristic makes leveraged ETFs suitable only for tactical trading rather than long-term holding.

In addition, the management of futures contracts requires expertise. The fund is managed by professionals who handle these positions, ensuring regulatory compliance under the Investment Company Act of 1940. Investors benefit from transparent reporting, but this does not remove the inherent market risk or leverage risk involved.

It is worth noting that the ETF pays out small distributions, with recent payments as low as $0.0050 per share, reflecting its nature as a trading instrument rather than an income-focused product.

Read Also: Solana ETFs Set for Approval in 2025: Is Now the Right Time to Buy SOL Before $300 Surge?

Risks and Cautions When Considering the SOLT ETF

Before considering SOLT or any leveraged ETF, it is crucial to understand that these are not standard investment vehicles. They are designed for daily tactical trades, not for buy-and-hold strategies. The risk of losing the entire investment within a single trading day exists if Solana moves significantly against the fund’s position.

Moreover, while the ETF aims to deliver double Solana’s daily performance, it may not achieve this goal due to the impact of futures pricing, fees, and daily rebalancing. Its expense ratio of 1.85% is relatively high compared to traditional ETFs, further eating into returns over time.

Another point of caution is the lack of a publicly accessible whitepaper on the fund’s website. While standard fund documents such as the prospectus are available, the absence of an easily found detailed explanation may be a concern for retail investors seeking a full understanding before investing.

Finally, the complexity of futures-based leveraged ETFs means that they are best suited only to investors who can actively monitor their positions daily and who fully grasp the mathematics of leverage and compounding effects. Otherwise, significant unexpected losses may occur, even if Solana’s overall trend is positive.

Read Also: VanEck’s Spot Solana ETF Listed on DTCC: When SEC Approval?

Conclusion

In summary, the SOLT ETF offers 2x daily leveraged exposure to Solana via futures contracts. It is accessible to traders through normal brokerage accounts without dealing with crypto wallets or exchanges. However, its high risk, daily rebalancing structure, and potential for amplified losses make it unsuitable for casual investors or long-term holdings. 

As always, conduct thorough research and consider professional financial advice before engaging in leveraged instruments, particularly in the rapidly evolving and volatile crypto market.

FAQ

What is the SOLT ETF?

SOLT is a 2x leveraged Solana ETF that uses futures contracts to provide double Solana’s daily price movements without owning the coin directly.

Does SOLT directly hold Solana?

No, SOLT does not own Solana tokens. It gains exposure through Solana futures contracts traded on regulated exchanges.

Is investing in SOLT safe for beginners?

No, leveraged ETFs like SOLT carry high risks and are suitable only for sophisticated traders who understand leverage, compounding, and futures-based strategies.