Compiled by Cheryl L.

Key Points Summary

This week’s special episode features Leah Wald, live from DAS NY 2025, sharing her insights and expertise. The episode highlights the launch of the Solana Futures ETF in 2025, providing an in-depth look at the SOL Strategies playbook and Leah's unique insights into the current cryptocurrency market. Additionally, we delve into Solana’s long-term vision and its latest industry developments.

Interview Highlights

• In the early history of cryptocurrency, the largest holders were often individual investors.

• The institutionalization of Solana is still in its infancy, with discussions only just starting to take shape.

• One of Solana's strengths lies in its ability to engage in conversations with a variety of institutions, convincing them to consider running blockchain projects on its platform.

• Drawing a parallel between SOL Strategies and Solana’s version of Microstrategy is, in fact, an oversimplification.

• Merely waiting for SOL to appreciate would be unfair to our shareholders. A more equitable approach is to build a genuine technology company.

• SOL Strategies' ultimate goal is to become an infrastructure company for Solana.

• What I really admire about the Solana community is the diversity of startups here exploring innovative ideas.

• Similar to Bitcoin, which took years to solidify its role as a "store of value," Solana and SOL are inherently more speculative and will require time to carve out their own niche.

Guest: Leah Wald, SOL Strategies CEO

Host: Jack Kubine

Video Source: Lightspeed

Original Title: The Solana Playbook With Leah Wald

Air Date: March 27, 2025

The Launch of Solana Futures ETF

Jack: We’ve just seen the first-ever Solana ETF begin trading in the U.S. You’re an expert in this area, so I’d like to ask your thoughts on the Volatility Shares' Solana Futures ETF. How do you see its first-day performance? What’s the trading volume like? And what key points should people focus on during this launch process?

Leah Wald: This is a significant moment. I think none of us expected things to progress so quickly. The launch comes right on the heels of CME’s futures product release, with rapid approvals and the introduction of A2X leverage mechanisms.

I believe Volatility Shares made a very smart decision by launching a futures product. The market performed robustly on Monday, and regardless of the specific trading volume, it successfully showcased its market presence and trading efficiency. Particularly for a product with 2x leverage, this is undoubtedly a big win. From the perspective of institutional adoption and market validity, this is highly meaningful for the entire ecosystem.

As for trading volume, I think there’s still plenty of room for growth, but it’s only the first day. Many market participants tend to hold off from entering on the first day. What’s more important is to observe the performance three months down the line, including trading volume, market participation, and overall interest.

Jack: If I recall correctly, during your time at Valkyrie, you launched a Bitcoin Futures ETF. Could you share your experience from that time? For instance, what was the first-day trading volume like? When did you start seeing significant capital inflows? Also, what lessons from Bitcoin Futures ETFs might be applicable to the Solana Futures ETF?

Leah Wald: We launched Valkyrie’s Bitcoin Futures ETF in October 2021, just two days after ProShares launched theirs. ProShares listed on the New York Stock Exchange (NYSE), while we chose Nasdaq. ProShares saw over $1 billion in trading volume on their first day, while we recorded approximately $50 million. Despite the difference, it was still a strong debut, given that it was the first Bitcoin ETF in the U.S.

Launching a futures ETF is a highly complex process, especially when it comes to coordinating with market makers and ensuring the proper functioning of the entire futures trading ecosystem. Futures ETFs engage a broader range of participants compared to spot ETFs. Moreover, because they are based on CME’s paper-traded futures, there’s a level of separation from the underlying spot asset, which adds another layer of complexity, such as tracking error considerations.

While Bitcoin’s AUM and trading volume were larger, the market dynamics were different. People had more preparation time. It seems like the SEC approved the futures ETF just two days after its launch. So, Volatility Shares still has an opportunity to begin marketing efforts now.

Jack: How much time do you think needs to pass before we can meaningfully evaluate the trading volumes of CME Futures and the Volatility Shares ETF? After all, first-day trading volumes are often lower—does it require a longer observation period?

Leah Wald: Many companies face portfolio mandates that prevent them from directly purchasing futures products. Additionally, the pool of participants in futures trading is relatively limited. As a result, first-day performance often doesn’t fully reflect a product’s potential.

I think at least three months are needed to assess the market performance of these ETFs, including changes in trading volume and participation. Typically, trading firms based in Chicago are the main players, and their actions will significantly influence market performance. Therefore, a three-to-nine-month timeframe is a reasonable period to evaluate the success of these products.

Jack: What’s your outlook on the prospects of spot ETFs in 2025?

Leah Wald: I think this is a pivotal moment worth watching. Historically, futures ETFs have often preceded the launch of spot ETFs. While we can’t predict with certainty, this futures ETF launch is undoubtedly a positive signal. Many companies have already submitted applications for spot ETFs, and their products have been performing well. So, I’m optimistic about the prospects of spot ETFs in 2025.

Are Institutions Interested?

Jack: Let’s broaden the discussion beyond futures ETFs. Here at the DAS conference, the atmosphere feels more like a gathering of institutional investors. However, as you and I discussed earlier, people in the crypto space often think of “institutions” as a monolithic entity.

I have two questions for you: First, have institutions started entering Solana? Second, what does this mean for the market? Additionally, how should we define “institutions”? What qualifies as an institution, and what doesn’t? Based on your observations, which sectors or segments of institutional capital are most likely to enter Solana in the near term?

Leah Wald: This is a very thought-provoking question. We often categorize users into retail and institutional investors, distinguishing them by the size of their capital. However, in the history of cryptocurrency, the reality has been far more nuanced. If retail investors are defined as those managing personal wealth and institutions as entities managing others’ capital, the distinction lies more in the type of capital flow than in scale. In fact, in the early history of cryptocurrency, the largest holders were often individual investors.

As Bitcoin has gradually been institutionalized as a new store of value, we’ve seen this trend take shape. For example, financial giants like Blackrock and Fidelity are actively launching Bitcoin ETFs, marking a significant shift in the market. However, for other altcoins like Solana, the primary holders are still individual investors. While these individuals are legally classified as retail investors, their capital scale and market influence can rival that of institutional investors.

Regarding your second question—what does institutional entry mean for the market, and are they participating yet? For Solana, the focus is currently on how institutions can integrate into its ecosystem. We’re seeing some signs, such as Franklin Templeton launching blockchain-based funds and exploring operations on the Solana platform. Additionally, the launch of futures ETFs provides institutional investors with new tools, which could attract more capital into the Solana ecosystem. In the Bitcoin market, we’ve already seen institutions make significant allocations through endowments, pension plans, and sovereign wealth funds. With Solana now offering similar investment tools, we may see increased institutional involvement.

That said, the institutionalization of Solana is still in its early stages. For now, the discussions are just beginning.

The Ultimate Vision for Solana

Jack: One often overlooked distinction is the difference between institutions buying SOL as an asset and institutions using Solana’s platform to operate money market funds. Compared to a future vision of an on-chain NASDAQ, I think the likelihood of a pension fund purchasing SOL as an asset is much more realistic.

Leah Wald: You make a valid point. It’s fascinating to observe the developmental paths of different projects. I believe one of Solana’s strengths lies in its ability to engage in meaningful conversations with a variety of institutions, convincing them to consider running blockchain projects on its platform. Solana has been highly effective in this regard, leveraging its numerous advantages. However, once capital flows into the Solana ecosystem, questions about how it will be allocated and which areas it will target become critical topics for further discussion. Fortunately, as we discussed two days ago, these conversations are already beginning to gain traction.

Jack: You’ve previously mentioned the distinction between institutions and retail investors, but in reality, the size of the capital isn’t always the defining factor. There are also so-called “retail whales,” referring to individual investors holding significant amounts of assets. Does SOL Strategies frequently engage with investors like Joe, who might be a long-term holder of a substantial amount of Solana? After all, he could control a significant portion of assets.

Leah Wald: That’s absolutely true, and it’s a very interesting phenomenon. One of my roles is to communicate with investors and share our vision and story. For investors like Joe, he might be quite content simply holding SOL for the long term, much like many Bitcoin investors who are happy holding their Bitcoin. They may engage in conversations about the importance of ETFs, but their primary focus remains on holding their assets. This choice is perfectly valid, as investors should have diverse options available to them.

Currently, we are the only option that allows retail investors to gain exposure through stocks via IRAs or similar accounts. This was also a significant topic during the development of Bitcoin ETFs. However, I believe investors like Joe are more likely to continue directly holding and staking their Solana assets rather than purchasing our stock immediately. Unless our stock becomes more attractive to them or they start trading equities more actively, this shift might take some time.

Laine Acquisition Strategy

Jack: Speaking of your validators, I recently came across some interesting news about SOL Strategies. You acquired the Laine Solana validator, run by someone named Michael, who also operates stakewiz.com. This acquisition seems quite unique. I’m curious—how did the conversation with him start? Why did you choose to acquire this specific validator and also bring Michael on as COO? Could you share the story behind this?

Leah Wald: To be honest, this acquisition was largely driven by Michael’s individual capabilities. He’s an exceptional and brilliant entrepreneur with a strong engineering background, and talents like him are incredibly rare. Discussing the acquisition of the Laine validator, stakewiz.com, and related assets with him seamlessly aligned with our strategic vision for external expansion in this next phase. This acquisition increased our stake to around 3.3 million.

Jack: That’s nearly doubling your stake, and it seems like it was done in a relatively short period.

Leah Wald: Yes, that’s correct. Michael’s addition has had an immediate and noticeable impact. Within the Solana community, he’s highly respected—not just for his skills and intelligence, but also for his genuine commitment to the community. You can see this same focus on community from our Chief Technology Officer as well. For example, we recently supported the SIMD02,2,8 proposal. Even though it didn’t entirely align with our economic interests as a validator, we chose to back it because it was more beneficial for the overall development of the Solana network.

Our goal is to build a company deeply integrated with the Solana ecosystem, contributing to the long-term growth of the Solana network. This vision was one of the key drivers behind our acquisition of the Laine validator.

Is SOL Strategies the Microstrategy of Solana?

(Note: In February of this year, MicroStrategy officially rebranded to simply "Strategy." However, for clarity, this article will continue to use the name Microstrategy.)

Jack: Has SOL Strategies’ growth plan always been centered around acquisitions? When I first heard about SOL Strategies, it was described as “the Microstrategy of Solana.” I assumed you’d follow a similar path by issuing debt to purchase a large amount of SOL and potentially staking it to earn additional yields, such as staking SOL on platforms like Jito or Helius. That’s what I heard on the Lightspeed podcast. However, now it seems you’ve ventured deep into the validator space—not only acquiring validators, but Max frequently shares his views on SIMD proposals on Twitter. And with Michael, a well-known figure in the Solana validator community, joining your team, it seems like your strategy has evolved. Was this direction part of the original plan, or did it develop over time?

Leah Wald: Comparing SOL Strategies to Solana’s Microstrategy is actually an incomplete analogy. In my view, the limitation of that model is that it’s primarily a “net asset value (NAV) play,” where the company’s value is tied to accumulating assets. But that alone isn’t enough. I need to think about how to operate a real business while creating long-term value for our shareholders. If the market perceives us as merely waiting for SOL to appreciate, that wouldn’t be fair to our shareholders. I believe a more equitable approach is to build a genuine technology company.

Our strategy has been to pursue steady and deliberate growth. In the beginning, we relied on external acquisitions (inorganic growth) to expand our business, such as acquiring validators and related assets. Over time, we plan to shift toward organic growth by leveraging our internal capabilities. Our ultimate goal is to become an infrastructure company for Solana.

As part of this journey, we are indeed accumulating as much SOL as possible and staking it on our validator nodes. But this is just one piece of a broader strategy. It’s somewhat akin to Bitcoin miners, who fund their operations while simultaneously adding Bitcoin to their balance sheets through mining activities. I believe this model is more robust and meaningful because we’re not just “buying SOL”—we’re actively contributing to Solana’s infrastructure ecosystem. With Max and Michael’s support, we’re also engaging with institutional investors to advance this vision.

Jack: Beyond running validators, are you considering expanding into other infrastructure-related businesses? Is your goal limited to validators, or are there broader technical directions you’re exploring?

Leah Wald: We are indeed exploring opportunities beyond the validator business, particularly in auxiliary technologies that support the Solana ecosystem. At the moment, we’re in discussions with various parties to explore additional possibilities.

Solana’s Investment Philosophy

Jack: What is Solana’s current investment philosophy? You seem to share a certain connection with Microstrategy. Michael Saylor has played a significant role in the Bitcoin space and could be considered its “spokesperson.” I feel like you’re trying to do something similar with Solana. It seems we’re at a turning point. Recently, we’ve seen some of the hype around meme coins fading, such as the once-popular Fire Dancer, which now seems to be losing attention. So, for the remainder of 2025, what is your investment philosophy? How do you view the Solana network, and how are you promoting Solana today?

Leah Wald: That’s a deeply insightful question, and I’ll break it into three parts. I think Solana is currently in the process of finding its identity. As a blockchain still in its early stages, it’s working to define its role and value proposition. Solana has its own strengths and core pillars, which demonstrate its efficiency compared to some other blockchains. But the critical question is: Who finds these advantages appealing? Who will choose to build on it? And who will become its users?

Within Solana’s ecosystem, there’s a lot of active discussion around products, such as the concept of “structured products.” So, will Solana become a platform that supports on-chain mutual funds? Or will it evolve into a payment system? These are all possible directions. One thing I truly appreciate about the Solana community is the diversity of startups exploring innovation here. This year, I hope to see Solana further clarify its niche. While it has established core advantages, it hasn’t yet fully carved out its unique position.

This process takes time. For example, Bitcoin took a long time to establish itself as a “store value asset”. Solana and SOL, on the other hand, are more speculative in nature, so they also need time to find their path. In 2025, I’ll be closely watching Solana’s development, hoping to see it identify and solidify its own particular niche.

The Future of Blockchain Investment Companies

Jack: Let’s talk about other ecosystems like Sui, other Layer 1 blockchains (L1), and Ethereum. Honestly, I believe there are similar investment opportunities in these ecosystems for companies like SOL Strategies. Why haven’t we seen more holding companies adopt similar investment strategies? Do you think we’ll see such companies emerge in the next year and a half?

Leah Wald: I do believe such companies will emerge, and I’ve already had conversations with some interested parties. On a broader scale, I anticipate that we’ll see many companies in the U.S. go public, potentially through IPOs or via Special Purpose Acquisition Companies (SPACs). In Canada, I suspect some companies might explore leveraging Real-Time Operating Systems (RTOS) as a strategy.

However, as more companies of this nature emerge, the critical question will be how success is defined. Simply going public doesn’t equate to success. True success depends on multiple factors, such as market engagement, investor interest, and trading volume support within the stock ecosystem. This support could come from token communities or from the broader capital market ecosystem. So while I believe we’ll see more companies going public, they’ll need to have a more comprehensive strategy beyond merely aiming for a listing.

I’d like to see companies that think more holistically—not just about going public, but about building a long-term vision. I welcome competition. I think we’ll see this happen and look forward to seeing these companies actively contribute to ecosystem development. Only through such thoughtful participation can the industry achieve healthy and sustainable growth.