Compiled & edited by TechFlow
Guest: Leah Wald, CEO of SOL strategists
Moderator: Jack Kubine
Podcast source: Lightspeed
The Solana Playbook With Leah Wald
Air Date: March 27, 2025
Summary of key points
This week, we have Leah Wald, who is sharing her insights from DAS NY 2025. This episode will focus on the launch of the Solana Futures ETF in 2025, analyze the SOL Strategies strategy guide in depth, and explore Leah’s unique insights on the current cryptocurrency market. In addition, we will discuss Solana’s long-term vision and its latest industry trends.
Summary of highlights
In the early history of cryptocurrencies, the largest holders tended to be individual investors.
Solana’s institutionalization is still in its early stages and more discussions are just beginning.
Part of Solana’s success has been its ability to start conversations with institutions and get them to consider running blockchain projects on its platform.
Comparing SOL Strategies to Solana’s Microstrategy is actually an incomplete analogy.
A fairer approach would be to build a true tech company.
One thing I love about the Solana community is that there are all kinds of different types of startups exploring innovation.
Like Bitcoin, it took a long time to establish itself as a "store of value". Solana and SOL are more speculative in nature, so they also need time to find their direction.
The launch of the Solana Futures ETF
Jack: We just saw the first Solana ETF in the US start trading. You are an expert in this area, and I would like to ask you, what do you think of the first day performance of the futures ETF for volatility shares ? What are the trading volumes? What are the key points that people should pay attention to during this launch process?
Leah Wald:
This is very important. I don't think any of us expected things to move so quickly. This launch comes right on the heels of the CME futures launch, which was approved very quickly, and also introduced the A2X leverage mechanism.
I think Volatility Shares’ choice to launch a futures product was a very smart strategy. The market was very strong on Monday and it was a successful demonstration regardless, showing that the market exists and trading is successful. Especially for a product with 2x leverage, it is undoubtedly a big win. From the perspective of institutional adoption and market effectiveness, it means a lot to the entire ecosystem.
As for volume, I think there is still a lot of room for growth, but after all, this is only Day 1. Many market participants usually don't enter the market on the first day, so it is more important to observe the performance in three months, including trading volume, market participation, and overall interest.
Jack:
If I remember correctly, when you were working at Valkyrie, you launched a Bitcoin futures ETF . Can you share your experience at that time? For example, what was the trading volume on the first day? When did you start to see large-scale inflows of funds? In addition, what do you think the experience of the Bitcoin futures ETF can be applied to the Solana futures ETF?
Leah Wald:
We launched Valkyrie and ProShares’ Bitcoin futures ETF in October 2021. ProShares went live two days before us, and they chose to list on the New York Stock Exchange (NYSE), while we chose NASDAQ. ProShares’ product exceeded $1 billion in trading volume on the first day, while our first day trading volume was about $50 million. Even so, this is already a very good result, as it is the first Bitcoin ETF in the United States.
The process of launching a futures ETF is very complicated, especially in terms of communicating with market makers and ensuring the normal operation of the entire futures trading ecosystem. Compared with spot ETFs, futures ETFs involve more participants. At the same time, because it is based on CME's paper trading, there is a certain separation from spot assets, so additional considerations are required in terms of tracking error and other aspects.
Even though Bitcoin has a bigger AUM and volume, the market situation is indeed different. People have more time to prepare. It looks like the SEC approved the futures two days after they were launched. So volatility shares still have a chance to start marketing.
Jack:
How long do you think it will take to get a meaningful assessment of the volume of CME futures and volatility share ETFs ? After all, the first day trading volume is usually lower, so does it take longer to observe?
Leah Wald:
Many companies are unable to purchase futures products directly due to internal portfolio constraints. In addition, the range of participants in futures trading is relatively limited. Therefore, the performance on the first day usually does not fully reflect the potential of the product.
I think it takes at least three months to observe the market performance of these ETFs, including changes in trading volume and participation. Generally speaking, trading institutions like Chicago are major players and their actions have a significant impact on market performance. Therefore, a three to nine month time frame is a reasonable period to evaluate the success of these products.
Jack:
What do you think about the prospects of spot ETFs in 2025 ?
Leah Wald:
I think this is a critical moment worth looking forward to. From historical experience, futures ETFs are usually launched before spot ETFs. Although we cannot accurately predict, the launch of futures ETFs this time is undoubtedly a positive signal. At present, many companies have submitted applications for spot ETFs, and their product operations are performing well. Therefore, I am optimistic about the prospects of spot ETFs in 2025.
Are institutions optimistic?
Jack:
Let's talk about futures ETFs a little more broadly. We are at the DAS conference now, and the overall atmosphere here is more like a gathering of institutional investors. However, you and I have talked before that many people tend to regard "institutions" as a unified whole when talking about cryptocurrencies.
I have two questions for you: First, have institutions started to enter Solana? Second, what does this mean for the market? In addition, how should we define "institutions"? What counts as institutions and what does not count? From what you have observed so far, which areas or market segments are most likely to see institutional capital enter Solana in the short term?
Leah Wald:
This is a very worthy question to think about. We usually divide ordinary users and institutional investors into two categories, distinguishing them by the size of their funds. But in the history of cryptocurrency, the situation is not so simple. If we regard ordinary investors as people who manage their own wealth, and institutions as organizations that manage other people's capital, then the two represent different natures of capital flows, not necessarily differences in the size of funds. In fact, in the early history of cryptocurrency, the largest holders were often individual investors.
As Bitcoin is gradually seen as a new store of value asset, the trend of institutionalization has begun to emerge. For example, financial giants such as Blackrock and Fidelity are actively launching Bitcoin ETFs, which marks a huge shift in the market. However, for other altcoins such as Solana, the current major holders are still individual investors. Although these people are legally called ordinary investors, their capital scale and market influence are actually comparable to institutional investors.
As for your second question, what does the entry of institutions mean for the market? Are they already involved? For Solana, the current discussion is more focused on "how" institutions can participate in its ecosystem. We can see some signs, such as Franklin Templeton launching a blockchain-based fund and trying to operate on the Solana platform. In addition, the launch of futures ETFs provides new tools for institutional investors, which may attract more capital into the Solana ecosystem. In the Bitcoin market, we have seen how institutions make significant asset allocations in the form of endowments, pension plans, and sovereign wealth funds. With Solana also having similar investment tools, we may see more institutional participation.
However, overall, the institutionalization of Solana is still in its early stages, and more discussions are just beginning.
Solana’s Ultimate Vision
Jack:
One issue that may be overlooked is the difference between institutions buying SOL assets and institutions putting money market funds on the Solana platform. Compared to the possible on-chain NASDAQ in the future, I think the possibility of pension funds buying SOL assets is obviously more realistic.
Leah Wald:
You make a good point. It's really interesting to watch the paths that different projects take. I think one of the successes of Solana is that it's been able to start a conversation with a variety of institutions and get them to consider running blockchain projects on its platform. Solana has a very convincing case in this regard because it has many significant advantages. However, how the funds that enter the Solana ecosystem are allocated and where they flow are important questions to explore in the future. Fortunately, as we discussed two days ago, these topics are beginning to gain traction.
Jack:
You mentioned the difference between institutional and ordinary investors before, but in fact the size of funds is not the main dividing line between the two, because there are also some so-called "ordinary whales" (individual investors holding a large amount of assets). Does your SOL Strategies often interact with individual investors like Joe who hold a large amount of Solana for a long time? After all, he may have a considerable amount of assets.
Leah Wald:
Indeed, it is a very interesting phenomenon. One of my jobs is to communicate with investors and share our philosophy and story with them. For an investor like Joe, he may be very satisfied with holding SOL for a long time, just like many Bitcoin investors, they are happy to hold their Bitcoin and may discuss the importance of ETFs with us. This choice itself is good because investors should have diversified investment options.
Currently, we are the only option that provides average investors with exposure to our stock through an IRA or similar account. This is also a topic worth watching as a Bitcoin ETF develops. However, I think investors like Joe may prefer to hold and stake his Solana assets directly rather than buying our stock right away. Unless our stock becomes more attractive to them or they start to participate more actively in stock trading, this transition may take time.
Laine’s Acquisition Strategy
Jack:
Speaking of your validators, I recently saw an interesting news about SOL Strategies. You acquired Laine Solana validator, I think his name is Michael, and he also runs stakewiz.com. This acquisition is very special. I was wondering, how did you start the conversation with him? Why did you choose to acquire this specific validator and also let Michael serve as the COO ? Can you share this story?
Leah Wald:
Frankly speaking, this acquisition was largely due to Michael's personal ability. He is a very good and smart businessman, and he also has an excellent engineering background. Talents like him are indeed very scarce. Therefore, discussing with him the acquisition of Laine validators, stakewiz.com and other related assets is completely in line with our strategic logic for the next stage of external expansion. This acquisition increases our shares to approximately 3.3 million.
Jack:
This is almost equivalent to doubling your stake, and it seems to be done in a short period of time.
Leah Wald:
Yes, it is. Michael has had a very significant impact since joining, and he is widely respected in the Solana community, not only for his ability and intelligence, but also for his sincere commitment to the community. You can also see this focus on the community in the work of our CTO. For example, we recently supported the SIMD02,2,8 proposal, and although it was not entirely in our economic interests as a validator, we still chose to support it because it was more beneficial to the development of the entire Solana network.
Our goal is to build a company that is deeply integrated into the Solana ecosystem and in this way contribute to the long-term development of the Solana network. This is also one of the original intentions of our acquisition of Laine validators.
Is SOL Strategies Solana’s Microstrategy?
Jack:
Has the development plan of SOL Strategies always been to achieve this through acquisition? When I first heard about SOL Strategies, it was described as "Microstrategy for Solana." I thought you would buy a lot of SOL by issuing debt like Microstrategy did, and maybe use staking to get additional returns, such as staking SOL to platforms like Jito or Helius. This is what I heard on the Lightspeed podcast. However, it now seems that you have gone deep into the field of validators, not only acquiring validators, but Max also frequently tweets his views on the SIMD proposal. And Michael, a well-known figure in the Solana validator community, has also joined your team. So, did you plan this direction of development from the beginning? Or is this a strategy that has gradually formed over time?
Leah Wald:
Comparing SOL Strategies to Solana’s Microstrategy is actually an incomplete analogy. In my opinion, the limitation of this model is that it simply plays the "net asset value (NAV) game", that is, increasing the value of the company by accumulating assets, but this alone is not enough. I need to consider how to run a real business while creating long-term value for the company's shareholders. If the market thinks that we are just waiting for SOL to appreciate, it will be unfair to shareholders. I think it is fairer to build a real technology company.
Our strategy is to grow in a slower but more stable way. In the early stages, we mainly rely on external acquisitions (inorganic growth) to expand our business, such as acquiring validators and related assets. Over time, we will gradually shift to natural growth based on our own capabilities (organic growth). Our ultimate goal is to become Solana's infrastructure company.
In the process, we are indeed accumulating as much SOL as possible and staking it to our validator nodes. But this is only part of the overall strategy, similar to how Bitcoin miners increase Bitcoin on their balance sheet through financing while running mining operations. I believe this model is more powerful and meaningful because we are not just "buying SOL", but playing an actual role in Solana's infrastructure ecosystem. With the help of Max and Michael, we are also actively talking to institutional investors to promote the realization of this vision.
Jack:
In addition to operating validators, are you considering expanding into other infrastructure businesses? Are your goals limited to validators, or are there broader technical directions you can explore?
Leah Wald:
We are definitely considering more opportunities outside of the validator business, especially in the area of ancillary technologies that support the Solana ecosystem, and we are currently in discussions with multiple parties to explore more possibilities.
Solana’s Investment Theory
Jack:
What is the current investment philosophy for Solana? You seem to have some connection with Microstrategy. Michael Saylor plays an important role in the Bitcoin field and can be said to be the "spokesperson" of Bitcoin. I think you are also trying to do something similar. Now seems to be a turning point. Recently we have seen that the popularity of some meme coins is fading. For example, Fire Dancer, which was once very popular, now seems to have lost attention. So, what is your investment philosophy for the rest of 2025? How do you view the Solana network and how are you promoting Solana now?
Leah Wald:
This is a very deep question, and there are three parts to answer. I think Solana is currently finding its position. As a blockchain that is still in its early stages, it is still trying to clarify its role and value proposition. Solana has its own advantages and core pillars, which prove that it is superior to some other blockchains in efficiency. But the key question is, who will be attracted by these advantages? Who will choose to build on it? Who will become its users?
In the Solana ecosystem, there is a lot of discussion around products, such as concepts like "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 like about the Solana community is that there are all kinds of different types of startups exploring innovation. This year, I hope to see Solana further clarify its market segment. Although it has established core advantages, it has not yet fully found its unique positioning.
This process takes time. Just like Bitcoin, it took a long time to establish itself as a "store of value". Solana and SOL are more speculative in nature, so they also need time to find their own direction. In 2025, I will pay close attention to the development of Solana and hope to see it find its own unique market segment.
Final Thoughts
Jack:
Regarding other ecosystems, such as Sui, other first-layer blockchains (L1), and Ethereum. To be honest, I think there are investment opportunities similar to SOL Strategies in these ecosystems. Why don’t we see more holding companies adopting similar investment strategies? Do you think such companies will emerge in the next year and a half?
Leah Wald:
I think such companies will emerge, and I have spoken to some interested parties. Overall, I expect we will see many companies going public via IPO in the US, possibly in the form of special purpose acquisition companies (SPACs). In Canada, I think some companies may try to leverage real-time operating systems (RTOS).
However , as more and more companies of this type come online, I think the key question is how to define success. Just going public does not mean success. Real success depends on multiple factors, such as market participation, investor interest, and volume support in the stock ecosystem. This support may come from both the token community and the ecosystem of the capital market. Therefore, I believe we will see more companies going public, but they need to have more comprehensive strategic thinking, not just going public for the sake of going public.
I hope to see companies that think more comprehensively, not just about going public, but thinking long-term. I welcome competition. I think we will see this and look forward to seeing these companies actively participate in the construction of the ecosystem. Only in this way can we truly promote the healthy development of the industry.
