Brazil’s Securities and Exchange Commission (CVM) recently approved the country’s first Solana-based exchange-traded fund (ETF). This approval, received on August 7, places Brazil in a leading position ahead of other countries, particularly the United States. While Brazil has made significant progress in approving Solana ETFs, the United States is still in the early stages of the process with uncertain prospects.
The newly approved Solana ETF is currently in the preparatory stage and is awaiting the green light from the Brazilian stock exchange, B3, before its official launch. Managed by Vortx and created by QR Asset, the ETF has not yet received a confirmed date for approval and entry into the Brazilian market. Theodoro Fleury, QR Asset’s Manager, and Investment Director expressed their commitment to providing quality and diversification to Brazilian investors through this ETF, positioning Brazil as a pioneer in regulated investments in crypto assets.
The Solana ETF will be indexed against the CME CF Solana Dollar Reference Rate, developed in collaboration with the Chicago Mercantile Exchange (CME). This approval signifies a significant advancement in Brazil’s crypto investment landscape, complementing existing funds in Ether and Bitcoin, as well as multi-asset funds covering various cryptocurrencies since 2021.
The approval from CVM coincides with a period of growing anticipation in the market concerning potential Solana ETF approvals in the United States. Despite efforts from several asset managers, including VanEck and Franklin Templeton, the chances of approval for Solana ETFs in the U.S. remain uncertain. The classification of Solana and other cryptocurrencies as securities by the U.S. Securities and Exchange Commission (SEC) presents a challenge for approvals in the near future.
Recent developments, such as bipartisan backing for crypto regulations and support from figures like former President Trump, have eased Democratic opposition. This has paved the way for broader acceptance and potential Solana ETF approvals. While there are challenges and uncertainties surrounding Solana ETF approvals in the United States, Brazil’s approval of the first Solana-based ETF marks an important milestone in the crypto investment landscape.