Brazil’s regulator has approved the second Solana exchange-traded fund [ETF] as per the CVM database. The new SOL ETF is issued by Brazil-based asset manager Hashdex with over $962 million in assets under management — in collaboration with the local investment bank BTG Pactual. Brazilian Securities and Exchange Commission or CVM stated that the new fund is in a pre-operational phase.
Earlier the nation created history when CVM greenlighted the first-ever SOL spot ETF. The fund is provided by QR—a prominent player known for its Bitcoin and Ethereum ETFs—and will be managed by Vortx. At present, the ETF awaits final approval from B3, Brazil’s main stock exchange, It is expected to hit the market within 90 days.
Following the approval of the Ethereum ETF, crypto enthusiasts were considering the possibility of a spot in the SOL ETF. However, experts in the US expressed apprehensions about the token’s close ties with Solana Labs, which might lead regulators to perceive it more as a security/stock than a commodity asset. This could present potential legal hurdles.
Subsequently, the U.S. SEC recently held a closed-door meeting with ETF issuers about whether the token might be classified as a security. Following discussions, CBOE decided not to submit the relevant 19b-4 form to avoid initiating the approval process. While VanEck’s S-1 registration statement for the Solana ETF is still on display, 21Shares’ has been withdrawn.
Solana ETFs In the US
Although other cryptocurrencies like Bitcoin and Ethereum have approved ETFs, the likelihood of SOL ETFs being approved under the current administration is low, with experts suggesting it might not happen until 2025, if at all.
Despite these concerns, the buzz around Solana ETFs is palpable. The head of Digital Asset Research at VanEck remains bullish on SOL ETF despite CBOE removing its 19b-4 filing.
Furthermore, the Brazilian regulator’s approval has captured the attention of institutional investors and financial advisors, who are increasingly exploring avenues to offer SOL exposure to their clients. If successful, this could potentially accelerate the mainstream adoption of Solana and its ecosystem and further integrate its technology into global financial systems.