Brazil’s Securities and Exchange Commission (CVM) recently made headlines by approving the country’s very first Solana-based exchange-traded fund (ETF). This move positions Brazil ahead of other countries, including the United States, where the process of approving Solana ETFs is still in its early stages with uncertain outcomes. This approval signifies a significant step forward for Brazil’s cryptocurrency investment landscape.
The newly approved Solana ETF is currently in the preparatory phase and awaits the green light from the Brazilian stock exchange, B3, before its official launch. Managed by Vortx and created by QR Asset, this ETF has yet to receive a confirmed date for its approval and introduction into the Brazilian market. Theodoro Fleury, QR Asset’s Manager and Investment Director, expressed pride in being at the forefront of this global initiative and emphasized the commitment to providing quality and diversification to Brazilian investors.
This ETF will be indexed against the CME CF Solana Dollar Reference Rate, a collaboration between CF Benchmarks and the Chicago Mercantile Exchange (CME). The approval of this ETF showcases Brazil’s progress in regulated investments in crypto assets, adding to the already existing funds in Ether and Bitcoin, as well as multi-asset funds that cover various cryptocurrencies since 2021.
The approval by the CVM comes at a time of growing anticipation in the market regarding potential Solana ETF approvals in the United States. While the U.S. Securities and Exchange Commission (SEC) previously greenlighted Bitcoin ETFs in January and Ether ETFs in June, the prospects for Solana ETFs remain uncertain. Despite efforts from asset managers like VanEck and Franklin Templeton, the current classification of Solana and other cryptocurrencies as securities by the SEC reduces the likelihood of approvals in the near future.
However, recent research from GSR Markets suggests that support from various figures, including former President Trump, has eased Democratic opposition and led to bipartisan backing for crypto regulations. This shift in stance opens the door for potential Solana ETF approvals in the future, paving the way for further advancements in the cryptocurrency investment landscape.