- Brazil’s regulatory body has approved its second Solana ($SOL) spot exchange-traded fund (ETF).
- The second $SOL ETF, developed by QR Asset and managed by Vortx, is currently in its pre-operational phase.
- There’s no indication of US $SOL ETFs being approved anytime soon due to regulatory hurdles.
Brazil’s regulatory body, Comissão de Valores Mobiliários (CVM), has approved its second Solana spot ETF ahead of the US.
Hashdex (a Brazilian-based asset manager) will be offering Brazil’s second Solana ETF alongside the investment bank BTG Pactual.
Let’s explore Brazil’s $SOL ETF approval and how the country’s stance differs from the US’.
US $SOL ETFs Stall While Brazil Gets Approval
After the US introduced $BTC and $ETH ETFs, analysts anticipated $SOL ETFs to follow suit. But Brazil outpaced its rivals worldwide.
On August 8, Brazil overtook the US by approving the first Solana ETF, developed by QR Asset (a Brazilian asset manager) and managed by the financial services company Vortx.
The first edition (QSOL11) is in the pre-operational phase. It is expected to launch on August 28 on Brazil’s B3 stock exchange.
According to the Brazilian regulator’s central database, the second $SOL ETF is also in its pre-operational phase.
🚨 BREAKING NEWS:
🇧🇷 The Brazilian Securities and Exchange Commission (CVM) officially approves the launch of the second $SOL ETF. pic.twitter.com/OIAMqgtLAn
— SolanaFloor (@SolanaFloor) August 21, 2024
Hashdex (the provider) already has $96M in assets under management and has supervised the Nasdaq Crypto Index, which shows its crypto expertise.
US $SOL ETFs Face Regulatory Hurdles
In June, VanEck and 21Shares filed for spot Solana ETFs in the US. However, their applications have stalled, and the 19b-4 filings have been removed from the Cboe Global Markets website.
Bloomberg ETF analyst Eric Balchunas found that the US Securities and Exchange Commission (SEC) never posted the applications because they failed to pass the second phase.
Nice flow chart showing how the Solana ETF filings never made it past Step 2 (the SEC failed to ack them) = DOA. So the exchanges withdrew 19b-4s altho the issuers’ S-1s are still active. A snowball’s chance in hell of approval unless there’s change in leadership via @JSeyff pic.twitter.com/e8BNKT33KH
— Eric Balchunas (@EricBalchunas) August 20, 2024
VanEck’s Head of Digital Asset Research, Matthew Sigel, reportedly said there’s no indication of a policy pivot that would accelerate the approval process in the US.
Our Verdict – The US’ Crypto Stance May Change Post-Presidential Election
Brazil’s $SOL spot ETFs shows its commitment to integrating crypto into its financial markets, which should attract more mainstream investors to the blockchain realm.
Contrastingly, the US cryptocurrency stance is more skeptical despite having launched $BTC and $ETH ETFs.
Considering Donald Trump and Kamala Harris are said to support policies that drive the crypto sector’s growth, the US crypto market may stabilize, and the approval of more ETFs may occur after the 2024 presidential election.
This is more likely to be true if Trump wins; he has vowed to become the next ‘crypto president’ and to sue the SEC’s chairman, Gary Gensler, for his aggressive attitude toward crypto regulations.
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Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
