Brazil to launch first Solana ETF ahead of U.S.

Brazil’s Securities and Exchange Commission (CVM) has approved the country's first spot Solana ETF, marking a significant step in the nation’s crypto market. This new fund, assembled by QR Asset and managed by Vortx, still awaits final approval from B3, the Brazilian Stock Exchange.

Brazil’s Growing Crypto Market

While the exact launch date of the ETF remains uncertain, Brazil continues to expand its cryptocurrency offerings. Since 2021, the country has introduced ETFs tied to Bitcoin and Ether, and now Solana joins the lineup.

QR Asset’s Theodoro Fleury highlights this development as a commitment to providing diversified investment options for Brazilian investors.

US Lags Behind

In contrast, the United States remains slow to approve similar products. Although the SEC has approved Bitcoin and Ether ETFs, the approval of a Solana ETF remains uncertain. Regulatory hurdles and the classification of Solana as a security continue to delay progress.

Asset managers like VanEck and Franklin Templeton are eager to launch Solana ETFs in the US, but skepticism remains high, especially with the current regulatory and political environment.

Will we see a Solana ETF in the US before the elections?

However, the most important question is whether we’ll see a US Solana ETF before the 2024 presidential elections, explained Dave:

“Considering the current election season and the prevailing sentiment, it is likely that we will see the approval of Solana ETFs before the end of this year. The key question is whether this will happen before or after the elections. With the Republicans currently seen as pro-crypto, approval before the election could significantly influence market sentiment.”

However, the US is unlikely to immediately follow suit since Bitcoin ETFs have been in the pipeline for years before the formal approval, according to Alejo Pinto, former IBM blockchain growth lead and founder of Solana layer-2 (L2) network Lumio.

Due to the unlikely prospect of an incoming US Solana ETF, a potential approval would make it a strong price catalyst for SOL, explained Pinto:

“Since it is still very uncertain, an ETF approval in the US would have a positive price impact on Solana since the probability is low and therefore not yet priced in.”