Brazil's financial landscape continues to evolve as its securities regulator CVM approved the second Solana ETF this week.
Approval of Second Solana ETF in Brazil
The newly approved Solana ETF will be managed by Hashdex, a well-established asset manager in Brazil with $962 million in assets under management. Currently in its pre-operational phase, the fund represents another milestone in Brazil's embrace of digital assets. This venture is part of the partnership between Hashdex and local investment bank BTG Pactual.
Challenges in U.S. Approval
In contrast, the path to approving a Solana ETF in the United States remains filled with obstacles. Sources familiar with the situation revealed that the U.S. Securities and Exchange Commission (SEC) rejected the 19b-4 filings for Solana ETFs submitted by VanEck and 21Shares. This led to the removal of these filings from the Cboe BZX Exchange. Solana is currently classified as a security by the SEC, complicating its approval process for an ETF in the U.S.
Expert Opinions
However, Matthew Sigel, VanEck’s Head of Digital Assets Research, expressed a belief that Solana should be classified as a commodity rather than a security. Sigel’s perspective is informed by evolving legal views that distinguish between how crypto assets function in primary and secondary markets. Conversely, Bloomberg ETF analyst Eric Balchunas has suggested that the chances of approval in 2024 are slim, with the likelihood of a breakthrough in 2025 also being low if Kamala Harris wins the US Presidential election.
Thus, while Brazil continues to make strides in digital asset acceptance with the approval of Solana ETF, the U.S. faces significant regulatory challenges in this arena.
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