Brazil's financial landscape continues to evolve as its securities regulator, CVM, has approved the second Solana ETF this week.
Approval 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 (AUM). The fund, currently in its pre-operational phase, represents another milestone in Brazil's embrace of digital assets. Hashdex, known for its previous launches, including ETFs based on Nasdaq Crypto Index, Bitcoin, and Ethereum, is partnering with local investment bank BTG Pactual for this venture.
U.S. Market Hurdles
In contrast, the path to approving a Solana ETF in the United States remains filled with obstacles. Recent developments indicate a lack of progress in this area. Sources familiar with the situation have revealed that the U.S. Securities and Exchange Commission (SEC) rejected the 19b-4 filings for Solana ETFs submitted by VanEck and 21Shares. This rejection was a key factor in 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, opinions among experts vary. Matthew Sigel, VanEck’s Head of Digital Assets Research, expressed a belief that Solana should be classified as a commodity rather than a security, based on evolving legal views. Meanwhile, 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.
Nonetheless, despite hurdles in the United States, the approval of the second Solana ETF in Brazil highlights the ongoing development of digital assets in the region.
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