Brazil's financial market continues to evolve as its securities regulator (CVM) has approved its second Solana ETF this week. The new fund will be managed by Hashdex, known for its ETF launches based on the Nasdaq Crypto Index, Bitcoin, and Ethereum.
New Solana ETF in Brazil
The second Solana ETF approved by CVM will be managed by the well-established Brazilian asset manager Hashdex, which oversees $962 million in assets. The fund is currently in its pre-operational phase and marks a significant milestone in the adoption of digital assets in Brazil. Hashdex is partnering with local investment bank BTG Pactual for this project.
Challenges for the U.S. Market
While the approval process for a Solana ETF is progressing smoothly in Brazil, it faces hurdles in the United States. The U.S. Securities and Exchange Commission (SEC) recently rejected the 19b-4 filings for Solana ETFs submitted by VanEck and 21Shares, leading to the removal of these filings from the Cboe BZX Exchange. Solana is currently classified as a security by the SEC, complicating the approval process for an ETF.
Outlook and Expert Opinions
Matthew Sigel, VanEck’s Head of Digital Assets Research, believes that Solana should be classified as a commodity rather than a security. His perspective is informed by evolving legal views that distinguish between how crypto assets function in primary and secondary markets. Bloomberg ETF analyst Eric Balchunas 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.
The approval of the second Solana ETF in Brazil highlights the growing interest in digital assets and the regulatory readiness to support financial innovations. However, in the U.S., the approval process is still far from completion, underscoring the different regulatory approaches to cryptocurrencies on the international stage.
Comments