Brazil's financial landscape continues to evolve as CVM recently approved its second Solana-based ETF. This represents a significant step for Hashdex, known for its previous ETF launches, including those based on the Nasdaq Crypto Index, Bitcoin, and Ethereum.
Approval of Solana-based ETF in Brazil
This week, CVM approved the second Solana-based ETF, which will be managed by Hashdex, a prominent asset manager in Brazil with $962 million in assets under management (AUM). The fund is currently in its pre-operational phase and marks another milestone in Brazil’s embrace of digital assets. Hashdex is also partnering with local investment bank BTG Pactual for this venture.
Challenges in the U.S. Market
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. The SEC has rejected 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 its approval process for an ETF in the U.S.
Expert Opinions
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. 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.
Therefore, while Brazil continues to innovate in the digital asset sphere, the US faces significant obstacles in this area. Expert opinions vary on the future of Solana-based ETFs, signaling uncertainty in this matter.
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