Brazil's financial landscape continues to evolve as its securities regulator, Comissão de Valores Mobiliários (CVM), has approved its second Solana exchange-traded fund (ETF) this week.
CVM Approval for Solana Fund
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 is partnering with local investment bank BTG Pactual for this venture.
US Market Situation
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. The troubles are compounded by Solana currently being classified as a security by the SEC, complicating its approval process.
Experts' Comments
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.
The situation with Solana ETFs highlights the different approaches to regulating digital assets in various countries. While Brazil is moving towards acceptance, the US continues to face legal and regulatory hurdles.
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