Solana-based ETF approved in this country: report

Brazil’s Securities and Exchange Commission (CVM) has approved the country’s first Solana-based exchange-traded fund (ETF).

The approval, granted on August 7, puts Brazil ahead of other countries, particularly the United States, where the approval process for Solana ETFs is in its early stages with an uncertain outlook.

Brazil’s Solana ETF receives preliminary approval

According to Exame, a local news outlet, the newly approved Solana ETF is currently in the preparatory phase and still needs a green light from the Brazilian stock exchange, B3, before its official launch.

Created by QR Asset and managed by Vortx, the ETF does not yet have a confirmed date for its approval and entry into the Brazilian market.

Commenting on the approval, Theodoro Fleury, manager and chief investment officer of QR Asset, said: “This ETF reaffirms our commitment to offer quality and diversification to Brazilian investors. We are proud to be global pioneers in this segment, consolidating the Brazil’s position as a leading market for regulated investments in crypto assets.

This ETF will be indexed to the CME CF Solana Dollar Benchmark Rate, developed by CF Benchmarks in partnership with the Chicago Mercantile Exchange (CME).

The approval marks a breakthrough in Brazil’s crypto investment landscape, adding to the country’s existing Ether and Bitcoin funds and its multi-asset funds covering multiple cryptocurrencies from 2021.

Solana ETF Speculation

The CVM’s green light comes amid growing market anticipation for Solana’s potential ETF approvals in the United States. Earlier this year, the US Securities and Exchange Commission (SEC) gave the green light to Bitcoin ETFs in January and Ether ETFs in June.

The approval of the latter was particularly unexpected, as Ether had previously been classified as a value rather than a commodity. This change has led investors and analysts to question whether Solana could receive similar approval from the ETF based on this new interpretation.

Several asset managers, including VanEck and Franklin Templeton, have expressed interest in launching Solana ETFs in the U.S. In July, Cboe formally asked the SEC to allow VanEck and 21Shares to introduce a Solana-based ETF.

Despite these efforts, the chances of approval remain uncertain. JPMorgan indicates that the SEC’s current classification of Solana and other cryptocurrencies as securities reduces the likelihood of such approvals in the near future.

On the other hand, recent research from GSR Markets shows that support from figures like former President Trump has eased Democratic opposition, leading to bipartisan support for crypto regulations and paving the way for Solana’s approval ETF.

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