The Brazilian regulator grants approval for the country’s second Solana ETF

The Brazilian Securities and Exchange Commission (CVM) has given the green light to a second Solana exchange-traded fund (ETF) weeks after it approved the first on August 8.

According to the CVM’s central database, the product will be launched by Hashdex, an asset manager based in Brazil, in partnership with local investment bank BTG Pactual.

Brazil’s second Solana ETF

However, the recently approved Solana ETF remains in a pre-operational phase. Hashdex manages more than $962 million in assets and has a track record of launching innovative products on the Brazilian B3 exchange. The company has previously introduced ETFs based on the Nasdaq Crypto Index, as well as Bitcoin and Ethereum.

This development comes just weeks after the CVM confirmed Brazil’s first Solana ETF on August 8, which is offered by QR Asset, another local asset manager.

The timing of the CVM’s decision coincides with ongoing speculation about the Solana ETF situation in the US. Earlier this year, the Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs in January and Ether ETFs in June, sparking optimism that Solana could be next in line.

Several prominent asset managers, including VanEck and Franklin Templeton, have expressed interest in launching Solana ETFs.

US Approvals Solana ETF

However, recent developments have cast doubt on the likelihood of such approvals in the near term. Solana’s ETF filings, known as Forms 19b-4, were recently removed from the Chicago Board Options Exchange (Cboe) website and had not been added to the Federal Register, prompting speculation about the future of these products in the country.

On August 20, Bloomberg ETF analyst Eric Balchunas noted in an X post that the 19b-4 forms submitted by Cboe were not recognized by the SEC. As a result, the Chicago Board Options Exchange withdrew these forms, although the issuers’ S-1 filings remain active.

Form S-1 is a crucial part of the SEC’s approval process, which allows issuers to offer new securities publicly. However, you cannot move forward without the 19b-4 filings.

Nate Geraci, president of The ETF Store, sees these developments as strong indications that the ETF is unlikely to get the green light anytime soon under current law.

Asked about the possibility of such an ETF this year, Balchunas replied: “Yes, almost zero chance in 2024 and if Harris wins, there’s also almost zero chance in 2025. The only hope that the IMO is if Trump wins.”

Despite these challenges, VanEck remains committed to its Solana ETF proposal with Matthew Sigel, the company’s head of digital asset research, clarifying that the filing does not mark the end of its ambitions.

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