Lawrence Damilola
The Brazilian Securities and Exchange Commission (CVM) has approved a second Solana (SOL) exchange-traded fund (ETF), according to its central database. Despite the altcoin becoming popular in Brazil, its journey towards getting an ETF approved in the United States is still uncertain.
As per the central database, this new ETF, still in a pre-operational phase, is offered by Hashdex, a Brazil-based asset manager with $962 million in assets under management, in partnership with the local investment bank BTG Pactual. Hashdex has previously introduced multiple crypto-based ETFs on the B3 Brazilian stock exchange, including the Nasdaq Crypto Index and ETFs tied to Bitcoin and Ethereum.
This approval follows QR Asset, another Brazilian asset management firm, launching Brazil’s first Solana ETF earlier this month. QR Asset managed the ETF, which was made operational with the assistance of administrator Vortx.
In the United States, Solana ETFs face a different regulatory environment. In June, asset management firms VanEck and 21Shares both filed applications for spot Solana ETFs following initial approvals of Ethereum ETFs. However, those filings hit an obstacle when they were removed from the website of Cboe Global Markets, the exchange that had initially submitted them on behalf of the issuers.
ETF analyst Eric Balchunas explained on X on Tuesday that the absence of the filings on the U.S. Securities and Exchange Commission (SEC) website essentially rendered them inactive.
“A snowball’s chance in hell of approval unless there’s change in leadership,” Balchunas commented regarding the current SEC’s stance under Chairman Gary Gensler. He also linked the regulatory outlook to political factors, suggesting that the 2024 U.S. elections could influence future decisions. “Near-zero chance in 2024, and if Harris wins, there’s probably near-zero chance in 2025 too,” Balchunas added. “Only hope [in my opinion] is if Trump wins.”
Despite these challenges, VanEck’s head of digital asset research, Matthew Sigel, expressed confidence that their Solana ETF application remains active. “Remember that exchanges like Nasdaq & Cboe file rule changes (19b-4) to list new ETFs. Issuers like VanEck are responsible for the prospectus (S-1),” Sigel said in a tweet, emphasizing that their filing is “still in play.”
As Brazil moves ahead with its Solana ETFs, there is no clear timeline for when or if the SEC could approve similar products in the United States.
Read more
- Shiba Inu Leaders to Relinquish Control, Aim for Full Community Governance by End of 2024
- Experts Debunk Viral Claim of Kamala Harris Endorsing Biden’s Capital Gains Tax
- Shiba Inu’s Shytoshi Kusama: BONE is Indispensable for Future Growth
Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
