Brazil Approves Second Solana-Based ETF
Brazil’s Securities and Exchange Commission (CVM) has approved the second Solana-based exchange-traded fund (ETF) this week, thus making it the second ETF that is getting approval in August. The current development shows how Brazil is becoming a leading nation in investing in cryptocurrency through regulations, which is an example that other countries especially the United States have not yet followed.
Hashdex Leads the Way with New ETF
The newly authorized product of the Hashdex and Nasdaq companies, namely the Hashdex Nasdaq Solana Index Fund, is as of now under formation. This ETF will be managed by Hashdex, an established crypto asset manager, in partnership with Brazilian investment bank BTG Pactual and this is likely to be of high interest to investors who want to participate in the growing Solana (SOL) blockchain network.
This was after QR Asset’s first Solana ETF had been approved by another asset manager, QR Asset, on August 8th. Theo Fleury, the Chief Investment Officer of QR Asset, this approval is a continuation of Brazil’s leadership as a “leading market for regulated investments in crypto assets” statement.
Brazil’s Growing Crypto Investment Market
Brazil’s stock exchange, B3, has already given out various ETFs and ETF receipts to the cryptocurrency assets, such as BlackRock’s iShares Bitcoin Trust ETF (IBIT) since March. The country also launched Bitcoin futures trading in April, thus also providing for the increasing demand for crypto-derivatives as a means of hedging against price fluctuations.
US Solana ETFs Face Regulatory Roadblocks
Brazil is making great strides toward a better regulatory environment while the case of the US which is a polar opposite is still the same. Despite the fact that the SEC has sanctioned spot Bitcoin and Ether ETFs, attempts to launch a Solana-based ETF in the US have met with objections.
In June, two major asset managers VanEck and 21Shares filed for a Solana edge-based ETF aiming to launch it on the Cboe BZX Exchange. Though, the applications are suddenly missing from the Cboe website, which caused a mixture of fear and excitement in the community.
Analysts Weigh In on US Prospects
According to Matthew Sigel, who is the head of digital assets research at VanEck, the Solana ETF application is “still working” even though it was removed from the Cboe website. But, Bloomberg ETF analyst Eric Balchunas thinks it is unlikely. He remarked that the SEC, which is currently led by Gary Gensler, will not approve any Solana ETFs shortly. He added that though a change in leadership might be required for any progress to be made.
Balchunas also stated that there is a zero chance in 2024 of the Solana ETF being approved and provided that even a change in political leadership, might not force the SEC’s current position.
Conclusion
As Brazil has moved forward in its regulated crypto investments, the United States has continued to face challenges in coming up with the similar products. The differences in the regulatory approaches show that the crypto market is a very complex and uncertain industry at the international level.
