Brazil’s securities regulator has approved a second Solana exchange-traded fund (ETF) this month, reflecting the growing popularity of altcoin-based investment vehicles in the country. The Comissão de Valores Mobiliários (CVM) granted approval for the new ETF on Tuesday, which will be managed by Brazilian asset manager Hashdex. According to the regulator’s database, the fund is currently in its pre-operational phase.
This follows the CVM’s earlier approval of Brazil’s first Solana-focused ETF in August, developed by QR Asset and operated by administrator Vortx.
U.S. Approval Still Unclear
While Solana ETFs are gaining traction in Brazil, the situation in the United States remains uncertain. In June, VanEck and 21Shares filed for spot Solana ETFs following the initial approval of Ethereum ETFs in the U.S. VanEck’s head of digital assets research, Matthew Sigel, expressed confidence earlier this month that U.S. approval of Solana ETFs was “inevitable” after Brazil’s move.
However, recent developments suggest potential hurdles. The two 19b-4 filings were recently removed from the Cboe Global Markets website, where they had been filed on behalf of the issuers, leading to speculation about the future of these ETFs in the U.S.
Political and Regulatory Challenges
Matthew Sigel has suggested that the odds of a Solana ETF being approved in the U.S. could hinge on the outcome of the 2024 presidential election and whether Gary Gensler remains chair of the Securities and Exchange Commission (SEC). Sigel implied that a change in leadership might improve the chances of approval, particularly if Donald Trump were to win the election.
Bloomberg ETF analyst Eric Balchunas added that the Solana ETF filings were never posted on the SEC’s website, effectively making them dead on arrival. This led Cboe to withdraw the listings, though the issuers may still have active S-1 filings for the proposed funds.
Looking Ahead
Despite these setbacks, Sigel tweeted late Monday that VanEck’s plans for a Solana ETF are still “in play.” He explained that while exchanges like Nasdaq and CBOE file rule changes (19b-4) to list new ETFs, issuers like VanEck are responsible for the prospectus (S-1), which remains active.
Credit: Decrypt (Text Excluding Headling)
