Brazil’s SEC Approves The Country’s First Solana ETF

Updated: 08 August 2024

Disclosure

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Join Our Telegram channel to stay up to date on breaking news coverage

The Brazilian Securities and Exchange Commission (CVM) has approved a Solana ETF (exchange-traded fund), the first investment product of its kind in the country.

Following the disclosure in the CVM’s central database on Aug. 7, the product is still in its pre-operational phase awaiting approval from Brazil’s main stock exchange, B3.

SOL Barely Reacts To Brazil’s Solana ETF Approval

A local news organization by the name of Exame reported that the newly-approved Solana ETF will follow the CME CF Solana Dollar Reference Rate, which was created by the CF Benchmarks with the support of the Chicago Mercantile Exchange (CME). This index is a benchmark rate that aims to provide a reliable dollar rate for SOL.

Local asset manager QR Asset will offer the ETF, while Brazilian fintech Vortx will serve as the product’s manager, the report added.

This new fund will also be among the first launched globally. Swiss investment product provider 21Shares launched the first Solana ETF on the SIX Swiss Exchange back in June 2021.

SOL’s price has hardly reacted to the news, printing a minor gain in the last 24 hours to trade at $154.28 as of 3:50 a.m. EST.

US SEC Has Until March 2025 To Deny Or Approve SOL ETFs

In the US market, VanEck and 21Shares submitted applications to launch their own Solana-based ETFs in June. At the start of July, the Chicago Board Options Exchange (CBOE) submitted two 19b-4 filings for the two asset managers to the US Securities and Exchange Commission (SEC).

SEC guidelines require that the commission either deny or approve the CBOE’s request to list the Solana ETFs within 240 days after the filings were submitted. This brings the deadline for the decision to around March 2025.

Bitwise Chief Compliance Officer Katherine Dowling discusses her firm's Ether ETF application and the potential for new products tied to crypto https://t.co/hKIvliRCnX pic.twitter.com/PvMFeG4wWU

— Bloomberg Crypto (@crypto) July 9, 2024

With still a few months before the SEC has to reveal its decision, Bitwise’s chief compliance officer Katherine Dowling said in a July 9 interview with Bloomberg that the SEC has been open to discussions regarding ETFs for cryptos other than Bitcoin and Ethereum.