Brazil’s securities regulator has approved a second Solana exchange-traded fund (ETF) in August, offered by the popular crypto asset manager Hashdex. The new SOL ETF, named “Hashdex Nasdaq Solana Index Fund,” is in its pre-operational stage and managed by Hashdex in collaboration with a major Brazilian investment bank, BTG Pactual. This approval follows the first Solana ETF approval in Brazil earlier in the month by asset manager QR Asset, reinforcing the country’s position as a leading market for regulated investments in crypto assets. Brazil’s stock exchange, B3, already offers ETFs and ETF receipts related to crypto assets, including BlackRock’s iShares Bitcoin Trust ETF (IBIT) introduced in March.
In the US, where spot Bitcoin and Ether ETFs have been approved, asset managers VanEck and 21Shares filed for a Solana-based spot ETF in June, seeking to list on the Cboe BZX Exchange. However, the Solana ETF filings from both firms appear to have been removed from the Cboe website, leading to speculation within the community. Despite this, VanEck’s head of digital assets research, Matthew Sigel, stated on Twitter that the Solana ETF application is still active. Bloomberg ETF analyst Eric Balchunas remarked that the Solana ETFs failed to progress past step 2 due to the SEC’s lack of acknowledgment, indicating a slim chance of approval. Balchunas believes a change in leadership at the SEC under Gary Gensler may be necessary for a potential approval in the future.
Balchunas further emphasized that the approval of a Solana ETF in the US is highly unlikely in 2024, even if Vice President Harris wins the presidential election in 2025. He suggested that a change in leadership, possibly with a Trump administration, may be the only hope for a Solana ETF approval in the future. The SEC, under Gensler’s leadership, has been actively pursuing enforcement actions against numerous crypto projects and startups. With a focus on regulatory clarity and investor protection, the current SEC stance towards crypto ETFs, particularly Solana-based ones, remains cautious and restrictive. Balchunas believes that a significant shift in regulatory approach may be necessary for any potential approval.
As the global regulatory landscape continues to evolve, countries like Brazil are positioning themselves as favorable environments for regulated crypto investments. The approval of multiple Solana ETFs in Brazil reflects a growing acceptance of cryptocurrencies and blockchain technologies within the traditional financial sector. While Brazil’s stock exchange already offers various ETFs and ETF receipts related to crypto assets, the introduction of Solana-based ETFs further diversifies investment options for local investors. The regulatory approval process in Brazil appears to be more accommodating towards new crypto products, contrasting with the challenges faced by similar initiatives in the US.
In conclusion, the approval of a second Solana ETF in Brazil highlights the country’s progressive approach towards regulated crypto investments, setting a precedent for other jurisdictions. The contrasting experiences between Brazil and the US in terms of ETF approvals underscore the regulatory complexities surrounding crypto assets and the need for regulatory clarity. Despite the challenges faced by Solana ETF applications in the US, the future outlook for crypto ETFs remains uncertain, with potential regulatory changes playing a critical role in determining the fate of such products. As the crypto industry continues to mature, regulatory developments will shape the landscape for investors, asset managers, and exchanges seeking to introduce innovative financial products based on blockchain technologies like Solana.
