The Brazilian Securities and Exchange Commission has approved the application for Solana exchange-traded funds ETF. According to local reports, following the approval, Brazil became the first country in South America and the world at large to launch the Solana ETF.
As revealed, the exchange-traded fund will be created by the QR Asset manager. To ensure the smooth running of the initiative, the Solana ETF will be managed by Vortx.
Despite the approval, the launching of the Solana ETF is hanging in the air. According to local reports, the launching of the investment instrument is dependent on the final approval of B3. Don’t forget that the Brazilian Stock Exchange is under the management of B3 and there are no indications of when the firm will approve the launching.
Also, the fund will have the CME CF Solana Dollar Reference Rate index designed by the CF Benchmarks with the backing of the Chicago Mercantile Exchange (CME). However, the approval further cements the position of Brazil as one of the leading crypto ETF markets in the world.
The country has witnessed the launching of BTC and Ether ETF since 2021 long before the eventual launching of the investment instruments in the United States. In addition, the country has also witnessed the launching of multi-assets funds that permits investors to invest on more than one cryptocurrency.
Low Chances of Launching Solana ETF
On the flip side, the launching of the Solana ETF in Brazil could trigger other countries, most especially the United States, to follow suit. Recall that in 2024 alone, the United States Securities and Exchange Commission (SEC) has approved applications for BTC and Ether ETF leading to speculations that the investment instrument in other cryptocurrencies will follow suit.
Intensifying these speculations is how popular asset manager VanEck filed a request to the SEC to launch the Solana ETF this year. Similarly, Franklin Templeton has also shown interest in launching the financial instrument in Solana.
However, there are little hopes that such a move will materialize. Among those that share such sentiment is leading financial institution, JPMorgan. The Bank once opined that it is quite unlikely for the United States Securities and Exchange Commission to permit the launching of Solana ETF.
Meanwhile, truly, there is a slim chance for the SEC to approve such applications due to how it classifies SOL as a security.