Brazil's CVM approves second Solana spot ETF

Brazil’s Comissão de Valores Mobiliários (CVM) has approved its second Solana spot exchange-traded fund (ETF), reinforcing its position as the only global regulator to authorize such a product.

The approval came just days after the CVM sanctioned the world’s first Solana spot ETF, highlighting Brazil's pioneering role in the crypto ETF space.

The newly approved Solana spot ETF will be offered by Hashdex, a Brazilian asset manager with $962 million under management, in collaboration with investment bank BTG Pactual.

According to the CVM’s database, the fund is currently in its pre-operational stage, preparing to launch in the near future.

Hashdex, which already offers a Nasdaq Crypto Index ETF and Bitcoin and Ethereum ETFs, is the second asset manager to receive approval for a Solana spot ETF from the CVM.

On August 8, 2024, CVM made headlines by approving the first-ever exchange-traded Solana spot ETF, to be managed by asset manager QR with Vortx handling fund management.

This development underscores Brazil’s regulatory support for cryptocurrency ETFs, particularly as other global markets, like the United States, face significant regulatory hurdles.

In the U.S., the SEC has yet to approve a Solana spot ETF, with the Chicago Board Options Exchange (CBOE) recently withdrawing its 19b-4 filings for such a product from its website.

Bloomberg analyst Eric Balchunas commented on the U.S. situation, noting that the SEC’s refusal to post the filings signals a low likelihood of approval.

Despite this setback, VanEck’s Head of Digital Asset Research, Matthew Sigel, insisted that the approval process for their Solana spot ETF is still ongoing.

The contrast between Brazil’s progressive stance and the U.S.’s regulatory hesitancy highlights differing approaches to crypto asset management globally.

As Brazil continues to lead in the approval and regulation of crypto ETFs, it sets a precedent for other countries considering similar products.

The success of Brazil’s Solana ETFs could inspire other markets to explore more supportive regulatory frameworks for crypto assets, potentially influencing global trends in digital asset management.

At the time of reporting, Solana (CRYPTO:SOL) price was $142.69.