The cryptocurrency market is booming and Solana is positioned as one of the leading candidates to lead the next altcoin rally. In this way, Brazil becomes the first country in the world to launch this instrument on the market.
The Securities and Exchange Commission (CVM) of Brazil approved the creation of the first Solana-based exchange-traded fund (ETF) (SOL) in the South American giant. There is one more step left for it to be launched on the market.
Brazil is on track to launch its first Solana-based ETF, an innovative financial instrument that will be created by QR Asset and managed by Vortx. Currently in the pre-operational stage, this ETF still needs to be approved and incorporated by the B3 Stock Exchange, with no defined launch date. In this way, Brazil is ahead of the United States and wins the race to launch this instrument on the market.
The ETF will track the CME CF Solana dollar reference ratedeveloped by CF Benchmarks with the support of the Chicago Mercantile Exchange (CME). This implies that the value of the ETF will be aligned with the price of Solana in dollars, taking as a reference the transaction data on the main exchangesIt should be noted that there is no Brazilian firm in charge of the custody of the asset to support the fund..
Speaking after the product approval, Theodoro Fleury, Managing Director and Chief Investment Officer at QR Asset, commented that there are currently several market-traded products based on Solana (SOL). The most prominent globally is the Solana Staking ETP (ASOL) from 21Shares, whichwhich operates on Euronext Amsterdam, Euronext Paris and the Swiss Stock ExchangeAdditionally, in Canada, 3iQ Corp. has applied to the Toronto Stock Exchange (TSX) to launch a SOL fund.
Solana: the crypto that promises
With more than $1 billion in Solana ETPs, according to Bloomberg Intelligence researcher James Seyffart, Brazil becomes the first country in the Americas to offer a Solana-based ETF, adding to its existing market of Bitcoin (BTC) and Ether (ETH) exchange-traded funds.
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As Brazil moves toward launch, attention is turning to how the U.S. Securities and Exchange Commission (SEC) will handle applications to approve a Solana ETF in the country. The firms VanEck and 21Shares have filed applications for this purpose, and the Chicago Board of Traders (CBOE) has requested authorization to list these ETFs, setting a 240-day window for the SEC to respond, with a deadline of March 2025.
Matthew Sigel, head of research at VanEck, suggests that these instruments could be approved under a new administration at the SEC. Eric Balchunas, an analyst at Bloomberg Intelligence, also points out that the future of these applications will depend on the upcoming elections in the United States, where Donald Trump, the Republican presidential candidate, has expressed a favorable stance towards cryptocurrencies.
Source: Ambito
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