In a significant move for the cryptocurrency sector, Brazil has approved its second Solana ETF (Exchange-Traded Fund), further establishing itself as a leader in institutional adoption of digital assets in Latin America. This approval follows the recent sanctioning of the world’s first Solana ETF earlier this month.
Brazilian SEC (CVM) Endorses New Solana ETF
On August 20, Brazil’s Comissão de Valores Mobiliários (CVM), akin to the U.S. Securities and Exchange Commission (SEC), granted approval for a second Solana ETF. The new fund, managed by Hashdex in collaboration with local investment bank BTG Pactual, reinforces Brazil’s position at the forefront of cryptocurrency investment.
Hashdex, a prominent crypto asset manager in Latin America, is known for launching Brazil’s first crypto index ETF (HASH11) and currently manages $820 million in assets, serving over 245,000 investors globally. The new SOL ETF, which is in the pre-operational phase, is set to debut soon. For context, Brazil’s first SOL ETF (QSOL11), from QR Asset Management, is scheduled to commence trading on the B3 stock exchange on August 28.
Solana’s Rising Popularity in Latin America
This recent approval underscores Latin America’s rapid expansion as a hub for Solana-related activity. Cryptocurrency adoption in the region has surged, driven by economic instability and political issues in countries such as Venezuela and Argentina. Despite Venezuela’s recent ban on crypto mining, grassroots organizations are thriving, with Solana emerging as a favored platform for digital transactions and onboarding. In 2024 alone, Solana Allstars has hosted over 12,600 participants at its Latin American events.
U.S. Solana ETF Approval Faces Challenges
In contrast, the prospects for a Solana ETF in the U.S. remain bleak. The SEC recently rejected 19b-4 Solana ETF filings, citing concerns about the asset’s regulatory status and the lack of CME-approved Solana futures markets. Bloomberg analyst Eric Balchunas has remarked that U.S. approval for a Solana ETF has “a snowball’s chance in hell,” suggesting that a favorable decision might only be possible under significant political changes.
While U.S. approval remains uncertain, Brazil’s ongoing advancements in cryptocurrency ETFs reflect a growing global appetite for digital asset-based investment products. This trend could inspire other countries to follow Brazil’s lead, solidifying Solana’s reputation as a major player in the cryptocurrency space.
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