Brazil set to debut its first Solana ETF

Key Takeaways

• The Brazilian Securities and Exchange Commission has approved the first Solana ETF in Brazil.
• The move solidifies Brazil's position as a leader in the crypto ETF market, following previous approvals for Bitcoin and Ethereum ETFs.

Brazil’s first Solana exchange-traded fund (ETF) will launch soon after getting the nod from the Brazilian Securities and Exchange Commission (CVM), according to a recent report from Exame, one of the country’s leading publications. The fund aims to provide Brazilian investors with diversified exposure to Solana (SOL).

The ETF is issued by QR Asset Management, Brazil’s leading asset manager, and managed by Vortx, a key player in the country’s fintech scene. QR Asset has over R$876 million in assets under management and has over 100,000 direct and indirect clients, according to the firm’s website .

“This ETF reaffirms our commitment to offering quality and diversification to Brazilian investors. We are proud to be global pioneers in this segment, consolidating Brazil’s position as a leading market for regulated investments in crypto assets,” said Theodoro Fleury, Chief Investment Officer of QR Asset.

The fund is set to trade on B3, Brazil’s major stock exchange, but the exact date of trading debut is yet to be disclosed. B3 is also the exchange that facilitates the trading of iShares Bitcoin Trust BDR (IBIT39), BlackRock’s first Brazilian Bitcoin ETF. The fund went live in March this year.

The investment product will use the CME CF Solana Dollar Reference index for its pricing, which aggregates transaction data from major crypto exchanges to provide a reliable valuation of SOL, the report stated.

Will the US follow suit?

The CVM’s approval could help strengthen Brazil’s position as a leader in regulated crypto investments, especially as Solana ETFs, as well as other ETFs linked to crypto assets apart from Bitcoin (BTC) and Ethereum (ETH), have not made progress with the US securities regulator yet.

While the SEC has approved several spot Bitcoin and Ethereum ETFs, its stance on Solana as a security remains unclear. A recent development in the SEC vs. Binance lawsuit provides some hope that the SEC will no longer classify SOL as a security . Still, more clarification is necessary.

Meantime, many financial leaders are not optimistic that a potential spot Solana ETF will come any time soon in the US. JPMorgan predicts that Solana ETF approval is unlikely for the time being.

Robert Mitchnick, BlackRock’s Head of Digital Assets, previously expressed skepticism about adding a Solana ETF to their offerings due to concerns about limited client demand .

Even so, some prominent asset managers continue to push for the regulator’s approval to spot Solana ETFs.

In late June, VanEck and 21Shares submitted their applications for spot Solana products. The two firms are seeking approval from the SEC to list their respective ETFs, and the filings have initiated a regulatory review process.