Second Solana Spot ETF Product Secures Regulatory Approval in Brazil
Bullish sentiment for the Solana cryptocurrency surged rapidly as Brazilian financial regulators gave the green light for another Solana spot ETF product.
On 21 Aug 2024, Brazil made significant progress in advancing Solana ETFs. The Brazilian Securities Commission (CVM) approved a second Solana ETF managed by Hashdex. The ETF is currently in its pre-operational phase, with details on its public offering and listing expected soon. This marks another step forward in the growing adoption of Solana-based investment products in Brazil.
It is worth it to know that about two weeks ago, Brazil’s regulator approved the country’s first Solana ETF, launched by QR Assets and managed by Vortx. These recent approvals show Brazil’s effort to connect its financial sector with new technologies, making it easier for institutional investors to invest in crypto through ETFs.
Institutional investors are increasingly interested in Solana, but managing Crypto assets directly poses regulatory and technical challenges. Spot ETFs, like those recently approved in Brazil, lower the entry barrier by offering a simpler way to gain exposure to Solana.
Despite the high volatility risks, including high premiums and management fees, these ETFs provide a more accessible option for institutional players hesitant to engage directly with crypto exchanges.
America vs Solana spot ETF
Recently the U.S. The Securities and Exchange Commission (SEC) has halted the approval process for Solana spot ETFs applications, raising concerns about Solana’s classification as a security.
This decision impacts firms like VanEck and 21Shares, with the latter withdrawing their Solana spot ETF application. The SEC’s caution reflects broader regulatory challenges surrounding crypto assets. The move underscores the uncertain regulatory environment for Solana and similar cryptocurrencies in the US jurisdiction.
Solana price action
This news seems to have failed to give any significant push to Solana’s trading price. The current trading price of the cryptocurrency is $142.97, which is 17% down over the last three months.
Read also: Big Players Accumulate Bitcoin as Only 6% of Total Supply Remains Unmined: Every Year Bull Run
