Brazil Approves Second Solana ETF as US Regulators Mull Token’s Classification

Brazil's regulator has approved the second Solana exchange-traded fund [ETF] as per the CVM database. The new SOL ETF is issued by Brazil-based asset manager Hashdex

Brazil has authorized the second Solana (SOL) exchange-traded fund (ETF) in the country, according to the Brazilian Securities and Exchange Commission (CVM) database.

The new SOL ETF is being launched by Brazilian asset manager Hashdex, which has over $962 million in assets under management, in partnership with local investment bank BTG Pactual.

According to the CVM, the new fund is currently in a pre-operational phase.

Earlier this year, the South American nation created history when the CVM greenlighted the first-ever spot SOL ETF. The fund is being offered by QR — known for its Bitcoin and Ethereum ETFs — and will be managed by Vortx.

Currently, the ETF is awaiting final approval from B3, Brazil's main stock exchange, and is expected to hit the market within 90 days.

Following the approval of the Ethereum ETF, there was speculation among crypto enthusiasts about the possibility of a spot SOL ETF.

However, in the United States, experts have expressed concerns over the token's close ties with Solana Labs, which could lead regulators to classify it more as a security or stock rather than a commodity asset, presenting potential legal hurdles.

In light of this, the U.S. Securities and Exchange Commission (SEC) recently held a closed-door meeting with ETF issuers to discuss whether the token could be classified as a security.

After the discussions, CBOE decided not to submit the relevant 19b-4 form to avoid initiating the approval process. While VanEck's S-1 registration statement for the Solana ETF is still available for viewing, 21Shares' registration statement has been withdrawn.

Solana ETFs In the USDespite other cryptocurrencies, such as Bitcoin and Ethereum, having approved ETFs, experts believe that the chances of SOL ETFs being approved in the U.S. under the current administration are low, and it might not happen until 2025, if at all.

Despite these concerns, there is a palpable buzz around Solana ETFs in the U.S. The head of Digital Asset Research at VanEck is still bullish on the SOL ETF, even after CBOE withdrew its 19b-4 filing.

Furthermore, the Brazilian regulator's approval of the SOL ETF is sure to capture the attention of institutional investors and financial advisors, who are increasingly exploring avenues to offer SOL exposure to their clients.

If successful, this could potentially accelerate the mainstream adoption of Solana and its ecosystem and further integrate its technology into global financial systems.