Brazil’s Securities and Exchange Commission (CVM) has given the green light to a second Solana exchange-traded fund (ETF), weeks after approving the first one on August 8.
According to the CVM central database, the product will be launched by Hashdex, a Brazil-based asset manager, in collaboration with local investment bank BTG Pactual.
Solana’s second ETF in Brazil
However, the new approved Solana’s ETF is in the pre-operational phase. Hashdex manages over $962 million in assets and has a track record of launching innovative products on the Brazilian B3 exchange. The company has already launched ETFs based on the Nasdaq Crypto Index, as well as Bitcoin and Ethereum.
This development comes just weeks after the CVM confirmed Brazil’s first Solana ETF will be launched on August 8, offered by QR Asset, another local asset manager.
The timing of the CVM’s decision coincides with ongoing speculation about the status of Solana’s ETF in the US. Earlier this year, the Securities and Exchange Commission (SEC) approved Bitcoin spot ETFs in January and Ether spot ETFs in June, sparking optimism that Solana could be next in line.
Several prominent asset managers, including VanEck and Franklin Templeton, have expressed interest in launch Solana ETF.
Solana ETF Approvals in the US
However, recent events have cast doubt on the likelihood of such approvals being approved anytime soon. Solana’s ETF applications, known as Form 19b-4s, were recently deleted from the Chicago Board Options Exchange (Cboe) website and had not been added to the Federal Register, leading to speculation on the future of these products in the country.
On August 20, Bloomberg ETF analyst Eric Balchunas highlighted in an X post that the 19b-4 forms filed by Cboe were not recognized by the SEC. As a result, the Chicago Board Options Exchange withdrew these forms, although the issuers’ S-1 filings remain active.
Form S-1 is a crucial part of the SEC approval process, as it allows issuers to offer new securities publicly. However, it cannot move forward without 19b-4 filings.
Nate Geraci, President of The ETF Store, views These developments are strong indications that the ETF is unlikely to be green-lit anytime soon under current legislation.
When asked about the possibility of such an ETF this year, Balchunas answered“Yes, the probability is almost zero in 2024, and if Harris wins, there is likely to be a near-zero probability in 2025 as well. In my view, the only hope is for Trump to win.”
Despite these challenges, VanEck remains committed to its Solana ETF proposal with Matthew Sigel, the firm’s head of digital asset research, clarifying that the withdrawal of the file does not mean the end of their ambitions.
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