Brazil Approves $SOL ETF, Outpaces the US and Canada

• On August 7, Brazil approved the world's first Solana ($SOL) ETF, outpacing the US, Canada, and Europe.
• The ETF was created by QR Asset and will be listed on the B3 stock exchange.
• Despite the recent dip, $SOL shows signs of recovery, fueled by ETF approval and buying pressure.

On Wednesday, Brazil's Securities and Exchange Commission (CVM) authorized the world's first $SOL ETF, created by QR Asset, a local asset manager, and operated by Vortx, a fund administrator. Now, the product awaits approval by the stock exchange B3.

Let's unpack what this means for $SOL and the broader crypto market in Brazil.

The World's First $SOL ETF

QR Asset's chief investment officer, Theodoro Fleury, said the firm is pioneering the crypto ETFs market and consolidates Brazil's position as a leader in regulated crypto investments.

After the introduction of $BTC and $ETH ETFs, many analysts predicted $SOL would be next in the US. However, Brazil outpaced the entire world.

While Switzerland's asset manager 21Shares launched a $SOL Exchange-Traded Note (ETN) in 2021, it's a different product that works as a bond rather than a fund.

Brazil's $SOL ETF will expose investors to the token without owning it directly. This way, traditional investors can benefit from $SOL price swings under CVM's regulatory protection.

The new ETF will track the CME CF Solana Dollar Reference Rate, a benchmark created by CF Benchmarks and the CME.

$SOL in High Demand, US ETF Approval Lags

A recent CoinShares survey found that nearly 20% of wealth managers and hedge funds hold $SOL, which is only outpaced in popularity by $BTC and $ETH.

Despite the growing demand among institutional investors, the US is not in a rush to launch a $SOL ETF.

Earlier this year, 21Shares and VanEck filed $SOL ETF applications to the US Securities and Exchange Commission (SEC), which greenlighted $BTC ETFs in January and $ETH ETFs in June.

Canadian firm 3iQ has also filed for a $SOL ETF listing on the Toronto Stock Exchange, but the Commodity Futures Trading Commission (CFTC) is still reviewing the application.

British bank Standard Chartered considers a $SOL ETF launch in the US highly likely yet expects it to happen in 2025 rather than 2024.

$SOL's Price Rollercoaster

Meanwhile, $SOL started to recover from its wild ride triggered by the stock market crash. On August 5, $SOL hit $111, a 45% drop from its 2024 peak of $202.

However, the ETF approval and buying pressure pushed the $SOL price up, helping it rebound to $156, a 40% increase from Monday's plunge.

Earlier this summer, Solana rolled out several major updates, including ZK Compression technology and Solana Actions. While the stock market turmoil has temporarily derailed the bullish trend, overall community sentiment remains positive.

Closing Remarks

While Brazil pioneers the crypto ETFs market, the US stays behind due to regulatory uncertainty. A regulated and accessible way to invest in crypto may help Brazil attract both domestic and international capital, stimulating the country's economy.

References

• Solana (CoinMarketCap)
• ETF vs. ETN: What's the Difference? (Investopedia)
• Digital Asset Fund Manager Survey - Aug. 24 (CoinShares)

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