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Breaking: Brazil Approves World First Spot Solana ETF
- Brazil’s CVM has approved a Spot Solana ETF, which will use the CME CF Solana Dollar Reference Rate for pricing and start trading on the B3 exchange within three months.
- The ETF, issued by QR Asset and managed by Vortx, emphasises Brazil’s role as a leader in regulated crypto investments.
- Despite this advance, the US remains hesitant about similar crypto funds, with major firms citing limited interest beyond major cryptocurrencies like ETH and BTC.
The United States may lead the world in terms of medals won in Paris, but they have just failed to secure a spot on the podium when it comes to crypto. According to a report, the Brazilian Securities and Exchange Commission (CVM) has just approved the world’s first Spot Solana exchange-traded fund.
Related: Expert Cites Lack of Investor Interest, Doubts Approval for Solana, Cardano ETFs
The news of the fund approval was reported late Wednesday local time in one of the country’s leading business magazines, exame.
The new Solana ETF approved by the CVM will use the CME CF Solana Dollar Reference Rate as its pricing benchmark. This rate, developed by a partnership between the Chicago Mercantile Exchange (CME) and Crypto Facilities (CF), aims to provide a reliable and standardised US dollar valuation of SOL by aggregating transaction data from major cryptocurrency exchanges.
Brazilian Spot Solana Fund to Start Trading Within Next 3 Months
The fund, created by QR Asset and managed by Vortx, will see a trading start on Brazil’s B3 exchange within 90 days. The fund will soon start raising initial funding from early investors.
Theodoro Fleury, manager and chief investment officer of QR Asset, commented on the importance of the approval.
This ETF reaffirms our commitment to offer quality and diversification to Brazilian investors. We are proud to be a global pioneer in this segment, consolidating Brazil’s position as a leading market for regulated investments in crypto assets.
Theodoro Fleury, manager and chief investment officer of QR Asset At the time of writing, SOL has not reacted to the news, with the fifth largest coin by market cap trading at US$143.32 (AU$219.77).
US Fund Managers with Mixed Feelings About SOL ETF
While the new Solana fund is technically a world premiere, being the first proper ETF, other similar products have existed before. Europe has several Solana ETPs which have been trading as 21Shares’ ASOL or VanEck’s VSOL.AS to name just two.
ETP (Exchange-Traded Product) and ETF (Exchange-Traded Fund) are both types of investment funds that can be bought and sold on stock exchanges, just like shares. However, while all ETFs are ETPs, not all ETPs are ETFs and they differ somewhat.
ETFs are funds in the traditional sense, owning the underlying assets they track. Shareholders indirectly own a part of these assets.
On the other hand, ETPs can be structured as debt securities, not actually holding the assets they track, but rather promising to pay a return linked to their performance.
Related: Peter Brandt Draws Parallels Between Recent Crypto Crash and 2016’s Bull Run Onset
Because of a lack of prior investment vehicles, the US market is currently not poised to receive a Solana ETF anytime soon.
While VanEck is bullish on a US launch, others, like BlackRock and Katalin Tischhauser from Sygnum Bank, have cited a lack of institutional interest in anything beyond ETH and BTC as one of the main reasons against a launch.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
