Brazil’s financial landscape continues to evolve as its securities regulator, Comissão de Valores Mobiliários (CVM), has approved its second Solana exchange-traded fund (ETF) this week. 

The newly approved Solana ETF will be managed by Hashdex, a well-established asset manager in Brazil with $962 million in assets under management (AUM). The fund, currently in its pre-operational phase, represents another milestone in Brazil's embrace of digital assets. 

Hashdex, known for its previous launches, including ETFs based on Nasdaq Crypto Index, Bitcoin, and Ethereum, is partnering with local investment bank BTG Pactual for this venture.

U.S. Market Faces Hurdles

In contrast, the path to approving a Solana ETF in the United States remains filled with obstacles. 

Recent developments indicate a lack of progress in this area. Sources familiar with the situation have revealed that the U.S. Securities and Exchange Commission (SEC) rejected the 19b-4 filings for Solana ETFs submitted by VanEck and 21Shares. This rejection was a key factor in the removal of these filings from the Cboe BZX Exchange.

Solana is currently classified as a security by the SEC, complicating its approval process for an ETF in the U.S. 

However, Matthew Sigel, VanEck’s Head of Digital Assets Research, expressed a belief that Solana should be classified as a commodity rather than a security. Sigel’s perspective is informed by evolving legal views that distinguish between how crypto assets function in primary and secondary markets.

Meanwhile, Bloomberg ETF analyst Eric Balchunas has suggested that the chances of approval in 2024 are slim, with the likelihood of a breakthrough in 2025 also being low if Kamala Harris wins the US Presidential election.