TLDR:
Brazil approved a second Solana ETF, while U.S. approvals remain uncertain
VanEck and 21Shares filed for Solana ETFs in the U.S. in June 2024
Cboe removed Solana ETF filings from its website, signaling regulatory challenges
Bloomberg analyst suggests slim chances of U.S. approval under current SEC leadership
VanEck exec claims their Solana ETF plans are still “in play”
Brazil’s securities regulator, the Comissão de Valores Mobiliários (CVM), approved a second Solana exchange-traded fund (ETF) on August 21, 2024.
This approval follows the country’s first Solana ETF earlier in the month, indicating growing interest in cryptocurrency-based investment vehicles in the Brazilian market.
The newly approved ETF will be offered by Brazil-based asset manager Hashdex and is currently in a pre-operational phase. This development comes after the CVM’s earlier approval of a Solana ETF created by Brazilian asset manager QR Asset and operated by administrator Vortx.
While Solana ETFs gain momentum in Brazil, the situation in the United States remains uncertain. In June 2024, both VanEck and 21Shares filed applications for spot Solana ETFs with the U.S. Securities and Exchange Commission (SEC). These filings followed initial approvals of Ethereum ETFs, sparking optimism among some industry observers.
However, recent events have cast doubt on the prospects of Solana ETF approvals in the U.S. The Cboe Global Markets website, which had originally filed the 19b-4 forms on behalf of VanEck and 21Shares, recently removed these filings. This action has led to speculation about regulatory challenges facing Solana ETFs in the United States.
Bloomberg ETF analyst Eric Balchunas commented on the situation, stating that the filings were never posted on the SEC’s website, effectively making them “dead on arrival.” Balchunas expressed skepticism about the chances of approval under the current SEC leadership, led by Chair Gary Gensler.
Nice flow chart showing how the Solana ETF filings never made it past Step 2 (the SEC failed to ack them) = DOA. So the exchanges withdrew 19b-4s altho the issuers’ S-1s are still active. A snowball’s chance in hell of approval unless there’s change in leadership via @JSeyff pic.twitter.com/e8BNKT33KH
— Eric Balchunas (@EricBalchunas) August 20, 2024
The analyst suggested that changes in U.S. political leadership might be necessary for Solana ETF approvals to move forward.
Balchunas noted, “Near-zero chance in 2024, and if Harris wins, there’s probably near-zero chance in 2025 too. Only hope [in my opinion] is if Trump wins.”
Despite these setbacks, VanEck’s Head of Digital Assets Research, Matthew Sigel, maintains that the firm’s Solana ETF plans are still “in play.” Sigel clarified that while exchanges like Nasdaq and Cboe file rule changes (19b-4) to list new ETFs, issuers like VanEck are responsible for the prospectus (S-1), which remains active.
The regulatory status of Solana (SOL) in the U.S. has been a subject of debate. The SEC previously labeled Solana and other altcoins as securities in lawsuits against cryptocurrency exchanges. However, the agency recently reversed its position on Solana’s classification in one case while maintaining it in others.
This regulatory uncertainty poses a significant challenge for potential Solana ETF approvals in the United States. The SEC is unlikely to approve a spot ETF for an asset it considers a security, creating a hurdle for Solana-based investment products.
The post Brazil Says ‘Yes’ to Solana (SOL) ETFs, But Will the U.S. Follow Suit? appeared first on Blockonomi.
