Brazil’s Securities and Exchange Commission Approves Solana-Based ETF

As a seasoned investor with over two decades of experience in the global financial market, I have witnessed numerous groundbreaking innovations and products that have reshaped the investment landscape. Among these revolutionary developments, the launch of the first Solana-based exchange-traded product (ETP) in Brazil stands out as an exciting milestone. Being deeply rooted in my passion for exploring new opportunities and staying ahead of market trends, I find myself captivated by this novelty.

Based on information from the CVM’s database, the Solana-backed ETF is currently in a preparatory phase, meaning it hasn’t been officially endorsed by Brazil’s stock exchange, B3. Exame, a local news outlet, also reported that this product will be tied to the CME CF Solana Dollar Reference Rate, which was developed by CF Benchmarks in collaboration with the Chicago Mercantile Exchange (CME).

According to the report, QR Asset (a Brazilian asset manager) plans to launch an ETF, with Vortx (a local financial tech company specializing in capital markets) taking on the role of its manager.

As an analyst, I can express that the selection of this ETF underscores our dedication to providing quality and diversity to Brazilian investors. We take pride in being at the forefront globally within this specific segment, thereby strengthening Brazil’s standing as a prominent market for regulated crypto asset investments, as stated by Theodoro Fleury, our manager and chief investment officer, in a released statement.

In terms of its contribution, the biggest South American nation has proven to be a productive setting for Exchange-Traded Funds (ETFs). Over the period between 2021 and 2022, it listed Bitcoin ETF and Ethereum ETF options on B3, while it began providing access to BlackRock’s iShares Bitcoin Trust ETF (IBIT) in March 2024.

In July, Cboe petitioned the Securities and Exchange Commission (SEC) for permission to allow asset managers VanEck and 21Shares to launch a Solana-backed Exchange Traded Fund (ETF) on the market; however, this request has yet to be approved.