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

Brazil’s Securities and Exchange Commission (CVM) has given its approval for a unique Solana-based exchange-traded fund (ETF), making it the first of its kind in the country. This also marks one of the first Solana-based exchange-traded products globally, with the initial product launched by Switzerland-based investment product provider 21Shares on the SIX Swiss Exchange in June 2021. The ETF is currently in a pre-operational stage and still awaits approval from the Brazilian stock exchange, B3. The product will follow the CME CF Solana Dollar Reference Rate, which was created by CF Benchmarks in collaboration with the Chicago Mercantile Exchange (CME). QR Asset, a Brazilian asset manager, will offer the ETF, while Vortx, a local fintech specializing in capital markets, will act as its manager. This move further solidifies Brazil’s position as a leading market for regulated investments in crypto assets. Additionally, Brazil has seen the listing of other notable ETFs including a Bitcoin ETF and an Ethereum ETF between 2021 and 2022, along with the introduction of BlackRock’s iShares Bitcoin Trust ETF (IBIT) in March 2024. Despite these developments, the SEC has yet to grant approval for asset managers VanEck and 21Shares to introduce a Solana-based ETF to the market.