Brazilian Securities and Exchange Commission Approves First Solana ETF

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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August 8, 2024 01:36 EDT

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The Brazilian Securities and Exchange Commission (CVM) has approved a Solana-based exchange-traded fund (ETF).

The approval was disclosed in the CVM’s central database on Wednesday, according to local news outlet Exame.

The Solana-based ETF is the first of its kind in Brazil and one of the pioneering Solana-based exchange-traded products (ETPs) globally.

The initial Solana ETP was launched by Switzerland’s 21Shares on the SIX Swiss Exchange in June 2021.

Brazil’s Solana ETF in Pre-Operational Stage

Currently, the Solana ETF is in a pre-operational stage and awaits approval from the Brazilian stock exchange, B3.

The ETF will follow the CME CF Solana Dollar Reference Rate, developed by CF Benchmarks with the Chicago Mercantile Exchange (CME).

Brazilian asset manager QR Asset will offer the ETF, with Vortx, a local fintech specializing in capital markets, serving as its manager.

“This ETF reaffirms our commitment to offering quality and diversification to Brazilian investors. We are proud to be global pioneers in this segment, consolidating Brazil’s position as a leading market for regulated investments in crypto assets,” said Theodoro Fleury, manager and chief investment officer of QR Asset.

Brazil has been a fertile ground for ETFs in recent years.

The Brazilian stock exchange, B3, listed a Bitcoin ETF and an Ethereum ETF between 2021 and 2022.

In March 2024, B3 began offering BlackRock’s iShares Bitcoin Trust ETF (IBIT).

Just recently, Cboe requested the SEC to permit asset managers VanEck and 21Shares to introduce a Solana-based ETF to the market in the United States.

However, this request has yet to be approved.

Last month, asset management firm Franklin Templeton fueled speculations with its endorsement of the blockchain’s vision and achievements.

In a post on X, Franklin Templeton highlighted Solana’s progress in decentralized finance (DeFi), meme coins, and NFT innovation during the fourth quarter of 2023.

The blockchain also saw the launch of its first institutional fund by Hamilton Lane, a leading firm in alternative assets with over $900 billion under management.

Hamilton Lane’s CEO praised Solana’s low latency and high throughput, deeming it ideal for tokenization.

On Solana, we see Anatoly’s vision of a single atomic state machine as a powerful use case of decentralized blockchains, lowering information asymmetry. And we are impressed by all the activity seen on Solana in Q4 2023
-DePIN
-DeFi
-Meme coins
-NFT innovation
-Firedancer

— Franklin Templeton (@FTI_US) January 17, 2024

Brazil Warming Up To Digital Assets

Brazil has been moving toward digital assets and innovative technologies like blockchain.

Last year, the country announced it is set to issue digital identification documents for its more than 214 million citizens using blockchain technology.

The decision to leverage blockchain technology for digital identity stems from its inherent properties of immutability and decentralization.

Alexandre Amorim, president of Serpro, said that blockchain technology is crucial for protecting personal data and preventing fraud.

He claimed that the b-Cadastros blockchain platform significantly enhances the security and reliability of the National Identity Card project, offering a more secure digital experience for Brazilian citizens.

In addition to the digital identity project, Brazil is also making strides in the development of a central bank digital currency (CBDC).

In August, the government provided more details about the project, which has been rebranded as Drex.

The CBDC aims to expand business access to capital through a tokenization system associated with the Drex.