SOL has outperformed in current days, with the SOL/ETH ratio hitting an all-time excessive.
Brazil’s Securities and Alternate Fee (CVM) has greenlit a spot SOL exchange-traded fund (ETF).
Notably, that is the primary Solana-based ETF in Brazil and one of many earliest such merchandise globally.
Based on a CVM submitting on Wednesday, the ETF is presently in a “pre-operational stage,” that means it’s pending additional approval from Brazil’s B3 inventory trade. Upon launch, the ETF will observe the CME CF Solana Greenback Reference Fee, a benchmark developed by the Chicago Mercantile Alternate (CME) and CF Benchmarks.
The submitting states that the ETF can be supplied by QR Asset, a Brazilian asset administration agency, and managed by Vortx, a service supplier for fund managers.
Will the U.S. Get Solana ETFs?
In 2024, the U.S. permitted spot Bitcoin and Ethereum ETFs for buying and selling, however Solana has but to obtain related approval.
In July, asset managers VanEck and 21Shares sought approval from the U.S. Securities and Alternate Fee (SEC) to introduce a Solana ETF. Nevertheless, the SEC has but to reply to this request.
Analysts presently think about the Solana ETF an extended shot. Based on Bloomberg Intelligence’s ETF skilled James Seyffart, the Van Eck fund “only has a shot to launch sometime in 2025 if we have a new admin in the White House and SEC. Even then, it’s not guaranteed.”
Ryan Lee, Chief Analyst at Bitget Research, told the Defiant that the SEC’s inconsistent application of the Howey Test and its criteria for “adequate decentralization” add uncertainty to whether Solana qualifies as a security. “This makes the trail to an ETF approval rocky for Solana,” he said.
Several criteria must be met for an ETF to gain approval, including healthy liquidity, decentralization, resistance to price manipulation, and regulatory classification of the underlying asset.
Market participants agree that the chances are low. According to the prediction market Polymarket, Solana has just a 9% chance of getting a spot ETF approved in 2024.
3iQ’s Proposed Solana ETP
In June, Toronto-based investment fund manager 3iQ unveiled plans to introduce the first Solana exchange-traded product (ETP) in North America. If given the green light by the Ontario Securities Commission, this offering would trade on the Toronto Stock Exchange.
3iQ’s Solana ETP is a closed-end fund, meaning it would issue a fixed number of shares. On the other hand, the VanEck Solana Trust filed in the U.S. would continuously create and destroy shares based on market demand.
Eric Balchunas, an ETF analyst at Bloomberg, criticized 3iQ for selecting a closed-end design for the fund.“Went from kind of a big deal to almost totally insignificant,” he said.
Notably, the very first Solana-based ETP was launched by 21Shares on the SIX Swiss Alternate in June 2021.
