Solana (SOL) has been making headlines in two different regions. After the Solana exchange-traded fund (ETF) stalled in the US, news from Brazil reinvigorated the market.
According to recent data, the Brazilian Securities and Exchange Commission (CVM) has approved a second Solana-based ETF. The CVM approved the country’s first Solana ETF on August 8 and made it available to Brazilian asset manager QR Asset.
SOL regulatory developments in Brazil
Approval of the second Solana ETF
According to CVM’s database, investment bank BTG Pactual and Brazilian asset manager Hashdex, with a market capitalization of $962 million, will jointly offer the new Solana Spot ETF. The fund is currently in the pre-operational phase.
Comparison with the US market
Asset managers continue to face obstacles in the US, but progress has been made in Brazil, where they are receiving regulatory support to launch a SOL spot ETF.
Following the removal of the 19b-4 filings for the Solana Spot ETF from the Chicago Board Options Exchange (CBOE) website, the likelihood of the product being approved by the U.S. Securities and Exchange Commission (SEC) has further decreased. The CBOE has filed the SOL product for two asset managers, VanEck and 21Shares.
Expert knowledge
Matthew Sigel, Head of Digital Assets Research at VanEck, delved deeper into the matter. He believes that the United States will have to wait a while before launching a Solana ETF. Looking back at a crypto scam case from 2018, he talked about SOL’s status as a commodity.
He added:
“This belief is supported by evolving legal perspectives where courts and regulators have begun to recognize that while certain crypto assets may function as securities in primary markets, they behave more like commodities in secondary markets.”
Also read: SEC suspends Solana SOL ETF filings, delays approval process
Solanas market development
Recent price movements
The cryptocurrency’s volatility had also reached SOL. At press time, the asset was trading at $142.24 after falling 3% in the last 24 hours.
Also read: Can Solana (SOL) reach $500 in 2024?
The altcoin had quite a difficult month as it fell by 17%.
