Brazil's Securities and Exchange Commission approves Solana ETF
Date: 2024-08-09 Author: Henry Casey Categories: IN WORLD
The Brazilian Securities and Exchange Commission (CVM) has approved the creation of an exchange-traded fund (ETF) based on the Solana cryptocurrency. The information was published in the CVM's central database on Wednesday. The fund will be the first product of its kind in Brazil and one of the first Solana-based ETFs in the world. The first such product was launched by Swiss company 21Shares on the SIX Swiss Exchange in June 2021.
According to the CVM, the Solana ETF is in its preliminary stage and requires approval from Brazil's B3 stock exchange before it can be fully launched. Local publication Exame adds that the product will follow the CME CF Solana Dollar Reference Rate, created by CF Benchmarks with the support of the Chicago Mercantile Exchange (CME).
The ETF will be managed by Brazilian investment company QR Asset, and the fund manager will be fintech company Vortx, which specializes in capital markets. “This ETF confirms our commitment to providing high-quality and diversified products to Brazilian investors. We are proud to be pioneers in this segment, strengthening Brazil’s position as a leading market for regulated crypto-asset investments,” said Teodoro Fleury, Managing Director and Chief Investment Officer of QR Asset.
Brazil, the largest country in South America, already has a rich history of ETFs. Between 2021 and 2022, B3 listed Bitcoin and Ethereum-based ETFs, and in March 2024, it began offering BlackRock’s iShares Bitcoin Trust (IBIT) ETF.
In July, Cboe formally asked the U.S. Securities and Exchange Commission (SEC) to allow asset managers VanEck and 21Shares to market Solana-based ETFs, but the request has not yet been approved.
