Brazil Set to Launch First Solana ETF

The first Solana spot exchange-traded fund (ETF) could potentially begin trading on the Brazilian stock exchange before it does in any other global market.

This spot Solana ETF is currently awaiting approval from the Brazilian stock exchange, B3, following its reported approval by Brazil’s Securities and Exchange Commission (CVM) on Aug. 7.

Manthan Dave, co-founder of Palisade, a Ripple-backed digital asset custody platform, suggested that this development might encourage the world’s largest economy to consider Solana-based ETFs in the future.

Dave told Cointelegraph:

“Brazil has been one of the pro-crypto jurisdictions since they introduced the Bitcoin and Ethereum ETFs years before the US did. It has also kept up with Europe's friendly stance with respect to its ETPs. We first saw the Solana ETP in Switzerland some time ago. It has also been trading in the German markets. People in the US have been asking for a Solana ETF and now they might get it.”

ETF inflows can play a significant role in driving up a cryptocurrency’s price. For example, Bitcoin ETFs accounted for approximately 75% of new investment in the cryptocurrency by Feb. 15, as it crossed the $50,000 threshold.

However, the key question remains whether a US Solana ETF will be approved before the 2024 presidential elections. Dave elaborated:

“Considering the current election season and the prevailing sentiment, it is likely that we will see the approval of Solana ETFs before the end of this year. The key question is whether this will happen before or after the elections. With the Republicans currently seen as pro-crypto, approval before the election could significantly influence market sentiment.”

The US, however, may not immediately follow Brazil’s lead, as Bitcoin ETFs had been in the works for years before they were formally approved, noted Alejo Pinto, former IBM blockchain growth lead and founder of Solana layer-2 (L2) network Lumio.

Given the unlikely immediate approval of a US Solana ETF, such an approval could serve as a strong price catalyst for SOL. Pinto explained:

“Since it is still very uncertain, an ETF approval in the US would have a positive price impact on Solana since the probability is low and therefore not yet priced in.”

According to a bullish pennant on the four-hour chart shared by crypto trader Satoshi Flipper in an Aug. 7 X post, Solana’s next major target could be the $200 psychological mark.

However, SOL has been trading near $145 for nearly six months without a significant breakout.

Solana reached an all-time high of 0.06211 against Ethereum on Aug. 7, yet its price remains 41% below its previous all-time high of $259, achieved in November 2021.

Sources:

https://cointelegraph.com/news/brazil-first-spot-solana-etf-launch

https://exame.com/future-of-money/cvm-aprova-1o-etf-de-solana-no-brasil-e-sai-na-frente-dos-eua/

https://x.com/SatoshiFlipper/status/1821105718893629540/photo/1