Brazil Advances with Solana Spot ETF as U.S. Faces Regulatory Hurdles

The upcoming Solana Spot ETF will add to Brazil's existing crypto ETFs, which include Bitcoin and Ether funds launched in 2021.

Brazil has taken a significant step in the crypto market by receiving approval for its first Solana Spot ETF. This marks an important development as the U.S. continues to face hurdles in approving similar products.

The Brazilian Securities and Exchange Commission (CVM) has approved the ETF, which will be created by QR Asset and managed by Vortx, pending final approval from the Brazilian Stock Exchange (B3).

Solana Spot ETF to Join Lineup in Brazil

The Solana Spot ETF will join a lineup of existing crypto ETFs in Brazil, including Bitcoin and Ether funds that were launched in 2021.

This latest ETF will be prepared by QR Asset and Vortx, awaiting the final approval from B3. The fund will utilize the CME CF Solana Dollar Reference Rate index, which was developed by CF Benchmarks and has the support of the Chicago Mercantile Exchange (CME).

According to Theodoro Fleury of QR Asset, the ETF will play a crucial role in offering a diverse range of investment options for Brazilian investors.

While Brazil is moving forward, the U.S. is encountering delays in crypto-related approvals. The Securities and Exchange Commission (SEC) has yet to approve a Solana ETF, amidst concerns that Solana may be classified as a security rather than a commodity.

Several asset managers, including VanEck and Franklin Templeton, have filed for Solana ETFs, but the path to approval remains uncertain. JPMorgan has also expressed skepticism about the chances of approval, given the current regulatory landscape.

Moreover, the U.S. administration's cautious approach to crypto products is also impacting Solana ETF approvals. According to VanEck's CEO, a change in political leadership could influence the approval process.

Other factors that may affect Solana’s appeal to institutional investors include concerns about its high token issuance rate and past network congestion issues, which could affect its attractiveness for large-scale investment.

Solana Price Eyes $200 as Crypto Stagnates Near $145

Crypto trader Satoshi Flipper observes a bullish pennant pattern on Solana's four-hour price chart, hinting at a potential price surge towards $200. This analysis was shared in a post on X on Aug. 7.

However, Solana's price has been largely stagnant around the $145 level for nearly six months now. The cryptocurrency has struggled to generate any significant breakout from this price range, limiting the bullish momentum.

On a positive note, Solana recently achieved a new all-time high against Ether (ETH), reaching 0.06211 ETH.

Despite this rally, the current price is still around 41% lower than Solana's previous peak of $259, which was attained in November 2021.

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