CashNews.co
- On August 7, Brazil approved QR Asset’s Solana ($SOL) ETF application ahead of the US and European governments.
- Brazil was among the first countries to approve Bitcoin ($BTC) and Ethereum ($ETH) ETFs.
- Analysts expect the new ETF to drive $SOL’s price upwards, but a broader market downturn could offset the ETF’s positive impact.
Brazil could become the first country to launch a spot $SOL ETF on its stock exchange B3. Brazil’s Securities and Exchange Commission (CVM) approved the ETF application on August 7, outpacing all global jurisdictions.
Brazil Leads Crypto ETF Race
The world’s first $SOL ETF was created by QR Asset, is operated by Vortx, and awaits listing on the stock exchange B3. Theodoro Fleury from QR Asset said the ETF should consolidate Brazil as a leader in regulated crypto investments.
Although we previously saw $SOL exchange-traded products (ETPs) on European markets, the US still lags behind as traders await the SEC’s approval of 21Shares and VanEck’s ETFs.
Brazil had also introduced $BTC and $ETH ETFs years before the US or Europe did, highlighting its pro-crypto stance.
Despite Brazil’s accepting attitude toward digital assets, it doesn’t welcome innovation without strict compliance. Yesterday, Binance agreed to pay the CVM $1.7M in penalties for offering derivatives products without local authorization.
$SOL Price Outlook: ETF Impact Uncertain
Analysts suggest Brazil’s new ETF could fuel $SOL price actionmuch like $BTC rose 36% months from the SEC’s ETF authorization.
However, $ETH didn’t follow in $BTC’s footsteps. After the SEC approved eight $ETH ETFs in July, the token lost 26%, hitting $2.6K for the first time since February.
$SOL has also been on a downward trend recentlylosing 7.8% last week. The stock market turmoil has significantly contributed to $SOL’s decline, but Matthew Dixon suggests $SOL might see an upside and reach $194 soon.
Matthew Dixon, CEO at Evai
Moreover, $BTC, $ETH, and $SOL ETFs have the potential to stabilize the market by attracting institutional investors who prioritize long-term expenditures. Ryan Rasmussen, Head of Research at Bitwise, said ETFs offset sell-off pressure and dampen FUD.
Brazil’s approval of the world’s first $SOL ETF highlights its pioneering role in crypto regulation. However, the recent Binance penalty serves as a reminder that innovation must be balanced with strict compliance.
References
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
