FameEX Hot Topics | Brazil to Launch World's First Spot Solana ETF, Leading Global Markets

The first Solana spot exchange-traded fund (ETF) is poised to make its debut on the Brazilian stock exchange, potentially ahead of other global markets. This ETF is currently awaiting final approval from the Brazilian stock exchange, B3, after reportedly receiving clearance from Brazil’s Securities and Exchange Commission (CVM) on August 7.

Manthan Dave, co-founder of Palisade, a Ripple-backed digital asset custody platform, believes this development could prompt other major economies to explore Solana-based ETFs in the future. Dave emphasized Brazil's proactive stance on cryptocurrency, noting that the country introduced Bitcoin and Ethereum ETFs long before the United States. Brazil has also kept pace with Europe's favorable approach to crypto exchange-traded products (ETPs), with Solana ETPs already trading in Switzerland and Germany. According to Dave, a Solana ETF in the US could be on the horizon due to increasing demand: “People in the US have been asking for a Solana ETF, and now they might get it.”

However, Dave also pointed out that the timing of a US Solana ETF is critical, especially with the 2024 presidential elections approaching. He suggested that approval of Solana ETFs could significantly influence market sentiment, particularly if it occurs before the election. Given that Republicans are generally perceived as more crypto-friendly, an early approval could have a notable impact. Nevertheless, Alejo Pinto, former IBM blockchain growth lead and founder of the Solana layer-2 network Lumio, expressed skepticism about immediate action from the US. He noted that Bitcoin ETFs were under consideration for years before receiving formal approval, making a swift approval of a US Solana ETF unlikely.

Pinto further explained that the uncertainty surrounding a US Solana ETF could make any potential approval a strong price catalyst for SOL. Since the likelihood of approval is currently low and not yet reflected in the market, such a development could positively impact Solana's price.

Meanwhile, Solana’s next major target could be the $200 psychological mark, according to a bullish pennant observed on the four-hour chart shared by crypto trader Satoshi Flipper on August 7. However, with SOL trading around $145 for nearly six months without a significant breakout, the path forward remains challenging.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.