The Brazilian Securities and Exchange Commission, aka Comissão de Valores Mobiliários [CVM], has green-flagged a Solana-based Exchange Traded Fund [ETF].
This is among the earliest Solana-based exchange-traded products [ETPs] worldwide and the first of its kind in Brazil.
Last month, exchange operator Cboe Global Market filed a request with the US Securities and Exchange Commission [SEC] to list VanEck and 21Shares’ Solana-based ETFs.
The request, however, has not been sanctioned yet. The apex securities regulator ought to make a decision by March next year.
Meanwhile, Switzerland-based investment product provider 21Shares launched the world’s maiden Solana ETP in 2021.
As far as Brazil’s product is concerned, native asset manager QR Asset will offer the ETF. Meanwhile, fintech firm Vortx will assume the role of the fund manager.
The official regulatory database pointed out that the Solana-based ETF is currently in its pre-operational stage. This means the Brazilian stock exchange — B3 — is yet to authorize it.
A translated version of a local media report pointed out that it is still not known when the ETF will be made available for trading in the Brazilian market.
Notably, the fund will be benchmarked against the CME CF Solana Dollar Reference Rate index.
Commenting on the latest development, Theodoro Fleury, the Manager and Investment Director at QR Asset, said,
"This ETF reaffirms our commitment to offering quality and diversification to Brazilian investors. We are proud to be global pioneers in this segment, consolidating Brazil's position as a leading market for regulated investments in crypto assets.”
Brazilian regulators have also been questioning tokenization startups about their activities of late. They are also getting into the classification rabbit hole by inquiring whether they are issuing utility tokens or securities.
This exercise, however, is not perceived as a threat by local firms. The regulator reportedly clarified,
“The CVM has been establishing contact with institutions in the crypto ecosystem that potentially operate with securities with the aim of deepening its understanding of the role and structure of these institutions and the characteristics of the assets traded.”
