Solana ETFs Face Zero Chance of Approval in US As Brazil Greenlights Two ETFs

Solana exchange-traded funds (ETFs) continue to face further headwinds in the United States, with analysts now noting that there is a near-zero chance of approval.

VanEck and 21Shares submitted filings for SOL spot ETFs with the US Securities and Exchange Commission (SEC) in June. However, due to recent developments, these products might not launch soon. 

As reported by ZyCrypto, the Cboe exchange has since withdrawn its 19b-4 filings for these ETFs, in a move seen to signal a rejection of the applications by the securities regulator.

According to Bloomberg ETF analyst Eric Balchunas, these ETF products have a “snowball’s chance in hell of approval.” The analyst stated that these products never even made it past the second stage.

“The Solana ETF filings never made it past Step 2… So the exchanges withdrew 19b-4s although the issuers’ S-1s are still active. A snowball’s chance in hell of approval unless there’s change in leadership,” the analyst stated. 

The US ETF news appears to have dampened sentiment around Solana. SOL is down 3% in 24 hours to trade at $141 at the time of writing.

Matthew Sigel, Head of Digital Assets Research at VanEck, commented on the development, arguing that SOL should be classified as a commodity, similar to Bitcoin and Ether.

Sigel said that the courts have previously ascertained that some crypto assets are commodities in secondary markets. A similar level of recognition was also needed for Solana for ETF products to launch. 

Brazil Greenlights Two Solana ETFs 

Brazilian regulators have embraced these products amid the denial of Solana spot ETFs in the US. The Brazil Securities and Exchange Commission (CVM) recently approved a second SOL ETF issued by Hashdex in partnership with BTG Pactual.

The recent approval comes barely two weeks after the securities regulator approved the first Solana ETF in the country. QR Asset is offering the ETF, which is set to start trading next week.

“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,” said QR Asset’s Chief Investment Officer, Theodoro Fleury. 

Brazil is also supporting Bitcoin futures trading, which started in April. These spot and derivative crypto products seek to meet investors’ growing demand for them.