- Brazil approved the worldโs first Solana spot ETF.
- Approval is a major chance for Solana to prove its appeal.
- Major institutions expressed skepticism over altcoin ETFs.
When Ethereum spot ETFs were finally approved in the US, many analysts believed Solana ETFs would be next. However, in addition to regulatory hurdles, Solana also faced skepticism from major institutional players.
This could change after Brazilโs Securities and Exchange Commission (CVM) approved the first Solana spot ETF. This is a major milestone for Solana that could help it make its case for major institutions in the US.ย
Solana Gets Chance to Prove Its Appeal to Institutions
Solana just got a major chance to prove its appeal to US institutions and regulators. On Thursday, August 8, Brazilโs Securities and Exchange Commission (CVM) approved the worldโs first Solana (SOL) spot ETF. Managed by QR and Vortx, this ETF offers a regulated and accessible way for investors to gain exposure to SOL.ย
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Furthermore, this gives Solana a chance to prove its appeal to US institutions, many of whom are still skeptical. For instance, in July, BlackRockโs Chief Investment Officer Robert Mitchnick revealed that their client base โoverwhelmingly invests in Bitcoinโ and โsomewhat in ETH,โ stating there is very little interest beyond these two.ย
For that reason, Solanaโs ETF in Brazil gives it the best chance at tangibly proving institutional interest in crypto. If the ETF gains enough capital, other institutions will likely follow suit, including in the US. This will also pressure regulators and legislators to change their attitudes on altcoin ETFs.ย
Solana ETF Approval Amid Rising Institutional Interest
The approval of this ETF comes at a time when institutional interest in Solana is rising. A CoinShares survey published on August 5th indicated that nearly 15% of surveyed wealth managers and hedge funds now hold SOL. This is a significant increase from earlier this year when none of the respondents had invested in the altcoin.ย
Earlier, Solana ETFs gained a major endorsement when VanEck and 21Shares filed for their own ETFs tracking SOL. However, VanEckโs Matthew Sigel later acknowledged that there are significant regulatory challenges.ย
Solana ETF still awaits final approval from the local stock exchange, B3. Once fully operational, it will be the true test of SOLโs institutional appeal.
On the Flipside
- Other countries have had mixed responses to crypto ETF applications. For instance, Japanese regulators recently stated they would remain cautious, even after crypto ETFs moved forward in Hong Kong.
- Other altcoins are also competing for ETF approvals. Among them, Rippleโs XRP seems to have the best chance.
Why This Matters
The success of Brazilโs Solana ETF could pave the way for other jurisdictions to follow suit, potentially leading to a wave of new cryptocurrency ETFs. This would enhance the accessibility and appeal of digital assets to a broader range of investors.
Read more about Solanaโs ETF chances and what they hinge on:ย ย
Is a Solana ETF Coming Soon, or Is It a Distant Dream?
Read more about Solanaโs latest network advancements:ย
Solana on Track to Boost Network Security as Solayer Gets Binance Labs Backing
