In stark contrast, Brazil approved its second Solarium SOL/USD ETF this month, while prospects for a similar investment product in the US look bleak.
What happened: Brazil's National Securities Market Commission has given the green light to the ETF offered by the Brazilian cryptocurrency asset manager Hash rateCoindesk reported Tuesday. The fund was in the pre-operational phase at the time of writing this article.
The authorization comes about two weeks after the securities regulator approved the first such investment vehicle in the South American country. This ETF is offered by an asset management firm QR Active.
While things seemed to be moving quickly in Brazil, uncertainty and pessimism clouded the path to approvals in the United States.
See also: Shytoshi Kusama says this token is vital to the future of Shiba Inu: “It is fully integrated into our governance and technology”
The SEC has rejected stock traders CBOE BZX 19b-4 Filings for Two Prospective Solana Spot ETFs Van Eck and 21Shareswhich led to its removal from the Cboe website.
According to Bloomberg ETF analyst Eric Balchunas, The chance of approval is minimal unless there is a change of leadership at the regulatory level.
“Yes, the probability is almost zero in 2024 and if Harris wins, there is likely to be a near zero probability in 2025 as well. In my view, the only hope is for Trump to win,” Balchunas said.
Why it is important: The rejection dealt a significant blow to Wall Street investors hoping to bet on the price movements of the fifth-largest cryptocurrency, similar to Bitcoin BTC/USD and Ethereum Ethereum/USD.
Matthew SigelVanEck’s director of digital asset research, said the company considers SOL a commodity amid reports that the SEC’s rejection was due to concerns about the cryptocurrency’s status as a security.
Price action:At the time of writing this article, SOL was trading at $143.00, down 2.78% in the last 24 hours, according to Data from Benzinga ProIt was not clear whether the drop was caused by regulatory uncertainty or the result of a broader market downturn.
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