- U.S. Solana ETFs face near-zero approval chances under the current SEC due to concerns over Solana’s security status.
- Brazil embraces Solana ETFs, with its regulatory body approving multiple funds, contrasting U.S. regulatory setbacks.
- The SEC’s reluctance stems from Solana’s classification issues, stalling U.S. ETF approvals despite Brazil’s proactive stance.
Given the current administration, there is virtually no opportunity for a Solana ETF to be approved in the US. Bloomberg ETF analyst Eric Balchunas hammered home this feeling on August 20, in an X post, when he said that approval has “a snowball’s chance in hell” unless there is a leadership change.
SEC’s Reluctance to Approve Solana ETFs
This sentiment follows the U.S. Securities and Exchange Commission’s (SEC) apparent rejection of a key filing necessary for Solana ETFs. Cboe Global Markets recently removed two prospective Solana ETFs from its “Pending Rule Changes” page, raising further doubts.
Balchunas noted that Solana ETFs face near-zero chances of approval in both 2024 and 2025 if the current leadership remains. ETFStore President Nate Geraci echoed this, emphasizing that Solana must be classified as a commodity for its ETFs to gain approval. However, the SEC’s concerns over Solana’s classification as security persist, hindering its prospects.
Brazil’s Progressive Stance on Solana ETFs
Head of digital asset analysis at VanEck Matthew Sigel, however, asserted that Solana is a commodity, drawing comparisons to Ethereum and Bitcoin. Sigel cited a 2018 Commodity Futures Trading Commission (CFTC) case called “My Big Coin Pay,” in which a judge determined that even in the lack of futures contracts, the My Big Coin token qualified as a commodity. This ruling, Sigel argued, could serve as a precedent for Solana’s classification.
In contrast to the U.S., Brazil is moving ahead with Solana ETFs. The country’s regulatory agency, Comissão de Valores Mobiliários (CVM), recently approved another Solana-based ETF, managed by Hashdex in collaboration with BTG Pactual. This approval follows Brazil’s earlier endorsement of the country’s first Solana ETF, managed by QR Asset and administered by Vortx.
Earlier optimism in the U.S. regarding Solana ETFs, driven by VanEck’s Sigel, has faded following the SEC’s concerns. The removal of the 19b-4 filings by Cboe underscores the regulatory challenges facing Solana ETFs in the U.S.
The post Solana ETFs Face Regulatory Setbacks in the U.S. Amid Brazil’s Approval appeared first on Crypto News Land.
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