Main Points:
- Brazil’s Securities and Exchange Commission (CVM) has approved the first Solana-based ETF.
- This ETF is among the pioneering Solana ETPs globally.
- The ETF tracks the CME CF Solana Dollar Reference Rate.
- QR Asset and Vórtx Fintech are key players in managing and providing the ETF.
- Brazil’s growing digital asset and blockchain innovation includes a national blockchain-based digital ID system and the development of a CBDC, Drex.
In a significant development for the global cryptocurrency market, Brazil’s Securities and Exchange Commission (CVM) has approved the country’s first Solana-based ETF. This ETF, which is yet to be fully operational, marks a milestone as it represents one of the pioneering Solana-based Exchange-Traded Products (ETPs) worldwide, further solidifying Solana’s growing prominence in the crypto sector.
The ETF will track the CME CF Solana Dollar Reference Rate, a benchmark developed in collaboration between CF Benchmarks and CME. It is being launched by QR Asset, a leading Brazilian asset management firm, and managed by Vórtx Fintech, a specialist in capital markets. Teodoro Fleury, the CIO of QR Asset, emphasized that this ETF will offer Brazilian investors both quality and diversity, reaffirming Brazil’s position as a regulated leader in cryptocurrency investments.
Brazil has been progressively expanding its presence in the ETF market, with notable launches such as the Bitcoin and Ethereum ETFs on the B3 exchange in 2021 and 2022. In March 2024, B3 also introduced BlackRock’s iShares Bitcoin Trust ETF. This new Solana ETF further strengthens Brazil’s standing in the global crypto investment landscape.
Globally, there is also movement toward Solana-based ETFs, though not without hurdles. In the United States, VanEck and 21Shares have filed for SEC approval to launch a Solana-based ETF, but the approval remains pending.
Beyond the financial markets, Brazil is embracing blockchain technology across various sectors. In 2023, the country announced its plan to issue blockchain-based digital IDs to over 214 million citizens, leveraging blockchain’s inherent immutability and decentralization. Alexandre Amorim, the president of Serpro, highlighted the critical role of blockchain in securing personal data and preventing fraud, noting that the b-Cadastros blockchain platform will significantly enhance the security and reliability of the National ID Card project.
Brazil is also advancing its Central Bank Digital Currency (CBDC) project, recently rebranded as Drex. This project aims to expand capital access for businesses through a tokenization system tied to Drex, reflecting Brazil’s commitment to being at the forefront of digital asset and blockchain innovation.
