FameEX Hot Topics | Brazil Set to Launch World's First Spot Solana ETF Ahead of Global Markets

The first Solana spot exchange-traded fund (ETF) is set to debut on the Brazilian stock exchange, potentially outpacing other global markets. This ETF is currently awaiting approval from the Brazilian stock exchange, B3, after reportedly receiving a green light from Brazil’s Securities and Exchange Commission (CVM) on August 7.

Manthan Dave, co-founder of Palisade, a Ripple-backed digital asset custody platform, believes that this development could inspire other major economies to consider Solana-based ETFs in the future. Dave highlighted Brazil's pro-crypto stance, noting that the country introduced Bitcoin and Ethereum ETFs well before the United States did. Brazil has aligned itself with Europe's favorable position on crypto exchange-traded products (ETPs), with Solana ETPs already trading in Switzerland and Germany. Dave suggested that a US Solana ETF could soon follow, given the growing demand: “People in the US have been asking for a Solana ETF, and now they might get it.”

However, Dave pointed out that the timing of a potential US Solana ETF is crucial, especially in light of the upcoming 2024 presidential elections. He stated that the approval of Solana ETFs could significantly impact market sentiment, particularly if it happens before the election. With Republicans generally seen as more crypto-friendly, an early approval could be a game-changer. Despite this, Alejo Pinto, former IBM blockchain growth lead and founder of the Solana layer-2 network Lumio, cautioned that the US might not act immediately. He noted that Bitcoin ETFs were in the pipeline for years before gaining formal approval, making a swift US Solana ETF approval unlikely.

Pinto explained that the uncertainty surrounding a US Solana ETF makes any potential approval a strong price catalyst for SOL. Since the probability of approval is currently low and not yet factored into the market, such a development could positively impact Solana's price.

In the meantime, Solana’s next major target could be the $200 psychological mark, according to a bullish pennant observed on the four-hour chart shared by crypto trader Satoshi Flipper on August 7. However, SOL has been trading around $145 for nearly six months without a significant breakout, indicating a challenging road ahead.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.