The first Solana spot exchange-traded fund (ETF) could officially debut for trading on the Brazilian stock exchange, ahead of all the other global jurisdictions.
The first spot Solana (SOL) ETF is currently awaiting approval by the Brazilian stock exchange, B3, after it was reportedly approved by Brazil’s Securities and Exchange Commission (CVM) on Aug. 7.
According to Manthan Dave, the co-founder of Palisade, a Ripple-backed digital asset custody platform, the development could inspire the world’s largest economy to explore Solana-based ETFs in the future.
The co-founder told Cointelegraph:
“Brazil has been one of the pro-crypto jurisdictions since they introduced the Bitcoin and Ethereum ETFs years before the US did. It has also kept up with Europe's friendly stance with respect to its ETPs. We first saw the Solana ETP in Switzerland some time ago. It has also been trading in the German markets. People in the US have been asking for a Solana ETF and now they might get it.”
ETF inflows can significantly contribute to a cryptocurrency’s price appreciation. For Bitcoin (BTC), ETFs accounted for about 75% of new investment in the cryptocurrency by Feb. 15 as it surpassed the $50,000 mark.
Related: Bitcoin’s bull rally will continue another 350 days: Bybit
Will we see a Solana ETF in the US before the elections?
However, the most important question is whether we’ll see a US Solana ETF before the 2024 presidential elections, explained Dave:
“Considering the current election season and the prevailing sentiment, it is likely that we will see the approval of Solana ETFs before the end of this year. The key question is whether this will happen before or after the elections. With the Republicans currently seen as pro-crypto, approval before the election could significantly influence market sentiment.”
However, the US is unlikely to immediately follow suit since Bitcoin ETFs have been in the pipeline for years before the formal approval, according to Alejo Pinto, former IBM blockchain growth lead and founder of Solana layer-2 (L2) network Lumio.
Due to the unlikely prospect of an incoming US Solana ETF, a potential approval would make it a strong price catalyst for SOL, explained Pinto:
“Since it is still very uncertain, an ETF approval in the US would have a positive price impact on Solana since the probability is low and therefore not yet priced in.”
Related: Solana’s first gaming SVM surpasses 1M monthly active users
Solana price to $200 as the next major target?
Solana’s next major target could be the $200 psychological mark, according to a bullish pennant on the four-hour chart shared by crypto trader Satoshi Flipper in an Aug. 7 X post.
SOL/USDT, 4-hour chart. Source: Satoshi Flipper
However, SOL price has been trading close to $145 for nearly six months, and it is unable to stage a significant breakout.
Solana has hit an all-time high of 0.06211 against Ether (ETH) price on Aug. 7. Yet, Solana’s price remains 41% away from its old all-time high of $259, which it reached three years ago in November 2021.