Brazil approves Solana ETF – Could this be the breakthrough SOL needs?

• Solana ETFs approved in Brazil.
• Despite the approval of Solana based ETFs, the market remains bearish.

Over the last three months, the crypto market has been eagerly awaiting the approval of Solana [SOL] ETFs. Requests for SOL ETFs were filled out in Canada initially and later in the United States in June.

The approval of ETH ETFs gave hope that even Solana ETFs would become a reality. After a long wait, the Brazilian Securities and Exchange Commission (CMV) has approved the world’s first Solana-based exchange-traded funds.

Brazil’s CVM approves Solana ETFs

After many months of waiting, the first SOL ETF ever was approved in Brazil.

According to CVM, the Securities and Exchange Commission of Brazil, the SOL ETFs are in the pre-operational stage. The Brazilian stock exchange has yet to approve them.

The Solana ETFs in Brazil will use CME CF Solana dollar reference rates, which are CF Benchmarks established in support of the CME (Chicago Mercantile Exchange).

Additionally, the Brazilian asset manager QR will provide the ETF, and Vortax will be the manager.

With the approval of the first SOL ETF, Brazil positions itself as one of the most pro-crypto countries in the world. Brazil has operated various investments for ETH and BTC for the last three years, making its approach to crypto very diverse.

Any impact on SOL price charts?

Despite the good news, Solana’s market has yet to react positively or make any significant negative price action. As of this writing, SOL was trading at $153 after 0.39 gains on daily charts and an 8.95% decline on weekly charts.

Trading volume has declined over the past 24 hours by 4.25% to $5.4 billion.

Equally, AMBCrypto’s analysis shows that SOL has experienced a strong downtrend; thus, recent gains were yet to change the overall trend.

For starters, SOL’s Chaikin Money Flow was below zero at press time. This suggested that Solana has experienced strong selling pressure over the past week.

Source: Tradingview

The Awesome Oscillator (AO) was below zero as well, which suggests that short-term momentum is lower than long-term momentum, implying that the market is experiencing bearish momentum.

Source: Coinglass

Looking further, our analysis of Coinglass shows open interest has declined from $3.09 billion to $2.02 Billion over the past week. This suggests that investors are closing their positions without opening new ones, which is a bearish market sentiment.

Source: Coinglass

Realistic or not, here’s SOL’s market cap in BTC’s terms

SOL also experienced $21.19 million total liquidation over the past 24 hours. This shows high market volatility, with many investors forced out of their positions.

Therefore, despite the approval of SOL ETFs in Brazil, the market still feels bearish on the altcoin.