VanEck, SolidX Plans Bitcoin ETF-like Product Under SEC Rule

Wilfred Michael 

Wilfred Michael

News reporter

03 September 2019,
16:21
VanEck, SolidX Plans Bitcoin ETF-like Product Under SEC Rule

While the wait for the first U.S Bitcoin exchange-traded fund (ETF) continues, asset managers VanEck and SolidX revealed today that they are planning to launch a similar product targeting institutional investors.

For the records, VanEck and SolidX have a pending proposal with the U.S Securities and Exchanges Commission (SEC) for a Bitcoin ETF but will not need to wait for the regulator to launch the newly announced product.

According to Coindesk, the firms plan to file an exemption from SEC registration under Rule 144A, to allow shares in their VanEck SolidX Bitcoin Trust to be sold to “institutions such as hedge funds and banks, but not to retail investors.”

Head of ETF Product at VanEck, Ed Lopez shared more insights regarding the difference between the new product and the publicly-traded Bitcoin ETF which the company is also planning to unveil. Lopez explained that while an ETF is listed on a national exchange, the new product will be quoted on the OTC Link ATS platform.  

Also, as a first-of-its-kind type of offering, the new product will trade over-the-counter via broker-to-broker transactions, a feature that prompted the company to rather refer to it “as a Broker Traded Fund (BTF).”

Regardless of the differences, though, the shares expected to go live on Thursday will provide institutional investors access to a physically-backed bitcoin product, guaranteeing more exposure to the emerging asset class.

Interestingly, the latest development also marks another step in the right direction for Bitcoin in the journey to adoption. It has taken only ten years for the decentralized cryptocurrency to enter mainstream consciousness, with top national leaders including Donald Trump, making references to it in the last couple of months.

 

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