VanEck and SolidX Plan to Launch “Limited” Bitcoin (BTC) ETF for Institutional Investors Only
While most cryptocurrency investors have given up hope for the Securities and Exchange Commission (SEC) to approve a Bitcoin ETF for retail investors in the short term, companies are still coming out with new products that offer exposure to the world’s biggest and oldest cryptocurrency.
VanEck and SolidX, which have been pushing for a Bitcoin ETF to hit the US markets, have now come up with a “limited” Bitcoin ETF that will not be available to individuals, but only to institutional investors — hedge funds or banks, for example.
The news is being reported by the Wall Street Journal, and the publication says that VanEck and SolidX issued the product under SEC’s “Rule 144A”. Investopedia provides a succinct explanation of Rule 144A, which was introduced in 2012:
“Rule 144A modifies SEC restrictions so privately placed securities can be traded among qualified institutional buyers with much shorter holding periods and no SEC registration in place.”
Apparently, VanEck and SolidX are banking on this product to show that a Bitcoin ETF geared towards a larger spectrum of investors can be viable as well.
Their “VanEck SolidX Bitcoin Trust” ETF proposal is still pending approval, but not many observers in the cryptocurrency space are expecting it to receive the green light from the SEC. The agency postponed its decision on the VanEck SolidX Bitcoin Trust and two other Bitcoin ETFs in August. The SEC’s final decision on VanEck and SolidX’s proposal will come on October 18.
Published at Wed, 04 Sep 2019 04:29:09 +0000
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By trendingtopics on 2019-03-15 10:11:31
