News VanEck SolidX bitcoin ETF to sell shares to institutional...

VanEck SolidX bitcoin ETF to sell shares to institutional buyers

-

- Advertisment -

NEW YORK (Reuters) – Investment firm VanEck and financial technology company SolidX Management LLC will sell shares in their proposed bitcoin exchange-traded fund to “qualified institutional buyers,” the companies said on Tuesday, in a move aimed at further attracting institutional money into the cryptocurrency segment.

The new bitcoin-based ETF is still awaiting approval from the U.S. Securities and Exchange Commission. The agency has yet to approve a bitcoin ETF.

As cryptocurrencies start to gain broader acceptance, some institutional investors – from trading firms to hedge funds – are seeking exposure to the asset class. Some are buying bitcoin futures, seen as a way to gain exposure without risking the hacks and heists that have plagued the digital currency sector.

The planned ETF shares, under the VanEck SolidX Bitcoin Trust, will provide institutional investors access to a physically backed bitcoin product tradable through traditional and prime brokerage accounts, Van Eck and SolidX said in a statement.

The shares will be sold under Rule 144A of the Securities Act. The rule modifies the SEC restrictions on trades of privately placed securities, allowing these investments to be traded among qualified institutional buyers.

The shares can be quoted on OTC Link ATS, an SEC-regulated alternative trading system, starting this Thursday. An ATS, which matches orders for buyers and sellers of securities, is not a national securities exchange, but may apply to the SEC to become such.

VanEck and SolidX said they continue to work on being able to offer a registered product.

In the event the SEC approves the bitcoin ETF’s registration, the 144A issued Shares may benefit from public market resales, the companies said.

“Institutional demand for bitcoin exposure is uncertain, because institutional quality vehicles simply have not, to this point, been readily available,” said Jan van Eck, chief executive officer at VanEck.

“We’re introducing a solution for institutions that fits within their operational processes and the current regulatory framework.”

Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Top 7 Porn Sites That Accept Bitcoin/Crypto

Bitcoin and other cryptocurrencies are not that exotic anymore. Ever since the big boom on the crypto...

“Chinachain” aims to connect hundreds of cities across China. Will it work?

If there’s ever a “Chinachain” for business, sanctified and supported by the state, the BSN ( Blockchain...

Top 10 BEST Crypto Trading Books for New Traders (2020)

We may receive a small revenue share if you purchase something from this guide - with...

Crypto Firm That Connects Exchanges and Banks Receives $5m Investment From Wells Fargo

Cryptocurrency startup Elliptic recently held a Series B funding round which was joined by a venture arm...
- Advertisement -

Will New Zealand’s crypto salary project work?

Now in 2020, Bitcoin, and in a broader sense cryptocurrencies in general, have gone through hundreds of...

Is Tron’s decentralized app market really a “Las Vegas on the blockchain?”

The original idea behind creating cryptocurrencies was to offer a much more decentralized and convenient payment platform...

Must read

Top 7 Porn Sites That Accept Bitcoin/Crypto

Bitcoin and other cryptocurrencies are not that...

“Chinachain” aims to connect hundreds of cities across China. Will it work?

If there’s ever a “Chinachain” for business,...
- Advertisement -VanEck SolidX bitcoin ETF to sell shares to institutional buyersVanEck SolidX bitcoin ETF to sell shares to institutional buyers

You might also likeRELATED
Recommended to you