Photo Credit To Bilmis Ler Via Flickr 

A recent report from the Wall Street Journal reveals that VanEck Securities Corp and SolidX Management are working out to sell the Bitcoin, Exchange Traded Fund (ETF)-Like Product to the institutional investors.

Not a True ETF

Looks like two Firms have unlocked the way to SEC’s delayed decision. Proposed VanEck – SolidX Bitcoin ETF decision had been blocked and delayed several times by the US Securities and Exchange Commission (SEC). However the two investment management firms have come up with the “unusual” path to pave the way out of the circumstance.

As per the guidelines of United States Securities and Exchange Commission’s (SEC) Rule 144A, privately placed securities can be traded only among “qualified institutional buyers”. Henceforth VanEck Securities and SolidX Management will apply this SEC exemption to sell shares of VanEck SolidX Bitcoin Trust to different banks, brokers and hedge funds except retail or individual investors.

Ed Lopez, head of ETF product at VanEck, told that the offering “allows for shares to be created and redeemed like ETFs, but it is not an ETF.”

“Unlike an ETF, it isn’t listed on a national exchange, rather it is quoted on the OTC Link ATS platform. This is a first-of-its-kind type of offering. Given it will trade over-the-counter via broker-to-broker transactions, we’ve been casually referring to it as a Broker Traded Fund, a BTF,” Lopez said.

Value Added Facts of ETF flashed at Press Release

  • Access to investors to physically backed bitcoin product
  • Can be sold by prime brokerage or traditional accounts
  • A standard ETF creation and redemption process will be enables
  • Marketing Services will be taken care by the VanEck
  • Funds will be sponsored by SolidX
  • BNY Mellon is hired to look after the daily fund, administration and transfer.

SEC hasn’t approved any Crypto ETF up until now but VanEck – SolidX’s Bitcoin ETF-like product is witnessing that they have overcome the challenge of US Securities and Exchange Commission’s (SEC). The products will be launching on Sept.5, 2019. Following the upcoming Bitcoin-ETF like product, director of digital asset strategies at VanEc, Gabor Gurbacs commented:

“We continue to support market structure developments in the digital asset space. This Qualified Institutional Buyers (QIBs) only 144A Bitcoin product may pave the way for institutional Bitcoin adoption and showcase that an appropriately regulated ETF structure can work in practice.”

Echoing the similar concern, Daniel H. Gallancy, CEO of SolidX said; 

“As the first bitcoin product in the U.S. with standard ETF creation and redemption and established clearing and settlement processes, institutional investors can finally gain exposure to bitcoin within a familiar context. We view the product as an exciting next step for SolidX and VanEck in our partnership as we work to bring institutional-quality crypto asset products to the marketplace.”

Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice. This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. All content published by Visionary Financial is not an endorsement whatsoever. Please also visit our Privacy policy; disclaimer; and terms and conditions page for further information.

You May Also Like

Bitcoin Price and XRP Price, Arguing The XRP Bullish Case Based On Trends

Bitcoin ( BTC ) Current Price: $8,000 Last 7 Days: -0.78%  Last 30…
bitcoin price

Bitcoin Price Rallies On Square Developments: Buy Or Sell The News?

Bitcoin price has rallied +2.19% over the last 24 hours, fueled by…

Paxful, ABU, And Althash Team Up To Launch Free Blockchain Course For 2500 African Youths

According to a recent medium post, Paxful, ABU, and Althash have launched an…

Longenesis: Working With Bitfury Decentralized Applications and Using Blockchain For Healthcare.

Longenesis, a Hong Kong-incorporated firm has announced that it will begin to…

Huawei’s CEO is Not Bullish on Cryptocurrencies Due To Google’s “Quantum Computing”

A few weeks ago, China’s President Xi Jinping announced that the nation…

Changelly Partners With Settle Network To Better Serve Latin American Crypto Markets

Changelly, one of the top instant crypto exchanges has partnered with Settle…

Bots Inc, The Company Creating A Global Bitcoin ATM Network Joins Open Invention Network

BOTS, Inc. a startup involved in the development of various innovative services…

Homeland Security Plans to Crack Down on Unlicensed Crypto Businesses

The US Department of Homeland Security recently unveiled its budget summary for…
terror financing

Terror Financing Using Crypto – French Authorities Apprehend 26 Suspects

On Tuesday, September 29, 2020, French police arrested 29 suspects during a sting…
Payments Network Proposed By Facebook Is 7X Faster Than Visa

Payments Network Proposed By Facebook Is 7X Faster Than Visa

In 2019, Facebook announced that it was working on Facebook Libra. However,…