VanEck and SolidX will launch a limited version of their original Bitcoin ETF proposal.
After several attempts, VanEck Securities and SolidX Management plan to deliver a Bitcoin ETF by foregoing retail investors and using a rule that allows the sale of shares to certain institutional investors only, reports the Wall Street Journal.
The Bitcoin ETF launch will mark a major milestone for the industry following numerous delays by the U.S. Securities and Exchange Commission since the companies first applied for approval in 2018.
According to the announcement, SEC Rule 144A permits the sale of privately placed securities to qualified institutional buyers.
Such shares of the VanEck SolidX Bitcoin Trust will be made available to institutions such as registered investment advisers and hedge funds.
According to VanEck,
“Qualified institutional buyers (QIBs), defined generally as an institution with a portfolio of securities valued at more than $100 million either owned or under its management, a registered broker-dealer with at least $10 million in securities owned or managed, and a bank or savings and loan that both (i) owns, or invests on a discretionary basis in, at least $100 million in third party securities and (ii) has an audited net worth of at least $25 million.
Examples of QIBs may include business development companies, corporations, ETFs, hedge funds, insurance company, mutual funds and registered investment advisers. A natural person is not considered a QIB. Brokers trading the 144A Shares are responsible for confirming the buyer’s QIB status.”
The SEC’s most recent delays on August 12th applied to three Bitcoin ETFs, including VanEck SolidX, Bitwise Asset Management and Wilshire Phoenix, sowing more seeds of doubt that US regulators will be able to maintain its technological edge in the global race to build a clear regulatory framework for Bitcoin and the emerging asset class of cryptocurrencies.
A fully regulated Bitcoin ETF is expected to help legitimize the space, sparking a wave of institutional confidence, interest and investment in digital assets.
According to VanEck, the new Bitcoin ETF is an industry first.
“VanEck SolidX Bitcoin Trust 144A Shares is the first open-end, publicly-quoted, and DTC-eligible bitcoin security that can be held in a brokerage account.“
The Bitcoin ETF is slated to commence on September 4th.
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