Since the decision on the ETF-application is again delayed by the SEC, VanEck has found another way yo offer a bitcoin backed product to institutional investors. Therefore, VanEck and SolidX announced that the VanEck SolidX Bitcoin Trust (the Trust) will issue shares (the Shares) to Qualified Institutional Buyers (QIBs) in accordance with Rule 144A under the Securities Act of 1933, as amended (the Securities Act).
VanEck SolidX Bitcoin Trust 144A Shares (the “Trust”) looks and feels like a traditional ETF. The Trust seeks to provide qualified institutional buyers (QIBs) access to a convenient and cost-effective way to buy and hold bitcoin through a cleared security that is tradeable through traditional and prime brokerage accounts. The investment objective of the Trust is to reflect the price of bitcoin, less the expenses of the Trust. The bitcoin held by the Trust are protected by multi-factor, cold storage security. The Trust’s bitcoin holdings are audited and insured by a syndicate of A-rated underwriters against loss or theft.
“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 of VanEck. “We’re introducing a solution for institutions that fits within their operational processes and the current regulatory framework.”
This news has already resulted in a spike for Bitcoin, will it reach new highs again?
Read more in the official announcement.