ETF issuer VanEck and SolidX, a fintech company engaged in the bitcoin ecosystem, finally won approve to market the VanEck SolidX Bitcoin Trust ETF (XBTC) to high-level investors in a limited capacity, news that potentially marks the first step on the road to more approvals for bitcoin-related ETFs.
The firms filed plans for XBTC over a year ago, but as has been the case with other bitcoin ETF efforts, regulators consistently pushed back approval dates on the VanEck/SolidX product. Last October, VanEck sought to allay some of the SEC’s concerns via a letter addressing bitcoin futures and liquidity.
“Given the proposed ETF’s regulation under the Securities Act of 1933 and 1940 Act and the fact that it offers exposure via regulated and surveilled bitcoin futures, we reasonably expect the proposed ETF to reduce potential manipulation and operational risk associated with a bitcoin investment product,” said VanEck in the letter.
The VanEck SolidX Bitcoin Trust ETF will be made available to qualified institutional buyers under section 144A of the Securities Act of 1933.
“The shares will provide institutional investors access to a physically-backed bitcoin product that is tradeable through traditional and prime brokerage accounts,” said VanEck in a statement. “The Shares are the first institutional-quality, cleared product providing exposure to bitcoin and enabling a standard ETF creation-and-redemption process.”
Inside XBTC’s Marketing Services
VanEck is providing marketing services for XBTC while SolidX serves as the fund’s sponsor.
Shares of XBTC, which are expected to start trading later this week, will be cleared by OTC Link ATS.
Data out earlier today indicate bitcoin commands 70.5% of the total market value of the cryptocurrency universe, the highest percentage since right before the digital currency when on its jaw-dropping run to $20,000 in 2017, reports CoinTelegraph.
At this writing, bitcoin was trading higher by 7%, indicating news of VanEck/SolidX approval could be helping the crypto space. Nine of the top 10 cryptocurrencies were trading higher this morning with tether being the exception.
“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,” said Daniel H. Gallant, Chief Executive Officer of SolidX. “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.”
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