A bitcoin ETF limited to qualified institutional buyers is to start trading this September the 5th on OTC Link ATS, a SEC regulated alternative trading system. VanEck SolidX says:
“The Shares are the first institutional-quality, cleared product providing exposure to bitcoin and enabling a standard ETF creation-and-redemption process.
SolidX is the sponsor of the Trust and VanEck provides marketing services. BNY Mellon will act as the daily fund accountant, administrator and transfer agent, which includes facilitating the investor creation and redemption activity.”
The offer will be under Rule 144A under the Securities Act of 1933, which allows for an exemption from SEC registration if it is limited to institutional investors like banks, brokerage companies or hedge funds.
“The shares will provide institutional investors access to a physically-backed bitcoin product that is tradeable through traditional and prime brokerage accounts,” they say.
On the quotation page they say VanEck SolidX Bitcoin Trust 144A Shares (the “Trust”) “looks and feels like a traditional ETF.”
This offering is a “physically-backed bitcoin product,” they say, with the bitcoins protected by insurance from theft.
A fee of 2.9% applies, with VanEck SolidX stating public sale of the shares would be possible if SEC gives the green-light for a general public ETF which is going through the process.
This may be another step towards it as the limited ETF can prove the sale of bitcoin as securities can work.
“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, before adding:
“We’re introducing a solution for institutions that fits within their operational processes and the current regulatory framework.”
Bitcoin settled regulated futures are also to launch on September 23rd, with bitcoin as an asset so laying the infrastructure for institutional investors to tap into the market.
That has contributed to a price jump, with bitcoin rising by circa $2,000 in the past few days from around $9,000 to now near $11,000.