VanEck Securities and SolidX Management will launch a Bitcoin exchange-traded fund (ETF) as early as this week without obtaining approval from the U.S. Securities and Exchange Commission (SEC), the Wall Street Journal reports.
The new product will be geared toward institutional investors who represent a huge chunk of the US wealth.
Testing the waters
The SEC has so far been reluctant to greenlight any Bitcoin ETF due to concerns about market volatility and manipulations. Numerous proposals, including the one that was filed by the Winklevoss twins, failed to meet the agency’s standards.
However, according to SEC’s Rule 144A, there is no need to register with the US securities watchdog when only “qualified institutional buyers” are involved (hedge funds, brokers, etc.).
The limited version of the Bitcoin ETF will serve as a good litmus test of the potential demand for Bitcoin in this $4 trln market.
While there are plenty of other alleys, an ETF is probably the most seamless way to get into the market for neophyte cryptocurrency buyers. Retail investors will be able to gain exposure to the VanEck/SolidX ETF only if the SEC approves it.
As reported by U.Today, the SEC is expected to announce its final decision on the Bitwise and VanEck/SolidX Bitcoin ETF in October.