On Thursday, U.S.-based Van Eck Securities Corp. and SolidX Management LLC plan to start selling shares in a limited version of a crypto exchange-traded fund (ETF), The Wall Street Journal reported, citing both companies.
They are employing a rule that will exempt the shares from securities registration, but the shares can be sold only to certain institutional buyers, according to the report. Both companies hope that this limited version will act as a proof that a bitcoin ETF can work, it added.
The firms first jointly applied for a bitcoin ETF in 2018 and said they still expect eventual approval.
As , Reality Shares ETF Trust, a subsidiary of U.S.-based asset manager Blockforce Capital, attempted to introduce a "bitcoin ETF workaround" in February 2019. However, the proposal was withdrawn at the request of the U.S. Securities and Exchange Commission (SEC).
The SEC declined comment on the new initiative.
A new round of decisions by the SEC on bitcoin ETFs is expected this autumn.
It is that a bitcoin ETF in the U.S. would unlock the financial advisor marketplace, as half the money in the U.S. is managed by financial advisors. And right now, it's very difficult for them to access the crypto market.
And while the recent initiative by Van Eck and SolidX is going to be available for institutional investors only, some members of the Cryptoverse noticed that the announcement coincided with the recent bitcoin rally:
Love how #bitcoin pumped a few hundred bucks BEFORE the ETF news was public #?
— TEDDY ?? (@teddycleps)
