SolidX and VanEck launch the Bitcoin Trust – not a Bitcoin ETF, but compliant with the SEC


VanEck and SolidX were probably the most determined players to get a Bitcoin ETF out there. However, as the SEC took so much time to reject and even understand the cryptocurrency/blockchain space, the two companies are on track to launch another much awaited bitcoin product – an institutional one, but this time – with the SEC blessing.

Back in June 2018, Leaprate reported that the two financial giants are to launch a physically-backed Bitcoin ETF, but the project never came to life. And then as the news came along, the SEC dragged the entire process from start to finish.

Nevertheless, VanEck and SolidX Management have just announced that, as quoted from Crypto Globe:

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).

While this is nowhere near the scope of an ETF, the product will allow institutional investors to access a physically-backed bitcoin product that can be traded through prime and traditional brokerage accounts. After the announcement was made, the CEO of VanEck, Mr. Jan van Eck shared that institutional demand for bitcoin products has not been very clear, and this is because good quality institutional-specific products were not available up to this point.

The response so far towards the Bitcoin Trust has been mixed. Some say that the launch and the product itself are very misleading, as this clearly is not the Bitcoin ETF the crypto space has been expecting for such a long time.


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