Bitcoin Exchange – Traded – Fund Is Renewed By VanEck
VanEck is affirming and renewing its move for an exchange-traded fund based on bitcoin. The New York-based ETF security issuer said it’s cooperating with SolidX Fintech company to start constructively-backed bitcoin ETF.
The exchange-traded fund will be officially registered under the Investment Company Act of 1940 (40-Act). Last attempts at bitcoin ETFs have encountered impedance by U.S. regulating authorities as well as the Securities and Exchange Commission. It has been several years since the Winklevoss brothers filed for the Winklevoss Bitcoin Trust, but that fund has yet to come to market.
Bitcoin futures began its activity on the CBOE in December and CME Group started bitcoin futures further that month and that steps some business experts thought would promote the opening of bitcoin ETFs. In near future after bitcoin futures had its debut in the U.S., yet, the SEC asked for several ETF issuers at the same time including VanEck.
The VanEck SolidX Bitcoin Trust will try to appeal one of the issues regarding supervisory and regulatory authorities. VanEck mentioned that the fund will be insured to protect against theft. SolidX will be the fund initiator while VanEck will supply marketing services.
Accepting the fact that the ETF comes to marketplace, it will debut with a $200,000 share price, which means that it will be concentrated on organizational investors. Bitcoin traded around $7,650 in U.S. on Wednesday. A share price of $200,000 would set the Van Eck SolidX Bitcoin Trust in rarefied firm as just four stocks in the S&P 500 have share prices north of $1,000.
As per the statement, “VanEck has also, through its MVIS subsidiary, created several comprehensive digital asset indices designed to provide a measurement of both individual digital assets and various baskets of digital asset exposures.”
VanEck and SolidX have plans to cooperate with regulators to get the new fund approved. If the fund comes to market, it will trade on CBOE under the ticker “XBTC.”
