On Tuesday, the Wall Street Journal reported that VanEck/SolidX will sell "restricted version" of the Bitcoin ETF to institutional investors on Thursday according to the SEC's 114A rule. This allowed the market to rekindle hope for the almost silent Bitcoin ETF.
Currently, regulators have not approved the listing of Bitcoin ETFs in the US, and VanEck/SolidX's Bitcoin ETFs will be the first, but they are only open to hedge funds, brokers and banks, and retail investors cannot participate.
VanEck and SolidX first jointly applied for the Bitcoin ETF in 2018, and they hope that this "restricted version" ETF will be able to prove that the Bitcoin ETF can operate effectively. According to research firm XTF, the ETF has grown to a $3.9 trillion market. They give investors easy access to stocks and bonds, but they also offer some singular markets with high-risk strategies.
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However, the introduction of VanEck and SolidX may not be a bitcoin ETF at all.
Jake Chervinsky, a US law enforcement defense and securities litigation lawyer, said:
“This is misleading. The bitcoin trusts of VanEck and SolidX are not ETFs. It looks like the Grayscale Bitcoin Trust launched six years ago. Call it the “Restricted ETF” is a A cute marketing strategy, but that's it. It's a mistake to call it a complete ETF."
Ed Lopez, head of VanEck ETF products, also confirmed in an e-mailed statement to Reuters that the release (VanEck and SolidX) allows stocks to be created and traded like ETFs, but it is not an ETF. Unlike ETFs, it is not listed on the National Stock Exchange but is cited on the OTC Link ATS platform.
Ed Lopez added that:
“This is also the first product type. Since this product will be traded over-the-counter through brokers and brokers, we want to call it a brokerage trading fund, Broker Traded Fund: BTF.”
Jane Eck, CEO of VanEck, said that the institutional needs of Bitcoin are uncertain, as there are no institutional quality tools so far. We are introducing solutions for organizations that fit their operational processes and current regulatory framework.
Although not a Bitcoin ETF, others have seen the market potential of the new VanEck fund.
Cryptographic currency analyst Joseph Young said that the agency will receive a BTC investment tool at VanEck to replace the Gray Bitcoin Investment Trust (GBTC). This is not an ETF, but I expect it will lower the premium for investors and provide more liquidity. According to GBTC data, its asset management scale is 2.5 billion US dollars, which is not a small amount.
Source: Shallot blockchain
