There are several exemptions the U.S. Securities and Exchange Commission (SEC) offers that allow companies to launch their bitcoin investment products without registration. While waiting for the SEC to approve their bitcoin ETF, some firms have taken advantage of these exemptions to offer an interim product.
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New Bitcoin Product Emerges
Despite efforts by many companies, the SEC still has not approved a bitcoin exchange-traded fund (ETF). The commission has been taking its time to evaluate any proposed rule changes for such a product that have come its way, repeatedly extending the time it takes to make a decision on each.
One high-profile bitcoin ETF that has been waiting for approval from the SEC for over a year is Solidx Bitcoin Shares issued by Vaneck Solidx Bitcoin Trust, to be listed on Cboe BZX Exchange. While waiting for the commission’s approval, Vaneck and Solidx decided to go ahead and offer their product under Rule 144A of the Securities Act of 1933, as amended. Shares offered under this rule are exempt from registration requirements. Solidx CEO Daniel H. Gallancy commented:
As the first bitcoin product in the U.S. with standard ETF creation and redemption and established clearing and settlement processes, institutional investors can finally gain exposure to bitcoin within a familiar context.
Solidx Management Llc is the sponsor and Van Eck Securities Corp. is the marketing agent of this new investment product, which commenced on Sept. 4. The sponsor fee is 2% and the insurance fee is 0.9%. The trust’s BTC is kept in cold storage with insurance against theft or loss. “Shares may be redeemed by authorized participants in baskets and redemption proceeds will be in bitcoin,” Vaneck detailed.
Cboe BZX
