After another delay of delay in implementation of Bitcoin exchange-traded funds (ETFs), two firms have decided to launch a more limited option this week.
On Sept. 3, The Wall Street Journal reported that VanEck and SolidX are planning to offer a limited version of their Bitcoin ETF to some institutional investors.
The limited Bitcoin ETF version will be subject to a rule that exempts the shares from securities registration — meaning that only certain institutional investors can be sold the shares.
Focusing on the launch
The report states explicitly that the firms intend to commence selling on Sept. 5 while applying the United States Securities and Exchange Commission’s (SEC) Rule 144A that permits privately placed securities to be sold to “qualified institutional buyers.”
Therefore, VanEck SolidX Bitcoin Trust shares will be offered to institutions like hedge funds and banks but not retail investors as the SEC’s exemption demands.
Since 2018 when the VanEck and SolidX Partners the Bitcoin ETF request, zero Bitcoin ETFs had been approved because the regulator had on many occasions delayed the decision.
The latest was when the SEC again delayed its decision on Aug. 12 regarding the three Bitcoin ETFs; VanEck SolidX, Wilshire Phoenix, and Bitwise Asset Management. The regulator forwarded the decisions to either later this month or in October.