Earlier in August US SEC delayed its decision on approving bitcoin ETFs to Bitwise Asset Management, VanEck/SolidX, and Wilshire Phoenix. The bitcoin community has been anticipating the launch of first-ever BTC ETF from a long time now, but SEC keeps delaying its decision. Yesterday VanEck Securities and SolidX Management announced that they are planning to issue a similar product to ETF that won’t require SEC approval.
To avoid regulatory issues, the companies will offer their bitcoin shares to institutions like banks and hedge funds. However, the companies won’t be able to offer shares to retail investors. SEC rule 144A allows companies to trade privately placed securities among qualified institutional buyers with shorter period holdings.
Gabor Gurbacs, director of digital asset strategies at VanEck, said that 144A bitcoin product might pave the way for widespread adoption of bitcoin among institutions. And it would also prove that a regulated bitcoin ETF structure can work in the market.
VanEck and SolidX have said that they have not given up on the goal of issuing bitcoin ETF that retails investors could also buy. Both the companies applied for BTC ETF approval over a year ago. Many from the industry believe it is just a matter of time when SEC will approve Bitcoin ETFs. SEC Commissioner Robert Jackson earlier this year said that crypto ETFs would be able to meet SECs standards eventually. Earlier SEC delayed its decision on VanEck Bitcoin ETF to 12th October.
