A few weeks ago, the United States Securities and Exchange Commission (SEC), announced that it will be postponing its decision on the fate of three Bitcoin (BTC) exchange-traded funds including VanEck SolidX, Wilshere Phoenix and Bitwise Asset Management. However, while it waits for a final decision, VanEck/SolidX has announced their decision to give corporate investors some level of access to a limited Bitcoin ETF.
VanEck/SolidX plans to do this by taking advantage of the SEC’s Rule 144A which allows some level of exemption from the prohibition of restricted or controlled securities if certain conditions are met. According to Investopedia, Rule 144A alters “restrictions on trades of privately placed securities so that these investments can be traded among qualified institutional buyers, and with shorter holding periods – six months or a year, rather than the customary two-year period.” VanEck and SolidX will however be unable to cater to retail investors and only satisfy such corporate entities like banks and several other financial institutions.
The company first made a filing request for a Bitcoin ETF with the SEC over a year ago. The commission has not been very supportive of ETFs based on cryptocurrencies and about a year before that, it had denied a proposal for a different Bitcoin ETF proposed by the Winklevoss Twins. The SEC has also previously requested quite a few other proposals to be withdrawn by their applicants.
So far, the commission has not yet approved any Bitcoin ETF proposals. It has however previously said a decision will be made regarding VanEck/SolidX by the 29th of September.
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