Investment management firms VanEck Securities Corp. and SolidX Management are planning to sell a “limited version” of bitcoin exchange-traded fund (ETF) to institutional investors on Thursday.
The Wall Street Journal reported the news on Tuesday, saying that the “unusual” arrangement is under the U.S. Securities and Exchange Commission’s (SEC) Rule 144A, which allows for the sale of privately placed securities to “qualified institutional buyers.”
The SEC has delayed a decision on VanEck-SolidX bitcoin ETF several times The regulator has yet to greenlight any bitcoin ETFs in the U.S., citing concerns over fraud and manipulation.
With an issuance under the rule 144A, VanEck-SolidX bitcoin ETF would be available only to institutions such as hedge funds, brokers and banks, and not to retail or individual investors, per the report.
VanEck and SolidX reportedly hope that this limited version will act as a proof that a bitcoin ETF can work.
The two firms’ arrangement looks similar to Grayscale’s closed-end fund GBTC, which invests exclusively in bitcoin. GBTC currently holds $2.3 billion worth of assets under management or 239,055.5 bitcoins.