CORRECTED-VanEck SolidX bitcoin trust to sell shares to institutional buyers By Reuters Staff 3 Min Read Corrects to reflect that new product is a trust, not an ETF, paragraphs 1 and 3. As cryptocurrencies start to gain broader acceptance, some institutional investors - from trading firms to hedge funds - are seeking exposure to the asset class.
Some are buying bitcoin futures, seen as a way to gain exposure without risking the hacks and heists that have plagued the digital currency sector. The shares, under the VanEck SolidX Bitcoin investment trust Trust, will provide institutional investors access to a physically backed bitcoin product tradable through traditional and prime brokerage accounts, Van Eck and SolidX said in a statement.
The shares will be sold under Rule A of the Securities Act. The rule modifies the SEC restrictions on trades of privately placed securities, allowing these investments to be traded among qualified institutional buyers. The shares can be quoted on OTC Link ATS, an SEC-regulated alternative trading system, starting this Thursday.
An ATS, which matches orders for buyers and sellers of securities, is not a national securities exchange, but may apply to the SEC to become such. VanEck and SolidX said they continue to work on being able to offer a registered product.
In the event the SEC approves the bitcoin earlier ETF registration, the A issued Shares may benefit from public market resales, the companies said.