VanEck and SolidX attempting to launch bitcoin ETF
The ETF, if successfully registered with regulators, is expected to list on the Cboe BZX Equities Exchange.
Two companies that have been forced to withdraw previous attempts at launching a bitcoin exchange-traded fund (ETF) are teaming up to again attempt to list a physically-backed bitcoin ETF insured against loss or theft.
Global investment firm VanEck will provide marketing services for the listing, while United States financial technology company SolidX will act as the sponsor of the venture. Both companies will work with regulators to file for a formally registered bitcoin ETF that would reflect the performance of the price of bitcoin.
VanEck first filed for a bitcoin ETF in August last year, while SolidX filed for the same in March 2016.
“I believe that bitcoin has emerged as a legitimate investment option, as a type of ‘digital gold’ that may make sense for investors’ portfolios,” VanEck chief executive Jan van Eck said. “A properly constructed physically-backed bitcoin ETF will be designed to provide exposure to the price of bitcoin, and an insurance component will help protect shareholders against the operational risks of sourcing and holding bitcoin.”
Neither company has revealed exact details as to what assets will be used to back the fund.
The ETF is expected to list on the Cboe BZX Equities Exchange.
Earlier this year in March, the largest US options exchange, Cboe, urged the United States Securities and Exchange Commission (SEC) to permit the advancement of cryptocurrency exchange-traded funds (ETFs).
Cboe’s request was in response to an SEC letter published in January, which highlighted the regulator’s apprehensions regarding the possible lack of sufficiently liquid assets to meet daily redemption requirements.
Cboe launched bitcoin futures trading in early December, offering investors their first opportunity to bet on whether the cryptocurrency’s value will rise or fall over time. Cboe trading saw initial bitcoin futures contracts, expiring in January, start at $15,000 before increasing to more than $18,000. The contracts are based on the value of bitcoin as quoted on the Gemini exchange.
Cboe says investors can gain exposure to more mature cryptocurrencies through ETPs without the additional complications and risks of the spot market, ensuring capital formation and financial innovation.
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