Van Eck, SolidX seek to launch bitcoin-linked ETF

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(Reuters) – Asset supervisor Van Eck Securities Corp and blockchain firm SolidX Companions Inc plan to launch a bitcoin-linked funding product that may very well be traded as simply as a inventory, the 2 firms stated in a regulatory submitting on Tuesday.

The Bitcoin brand is seen on a pillow on show on the Consensus 2018 blockchain expertise convention in New York Metropolis, New York, U.S., Might 16, 2018. REUTERS/Mike Segar

The exchange-traded product, known as VanEck SolidX Bitcoin Shares, can be insured in opposition to theft, fraud and lack of entry to the foreign money, in accordance with the submitting, which is topic to a assessment by the U.S. Securities and Trade Fee.

The businesses stated they intend to purchase and promote bitcoin in informally organized “over-the counter” bitcoin markets to cap transaction prices, whereas buying and selling massive blocks of the cryptocurrency.

Van Eck, which had $46 billion in property underneath administration, and a number of other different fund managers had beforehand pushed for exchange-traded funds based mostly on bitcoin futures as a substitute of immediately investing within the cryptocurrency.

This was to handle considerations that bitcoin exchanges weren’t regulated by conventional monetary market overseers, not like the futures market.

The SEC has both denied or tabled all bitcoin ETF proposals acquired up to now, becoming a member of a protracted checklist of regulators which have taken a tricky stance in opposition to merchandise and securities associated to digital currencies.

Van Eck and SolidX hope to checklist the product on the Cboe alternate underneath the image “XBTC”.

Reporting By Aparajita Saxena in Bengaluru and Trevor Hunnicutt in New York; Modifying by Anil D’Silva

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