VanEck and Solid X are issuing shares for its bitcoin trust in accordance with the Securities and Exchange Commission’s Rule 144A. This enables VanEck to issue the shares to qualified institutional buyers only.
Institutional buyers will be able to access the physically-backed bitcoin product through traditional brokerage accounts which go through a standard ETF creation and redemption process.
The SEC again postponed its decision on VanEck’s proposal for a bitcoin ETF in August along with Bitwise Asset Management and Wilshire Phoenix who have also submitted several proposals.
If the SEC is to approve the registration of a bitcoin ETF, the 144A issued shares may benefit from public market resales, according to VanEck.
Jan van Eck, chief executive officer of VanEck said in a statement: “Institutional demand for bitcoin exposure is uncertain, because institutional quality vehicles simply have not, to this point, been readily available.
“We’re introducing a solution for institutions that fits within their operational processes and the current regulatory framework.”