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.”