One of the issues that has been challenging adoption in the
world of cryptocurrency might have
been overcome. For several years, firms have been trying to establish an exchange-traded
fund (ETF) for Bitcoin without being successful… until recently. It seems as if
one system has managed to obtain approval from the Securities and Exchange Commission
(SEC).
The companies behind this are SolidX Management and Van Eck Securities Corp. They are
planning to sell their shares in an ETF thanks to SEC Rule 144a. This
regulation enables “private placements of securities” with “qualified
institutional buyers”. The SEC’s rules specifically exempt “qualified
institutional buyers” from such sales, which allows an ETF to go forward.
What do you have to do to be a “qualified institutional
buyer” and thus to be allowed to purchase shares of the Bitcoin ETF?
These individuals have to meet several criteria. One of these is that they
should be able to invest in at least $10 million of securities from issuers
that aren’t affiliated with the buyer. This is a disadvantage for regular
investors who would be unable to invest in this offering. However, SolidX
Management and Van Eck Securities Corp. will be leveraging this rule
as proof that the ETF could work.
A
Bitcoin ETF has been revealed
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