SolidX and VanEck to launch an SEC-approved Bitcoin product

SolidX Management and VanEck Securities tried to launch a Bitcoin exchange-traded fund (ETF) but were stopped by United States regulators. Now the companies are going to launch another Bitcoin product this week.

The companies initially tried to register their product known as VanEck SolidX Bitcoin Trust ETF. However, the Securities and Exchange Commission (SEC) consistently delayed its ruling over concerns of manipulation. The watchdog stated that market manipulation would put investors in dangers of significant losses.

SolidX was founded in 2014 while VanEck Corporation has been around for more than sixty years.

SolidX and Vanneck announced that their Bitcoin trust would issue their shares to Qualified Institutional Buyers. The announcement made clear that the product was in complete accordance with the amended Securities Act of 1933.

These shares would allow investors to trade a physically-backed Bitcoin Product that will be “tradeable across traditional and prime brokerage accounts.”

CEO of VanEck released a statement saying that the institutional demand for Bitcoin exposure is not as clear as retail. He explained that this is because there is a lack of institutional-quality products. He then said that Vaneck was now launching a product that would fulfill their needs completely. He also said that the solution operates within the current regulatory framework.

VanEck SolidX Bitcoin Trust: Critical Reception

Lawyer Jake Chervinsky made a Twitter post stating that the product was not an ETF. He stated that the company only used the word “limited ETF” as a marketing strategy, and that is highly misleading. Moreover, he compared it to an old product known as the Greyscale Bitcoin Trust by saying they are almost identical.