Altcoin News: “Limited ETF” on Bitcoin VanEck and SolidX Did Not Catch on Among Investors
Investment management firm VanEck sold just 4 BTC in a week through a new trust focused on institutional investors.
The company’s data, noted by economist Alex Krüger on September 10, showed that since the start of the VanEck SolidX Bitcoin Trust earlier this month, the total net assets of the trust are only $41,400. Thus, they managed to sell the shares of the trust only for 4 BTC.
It was reported last week that VanEck Securities and SolidX Management had chosen an unusual path to circumvent regulatory barriers in considering an application for ETFs for Bitcoin. The companies took advantage of the exception in the rules of the Securities and Exchange Commission, which allowed creating a trust fund instead of ETF and offering VanEck SolidX Bitcoin Trust shares to institutions such as hedge funds and banks, but not to retail investors.
Critics were skeptical about the news of the opening of the trust, and industry lawyer Jake Chervinsky said the product could not be considered a true ETF.
“This is misleading. The VanEck SolidX Bitcoin Trust is *not* an ETF. It looks exactly like the Grayscale Bitcoin Trust, which was launched almost six years ago. Calling this a “limited ETF” is a cute marketing strategy, but that’s about it. Calling it a full ETF is just wrong.” he warned readers on Twitter.
Bakkt operations director Adam White earlier announced that the Bakkt Warehouse platform, designed to store Bitcoins, is “open for business.”
Author: Marko Vidrih