03 September, 2019
VanEck and SolidX that keep waiting for the approval of bitcoin ETF application have plans to avoid the restrictions and offer a limited version of bitcoin ETF to institutional clients.
According to the WSJ report, VanEck Securities Corp. and SolidX Management intend to make a trick and avoid the current requirements for ETFs.
In particular, the companies will apply for the legal exemption, which will enable them to offer securities to institutional clients (banks, hedge funds). At the same time, the offering will not cover retail investors.
It was reported that the limited bitcoin ETF offering can be launched in the second half of the week and will be in line with the rule SEC 144A. Under this rule, a company can start securities turnover via closed offering among institutional clients with shorter maturity time. The key benefit is that such an offering does not require regulatory approval.
It was reported earlier the US Securities and Exchange Commission decided to delay the decision on the bitcoin ETF application filed by VanEck and SolidX once again.
As a result, the deadline for the determination is October 18.
Notably, SEC has not approved any bitcoin ETF yet.