A number of Bitcoin (BTC) ETF applications have been submitted to the U.S SEC, one of which is that of investment management firm VanEck in collaboration with software development and financial services company SolidX.
However, for some reason, the decision on the applications have been postponed three times in 2019 alone. This has led many to wonder if a Bitcoin ETF will ever be approved.
The last meeting of the SEC to decide on the VanEck/SolidX ETF was postponed just like several others before it. VanEck and SolidX are therefore taking a bold step to launch a limited ETF this week, reports say.
Taking The Bull By The Horns
The cryptocurrency community has been looking forward to a Bitcoin ETF which is expected to significantly increase institutional investors’ confidence and encourage the growth of the industry. The delays are therefore hampering the growth of the industry. VanEck and SolidX are therefore using an SEC exemption to be able to offer shares institutions but not to retail investors.
The two companies are leveraging the SEC’s Rule 144A, which allows them to issue shares without permission from the SEC if such shares are issued only to eligible institutional investors and with shorter holding periods. The sale of shares is to commence Thursday 5 September.
Will The SEC Act?
Since the delay by the SEC in approving an ETF has led to this action by VanEck and SolidX, will the commission now act to approve the applications? The SEC postponed the decision on the three applications from Bitwise Asset Management, VanEck/SolidX, and Wilshire Phoenix on 12 August and is slated for October 2019. It will be interesting to see what happens then.