SolidX Teams Up with VanEck to Launch Physically-Backed Bitcoin ETF
- The move puts the ninth biggest ETF provider in the camp of crypto bulls.
SolidX Partners Inc, a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology company, is giving its Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term initiative another shot. SolidX, in collaboration with money management firm VanEck, today filed with the U.S. Securities and Exchange Commission to launch a physically-backed bitcoin exchange-traded product.
At a time where regulators seem split between loving and hating cryptos, the move puts the ninth biggest ETF provider in the bulls camp, as the firm views ETFs as a necessary step for this nascent sector to grow.
Last year, New York-based VanEck withdrew an application to list a bitcoin derivatives ETF after the SEC said it wouldn’t review a petition for a fund that intends to invest in virtual assets that aren’t yet available.
In addition, the Securities and Exchange Commission (SEC) refused to grant an exemption that would have let SolidX become the first bitcoin-based ETF to launch on the New York Stock Exchange (NYSE). In an order disapproving of the proposed rule change, the agency said it believed the significant markets for bitcoin are unregulated.
Bitcoin ETF proposals facing regulatory hurdles
The SEC repeatedly delayed deciding on the application, first extending the time it had to act on the proposal in September, then instituting formal proceedings to determine approval in October, and again extending its deadline to March.
Despite investor interest, it seems unlikely that the SEC would be comfortable using bitcoin as an underlying asset in a regulated investment vehicle any time soon.
SolidX was the second company to file for a bitcoin exchange-traded product with the U.S. regulators. The SEC also denied a request to approve the Winklevoss twins’ bid to list a bitcoin ETF on the BATS exchange. The watchdog based its rejection on Bats’ inability to reach “security surveillance sharing agreements” that could “help address concerns about the potential for fraudulent or manipulative acts and practices.”
Founded in 2014, SolidX Partners Inc., which develops blockchain products and services focusing on capital markets, raised $3 million from investors with the goal of offering total return swaps to large institutional bitcoin investors.
Commenting on the news, van Eck, CEO of VanEck, said: “I believe that bitcoin has emerged as a legitimate investment option, as a type of ‘digital gold’ that may make sense for investors’ portfolios. The SolidX team has in-depth experience with bitcoin, cryptography, and capital markets. We’re pleased to join with them in supporting the effort to bring a physically-backed bitcoin ETF to market.”
SolidX Partners Inc, a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology company, is giving its Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term initiative another shot. SolidX, in collaboration with money management firm VanEck, today filed with the U.S. Securities and Exchange Commission to launch a physically-backed bitcoin exchange-traded product.
At a time where regulators seem split between loving and hating cryptos, the move puts the ninth biggest ETF provider in the bulls camp, as the firm views ETFs as a necessary step for this nascent sector to grow.
Last year, New York-based VanEck withdrew an application to list a bitcoin derivatives ETF after the SEC said it wouldn’t review a petition for a fund that intends to invest in virtual assets that aren’t yet available.
In addition, the Securities and Exchange Commission (SEC) refused to grant an exemption that would have let SolidX become the first bitcoin-based ETF to launch on the New York Stock Exchange (NYSE). In an order disapproving of the proposed rule change, the agency said it believed the significant markets for bitcoin are unregulated.
Bitcoin ETF proposals facing regulatory hurdles
The SEC repeatedly delayed deciding on the application, first extending the time it had to act on the proposal in September, then instituting formal proceedings to determine approval in October, and again extending its deadline to March.
Despite investor interest, it seems unlikely that the SEC would be comfortable using bitcoin as an underlying asset in a regulated investment vehicle any time soon.
SolidX was the second company to file for a bitcoin exchange-traded product with the U.S. regulators. The SEC also denied a request to approve the Winklevoss twins’ bid to list a bitcoin ETF on the BATS exchange. The watchdog based its rejection on Bats’ inability to reach “security surveillance sharing agreements” that could “help address concerns about the potential for fraudulent or manipulative acts and practices.”
Founded in 2014, SolidX Partners Inc., which develops blockchain products and services focusing on capital markets, raised $3 million from investors with the goal of offering total return swaps to large institutional bitcoin investors.
Commenting on the news, van Eck, CEO of VanEck, said: “I believe that bitcoin has emerged as a legitimate investment option, as a type of ‘digital gold’ that may make sense for investors’ portfolios. The SolidX team has in-depth experience with bitcoin, cryptography, and capital markets. We’re pleased to join with them in supporting the effort to bring a physically-backed bitcoin ETF to market.”