VanEck/SolidX to Release First-Ever ‘Limited’ Bitcoin ETF

The two dominant players pushing for a Bitcoin ETF are using an SEC exemption to release a limited version of the fund. The Wall Street Journal is reporting that the ETF will be available to hedge funds and banks — but not to retail investors.

A ‘Limited’ Bitcoin ETF

The news comes as a surprise since the exception was previously not considered as an option. However, with the full ETF pending for some time by the SEC, the two financial firms decided to offer a limited ETF in the meantime. It’s all thanks to the SEC’s Rule 144A, which allows securities to be traded among ‘qualified institutional buyers’ without SEC approval. Yet, the ‘limited’ ETF will have shorter holding periods and will be available to a very small group of established financial firms. At the very least, this news applies soft pressure on the SEC to approve an ETF sooner since it is ‘already available’ in limited form.

Full ETF Decision Still Pending

It’s undeniable that a Bitcoin ETF has been one of the most-awaited events in the cryptocurrency world for some time. On August 12, the SEC delayed a decision again on the question. The follow-up is expected sometime in mid-to-late Fall when, hopefully, it will be approved. The impact of the first Bitcoin ETF cannot be understated. It would bring in a slew of new investors and the consequence would be similar to gold’s first ETF back in 2004 — it was then that the price of gold rose from around $400 in January 2004 to an all-time high of $1750 on January 2012. Bear in mind that Bitcoin has only a tiny fraction of gold’s market capitalization. As of now, Bitcoin is looking strong and is trading around the $10,400 price point. Do you believe a Bitcoin ETF will fundamentally alter the cryptocurrency market forever? Let us know your thoughts in the comments down below.