After years of rejection, the SEC is allowing a pair of firms to launch the first bitcoin ETF, WSJ reports. Two firms are preparing to market a bitcoin ETF, but with a critical stipulation: The product will only be eligible for purchase by brokers, banks, hedge funds and other “qualified institutional buyers.”
Shares of the Van Eck Solid X Bitcoin ETF will be sold under the SEC’s Rule 144A, which is traditionally used to issue junk debt to “qualified investors” allowing them to make a market.
The only bitcoin-focused asset that has existed to date is the Grayscale Bitcoin Investment Trust, which was notorious for trading at a massive premium to BTC during the 2017 rally, only to come crashing back to earth s prices moderated early the following year.
Source: Bloomberg
Firms have been trying without much success to get regulatory approval for funds to bring bitcoin to a broader universe of investors.
Cryptos are rallying on the news of the much-anticipated ETF offerings…
Source: Bloomberg
Many BTC market analysts believe retirees would be more willing to buy bitcoin if they could gain exposure through a regulated ETF that would allow them to sell crypto to retail investors.
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