UNITED STATES, WASHINGTON (OBSERVATORY) — VanEck and SolidX intend to launch Bitcoin-based exchange-traded investment funds (ETFs) without waiting for the approval of the US Securities and Exchange Commission (SEC). It is reported by The Wall Street Journal.
According to WSJ, companies intend to provide access to Bitcoin ETFs to institutional investors in the near future. For this, VanEck and SolidX intend to use the SEC 144A rule.
In particular, the norm allows for the closed placement of securities among “qualified institutional buyers” with a shorter tenure and without a separate SEC permission. At the same time, retail investors will still have to wait for the approval of the regulator to launch Bitcoin-ETFs.
Put simply, ETF stands for Exchange Traded Fund. Investing in an ETF involves assigning money to a wide range of bonds or shares in one package. These bonds and shares will typically lie in a specific market, like the FTSE 100.
ETFs are available all over the world and include bonds and shares from a wide range of sectors. For example, German investors can learn about how to make an Investment in Wasserstoff ETFs (an investment in hydrogen ETFs) by doing some research online.
Because ETFs are usually cheaper to run than regular funds, they sometimes come with a low going fee (the ongoing charges figure, or OCF). However, because they are traded on the stock market, traders often need to pay a stock broker fee when buying or selling an ETF.
It is also reported that trading in a limited mode may begin this Thursday.
Recall that in August, the SEC once again postponed the decision on bitcoin ETFs from VanEck and SolidX to a later date. The final decision deadline is October 18th.
It is worth noting that over the past few years, various companies have sought approval from the SEC to launch exchange-traded funds, but each time the regulator refused.
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