Van Eck Securities Corp. and SolidX Management LLC will begin selling shares in a limited version of a bitcoin exchange-traded fund (ETF).
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The latest move is an attempt to mature and regulate the cryptocurrency sector to attract mainstream investors.
The companies will implement a rule exempting the shares from securities registration but will allow investors to sell their shares to certain institutional buyers.
The Securities and Exchange Commission (SEC) has so far rejected every attempt to sell a bitcoin ETF.
The SEC believes the cryptocurrency markets do not have enough protections against fraud and market manipulations.
The new limited shares will be sold under the SEC’s Rule 144A, allowing the sales of privately placed securities to “qualified institutional buyers.”
Van Eck and SolidX applied for a bitcoin ETF in 2018 and expects an eventual approval.
The company hopes this limited version will prove to the SEC that a bitcoin ETF can work.
According to research firm XTF, ETF’s have grown into a $3.9 trillion market.
Most in the crypto community believe an approved ETF would make it easier for mainstream investors to buy cryptocurrencies.