The US Securities and Exchange Commission (SEC) has not given permission to create an ETF exchange tool for Bitcoin. However, several companies found a loophole in the law, thanks to which they can launch ETF next Thursday, bypassing the SEC.
According to The Wall Street Journal, SolidX Management and VanEck Securities Corp found that the ETF launch and the organization of exchange-traded instruments are allowed by placing in an institutional buyers environment. In regulation SEC 144A, such placement is possible without coordination with the regulator.
Based on this issue, access to ETFs to the main cryptocurrency will be provided exclusively to institutional investors: banks and hedge funds.
The SEC has never allowed the release of Bitcoins ETF yet. In early summer, several companies applied for the creation of cryptocurrency over-the-counter funds but were refused. Later, they applied for a regulated cryptocurrency ETF, but there is still no decision on it, and the Exchange and Securities Commission continues to postpone the date of its consideration.
Now the creators of closed Bitcoin-ETFs believe that this will be another step towards the approval of the tool by the regulator.