VanEck today announced that it will partner with SolidX to list a physically-backed bitcoin ETF that will be insured against loss or theft of bitcoin. SolidX will act as the sponsor of the ETF and VanEck will provide marketing services. The two firms will work jointly with regulators. VanEck was the first to file for a bitcoin ETF registered under the Investment Company Act of 1940 in August 2017, while SolidX in March 2016 was among the first to file under the Securities Act of 1933 for a physically-backed bitcoin ETF that would reflect the performance of the price of bitcoin.
“I believe that bitcoin has emerged as a legitimate investment option, as a type of ‘digital gold’ that may make sense for investors’ portfolios,” said Jan van Eck, Chief Executive Officer of VanEck. “The SolidX team has in-depth experience with bitcoin, cryptography, and capital markets. We’re pleased to join with them in supporting the effort to bring a physically-backed bitcoin ETF to market.”
“We believe that collectively we will build something that may be better than other constructs currently making their way through the regulatory process,” continued van Eck. “A properly constructed physically-backed bitcoin ETF will be designed to provide exposure to the price of bitcoin, and an insurance component will help protect shareholders against the operational risks of sourcing and holding bitcoin.”
“It is important to communicate with investors about the risks as well as the opportunities, especially for new investment areas, and we have been committed to this effort,” added van Eck.
VanEck has a history of supporting innovative investment products, from the first gold-focused mutual fund and gold miners ETF, to more recent strategies, including emerging markets debt as well as a series of guided allocation approaches. VanEck has also, through its MVIS subsidiary, created several comprehensive digital asset indices designed to provide a measurement of both individual digital assets and various baskets of digital asset exposures. The SolidX team has been involved with the bitcoin ecosystem since 2011 and was one of the first sponsors to file a registration statement for a bitcoin-based ETF. SolidX has been working on bringing a bitcoin ETF to market since 2015.
“In determining a marketing partner, we looked for a firm with a clear understanding of the potential of bitcoin and the role it can play in an investment portfolio,” said Daniel H. Gallancy, Chief Executive Officer of SolidX. “VanEck is deeply involved in this space, understands its potential, and has a long track record of successfully opening new avenues for investors to access unique and compelling investment opportunities. We’re excited to work with the team at VanEck.”
The ETF is expected to list on the Cboe BZX Equities Exchange.