VanEck and SolidX are known in the crypto world for primarily targeting institutional investors in what’s known as a “limited version” of a Bitcoin exchange traded fund (ETF) after every proposal for a similar ETF has been so far rejected by the Securities and Exchange Commission (SEC). This leads many to ask themselves: “Are VanEck and Bakkt true catalysts of a new bull run?”
The latest cryptocurrency news feature the VanEck SolidX Bitcoin Trust 144A Shares proposal which shows that qualified institutional buyers (QIBs) will be able to purchase publicly quoted DTC eligible BTC security through a brokerage account, similar to the existing products like the Bitcoin Investment Trust (GBTC).
If you are asking “are VanEck and Bakkt now the main catalysts for a crypto surge,” the question might be “yes.” What’s more important is the fact that the VanEck Bitcoin Trust (like most regulated investment vehicles) will provide insurance and security services – aspects of which could be considered as alternatives to ETFs for institutions.
“The Trust will be insured against loss or theft of bitcoin held by the Trust. The insurance will cover loss of bitcoin by, among other things, theft, destruction, bitcoin in transit, computer fraud (i.e., hacking attack), and other loss of numerical codes, known as ‘private keys’, which are necessary to access the bitcoin held by the Trust,” the VanEck proposal read.
On the other hand, many altcoin news sites reported that the full launch of Bakkt is scheduled for September 23 – and some investors believe that the culmination of fundamental factors such as the increasing hash rate, imminence of block reward halving and high-profile launches of trading venues could all push the dominant cryptocurrency to new yearly highs.
So, are VanEck and Bakkt truly driving the price of BTC up?
The truth is, new venues are crucial for Bitcoin as a most dominant cryptocurrency. The best cryptocurrency news sites have always reported bull runs and record highs after extended bear markets, demonstrating resilience over a 10 year period.
Experts believe that Bitcoin ETFs, which are expected by investors since 2018, are unlikely to be approved by the SEC in the near term. However, the potential effect of Bakkt and the VanEck Bitcoin Trust could truly contribute to the next rally of the major crypto asset.
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