Two financial firms, VanEck, an investment firm and financial services company SolidX have come together in a recent endeavor to launch the first bitcoin exchange-traded fund.
The firms made a report on Wednesday that they would list a “physically-backed bitcoin ETF that will be insured against loss or theft of bitcoin.”
According to the arrangement, VanEck will advertise the ETF, while SolidX will go about as support, according to a press release. The firms noted that both have previously filed individually to list bitcoin ETFs on various stock exchanges.
VanEck CEO Jan van Eck said bitcoin is “a legitimate investment option, as a type of ‘digital gold’ that may make sense for investors’ portfolios.”
The CEO noticed that the ETF has not yet been made, saying ” We’re pleased to join with [SolidX] in supporting the effort to bring a physically-backed bitcoin ETF to the market.” When asked by CoinDesk, he declined to give subtle elements on what resources would be utilized to back the reserve.
Neither SolidX nor VanEck has prevailed with regards to propelling a bitcoin ETF to date. As previously noted by CoinDesk, the two organizations pulled back past endeavors at propelling the items at the demand of the U.S. Securities and Exchange Commission.
Van Eck communicated confidence about the store’s potential, in spite of the administrative deterrents they have confronted, saying:
“We believe that collectively we will build something that may be better than other constructs currently making their way through the regulatory process. 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.”