Bitcoin exchange traded funds

Recently we covered the VanEck SolidX Bitcoin Trust news about another proposal to setup a Bitcoin ETF with the SEC. Now, these two companies that in the past tried to bring Bitcoin Exchange Traded Funds to the market and were not able, are now presenting a new proposal.

But there is an important difference between this new ETF and the old ETFs presented. This XBTC Bitcoin ETF will be an ETF backed by actual Bitcoins (BTC-USD) and it will not just be Bitcoin futures.

It is important to mention that before they get the approval, the companies will be setting a price far from the average retail investor that would be around $200,000 dollars per share. At the moment of writing, this is more than 25 times the current Bitcoin price.

According to the SEC filing, the share price would be equal to the value of 20 Bitcoins. Currently, the ETF would have a share price of $190,000 dollars ($7,635 per coin).

This is totally out of range for average retail investors, which may have the possibility to buy virtual currencies in different exchanges without a minimum amount of money. And this is a very different strategy in comparison to physically backed Gold ETFs.

Average retail investors will not have access to this asset class because the goal is the opposite. The Securities and Exchange Commission has issues with having average investors being able to access Bitcoin via ETFs.

As the fund will be around $200,000 it will be meant to alleviate any concerns related to the SEC.

Furthermore, they will leave an open possibility to lower the share price in the future in case the SEC changes its mind. Please go here to read about our past coverage of Bitcoin ETFs:

NYSE Bitcoin ETF – New York Stock Exchange To File With The SEC?

Cryptocurrency Regulation: Simple To Read Guide For Users

Cryptocurrency as a Security: Blockchain Assets, ICO Tokens & SEC Outlook

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