SolidX applies to list Bitcoin exchange-traded fund ETF on NYSE, additionally provides Bitcoin guarantee insurance

Following Winklevoss Bitcoin Trust , a second company has filed an application with the U.S. Securities and Exchange Commission (SEC) to list a Bitcoin exchange-traded fund (ETF).

Blockchain technology company SolidX announced today that they have submitted a registration statement to the SEC to launch the SolidX Bitcoin Trust Bitcoin Trust. According to the S-1 document, the trust will issue shares, SolidX Management LLC Management LLC will be responsible for custody of the Bitcoin held by the trust, and Mellon Bank of New York will be responsible for managing the trust and its cash.

The trust will issue 10,000 shares to authorized participants, or registered broker-dealers as mentioned in the filing, who can redeem the shares for cash or bitcoin. The filing states that the trust’s bitcoin will come from bitcoin exchanges or over-the-counter (OTC) transactions.

According to the company, the trust will be managed by the New York Stock Exchange under the ticker ‘XBTC’, with the stock price represented using the ‘ TradeBlock XBX Index ’.

As Coin Center points out, there is one notable difference between SolidX Bitcoin Trust and its competitor, Winklevoss Bitcoin Trust — the former has guaranteed insurance to cover the event that bitcoin is lost or stolen.

“The trust has three levels of insurance coverage: crime insurance, excess insurance, and excess coverage,” the application states.

In a recent SEC filing on June 29, Winklevoss Bitcoin Trust sponsor Digital Asset Services said it would not insure its bitcoin holdings.

Founded in 2014, SolidX has raised $3 million from investors including Liberty City Ventures , Red Sea Ventures and Red Swan Ventures , and is dedicated to serving large institutional Bitcoin investors through ‘total return swaps’.

Therefore, in the filing, SolidX stated that they believe their latest product is more suitable for institutional investors than buying Bitcoin directly. “The sponsor believes that shareholders will be able to more effectively implement strategic and tactical asset allocation strategies by investing in stocks using Bitcoin rather than directly purchasing, holding and trading Bitcoin.”