SolidX applies for listing of Bitcoin exchange-traded fund on NYSE

Crazy Review : Following the Bitcoin Fund Winklevoss Bitcoin Trust, SolidX Bitcoin Trust also applied to the US Securities and Exchange Commission for a Bitcoin trading listing, but the difference between it and the former is that it has purchased related loss and theft insurance. The application document pointed out that this investment product is more suitable for investment institutions than direct Bitcoin trading, and this method is more conducive to strategic asset allocation. There are no more relevant sources at present, and it will take quite some time to obtain regulatory approval.

Translation: Annie_Xu

Yet another company has applied to the U.S. Securities and Exchange Commission (SEC) to list a bitcoin exchange-traded fund (ETF).

Blockchain technology company SolidX announced that it has applied to the SEC to establish the SolidX Bitcoin Trust. According to the S-1 application, the trust will issue shares, and SolidX Management LLC will be the custodian of the Bitcoin held by the trust. Bank of New York Mellon will be responsible for managing the fund and custodial cash.

The stock offering, which is 10,000 shares, is being issued to authorized participants, which the filing says are registered broker-dealers that can issue and redeem shares for delivery in cash or bitcoin. The filing notes that the fund’s bitcoins come from bitcoin exchanges or over-the-counter transactions.

The company said the fund is governed by the New York Stock Exchange, with the ticker symbol “XBTC” and the pricing mechanism being the TradeBlock XBX Index.

It is reported that a significant difference between the SolidX fund and its competitor, the Winklevoss Bitcoin Trust, is that the former has insurance against the loss or theft of Bitcoin.

The application document shows: "The fund covers three types of insurance for Bitcoin losses: crime insurance, excess insurance, and excess insurance."

In a June 29 filing with the SEC, Digital Asset Services LLC, the sponsor of the Winklevoss Bitcoin Trust, noted that it would not insure the investment vehicle.

SolidX was founded in 2014 and raised $3 million from investors including Liberty City Ventures, Red Sea Ventures and Red Swan Ventures with the goal of providing “total return swaps” to large institutional Bitcoin investors.

Therefore, SolidX mentioned in its application that its product is more suitable for investment institutions than directly purchasing Bitcoin. "The sponsor believes that shareholders can more effectively implement strategic and tactical asset allocation by purchasing shares with Bitcoin rather than directly buying, selling, holding and trading Bitcoin."

SolidX has not made any further comments at this time.