Investment firm VanEck and financial technology company SolidX Management LLC will sell shares in their bitcoin trust to "qualified institutional buyers," the companies said on Tuesday, in a move aimed at further attracting institutional money into the cryptocurrency segment. As cryptocurrencies start to gain broader acceptance, some institutional investors - from trading firms to hedge funds - are seeking exposure to the asset class. Some are buying bitcoin futures, seen as a way to gain exposure without risking the hacks and heists that have plagued the digital currency sector.
The shares, under the VanEck SolidX Bitcoin Trust, will provide institutional investors access to a physically backed bitcoin product tradable through traditional and prime brokerage accounts, Van Eck and SolidX said in a statement. The shares will be sold under Rule 144A of the Securities Act. The rule modifies the SEC restrictions on trades of privately placed securities, allowing these investments to be traded among qualified institutional buyers.
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