The US is considered one of the foremost regulatory regimes around the globe. While exchange traded funds have yet to make their way into the mainstream, coins such as Dash are receiving a higher profile. The US has yet to produce a retail ETF, but one investment firm is moving forward with an over the counter product. Before the retail masses are issued access to exchange traded funds, high net worth investors will have access to fund that trade like stocks.
New Fund from VanEck
An exchange-like traded fund from VanEck and financial technology player SolidX Management will provide accredited investors with a way to invest in bitcoin. This is a significant step for the cryptocurrency market. The over the counter product will be regulated by the securities and exchange commission in the United States. Shares will be traded like and exchange traded fund but they will not trade on a national exchange. An over the counter product is one where an investment company will provide market making capabilities to investors, allowing them to buy and sell crypto currencies. According to the CEO of VanEck Assoicationes the move is a way to bridge a gap between the current environment and one that provides complete access to the cryptocurrency markets through exchange traded funds.
The over the counter product will be named the VanEck SolidX Bitcoin Trust 144A Shares and available only to qualified institutional buyers, the product has drawn more than $40,000 worth of investment since its launch. A qualified investor is one that has a specific amount of liquid investments. Usually the number is more than 1-million dollars. Investors are also expected to have a certain experience level to qualify for over the counter trading.
The US Securities and Exchange is still deliberating an ETF that can be released to retail investors within the United States. The agency has concerns about approving retail-investor-facing bitcoin ETFs, this incremental step is still key to the progress of bitcoin as an officially regulated US trading product for crypto trading. If VanEck can provide information to regulators about the liquidity of the over the counter product, they will likely have a better chance of convincing the US regulatory agency that a cryptocurrency product is in high demand and can work for retail investors within the United States.
Dash Gets a Higher Profile
Coinbase, the US largest cryptocurrency exchange announced last week that professional trading platform Coinbase Pro will launch support for DASH token. Coinbase also said that this will not be a global feature. According to Coinbase, DASH will be available in Coinbase’s supported jurisdictions, except for New York State and the United Kingdom.
The announcement explains that while DASH is a cryptocurrency optimized for payments with optional speed and privacy features. The exchange also claims that DASH is accepted by over 4,000 merchants worldwide. Coinbase Pro will start accepting DASH deposits starting Monday September 16. The launch of DASH trading, on the other hand, is planned for 9 AM Pacific Standard Time on Sept. 17.Updated Date: 24 October 2019, 20:41