Bitcoin (BTC) continues its growth path surpassing $10,700 in the last few minutes in some exchanges. One of the reasons behind this price increase could be related to VanEck, SolidX offering a limited version of a Bitcoin exchange-traded fund (ETF).
Bitcoin Surges Above $10,700
Bitcoin confirms its bull trend by expanding over 9% in the last 24 hours in some exchanges. The virtual currency surpassed $10,700 on Coinbase, the highest price registered by the digital currency since August 21st.
One of the main reasons behind this surge could be related to the fact that VanEck and SolidX will be offering Bitcoin ETFs to institutions using a Securities and Exchange Commission (SEC) exemption.
Although the SEC has to take a decision on whether to approve the proposal of an ETF, these two companies decided to offer a limited ETF offered under SEC’s Rule 144A. This rule allows them to privately sell securities to certain institutional investors.
The main goal is to show to the regulatory agency in the United States that the market is ready to deal with a Bitcoin-based ETF. At the moment, the SEC didn’t comment on this decision. Regulators in the United States consider that the cryptocurrency market is manipulated and it requires more liquidity.
According to Anna Pinedo, a partner at Mayer Brown’s New York office, there has never been a company offering shares using the Rule 144A and seek green light for a product for retail investors.
VanEck Securities and SolidX Management commented about it:
“The shares will provide institutional investors access to a physically-backed bitcoin product that is tradeable through traditional and prime brokerage accounts. The Shares are the first institutional-quality, cleared product providing exposure to bitcoin and enabling a standard ETF creation-and-redemption process.”
As mentioned before, Bitcoin continued the price increase that it experienced earlier this week as well. Since September 1st, Bitcoin already surged over 12.5% from $9,550 to $10,750. There are several investors and analysts that consider that the most popular digital asset could continue growing in the near future.
For example, Peter Brandt, a recognized chartist and crypto analyst said that Bitcoin could be entering a fourth parabolic phase. Raoul Pal has also mentioned that this could be the last time to board the “rocket ship,” making clear reference to Bitcoin.