The VanEck limited bitcoin ETF has not succeeded in attracting too many investors, citing only one instrument issuing, barely managing to get 4 BTC.
Crypto analyst and commentator, Alex Krüger, posted data that illustrated that the net assets in the Bitcoin Trust 144A Shares were a little under $41,000.
The low demand for the product was rather unexpected, seeing as the community was leaping with joy when the launch was announced. At the time, the bitcoin price saw an impressive increase of $450. Some accredited this bullish rally to the highly-anticipated launch of a bitcoin ETF, but there is no way of saying for sure if this was the only contributing factor.
While the community attributed the poor performance to a stagnation from within the crypto industry, Krüger countered that it was “bad launch of a product for which there’s not much demand.”
Three days after launch, the VanEck bitcoin trust for institutional investors has reportedly managed to issue a whopping 1 (one) basket. It has 4 bitcoins or $41,400 in assets under management. Massive. pic.twitter.com/TUePbLVqBi
— Alex Krüger (@krugermacro) September 10, 2019
VanEck described the product on their page:
“SolidX Bitcoin Trust 144A Shares (the “Trust”) looks and feels like a traditional ETF. The Trust seeks to provide qualified institutional buyers (QIBs) access to a convenient and cost-effective way to buy and hold bitcoin through a cleared security that is tradeable through traditional and prime brokerage accounts. The investment objective of the Trust is to reflect the price of bitcoin, less the expenses of the Trust. The bitcoin held by the Trust are protected by multi-factor, cold storage security. The Trust’s bitcoin holdings are audited and insured by a syndicate of A-rated underwriters against loss or theft.”
But the product itself is not an actually ETF, with the offering being more similar to shares in a trust.
However, VanEck is not the first to launch an asset bundle which involves crypto. Grayscale rolled out their own Bitcoin Trust six years ago.
VanEck is still waiting for SEC’s final decision on their two bitcoin ETF, which is less than a month from now.
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