SolidX would handle custody of bitcoin by using a so-called cold-storage solution, which means so-called private keys that serve as ownership codes are kept off line. Funds will be insured one-to-one by a syndicate of insurers, which the firms didn’t disclose.
VanEck had previously filed a bitcoin future-based ETF. A physically-backed bitcoin ETF will be attractive as it tracks Bitcoin spot prices more closely, said the firm’s head, Jan van Eck.
Both van Eck and SolidX’s Gallancy say they own bitcoin.
This article was provided by Bloomberg News.