The ETF That Launched a Legal Battle
The world of cryptocurrency investment is never dull, and the latest twist comes from the renowned investment management firm VanEck, which is now facing a lawsuit from former partner SolidX. The crux of the issue? A Bitcoin ETF application that VanEck just filed with the SEC.
A Brief History of Collaboration
Way back in 2017, VanEck became the pioneer in filing for a Bitcoin exchange-traded fund under the Investment Company Act. Meanwhile, SolidX had been burning the midnight oil to bring a Bitcoin ETF to market since 2015. The dynamic duo teamed up in June 2018, with SolidX’s strong background in crypto perfectly complementing VanEck’s seasoned expertise in crafting financial products.
When Partnerships Go Sour
Fast forward to September 2019, when the two companies withdrew their latest joint application for a Bitcoin ETF. By August 2020, they had officially parted ways. SolidX’s lawsuit calls the split a “bad faith termination,” suggesting that VanEck took a shady path in navigating their partnership.
Allegations of Sneaky Business
In a twist that would make any courtroom drama writer weep with joy, SolidX alleges that while claiming to be “married” to the partnership, VanEck was secretly plotting its own Bitcoin product. Seriously, folks: according to the lawsuit, VanEck’s filings are practically identical to SolidX’s earlier proposals. Talk about plagiarism — it’s as if VanEck copied its homework and forgot to change the name at the top!
The Fallout: Competitors or Collaborators?
SolidX claims the timeline is suspiciously tight. They allege that VanEck started rolling out products that squarely compete with SolidX soon after their breakup. “VanEck could not have begun to issue [said products] without working against SolidX’s interests,” they claim. It seems trust was broken faster than your New Year’s resolution!
Launching Products in a Vacuum
In November, while tensions were brewing, VanEck launched a physically-backed Bitcoin exchange-traded note on Germany’s Deutsche Börse Xetra market. SolidX, on the other hand, is evidently feeling a bit exploited. They emphasize that teaming up with the more recognizable VanEck was a calculated risk, especially given that VanEck lacked any real expertise in cryptocurrency at the time.
At the end of the day, it’s a tale as old as time — partnerships can go wrong and when they do, it can get downright ugly. As the lawsuit unfolds, we can only wait and see what will happen next in this crypto saga.
