According to the S-1 filing, the trust will issue shares that represent units of ownership in the trust, with SolidX Management LLC acting as the custodian of bitcoin held by the trust. Bank of New York Mellon, in turn, will act as the administrator of the trust and custodian for its cash holdings.
Shares in the trust will be issued in blocks of 10,000 shares to authorized participants, described in the filing as registered broker-dealers who would create and redeem the blocks in baskets, for the delivery of cash (or bitcoins). Bitcoins in the trust, the filing said, would either be sourced on bitcoin exchanges or in over-the-counter (OTC) transactions.
As noted by industry advocacy group Coin Center, a notable difference between the SolidX Bitcoin Trust and the competing Winklevoss Bitcoin Trust is that the former has secured insurance that would cover the loss or theft of bitcoins in the trust.
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