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The Winklevoss Bitcoin ETF is still awaiting regulatory approval from the U.S. Securities and Exchange Commission, but now we know that when the time comes it will debut on the Nasdaq exchange.
Cameron and Tyler Winklevoss – the twins who gained notoriety by successfully suing Facebook Inc. (Nasdaq: FB) founder Mark Zuckerberg for $140 million for stealing their idea for a social network – filed an amendment to the SEC last Thursday noting that shares of the exchange-traded fund would trade on the Nasdaq exchange.
We still don't know how far the SEC itself has gotten in the approval process, but most observers expect the Winklevoss Bitcoin Trust – the fund's official name – to be approved by the end of the year.
"The fact that the SEC has allowed the S-1 to progress this far is an indication that it may actually happen," Gil Luria, an analyst with Wedbush Securities, told The New York Times.
The twins say their Bitcoin ETF is intended to make it as easy to invest in Bitcoin as buying any stock.
"Our goal with this whole thing was to make it as similar to the gold ETF as possible," Cameron Winklevoss told The New York Times. "We're trying to reduce the friction of purchasing Bitcoin and securing it."
Winklevoss was referring to the popular SPDR Gold Trust ETF (NYSE Arca: GLD), the shares of which are structured to track the price of a tenth of an ounce of the yellow metal.
To duplicate that structure, the Winklevoss Bitcoin ETF will buy one bitcoin for every five shares of the fund. The Winklevoss Bitcoin Trust is thought to hold about 200,000 bitcoins, which would peg the share price at about $87.
The Winklevoss Bitcoin ETF is just one sign of growing Wall Street interest in Bitcoin.
SecondMarket, which operates a Bitcoin hedge fund for wealthy investors, is seeking approval to offer the fund to retail investors. And in March Fortress Investment Group, Benchmark Capital, and Ribbet Capital announced they were buying stakes in San Francisco-based Pantera Bitcoin Partners, which runs its own Bitcoin hedge fund.
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Dave has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.
Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.
Dave has a BA in English and Mass Communications from Loyola University Maryland.
Nasdaq will probably never approve this potential offerring. Bitcoin is as close to a scam as you can get. There is absolutely no way to regulate it and so, for Nasdaq to approve it would mean that any unregulated scam could be traded publicly. If I don't understand this Bitcoin scam, then would someone please tell me how Nasdaq could possibly regulate it. When suppliers of Bitcoin, like this Mt.Gox can close their doors and scam investors of millions of dollars, Nasdaq would need audited financial statements that were a true representation of the the entire operation. NOT POSSIBLE!!!!!! Gawd, when are people going to let this scam die?
You might be misinformed about what bitcoin actually is… Start with reading the whitepaper (the original paper) so that you form your own opinion instead of listening to other opinions. A 'scam' usually implies someone violating the trust of others in order to gain something. Bitcoin, is a decentralized TRUST-FREE consensus system. In such a system, bad-actors are allowed to be on the network, though their actions are usually not propagated due to the massive amount of computer power, which is also backed by math, and.. you know.. the laws of the universe.
What happened to MtGox, happened off the decentralized ledger (blockchain). It's the same as trusting a stranger with your bar of gold. MtGox was a scam. Bitcoin itself is not a scam, it's a technological innovation. Keeping money on the blockchain requires trust in no-one other than yourself (to remember your private keys of course).
Given the novelty of such an technology, it is obvious that there are plenty of scams and stuff out there… similar to the internet in the 90s. Over time, protocols and regulation will develop to enable the common person to use it intuitively.