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With the price of Bitcoin surging past $600 for the first time since March, the notion that the digital currency will persevere and continue to increase in value doesn't seem quite so crazy.
One of the best ways to invest in Bitcoin will be via the Winklevoss Bitcoin Trust exchange-traded fund (ETF), which is currently awaiting regulatory approval by the U.S. Securities and Exchange Commission (SEC).
The fund is the brainchild of twins Cameron and Tyler Winklevoss, who gained notoriety by successfully suing Facebook Inc. (Nasdaq: FB) founder Mark Zuckerberg for $140 million for taking their idea for a social network.
The initial filing with the SEC was made last July.
As an ETF, the Winklevoss Bitcoin Trust will make it easy for retail investors to bet on the success of Bitcoin.
Still, because the Winklevoss Bitcoin ETF will be based on a digital currency, there will be some quirks unique to this investment.
That means people are bound to have a lot of questions about this ETF.
Here are the answers to some frequently asked questions about the Winklevoss Bitcoin Trust:
What You Need to Know About the Winklevoss Bitcoin Trust
Q: How can I buy shares of the Winklevoss Bitcoin Trust?
A: Investors will be able to buy shares of the fund through their broker like any other stock or, mutual fund, or ETF.
Q: On which exchange will the Winklevoss Bitcoin ETF trade?
A: A recent amendment to their SEC filing says the fund will trade on the Nasdaq exchange.
Q: Will there be a minimum investment requirement?
A: There will be no minimum, and investors will not need to be accredited.
Q: What ticker symbol will the Winklevoss Bitcoin Trust trade under?
A: A ticker symbol has not yet been selected, but some possibilities are the fund's abbreviation (WBT), a combination of the widely used abbreviation of Bitcoin with an "F" for fund (BTCF), or, if they want something whimsical, MOON, which ties into the optimistic catchphrase "to the moon" (based on a meme of an astronaut standing on the moon with a flag bearing the Bitcoin symbol), typically uttered by digital currency enthusiasts when prices are rising.
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About the Author
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.