Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • AI Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    • Postcards
Login Archives Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • AI Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    • Postcards
    ×
  • Subscribe
Enter stock ticker or keyword
×
Join 100,000+ Like-Minded Investors Today
Twitter
Tags: Bitcoin
Stocks: COIN, STT

Winklevoss Bitcoin ETF Update This Week Could Help SEC Approval

By David Zeiler, Associate Editor, Money Morning • @DavidGZeiler • October 21, 2016

Start the conversation

Leave a Reply Click here to cancel reply.

You must be logged in to post a comment.

The Winklevoss Bitcoin ETF may be closer to getting SEC approval.

New changes to the Bitcoin ETF have beefed up the fund's oversight and security, two things that should improve the odds of winning Securities and Exchange Commission (SEC) approval.

The Winklevoss Bitcoin Trust (BATS: COIN) filed a seventh amendment to its S-1 request with the SEC to create an exchange-traded fund based on Bitcoin on Tuesday. It's been more than three years since the initial filing, Winklevoss Bitcoin ETFbut this year significant progress has been made.

In particular, the BATS Exchange, where the Winklevoss Bitcoin ETF will trade, filed for a rule change with the SEC in June to allow the creation of a derivative based on the digital currency. That filing started a clock that requires the SEC to rule one way or the other by March 2017.

So it's not surprising that the folks behind the Winklevoss Bitcoin Trust are doing all they can to convince the decision-makers at the SEC that their Bitcoin ETF will be financially sound.

The latest amendment shows that the Winklevoss twins, Cameron and Tyler, have enlisted some top-tier partners to bolster confidence in their Bitcoin ETF.

Financial services company State Street Corp. (NYSE: STT) will serve as the administrator for the Winklevoss Bitcoin ETF, while accounting firm Burr Pilger Mayer will serve as auditor.

Don't Miss: How to Profit from the Same Trend That Drove U.S. Stocks Up 1,262% in the 80s and 90s

Other changes in the filing were intended to clarify how the Winklevoss ETF will operate and how it will safeguard the Bitcoin assets it holds...

These Changes Make the Winklevoss Bitcoin ETF More Trustworthy

One change is how the net asset value (NAV) of the Winklevoss Bitcoin ETF will be determined each day. Instead of being based on the 4:00 p.m. Bitcoin spot price at the Gemini Bitcoin exchange (also operated by the Winklevoss twins), the NAV will be based on Gemini's 4:00 p.m. auction Bitcoin price.

This auction mechanism, similar to the closing auction that takes place on other U.S. exchanges, "allows participants to engage in thorough price discovery while concentrating liquidity and trading volume at a single moment each day," according to the new S-1 filing.

Another significant change concerns the security of the digital currency the Winklevoss Bitcoin Trust will hold in cold storage (offline). The latest filing says that the signatories with the power to move the Trust's bitcoins will be subject to ongoing background checks.

In response to criticism over the summer that the Winklevoss Bitcoin ETF lacks insurance, a concern in the event that bitcoins are lost or stolen, the Trust clarified its position.

"The Trust does not currently intend to insure its bitcoin. The Custodian does, however, maintain insurance in the form of a fidelity bond with regard to its custodial business on such terms and conditions as it considers appropriate in connection with its custodial obligations," the document notes. "The Custodian's statutorily required fidelity bond coverage includes, among other things, insurance against employee theft, computer fraud, and funds transfer fraud."

Critics have also suggested that the drawn-out approval process is a bad omen for the Winklevoss ETF, but that's not necessarily true...

Why the Winklevoss ETF Has Taken So Long to Win Approval

Here Are 10 “One-Click” Ways to Earn 10% or Better on Your Money Every Quarter

Appreciation is great, but it’s possible to get even more out of the shares you own. A lot more: you can easily beat inflation and collect regular income to spare. There are no complicated trades to put on, no high-level options clearances necessary. In fact, you can do this with a couple of mouse clicks – passive income redefined. Click here for the report…

Claim My Free Report

David ZeilerDavid Zeiler

About the Author

Browse David's articles |

David Zeiler, Associate Editor for Money Morning at Money Map Press, 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.

… Read full bio

Subscribe
Login
Notify of
guest

guest

0 Comments
Inline Feedbacks
View all comments


Latest News

September 25, 2023 • By Tom Gentile

This Little-Known Secret Can Help You Perfectly Time Your Next Trade

September 25, 2023 • By Shah Gilani

earnings
This Stock Is Yielding Over Double the Inflation Rate Right Now

September 22, 2023 • By Shah Gilani

earnings
Why the Fed's "Higher for Longer" Message on Interest Rates is Bogus
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Penny Hawk Midday Momentum
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Quantum Data Profits Flashpoint Trader Darknet Alpha Accelerators Brutus Alerts Resource Traders Alliance L.A.U.N.C.H. Investor Rob Roy Trader Long-Term Equity Profits

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz