SecondMarket operates a Bitcoin hedge fund for wealthy investors. But the firm has also filed for approval to bring the Bitcoin Investment Trust to retail investors. At the same time, the Winkelvoss twins’ Winkelvoss Bitcoin Trust is in contention for the same market.
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In a development that can only deepen suspicion about what really caused the demise of Mt. Gox, the bankrupt Bitcoin exchange made a surprise announcement late Thursday that it had found 200,000 bitcoins in an "old-format wallet."
As with most of the explanations coming from Mt. Gox Chief Executive Officer Mark Karpeles since the Bitcoin exchange first started having serious problems back in February, the idea that a business operation could "forget" and then find a sum equivalent to $120 million strains credulity.
Several big investment firms said yesterday (Tuesday) that they are buying stakes in a Bitcoin hedge fund - yet another sign that major players in the investing world are getting serious about the digital currency.
Fortress Investment Group, with about $58 billion in assets under management, along with venture capital firms Benchmark Capital and Ribbit Capital, are teaming up with San Francisco-based Pantera Bitcoin Partners LLC, a hedge fund operator that buys and sells digital currencies like Bitcoin.
"Stay away from it," Buffett said during a panel discussion. "It's a mirage, basically."
On Monday Mt. Gox filed for Chapter 15 bankruptcy in the United States to protect itself from a class action lawsuit that was recently filed in Chicago as well as a year-old case involving CoinLab Inc., which sued Mt. Gox for breaching a contract.
The latest Bitcoin news for the week of March 2-7: The discovery by a Newsweek reporter of the identity of the creator of Bitcoin, Satoshi Nakamoto, was easily the biggest Bitcoin news this week.
A mystery since the first Bitcoin proposal paper appeared in 2009 bearing that name, most assumed Satoshi Nakamoto was a brash young Tokyo developer, or a group of programmers using a common pseudonym.
The mainstream media has put out a lot of stories detailing the demise of the Mt. Gox exchange, but they haven't had nearly as much to say about why Bitcoin prices are moving back up - a startling 43% since Mt. Gox went dark.
In the aftermath of the grim Bitcoin news about the collapse of the Mt. Gox exchange, it's clear we're going to need a lot of answers about how much money could have gone missing without being noticed.
Bitcoin prices on most major exchanges briefly dipped about 5% on the news, but recovered quickly. The composite Bitcoin price on CoinDesk was $565 at midday, down less than 2% for the day.
And who can blame them? Any investment that can go from $13 to more than $1,000 in less than a year is worth paying attention to.
And warnings from the mainstream media that Bitcoin is a bubble ready to burst at any moment have proven false time and time again. Bitcoin prices have dropped on bad news, but almost immediately rebound; that's not what bubbles do.
With the Mt. Gox Bitcoin exchange offline - at least for now - a primary concern of customers who had accounts there is getting back lost bitcoins - can they be retrieved?
The exact number of Mt. Gox customers at the time the website went dark is uncertain, but as of last December the exchange said it had 1 million.
Now that the Mt. Gox exchange has gone dark, speculation is running rampant over the future of Bitcoin. Is it dead, or is this just another crisis that the digital currency will brush off, as it has so many others? In the world of Bitcoin,
Problems at the Mt. Gox exchange have dominated Bitcoin news this past week, creating concern and confusion within the Bitcoin community and leaving everyone else wondering what in the world is going on.
Mt. Gox threw a scare into the Bitcoin world when it blamed some technical problems on a bug in the digital currency itself -- a bug that would allow fraudulent transactions. The revelation sent Bitcoin prices plummeting. But when the real story came out,