Will Bitcoin ever be a part of the financial market? If it were up to the Winklevoss twins it would. They have plans to take their Winklevoss Bitcoin Trust to Wall Street. The Winklevoss Bitcoin Trust would be the first publicly-listed Bitcoin Exchange Trading Fund (ETF). The trust is owned by Math-Based Asset Services, LLC, an entity set up by the Winklevoss twins.
However, before the twins could realize their dreams of “playing in the big boys’ league”, they have to appear before the SECurities and Exchange Commission (SEC). The SEC has to give the green light but according to unofficial rumors this is only a formality and the plans will be approved.
But who are Cameron and Tyler Winklevoss? Both brothers are huge supporters of virtual currency and are pro Bitcoin, a rarity in the current financial sector. The twins are trying to focus the public on the positive virtues of the virtual currency industry and that it isn’t shady or dodgy at all. They also have appeared on CNBC and testified earlier this year in front of the New York Department of Financial Services’ hearings on virtual currencies. Both brothers are important speakers at Money 2020, which will be held later this year.
What do we know about their Bitcoin ETF? According to the SEC filing, the ETF is expected to IPO for 1m total shares. Each share is worth one-fifth of a Bitcoin, so the trust controls 200,000 BTC. It is absolutely brilliant that these brothers are going to NASDAQ with their Fund. They create an awareness as well as availability to Bitcoin in 1 stroke.
However the SEC recently warned of the “high risks” that accompany Bitcoin. They point out to the volatility & price fluctuations and they are right, from a certain point of view. Everything in the financial sector is a risk. Look at the recent economic crisis that began when some banks overextended themselves. The volatility and price fluctuations aren’t exclusive to Bitcoin or Crypto currency. Just take a look at the stock market prices and how much they go up and down on a trading day.
We will keep you updated as the story unfolds.