The Winklevoss Bitcoin Trust has filed a Registration Statement with the Securities and Exchange Commission. The Winklevoss Bitcoin Trust has been seeking to have an exchange traded fund linked to Bitcoin. The Winklevoss twins originally filed with the SEC in July of 2013 but have had to make edits to their proposal including information relating to the risks consumers face.
The Winklevoss brothers created a Bitcoin Index, Winkdex, to better price Bitcoin. The SEC document has not yet named a ticker symbol for ETF. Each share of the ETF will represent 1/5th of a Bitcoin.
The ETF will provide many positive consequences, but it will also have some negative ones. The ETF will provide a way for institutional investor to join in on the revolution, allow investors to hedge their risk through Bitcoin derivatives and will allow for users to not worry about safely storing their coins on the positive side. The biggest foreseeable risk stems from the lack of liquidity after the market closes. There is also the risk of Winklevoss Bitcoin Trust losing the trust’s Bitcoins.
This would bring Bitcoin one step closer to Wall Street and the common investor, which can be scary as there are always winners and losers. I can only hope that retirement funds do not get drawn to the risky investment without knowing the risks.