Winklevosses' bitcoin fund headed to Nasdaq
A landmark ETF in the virtual currency is planned by the twins who fought Mark Zuckerberg over who thought up Facebook.
An exchange-traded fund started by Cameron and Tyler Winklevoss to invest in the virtual currency bitcoin will be listed on the Nasdaq Stock Market, according to a filing today with the U.S. Securities and Exchange Commission.
The Winklevoss twins, who claimed Mark Zuckerberg stole their idea for a social-networking website to start Facebook (FB), are seeking to open the Winklevoss Bitcoin Trust as the first ETF tracking a virtual asset. Their Winklevoss Capital Management LLC, based in New York, is the fund’s sponsor.
Bitcoin is a software protocol for issuing and moving money across the Internet. Proposed in 2008 by a person or group using the name Satoshi Nakamoto, the value of bitcoins has varied.
The Winklevosses owned about $10 million in bitcoins, or 1 percent of the outstanding amount, when they filed their initial application with the SEC on July 1. About 12.7 million bitcoins had been created as of May 1, according to today’s filing.
The digital currency has gained traction with merchants selling everything from Sacramento Kings basketball tickets to kitchen mixers on Overstock.com to illegal narcotics.
It’s also drawn scrutiny for potential abuse. The SEC issued an alert to investors yesterday about the risks of bitcoins or other virtual-currency related investments.
More than 1,500 ETFs in the U.S. manage about $1.7 trillion, investing chiefly in stocks, bonds and commodities. ETFs, unlike mutual funds, issue shares that trade on an exchange like a stock. They typically track an index.
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