Winklevoss twins seek Nasdaq listing for bitcoin ETF

The duo, who claimed Mark Zuckerberg stole their idea for a social-networking website, are seeking to open the Winklevoss Bitcoin Trust as the first ETF tracking a virtual asset.

May 9, 2014 @ 8:57 am

Cameron and Tyler Winklevoss
+ Zoom
Cameron and Tyler Winklevoss (Bloomberg News)

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 with the Securities and Exchange Commission.

The Winklevoss twins, who claimed Facebook Inc. founder Mark Zuckerberg stole their idea for a social-networking website, are seeking to open the Winklevoss Bitcoin Trust as the first ETF tracking a virtual asset. Winklevoss Capital Management is the fund's sponsor.

Bitcoin, proposed in 2008 by a person or group using the name Satoshi Nakamoto, is a software protocol for issuing and moving money across the Internet. Prices for bitcoins surged above $1,100 last year before sliding to about $432 as of yesterday, according to CoinDesk, which tracks key exchanges.

The Winklevosses owned about $10 million in bitcoins, or 1% 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 Thursday'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.

(Bloomberg News)

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

How politics are moving markets

The financial services industry stands at the unique intersection of politics and market fluctuation. Clients are anxious and the right adviser can steady he waters. Scott Kubie of Carson Group explains how.

Video Spotlight

The Search for Income

Sponsored by PGIM Investments

Recommended Video

Path to growth

Latest news & opinion

Trump rejects idea of new caps on 401(k) savings in tax plan

GOP reportedly had been considering reducing the cap on the annual amount workers can set aside for 401(k)s.

Finra's stats reveal an industry in decline

The broker-dealer regulator reports fewer entities under its watchful eye.

T. Rowe Price steps up its game to serve financial advisers

The Baltimore-based mutual fund giant is more aggressively targeting financial advisers with a beefed-up wholesale crew and placement on custodial platforms.

The most important tax changes for 2018

The Internal Revenue Service issued inflation adjustments to more than 50 tax provisions for 2018.

Shift to Roth 401(k)s 'highly likely' part of tax reform: former Treasury official Mark Iwry

Mandated contributions to Roth accounts would likely only be partial, as opposed to having a full repeal of pre-tax accounts.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print