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Winklevoss Bitcoin Still Moving Through Regulatory Process

Remember the Winklevoss Bitcoin Trust? Arguably the most talked about exchange traded fund that has yet to come to market, twin brothers Cameron and Tyler Winkelvoss filed plans for the Winkelvoss Bitcoin Trust in mid-2013, but the ETF has yet to debut.

Bitcoin enthusiasts looking to display their affinity for the digital currency via the ETF wrapper do not need to fret because the brothers assured investors that the ETF is “alive and well.” The comments were made in an interview with Bloomberg TV’s Erik Schatzker from the Money 2020 conference in Las Vegas.

“We’re still going through the regulatory process. Any ETF is a long process to get approved and, in this particular case, we’re dealing with a very innovative product, which is a digital asset which has not been done before,” Tyler Winklevoss told Schatzker.

Importantly, they noted that there has been nothing to lead them to believe that the regulatory process for the Winklevoss Bitcoin Trust is going any faster or slower than with a more traditional ETF.

The brothers did note that the Winklevoss Bitcoin Trust is being geared along the same lines as physically-backed commodities ETFs such as the SPDR Gold Shares (GLD) and the iShares Silver Trust (SLV). Those ETFs give investors exposure to an asset class, in those case gold and silver, without the ability to redeem shares of the trust for direct access to that asset. [Commodity, Currency Debate Swirls Around Bitcoin ETF]

The brothers also told Schatzker that they remain long bitcoin and continue to control about 1% of the market. Bitcoin is a decentralized digital currency based on a peer-to-peer network and can be exchanged through computers internationally without a financial intermediary.

In May, a regulatory filing revealed the Winkelvoss Bitcoin Trust will trade on the Nasdaq. In July, an Form S-1 filing with the Securities and Exchange Commission reveled the ETF, assuming it comes to life, will trade under the ticker “COIN.”

The trust’s sponsor is Math-Based Asset Services LLC, which was formed in mid-2013. The company will run the new benchmark, tracking bitcoin prices based on “qualified bitcoin exchange transaction data… over a trailing two-hour period,” according to the SEC filing.

The brothers have also introduced the bitcoin index, or so-called Winkdex, which will also be used to price the value of assets held by the Winklevoss Bitcoin Trust. [New Bitcoin Index Due Out]

ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of GLD.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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