Cameron and Tyler Winklevoss, the twins who became famous for claiming that Facebook Inc (NASDAQ:FB) founder Mark Zuckerberg stole their idea for the site, have filed to create a bitcoin exchange-traded fund (ETF). The new ETF would be called the Winklevoss Bitcoin Trust, according to the filing with the Securities and Exchange Commission.
The Winklevoss Twins And Bitcoins
It was revealed earlier this year when bitcoins leaped into the public eye that the Winklevoss twins had a sizeable investment in the virtual currency. At one point, they held about 1 percent of all the bitcoins which existed, and their investment was worth, at that time, about $11 million, reports TechCrunch’s Colleen Taylor.
The Winklevoss Bitcoin Trust would work like an ETF, which usually tracks a basket of commodities or stocks, although in this case, it would only hold bitcoins. The trust would begin by offering 1 million shares or about $20 million worth, according to the filing. Each share would be worth part of a bitcoin. The twins are aiming the company at investors who want to add bitcoins to their investment portfolio while limiting the risk to their credit.
The Problems With Bitcoins
Since the beginning of the year, bitcoins have presented a number of problems. The lack of regulation on the digital currency has many investors and regulators concerned about them. As of this writing, Mt. Gox, which is the biggest bitcoin exchange in the world, lists the value of the currency at around $90. That value was up over $200 before plummeting when Mt. Gox began to see traffic problems on their servers due to the sudden increased interest in bitcoins.
Since then, Mt. Gox has taken a number of safety steps in an effort to secure its business and investors interested in the currency. The exchange has filed to officially become a money services business in the U.S. and taken steps to comply with laws dealing with money laundering. Mt. Gox also now requires user verification in order for currency transactions to be completed and is in the process of updating its systems.