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I did not vanish, though I nearly got banned. I think @Big Mike may still be upset with me, but I hope he either understands, or will, that it was a shift. Major shift.
I have withdrawn to a solitary life of trading and occasional drivel, and living again.
@greenr became a mini-banker, and is probably becoming the master trader that he was destined to be.
Can't wait to short this financial product, preferably with the use of some options to mitigate the inherent volatility of bit coins
New York Times Article:
Despite cautions and hesitations among regulators about investing in virtual currency, the Winklevoss twins are inching closer to creating the first publicly traded Bitcoin fund.
On Thursday, Cameron and Tyler Winklevoss, the brothers most widely known for their legal battles with Facebook’s co-founder, Mark Zuckerberg, disclosed in a regulatory filing that they had chosen to list their Bitcoin exchange-traded fund, the Winklevoss Bitcoin Trust, on the Nasdaq stock exchange.
The move comes one day after the Securities and Exchange Commission issued a warning to investors about Bitcoin, saying that it created new “concerns” for investors. Federal agencies have been scrambling to figure out how to regulate Bitcoin since the collapse this year of Mt. Gox, one of the most prominent exchanges for buying and selling the virtual currency.
“A new product, technology, or innovation – such as Bitcoin – has the potential to give rise both to frauds and high-risk investment opportunities,” the S.E.C. said in an alert posted to its website.
“The fact that the S.E.C. has allowed the S-1 to progress this far is an indication that it may actually happen,” said Gil Luria, an analyst with Wedbush Securities who has studied Bitcoin, referring to the S.E.C. regulatory filing.
The Winklevoss brothers, who have emerged as two (or perhaps one) of the most public faces of Bitcoin, first applied to create the exchange-traded fund, called the Winklevoss Bitcoin trust, last summer. The goal is to provide investors of any size with an easy way to bet on the future price of Bitcoin, the volatile virtual currency that has gained momentum over the past several years.
They have invested in Bitcoin companies, including the exchange BitInstant, and at one point owned more than $64 million of virtual currency itself. In February, the twins started the Winkdex, their own index to measure the price of Bitcoin, to work in conjunction with their proposed Bitcoin E.T.F.
According to the Winkdex, a single Bitcoin was worth $443 on Thursday afternoon. Coindesk, a more widely cited index, pegged the figure at $437.
The Winklevoss’s proposed fund would buy one Bitcoin for every five shares. The company the two operate, Math-Based Asset Services, would be in charge of storing the fund’s Bitcoin holdings. The company has not yet decided how much its management fee will be.
A single Bitcoin was worth only a few cents when it first appeared online in 2009, largely backed by a small number of technology enthusiasts and cryptocurrency hobbyists. The wider adoption by both consumers and technology entrepreneurs helped the price skyrocket to more than $1,000 at one point last year.
But until recently, investors had few options for speculating on that price change. The currency, which can be bought and sold among users or “unlocked” by solving complicated mathematical riddles, has no central regulator or bank. Buying Bitcoins also comes with the hassle of storing Bitcoins, which can involve physically securing a virtual “key.”
But the Winklevoss twins want to give investors an easier way into the market. Like SPDR, the widely used gold E.T.F., for example, investors would be able to invest in Bitcoin without having to actually buy and store the virtual currency.
“Our goal with this whole thing was to make it as similar to the gold E.T.F. as possible,” Cameron Winklevoss said in an interview. “We’re trying to reduce the friction of purchasing Bitcoin and securing it.”
But Mr. Luria sees Bitcoin’s wide price fluctuations as a risk for investors. Bitcoin isn’t the only commodity that trades 24 hours a day, but it does have wilder price shifts than many other assets.
“The price could decrease tremendously after the market closes, and you won’t be able to do anything about it,” Mr. Luria said.
I am a bit coins addict and have followed them for some time. The twins seem to be a bright bunch and I think the ETF will do quite well. The price targets for bitcoins are all over the place. But I think $1250+(Year-end) is a good price target.
Regards,
Brian
Yeah Magiklair, I agree they are pretty switched on guys but the danger with what they are doing is that it goes against the key spirit of bitcoin in that it introduces intermediation when none is required.
If they get it right then the good news for bitcoin fans like me is that it will massively legitimise bitcoin in the wider community. That can only be good, especially if it happens before the bankers convince the regulators to do what they can to kill it.