BIT Keeping 100,000 Bitcoins: Founder Silbert

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BIT Keeping 100,000 Bitcoins: Founder Silbert

The Bitcoin Investment Trust (BIT) has more than 100,000 Bitcoins in its possession, said Barry Silbert, chief of Second Market and the trust’s founder.

Silbert plans to expand BIT further this year, as investors expect the trust to file for an IPO sometime in the fourth quarter. The firm is a private investment machinery that is expected to add a new type of investors once it sells stock to the public, according to thebitcoinnews.

BIT and Winklevoss Bitcoin Trust are competing for the same market and have to rise above several obstacles to enter the stock market. However, BIT has leverage in that it’s not an exchange-traded fund. This means that restrictions of the US Securities and Exchange Commission do not apply to Silbert the same way as with Winklevoss.

While BIT might side-step some of the SEC’s restrains, it still has to conform to certain unique requirements so that it does not have to go through the SEC approval process. Silbert has already clarified the plans he has for growth of BIT and the processes involved.

“Big milestone today for Bitcoin Investment Trust-now holds over 100,000 Bitcoin,” coindesk quotes Silbert’s tweet.

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Three players, Bitcoin Investment Trust, the Winklevoss Bitcoin Trust and the Pantera Bitcoin Partners fund may have an impact on the Bitcoin investment landscape, adding a new dimension to the way investments are made in the currency and more importantly, the funds could alter investor perceptions of Bitcoin.

However, Coindesk warns that such ventures are not formed with speculative investors in mind. Investment funds for the virtual currencies are designed to target traditional investors who have developed a keen taste for regulated markets. Thus, the funds are not investment vehicles for the speculative investor.

It’s not known with a good degree of certainty that such funds can expand the investor base and push the appeal of virtual currencies in mainstream markets.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com

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