When Barry Silbert, the CEO of Bitcoin exchange SecondMarket tweeted that the Bitcoin Investment Trust holds more than 100,000 Bitcoins, it was nothing that could surprise anyone. However, the interesting fact is that the actual worth of these Bitcoins have fallen to a great extent and that is worrying to the investment management company.
The 100,000 Bitcoins have an estimated value of over $40 million by today’s exchange rates; however, in December 2013, the Bitcoin Investment Trust was worth $60 million. The reason behind the fall in the overall worth of the company is significant lower in the value of Bitcoin itself. In November – December last year each Bitcoin was trading above the $1,000 mark.
Evidently, the Bitcoin Investment Trust has more Bitcoins today than it had in December of last year, each individual coin is currently only worth about $425 (the current exchange rate). Whereas earlier the Trust was to gather Bitcoin involved investors, a couple of weeks ago it decided to open its doors to all types of investors.
In fact, the Bitcoin Investment Trust according to Barry Silbert is planning to go public in the fourth quarter of 2014. Interestingly, Silbert’s Bitcoin Investment Trust is not the only player in the market as it is facing though competition from the Winklevoss Twin’s Bitcoin ETF which has caught attention from investors.
Tough Competition from the Winklevoss Bitcoin ETF
Earlier, the Winklevoss Bitcoin ETF announced that they are going soon to list in the stock exchange. It is coinciding with other finance firms to buy and sell the digital currency ETF daily. Currently, the Winklevoss Bitcoin Trust is moving towards regulatory approval which may take a couple of months and may be ready by the end of the year 2014.
Once approved it will be a Bitcoin exchange-traded fund (ETF), with each share representing an amount of Bitcoin held by the Trust. This will be an extraordinary development as currently such an investment vehicle is only available to wealthy investors.
The Winklevoss ETF will allow people with a brokerage account to invest in Bitcoin without having to worry about the challenges of buying, storing, and safekeeping Bitcoin.
On the other hand, SecondMarket’s expansion is also allowing individual investors to get in on the action. With the latest decision on the part of Bitcoin Investment Trust investors can buy and sell Bitcoins. They can also place bets on digital currencies without having to own them.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org