After the Securities and Exchange Commission or SEC issued a warning to investors about Bitcoin as it feels the investors are at risk, Cameron and Tyler Winklevoss, 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 twin brothers were first among the investors who thought that Bitcoin futuristic payment method for international transactions was worth investing in. Cameron and Tyler Winklevoss are known for their legal battles with Facebook’s co-founder, Mark Zuckerberg wherein they got attractive compensation after successful settlement.
Earlier the SEC said that Bitcoin created new “concerns” for investors and for that reason several regulatory bodies and watchdogs issued their warning for investors. In fact, the Federal agencies have been scrambling to figure out how to regulate Bitcoin since the collapse this year of Mt. Gox caused a huge loss for investors.
As the two entrepreneurs don’t want to get caught in hassle, they came up with this idea to register with NASDAQ. The SEC in an alert posted to its website said that a new product, technology, or innovation such as Bitcoin has the potential to give rise both to frauds and high-risk investment opportunities.
The warning message also reads that investors should keep utmost care while investing with a Bitcoin firm. The Winklevoss brothers have invested in Bitcoin companies, including the exchange BitInstant, and at one point owned more than $64 million of virtual currency itself. Earlier in February, the twins started the Winkdex.
Winkdex is their own index to measure the price of Bitcoin, to work in conjunction with their proposed Bitcoin ETF. The twin brothers want to give investors an easier way into the market. Like SPDR, the widely used gold ETF. According to Cameron Winklevoss the goal of his company is to make it as similar to the gold E.T.F. as possible.
Cameron Winklevoss further added that his company is trying to reduce the friction of purchasing Bitcoin and securing it. Bitcoin has seen tremendous appreciation in its exchange value in the last one year. When Bitcoin came to existence, it was valued near to 20 dollars each; however, in October 2013 it reached to 1200 dollars.
Bitcoin is receiving acceptance from mainstream businesses and the wider adoption by both consumers and technology entrepreneurs helped the price skyrocket to more than $1,000 at one point last year.
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