Will Winklevoss Brothers’ Investment Give New Life to Bitcoin?

0
111
Will Winklevoss Brothers Investment Give New Life to Bitcoin
Will Winklevoss Brothers Investment Give New Life to Bitcoin

Tyler and Cameron Winklevoss, the two brothers have been the lucky charm for Facebook which has now become a lucrative business. They got $65 million cash and stock settlement in 2008 when they finally accepted a financial settlement with Mark Zuckerberg, the founder of Facebook who the two brothers accused of idea theft.

Now, the two brothers are investing in Bitcoin and inviting investments in the online currency from the fellow venture capitalists. As of now, the Winklevoss Bitcoin Trust is offering 1 million shares and aims to track the performance of the average price of Bitcoins.

Math-Based Asset Services LLC filed the application with the U.S. Securities and Exchange Commission; it listed Cameron Winklevoss as CEO and Tyler Winklevoss as CFO while filing. The ambitious step on the part of the two venture capitalists is generating new hopes among the Bitcoin supporters who see a ray of hope if such investments flow in regularly.

Citing the various advantages associated with Bitcoin Trust, the Math-Based Asset Services LLC’s file says that the shares are intended to provide institutional and retail investors with a simple and cost-efficient means, with minimal credit risk and using the trust’s proprietary security measures, of gaining investment benefits similar to those of directly holding Bitcoins.

The Path is full of Thorns

What is difficult for the two brothers is the challenge they are going to face with the U.S. Securities and Exchange Commission when they ask for the formation of the Winklevoss Bitcoin Trust which will work like an exchange-traded fund that will hold Bitcoins and issue shares on a secondary exchange. It is going to be the first time that a trust will be there to check virtual assets and not stocks or bonds or bullion.

Though they have filed the application with SEC, it is yet to be seen what stand the governmental body takes. Whether the two brothers will see the fortune what their erstwhile partner Mark Zuckerberg saw with Facebook has to be seen.