SecondMarket which has till now providing investment opportunities in global financial institutions, hedge funds, private equity firms, mutual funds, corporations and other institutional and accredited investors, has now decided that it will bring private Bitcoin investment funds for ordinary investors which will be in operation by the fourth quarter of 2014.
It is evident that currently there are no opportunities for ordinary investors to make Bitcoin investments on the regulated, open market. Though they have the option of investing in Bitcoin through Bitcoin exchanges, the incidences like Mt. Gox give them additional concerns. The new vision from SecondMarket will definitely have an edge with its Bitcoin Investment Fund.
Though SecondMarket launched its Bitcoin Investment Trust (BIT) last September, it was reserved for private investors with $1m in assets and incomes above $200,000. Thus, as it was restricted to few investors and did not receive popular acceptance, the organization is now opening it up for ordinary investors.
Currently, BIT buys and sells Bitcoins and allows investors to place bets on the value of the digital currency without owning any coins directly and under the new business it has managed to possess $54m in assets. However, as it is not what SecondMarket had expected during the launch of BIT, it is now looking to expand the fund by opening it up to all investors.
In his statement SecondMarket CEO Barry Silbert said that his idea of Bitcoin Investment Trust which aimed for high net-worth investors could not generate the much desired results would now be opened for general public as soon as Q4 2014. Now it has yet to be seen what happens to his vision and decision to come up with the BIT for ordinary investors.
Approval from Regulatory Bodies is a Major Hurdle Bitcoin Investment Funds
Curiosity is also going up as in a similar move earlier Cameron and Tyler Winklevoss who started Winklevoss Bitcoin Trust are still struggling to get a positive node from SEC. Even SecondMarket will be needed to get approval from regulator bodies.
Also, as it plans to enlist the support of OTC Markets, it will need approval from OTC Markets, the Financial Industry Regulatory Authority (FINRA). The best thing with the organization is that it has got ample time to get approval; the point is whether it would be able to start its operations before the Winklevoss Bitcoin Trust.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org