Cameron and Tyler Winklevoss are now well on their way to rolling out the Winklevoss Bitcoin Trust, an exchange-traded fund that tracks the bitcoin market. Three years after making a critical SEC filing announcing their intentions (and after multiple delays and extensions) the SEC’s final ruling deadline comes March 11, 2017. The initial public offering for the fund, which is planned to trade under the ticker symbol COIN, was originally set at $20 million, but new documents filed with the SEC reveal that the offering has increased to $100 million, as reported by CoinDesk.
According to the official web page of the ETF, “COIN will be an exchange-traded fund (ETF) that can track the price of bitcoin because its only asset will be bitcoin. Shares of COIN will represent fractional ownership of the fund’s total bitcoin.” If approved, shares of COIN are likely to be available on every major national security exchange.
Experts who weighed in on the topic during the Forbes’ Bitcoin podcast, Unchained, expressed areas for concern regarding a bitcoin ETF and reasons for its possible success. Spencer Bogart, vice-president of equity research at Needham & Company, notes that SEC regulators are not likely to risk their reputation on a bitcoin exchange that is quite volatile and is occasionally used for illicit activity. Daniel Masters, director of Global Advisors, is more optimistic about COIN. He believes that many of the concerns regarding illicit activity have been addressed and that questions about liquidity are “overblown.” Needless to say, the likelihood of COIN’s approval is uncertain, especially as there isn’t anything quite like it on the securities market.
COIN offers investors a way to gain exposure to the popular virtual currency without actually owning bitcoin. This financial instrument is likely to appeal to those who may view bitcoin as confusing or volatile, but still want to invest in an emerging financial instrument that recently hit an all-time high in value. A bitcoin ETF has the potential to be a huge success. If the bitcoin market interests you, the proposed $10 share price of COIN is a relatively cheap price to pay – especially compared to the price of a single bitcoin.
Read more from CoinDesk.
Read more from Forbes.
Listen to Forbes’ Bitcoin Podcast, Unchained.
Read the COIN S-1 SEC filing here.
Visit the official COIN website.