Public trade of bitcoin is expected to come online from the Bitcoin Investment Trust (BIT), founded by Barry Silbert. The trust could compete to edge out the Winklevoss Bitcoin Trust, founded by Cameron and Tyler Winklevoss of The Social Network fame. The Winklevoss brothers have been in the lengthy process of registering with the Security and Exchange Commission. BIT avoided this process by going through the Financial Industry Regulatory Authority (FINRA).
Through FINRA, BIT will be able to trade only shares which have been held by the company for at least 12 months. Shares will only be sold to wealthy investors with annual incomes of over $200,000 or $1 million in assets.
“Bitcoin Investment Trust (BIT) shares have been assigned a temporary ticker symbol by FINRA … The permanent ticker symbol will be GBTC and is expected to be effective shortly,” said BIT founder Barry Silbert.
BIT has been given a temporary trading ticker symbol (BTCV) under OTC Markets’ “Pink Sheets” site. The site allows trading of offerings from companies with limited disclosure obligations. Silbert has made it clear that the company will try to enter the OTCQX marketplace which requires greater disclosure from companies. The company has also been granted a permanent ticker symbol from FINRA.
“Although we have been assigned a ticker symbol, no assurances can be given as to when or if such trading will commence, or that an active public secondary market for BIT shares will develop or be maintained,” said the Digital Currency Group, sponsor of BIT, in a statement.
A publicly traded bitcoin trust is likely to increase security and investment in the cyber currency. Bitcoin enthusiasts are hoping that public trading will stem bitcoin’s price volatility. They expect bitcoin’s entrance into a regulated system will sooth investors’ worries by easing their burden of purchasing bitcoin directly.
Read More – BIT Poised to Become First Publicly Traded Bitcoin Fund (Wall Street Journal, Michael J. Casey)
Bitcoin Investment Fund Gets FINRA Green Light to Trade (CoinDesk, Yessi Bello Perez)