The Winklevoss brothers, those sad fated twins whom Mark Zuckerberg suckered on his way to founding Facebook, have been dealt another blow.
In late July, the Securities and Exchange Commission (SEC) denied their bid to package bitcoin into an exchange-traded fund (ETF), citing the volatility of cryptocurrencies and the potential for price manipulation.
ETFs are similar to mutual funds, only they trade like common stocks, are more liquid, and have lower fees. Getting bitcoin packaged into an ETF has long been an obsession of those heavily invested in cryptocurrency. The first to get such a package past the SEC stands to reap some serious rewards.
Up to this point, the SEC has been unwilling to approve such a package; and Cboe Global Markets Inc., the exchange that would have listed the Winklevoss’ ETF, couldn’t persuade it otherwise.
Not all is woeful in Winklevoss Town, though. After winning $65 million in their lawsuit against Zuckerberg, the tenacious twins sunk $11 million into bitcoin when its price was around $120 per coin. Since then, they haven’t sold a single, shiny one of them; and at the time of this writing, Bitcoin is valued at $6,462.31—making their portfolio value (according to my always-pristine mathematical calculations) just under $600 million. And that prodigious trove might multiply itself if their ETF is ever accepted.
The Winklevii may have been hoodwinked out of their social media empire, but they might still come first in crypto. Or perhaps Zuckerberg particularly hates the handsome Harvard hermanos and is planning to plunder them once again.
Image from Pixels.com