Bitcoins Sink Despite Winklevoss ETF
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July 2, 2013 4:56 PM EDT
As first pointed out by StreetInsider.com, on Monday the Winklevoss twins filed to issue Winklevoss Bitcoin Shares through the Winklevoss Bitcoin Trust, which when offered to the public will give investors exposure to Bitcoins through an ETF. The trust plans to issue one million shares at a price of $20.09, effectively raising $20.09 million.
In addition to the news making for juicy print given the Winklevoss' history surrounding the founding of Facebook and the intrigue about Bitcoin as an alternative currency, the filing provides elaborate details about Bitcoin and the risk involved.
Below are 6 truly interesting things gleaned from the filing:
1. Bitcoin can be stolen:
"There is a risk that part or all of the Trust's Bitcoins could be lost, stolen or destroyed. The Sponsor believes that the Trust's Bitcoins held in the Trust Custody Account will be an appealing target to hackers or malware distributors seeking to destroy, damage or steal the Trust's Bitcoins. Although the Security System has been designed to minimize the risk of loss, damage and theft, neither the Trustee nor the Sponsor can guarantee that the Security System will prevent such loss, damage or theft, whether caused intentionally, accidentally or by act of God. Access to the Trust's Bitcoins could also be restricted by natural events (such as an earthquake) or human actions (such as a terrorist attack). Any of these events may adversely affect the operations of the Trust and, consequently, an investment in... More
July 1, 2013 5:37 PM EDT
After the close, an S-1 was filed noting The Winklevoss Bitcoin Trust (Trust) will register 1 million Winklevoss Bitcoin Shares (Shares) which represent units of fractional undivided beneficial interest in and ownership of the Trust.
Math-Based Asset Services LLC is the sponsor of the Trust (Sponsor) and... More
