etf_bitcoin

Bitcoin May Go Boom: A Guide to This Week's Big SEC Decision (Update)

[Update: The SEC rejected the ETF proposal on Friday afternoon, causing the price of bitcoin to slump.]

Bitcoin is at a critical juncture. Any time now, the Securities and Exchange Commission will issue a decision that could throw open the door to a flood of new capital, and change how many investors regard the digital currency.

The SEC’s bitcoin decision, which is over three years in the making, is due by Friday. Here’s a plain English guide to what might happen, including why the decision is so important and how it could affect the price of bitcoin.

What’s the SEC decision?

The agency must decide if the BATS stock exchange can change its rules to offer a bitcoin ETF (exchange traded fund), which would let people buy bitcoin like a common stock. The ETF—called the Winklevoss Bitcoin Trust ETF—is the creation of the Winklevoss brothers, who once fought Mark Zuckerberg for control of Facebook, and now own a large stock of bitcoins.

Why is this ETF such a big deal?

It’s all about liquidity. While there are plenty of places to buy bitcoin, many investment funds can only hold assets that meet certain regulatory standards—such as approval from the SEC. If the agency approves the ETF application, money managers who want to include bitcoin in their portfolio are likely to jump in. Meanwhile, millions of ordinary people will have an easy new way to buy the digital currency. I can’t really phrase it any better than this quote from BitMex, a bitcoin analysis site:

If the SEC approves the Bats rule change, all manner of American muppet retail investors can yolo into Bitcoin via a regulated ETF. The pool of eligible money that can easily obtain exposure to Bitcoin will dramatically rise. There are various predictions about the amount of money that could flow into Bitcoin. In short, it will be Yuge.

Where and when will we see the decision?

The SEC is obliged to make the decision by March 11, which is this Saturday. That means the ruling is almost certain to come out on Thursday or Friday.

According to Blake Estes, an alternative asset expert at the law firm Alston & Bird, the decision will appear on this SEC web page, and everyone will find out at the same time.

What are the odds the SEC says yes?

People are calling this a coin toss. Those who think the SEC will approve the ETF point to the skillful work carried out by the Winklevoss lawyers, and to the fact that bitcoin is far more mainstream than it was even two years ago. Today, many more people—including regulators—are familiar with digital currency and how it works. There is also a sense that a bitcoin ETF is sooner or later inevitable.

Pessimists, on the other hand, can point to two sets of concerns that could lead the SEC to give the thumbs down. The first of these relates to how the Winklevoss intend to run the operation. Some people are uneasy that the proposed ETF would use Winklevoss-controlled businesses to source and store the bitcoins that would back the shares. The other set of concerns lie with bitcoin itself. The digital currency has been subject to wild price fluctuations, driven in part by heists and insider antics. According to Estes, the SEC may worry the agency’s approval of an ETF could lead to a bubble inflated by bitcoin novices—a bubble that could then pop.

“Some fear it could be a good opportunity for legacy players to find the next sucker to take it off their hands,” said Estes.

How will this effect the price?

Bitcoin has been on another tear of late, nudging a record of $1,300 per unit—more than an ounce of gold. Some of this likely reflects investor optimism the SEC will approve the ETF, meaning a future price rise is partly baked-in. Nonetheless, there are broad expectations the short term price of bitcoin will go crazy if the SEC says yes.

If the SEC says no, it will have a negative effect, though probably not a very dramatic one. The reason is there are two other ETF application before the agency. One is called the Bitcoin Investment Trust, and was developed by Barry Silbert, a well known figure in the digital currency world. The other, called SolidX, is distinct in that proposes to insure its bitcoin assets.

As noted above, there is a general feeling that approval for a bitcoin ETF of one type or another is inevitable, and so a rebuff by the SEC to the Winkelvoss proposal would only be a temporary setback.

Should I buy bitcoin?

That’s something only you can decide—preferably after a lot of research. Today, many people see bitcoin as another alternative asset class to add to a diversified portfolio. But bitcoin has an extremely volatile history, and has been prone to spectacular crashes, so if you’re averse to risk, it’s probably not for you.

Bitcoin Flying As ETF Gets Second Shot

Would-be bitcoin ETF investors are in wait-and-see mode as the Securities and Exchange Commission reconsiders whether to allow the first bitcoin exchange-traded fund to come to fruition. To the dismay of many, the SEC rejected the Winklevoss Bitcoin ETF (COIN) in a March 10 decision, citing a lack of regulation and surveillance-sharing agreements between exchanges.

Bats Global Markets, operator of the exchange on which the ETF would trade and which is owned by the same parent company—CBOE—as ETF.com, responded to the SEC's verdict by filing a "petition for review" of the disapproval on March 24.

Bats argued that the commission's initial conclusion "is clearly erroneous," "inconsistent with prior ETP [exchange-traded products] approval orders" and that "the manipulation concerns . are overstated and largely theoretical."

Bats urged the SEC to approve its proposed rule change, which would open the door to the listing of the ETF and "provide investors access to bitcoin through a regulated and transparent investment vehicle."

On April 24, the SEC agreed to consider Bats’ petition for review, and asked for public comments on the original disapproval order. The last of those comments was submitted on May 15, setting the stage for a new round of deliberations by the commission.

High Bar For Approval

Though hopes are high that the bitcoin ETF will eventually be approved―public comments on the fund have been largely positive―analysts aren't confident the SEC will turn around so soon after its previous negative ruling and suddenly give it the green light.

Spencer Bogart, managing director and head of research for Blockchain Capital, is skeptical that the SEC will change its tune on the bitcoin ETF.

"Their reason for disapproval was the underlying markets for bitcoin, which haven't changed in the weeks since they made their decision,” he said. “One of the issues was that Bats hadn't set up surveillance-sharing agreements with the major exchanges on which bitcoin is traded, with the purpose of identifying and stomping out market manipulation. Even if they did, a lot of those exchanges reside in jurisdictions that don't have much of a regulatory body that can go and take action against people that are doing something bad to the market."

However, Bogart did leave open the possibility that the SEC's thinking could change on the ETF if a new set of people look into the matter.

“It is possible that, in the short time period from when the SEC disapproved to when the petition was granted, there was a significant regime change at the SEC," explained Bogart. "You could have a different group of people who want to review the matter because they aren't sure the decision to disapprove was a good choice. I’ve heard whisperings that there are many people within this administration who are friendly or at least amicable to digital currencies like bitcoin."

Bitcoin Surging Even Without ETF

Regardless of what the future holds for bitcoin ETFs, the digital currency itself isn't fazed. Since March 10—the day the SEC originally rejected the Winklevoss Bitcoin ETF—the price of bitcoin is up an incredible 91%, last hitting an all-time high of more than $2,200 on Monday. Year-to-date, bitcoin is up 130%.

If anything, the price only accelerated on the upside after the SEC's disapproval, though most analysts attribute the surge to other factors.

"The big driver of the rally seems to be what’s going on in Japan and Korea," noted Bogart. "In Japan, recently there's been a change to acknowledge bitcoin as a legal payment method. That in and of itself wasn't significant as, generally, people don't like to spend bitcoin; they like to hold it."

"But Japan's move provides some regulatory clarity, and now there are major tech companies that want to open up bitcoin exchanges in Japan,” Bogart said. “So what you saw was volume in existing bitcoin exchanges in Japan went through the roof and pushed the prices up. Koreans look closely at Japan and tend to imitate a lot of activity there, so there's been a lot of demand from that area of the world also."

"That's been the story of bitcoin,” added Bogart. “A lot of times it's just sitting there doing nothing and then either something falls apart in a particular corner of the world, or in some corner of the world, some regulatory agency decides to be favorable to bitcoin and then you see these random rallies. Then as you begin to rally, speculators pile in, and it becomes a self-perpetuating cycle."

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Winklevoss Bitcoin ETF to Trade on NASDAQ Under 'COIN' Symbol

The Winklevoss twins have filed an amended Form S-1 with the SEC. The minor update reveals a few new facts about the Winklevoss exchange traded fund (ETF).

So far Cameron and Tyler Winklevoss have updated their ETF filing four times. The process of registering an ETF is painstakingly slow: the twins originally filed for an investment fund a year ago, on 1st July 2013.

New update reveals ETF symbol

According to the latest filing, shares in the Winklevoss Bitcoin Trust will trade on the NASDAQ OMX under the symbol 'COIN'.

There are a number of cosmetic changes too, described by the Wall Street Journal as "minor tweaks".

The new S-1 lists a number of new risk factors, mostly revolving around government regulation. The filing also outlines Switzerland's latest legislative measures and notes Bolivia's recent central bank ban on bitcoin.

On the technology front, the filing mentions the possibility of a 51% attack. Another warning is that core developers could stop maintaining the bitcoin protocol unless they are paid. Both issues have received a lot of coverage in recent weeks amid a public debate on mitigating the risk of a 51% attack and speeding up core development.

No word on a launch date yet

Although the brothers are making progress and the ETF is starting to take shape, it is still too early to talk about a possible launch date.

Cameron Vinklevoss stressed that he could not discuss timing to launch due to strict security laws. "However, identifying the ticker symbol and the exchange are two major events that further demonstrate that we are moving forward as expected," he added.

Although the Winklevoss ETF remains in regulatory limbo, another bitcoin fund, SecondMarket's Bitcoin Investment Trust (BIT), plans to open to all investors in the fourth quarter of the year.

BIT is not an ETF, however. SecondMarket will effectively circumvent the regulatory process by transforming the BIT into an open fund for public investors. The company still needs approval from Financial Industry Regulatory Authority (FINRA) and OTC Markets, but it does not have to deal with all the regulatory requirements of launching an all new ETF.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

SEC Expected to Decide Bitcoin ETF's Fate By Friday

The US Securities and Exchange Commission's decision on the much-anticipated bitcoin exchange-traded fund (ETF) is expected by Friday, according to a source with knowledge of the agency's deliberations.

The SEC has an 11th March deadline to make a decision regarding the proposed rule change that would clear the way for the ETF, which would be the first of its kind. Yet because the 11th falls on a Saturday, that decision will come before that date – potentially before Friday, the source said.

The decision, regardless of the outcome, will cap a more than three-year period since investors Cameron and Tyler Winklevoss first filed with the SEC in mid-2013.

Should the fund receive approval, some analysts have speculated that bitcoin markets could rise as a result. That expected approval appears to be baked into some quarters of the market already, driving the price to new all-time highs in recent days.

The digital currency's price continually neared $1,300 in recent sessions, reaching $1,293.47 on 3rd March, CoinDesk Bitcoin Price Index (BPI) figures show. However, bitcoin prices kept falling back during their climb toward $1,300, eventually experiencing a sharp drop on 7th March, during which markets plunged below $1,200 for a brief period.

On the other hand, analysts have argued that, should the SEC reject the rule change that would allow the Bats Global Exchange to list the ETF, bitcoin's price could be negatively affected.

Phil Bak, who was previously a New York Stock Exchange managing director and currently serves as CEO for ETF issuer ACSI Funds, told CoinDesk that, generally, the SEC seeks to avoid the appearance of "publicly rejecting an ETF". He went on to argue that, if the agency didn't plan on approving one of these funds, it would likely ask for the filing to be pulled ahead of any final decision.

Yet according to Bak, the lack of such a pullback so close to the deadline could be driven by other factors specific to the bitcoin ETF.

"In this case, the government agency may want to show the world it is unsure about bitcoin. Alternatively, it could also be that the advocates want to support it to the end and let this proposed fund get its day in court, rejection or not."

'A coin toss'

In the absence of a definitive statement from the SEC, it's perhaps easy to see why a common refrain of uncertainty has emerged the week of the decision.

As Arthur Hayes, co-founder and CEO of exchange platform BitMEX, explained:

"I have heard good arguments for and against the ETF being approved. At this point it is a coin toss."

Hayes' exchange is home to an ETF-tied prediction market, where traders can essentially bet on the outcome of the decision, and that has seen significant fluctuations over the past month. At times, traders have given the fund estimated chances of between 2% and 70%, depending on the day. At press time, the prediction market shows a roughly 50% estimated chance of approval.

Charles Hayter, co-founder and CEO of CryptoCompare, offered similar sentiment, stating that the fund's odds of receiving approval are "more than likely plucked out of the air on this one".

Those close to the industry aren't the only ones comparing the SEC decision to a coin flip.

For example, Bloomberg Intelligence senior analyst Eric Balchunas recently argued that the ETF has about a 50-50 chance of receiving approval.

The waiting game

For now, at least, those standing by for the SEC's decision can only watch and wait as the 11th March deadline grows nearer.

Yet, as argued by one analyst, those hoping for a conclusion to the years-long process might not get an answer until after that date.

Jeff Bishop, ETF expert and co-founder of investor message board platform RagingBull.com, speculated that, in the end, the SEC could punt its decision further past the 11th – particularly in light of recent price gains.

"I have the feeling they will find a way to delay this even more though. With bitcoin at all-time highs and the SEC having a terrible record for allowing new ETFs to come to market at absolute tops, they will likely push back on this until things cool a bit," he said.

That said, Bishop said he believes the ETF should be approved.

"It should be up to investors to decide the true price of bitcoin. The more liquidity and options [there are] to trade it, the more transparent and accurate the pricing will be," Bishop told CoinDesk, concluding:

"It should not be up to a government agency to withhold something like this from the public."

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Your search engine does not find any satisfactory results for searches. It is too weak. Also, the server of bing is often off

I created a yahoo/email account long ago but I lost access to it; can y'all delete all my yahoo/yahoo account except for my newest YaAccount

I want all my lost access yahoo account 'delete'; Requesting supporter for these old account deletion; 'except' my Newest yahoo account this Account don't delete! Because I don't want it interfering my online 'gamble' /games/business/data/ Activity , because the computer/security program might 'scure' my Information and detect theres other account; then secure online activities/ business securing from my suspicion because of my other account existing will make the security program be 'Suspicious' until I'm 'secure'; and if I'm gambling online 'Depositing' then I need those account 'delete' because the insecurity 'Suspicioun' will program the casino game 'Programs' securities' to be 'secure' then it'll be 'unfair' gaming and I'll lose because of the insecurity can be a 'Excuse'. Hope y'all understand my explanation!

I want all my lost access yahoo account 'delete'; Requesting supporter for these old account deletion; 'except' my Newest yahoo account this Account don't delete! Because I don't want it interfering my online 'gamble' /games/business/data/ Activity , because the computer/security program might 'scure' my Information and detect theres other account; then secure online activities/ business securing from my suspicion because of my other account existing will make the security program be 'Suspicious' until I'm 'secure'; and if I'm gambling online 'Depositing' then I need those account 'delete' because the insecurity 'Suspicioun' will program the casino game 'Programs' securities' to be… more

chithidio@Yahoo.com

i dont know what happened but i can not search anything.

Golf handicap tracker, why can't I get to it?

Why do I get redirected on pc and mobile device?

Rahyaftco@yahoo.com

RYAN RAHSAD BELL literally means

Question on a link

In the search for Anaïs Nin, one of the first few links shows a picture of a man. Why? Since Nin is a woman, I can’t figure out why. Can you show some reason for this? Who is he? If you click on the picture a group of pictures of Nin and no mention of that man. Is it an error?

Repair the Yahoo Search App.

Yahoo Search App from the Google Play Store on my Samsung Galaxy S8+ phone stopped working on May 18, 2018.

I went to the Yahoo Troubleshooting page but the article that said to do a certain 8 steps to fix the problem with Yahoo Services not working and how to fix the problem. Of course they didn't work.

I contacted Samsung thru their Samsung Tutor app on my phone. I gave their Technican access to my phone to see if there was a problem with my phone that stopped the Yahoo Search App from working. He went to Yahoo and I signed in so he could try to fix the Yahoo Search App not working. He also used another phone, installed the app from the Google Play Store to see if the app would do any kind of search thru the app. The Yahoo Search App just wasn't working.

I also had At&t try to help me because I have UVERSE for my internet service. My internet was working perfectly. Their Technical Support team member checked the Yahoo Search App and it wouldn't work for him either.

We can go to www.yahoo.com and search for any topic or website. It's just the Yahoo Search App that won't allow anyone to do web searches at all.

I let Google know that the Yahoo Search App installed from their Google Play Store had completely stopped working on May 18, 2018.

I told them that Yahoo has made sure that their Yahoo members can't contact them about anything.

I noticed that right after I accepted the agreement that said Oath had joined with Verizon I started having the problem with the Yahoo Search App.
No matter what I search for or website thru the Yahoo Search App it says the following after I searched for
www.att.com.

WEBPAGE NOT AVAILABLE
This webpage at gttp://r.search.yahoo.com/_ylt=A0geJGq8BbkrgALEMMITE5jylu=X3oDMTEzcTjdWsyBGNvbG8DYmyxBHBvcwMxBHZ0aWQDTkFQUEMwxzEEc2VjA3NylRo=10/Ru=https%3a%2f%2fwww.att.att.com%2f/Rk=2/Es=plkGNRAB61_XKqFjTEN7J8cXA-
could not be loaded because:
net::ERR_CLEARTEXT_NOT_PERMITTED

I tried to search for things like www.homedepot.com. The same thing happened. It would say WEBPAGE NOT AVAILABLE. The only thing that changed were all the upper and lower case letters, numbers and symbols.
Then it would again say
could not be loaded because:
net::ERR_CLEARTEXT_NOT_PERMITTED

This is the same thing that happened when Samsung and At&t tried to do any kind of searches thru the Yahoo Search App.

Yahoo needs to fix the problem with their app.

Yahoo Search App from the Google Play Store on my Samsung Galaxy S8+ phone stopped working on May 18, 2018.

I went to the Yahoo Troubleshooting page but the article that said to do a certain 8 steps to fix the problem with Yahoo Services not working and how to fix the problem. Of course they didn't work.

I contacted Samsung thru their Samsung Tutor app on my phone. I gave their Technican access to my phone to see if there was a problem with my phone that stopped the Yahoo Search App from working. He went to Yahoo and… more

Bitcoin ETF

Featured Story

When Is the Winklevoss Bitcoin ETF IPO?

By David Zeiler , Associate Editor , Money Morning • @DavidGZeiler - March 1, 2017

The Winklevoss Bitcoin ETF IPO launch date has not yet been set.

When it occurs depends on whether the SEC approves a rule change that will allow the Winklevoss Bitcoin Trust (the ETF's official name) to begin trading.

What happens with the Winklevoss ETF will determine the fate of two others also awaiting SEC approval.

Article Index

When Is the Winklevoss Bitcoin ETF IPO?

By David Zeiler , Associate Editor , Money Morning • @DavidGZeiler - March 1, 2017

Start the conversation

The Winklevoss Bitcoin ETF IPO launch date has not yet been set.

When it occurs depends on whether the SEC approves a rule change that will allow the Winklevoss Bitcoin Trust (the ETF's official name) to begin trading.

What happens with the Winklevoss ETF will determine the fate of two others also awaiting SEC approval.

What Is the Winklevoss Bitcoin ETF?

By David Zeiler , Associate Editor , Money Morning • @DavidGZeiler - February 28, 2017

Start the conversation

The Winklevoss Bitcoin ETF is an exchange-traded fund that will make it much easier to invest in the Bitcoin digital currency.

The Winklevoss Bitcoin Trust still requires SEC approval of a rule change. A decision is expected by March 11.

But if the SEC does approve this Bitcoin ETF, the price of Bitcoin could double in a very short time.

The First Bitcoin ETF Could Win Approval in March Despite Long Odds

By David Zeiler , Associate Editor , Money Morning • @DavidGZeiler - February 2, 2017

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The SEC has plenty of reasons not to approve the first Bitcoin ETF by next month's deadline. But there's a good chance the agency will surprise everyone and make the first Bitcoin ETF a reality.

Most analysts believe the SEC will turn down the three active bids to become the first Bitcoin ETF, which includes the Winklevoss Bitcoin Trust.

Winklevoss Bitcoin ETF Update This Week Could Help SEC Approval

By David Zeiler , Associate Editor , Money Morning • @DavidGZeiler - October 21, 2016

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As the Winklevoss Bitcoin ETF enters the home stretch in its bid for SEC approval, its latest filing shows it's doing all it can to convince the agency that its ETF will be a safe investing vehicle.

The latest amendment to the Winklevoss Bitcoin Trust's S-1 filing reveals that it has enlisted two respected partners, financial services company State Street Corp. and accounting firm Burr Pilger Mayer.

Why the First Bitcoin ETF Could Double the Price of Bitcoin

By David Zeiler , Associate Editor , Money Morning • @DavidGZeiler - September 9, 2016

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When the first Bitcoin ETF lands - an event that could happen any day now - it will have a dramatic impact on the price of Bitcoin.

The arrival of the first Bitcoin ETF will be a powerful Bitcoin price catalyst because it will mimic other commodity-based ETFs, particularly those based on gold and silver.

Those ETFs were primary factors in the steep rise in gold and silver prices a decade ago.

Bitcoin ETFs Can Work – but This Ethereum ETF Won't

By David Zeiler , Associate Editor , Money Morning • @DavidGZeiler - July 20, 2016

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Seeing two Bitcoin ETFs seeking regulatory approval, an upstart group has now filed for something even more radical - an Ethereum ETF.

The evidence suggests the group, the EtherIndex Ether Trust, threw together its S-1 filing with the SEC willy-nilly in an effort to be first in line to file for an Ethereum ETF.

But the problems with this ETF proposal run much deeper than that.

Why the SolidX Bitcoin ETF Is a Step Behind the Winklevoss Bitcoin ETF

By David Zeiler , Associate Editor , Money Morning • @DavidGZeiler - July 13, 2016

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One Bitcoin ETF is good, but two are better. And now that the SolidX Bitcoin ETF has filed an S-1 with the Securities and Exchange Commission, we could have two Bitcoin ETFs trading on major U.S. exchanges by next year.

The only question now is which one will gain the bragging rights of making it first to the finish line.

How One Simple Hedge Could Actually Give the Biggest Profits of the 21st Century

By Michael A. Robinson , Defense + Tech Specialist , Money Morning • @Robinson_STI - February 9, 2016

Start the conversation

Millions of investors dedicate a portion of their portfolio to gold or some other precious metal as a hedge - as "insurance" - against trouble in other markets.

At its base, this is a sound strategy, because precious metals generally aren't affected by the ups and downs of the stock market.

This isn't a "gold service," however. Our interest is in tech investing. So let's spend today investigating what I think of as "the gold of tech."

Not only can you use this investment as a hedge, but financial players are beginning to eye the technology behind it as way to disrupt the $500 billion payments industry.

Bitcoin News: Now That the CFTC Says It's a Commodity, What's Next?

By David Zeiler , Associate Editor , Money Morning • @DavidGZeiler - September 18, 2015

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In a major piece of Bitcoin news, the Commodity Futures Trading Commission (CFTC) ruled that the digital currency is a commodity.

It's a significant step along the road toward Bitcoin regulation. While some early adopters of Bitcoin would prefer no government involvement with Bitcoin, Bitcoin regulation is necessary for the digital currency to play any meaningful role in the financial system.

Looking for a Bitcoin Stock Symbol? We've Got Them All

By David Zeiler , Associate Editor , Money Morning • @DavidGZeiler - June 12, 2015

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Looking for the Bitcoin stock symbol is not as straightforward as you might think.

Technically speaking, there's no such thing as a "Bitcoin stock symbol," although there are several tickers associated with Bitcoin.

Price of Bitcoin Creeps Up on Wave of Major Developments

By David Zeiler , Associate Editor , Money Morning • @DavidGZeiler - May 4, 2015

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A rapid-fire string of good news over the past week has help nudge up the price of Bitcoin.

A week ago the Bitcoin price was hovering around $225, somewhat disappointing since just six weeks earlier it was threating to break through the $300 level.

But then we started to get some major positive Bitcoin news. Over the past few days, the Bitcoin price is up about 7%, trading in the neighborhood of $240

The First Bitcoin ETF Offers Easy Way to Profit from Virtual Currency (GBTC)

By David Zeiler , Associate Editor , Money Morning • @DavidGZeiler - March 3, 2015

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The first Bitcoin ETF ordinary investors can buy will be the Bitcoin Investment Trust.

With approval last week from the Financial Industry Regulatory Authority (FINRA) to sell its shares on the OTC Markets, shares should start trading within the next couple of weeks.

The fund gives investors a way to invest in Bitcoin without going to the trouble of buying Bitcoin and worrying about having a secure place to store it.

This Bitcoin Price Chart Shows What's Blocking Faster Adoption

By David Zeiler , Associate Editor , Money Morning • @DavidGZeiler - February 3, 2015

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The Bitcoin price chart for January shows volatility is just as much of an issue for the digital currency as ever.

But for Bitcoin to gain mainstream adoption, this problem must be solved. A currency that can Bitcoin's tendency to lose 20% to 40% of its value in a matter of days, or even hours, discourages its use for daily transactions.

Winklevoss Bitcoin ETF Files to Sell 1 Million Shares (Nasdaq: COIN)

By David Zeiler , Associate Editor , Money Morning • @DavidGZeiler - January 2, 2015

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Taking one step closer to going live, the Winklevoss Bitcoin ETF filed an amendment Dec. 30 to its Securities and Exchange Commission (SEC) prospectus to list 1 million shares at an offer price of $20.09 per share.

If approved, the aggregate value of the shares will be $20.09 million.

Officially known as the Winklevoss Bitcoin Trust, this exchange-traded fund is intended to be an easy way to invest in Bitcoin.

Bitcoin Forecast 2015: Four Powerful Trends Will Deliver a Pivotal Year

By David Zeiler , Associate Editor , Money Morning • @DavidGZeiler - December 18, 2014

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The Bitcoin forecast for 2015 is for major strides toward the promise we've been hearing about for more than a year.

The power of the idea - a decentralized, digital currency that includes ownership data and can move money around the world in an instant - just keeps gaining traction.

But the Bitcoin forecast 2015 isn't just for more of the same. For sure, mass adoption will continue. But next year we'll see a lot more activity on Wall Street as well as a lot more innovation from Bitcoin startups.

Why Buy This Expensive Bitcoin Trust Instead of Actual Bitcoin?

If you're interested in getting invested in the digital currency world, now seems to be as good a time as ever. Bitcoin has seen repeated record-setting price levels, and a host of other digital currencies are becoming increasingly popular around the globe. And yet, there are some reasons why even seasoned investors may be reluctant to get involved in direct investments relating to cryptocurrencies. Fortunately for those people, there is an over-the-counter trust focusing on Bitcoin in particular that can simplify the process. It is called the Bitcoin Investment Trust (GBTC) and it is provided by Grayscale Investments. Here are some of the basic details about the new trust and its relationship to the digital currency itself.

Significant Returns Already

The Bitcoin Investment Trust has won a spectacular set of gains over the past year. According to MicroCap Daily, the trust was trading for less than $100 just one year ago, while in the intervening time it has risen to more than $1000. It has finally settled back to about $800 as of this writing. The trust's success mirrors that of Bitcoin, and that makes sense: the trust is exclusively tied to that cryptocurrency, and its value is derived solely from that of Bitcoin.

Why the Huge Premium for GBTC?

Potential investors are likely wondering why GBTC shares can be found at such a high premium over Bitcoin. The issue seems to lie in supply and demand. While Bitcoin demand has skyrocketed, GBTC has kept its shares outstanding close to 1.7 million in the two years that it has existed. In fact, the ETF seems unlikely to change the number of total outstanding shares in the future, according to the company's head of research, Ihor Dusaniwsky. He explains that "it is unlikely that GBTC's outstanding share amount will climb above 1.7 million anytime soon."

This is not to say that there aren't significant concerns about GBTC as well. Andrew Left of Citron Research has publicly criticized the trust, and Seeking Alpha speculates that his statements may be linked to GBTC's cratering premium relative to Bitcoin, possibly due to investors having sold off their shares in a rush of skepticism. According to Citron, GBTC marks the "most dangerous way to own Bitcoin."

It is useful to note that GBTC didn't always seem this expensive in comparison with Bitcoin. Before Bitcoin's price spiked in the past several weeks, the trust traded on an average premium of just 10% above the crypto currency in 2017. The issue seems to have come about when Bitcoin's demand blew up and GBTC's supply did not change. As Bitcoin continues to spread further into the financial world, it will be interesting to see where GBTC's share prices go as well.

The Winklevoss Twins’ Bitcoin ETF Explained

Last updated on January 2nd, 2018 at 12:00 am

Update March 10th 2017 – The SEC has rejected the Bitcoin ETF suggested by the Winklevoss twins.

According to a publicly distributed notice detailing the decision, the SEC said:

“As discussed further below, the Commission is disapproving this proposed rule change because it does not find the proposal to be consistent with Section 6(b)(5) of the Exchange Act, which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest.”

Recently there has been a lot of talk about the Bitcoin ETF that was set up by Tyler and Cameron Winklevoss. In this short post I want to give you a general overview about what’s all the fuss about, and let’s start with the basics.

What is an ETF?

ETF stands for Exchange-Traded Fund. It’s basically an investment vehicle that tracks the performance of a specific asset. In plain words, it’s a piece of paper you invest in that tells you “I’ll be worth whatever X is worth” – X being a specific asset such as oil, gold, bonds, stocks or currency.

It’s a simple way of investing in an asset without owning the asset itself. Since a lot of people who trade don’t really care about the actual asset but only about its profit and loss, ETFs simplify the investment process. So if I want to invest in Gold for example because I think the price of gold is about to explode, I don’t have to buy physical gold, I can just buy a gold ETF.

What is the Bitcoin ETF?

As you probably figured out by now, the Bitcoin ETF is a type of ETF that will mimic Bitcoin’s price – it is set to be traded on the Bats Exchange. This means that anyone who trades on the Bats will be able to invest in Bitcoin (including large institutional investors). It will also eliminate the need for storing and securing your Bitcoins since you don’t own the currency itself.

At the moment the SEC (Securities and Exchange Commission) is debating on whether to approve or decline the ETF. The ETF proposed by the Winklevoss brothers is not the only ETF waiting to be approved by the SEC. SolidX also proposed to set up an ETF and is waiting until March 30th for the SEC’s approval to be listed on the NYSE. Grayscale filed to list their ETF also. However, the Bitcoin ETF by the twins is probably the first in line as they originally filed their request in 2013.

The SEC is said to supply it’s response on March 10th 2017. However,if the SEC doesn’t issue a ruling one way or another, the proposed fund would be approved by default. Given that no ETF has been brought to market in this way, this is considered an exceedingly unlikely outcome.

The advantages of a Bitcoin ETF

Once there is a SEC regulated ETF on the market this opens up the opportunity for many investors to jump in and invest in Bitcoin without actually holding the currency by making it more accessible. The SEC’s approval would be another major step towards regulation Bitcoin worldwide.

Also since this is an investment vehicle you will be able to short sell it if you think the market is going down. Furthermore, investing in an ETF will remove one of the major drawbacks currently holding people from investing in Bitcoin – the need to understand the currency and how to secure your coins.

The disadvantages of a Bitcoin ETF

The main disadvantage of the ETF lies with the fact that the investment trust of the Winklevoss twins which issues the ETF currently doesn’t have insurance for investors’ money in case their coins are lost or stolen. SolidX on the other hand does supply insurance (but will be approved/rejected on a later date).

Also there is a fee of around 2% attached to investing in the Bitcoin ETF. However, seeing how this is relatively low compared to the usual fees people face when buying Bitcoins I don’t think this will deter a lot of investors.

How will this affect Bitcoin’s price?

Wouldn’t we all want to know :)

Nobody can really say how this will affect Bitcoin in the long run, however the logical outcome would be that if the ETF is approved, more people will now be able to invest in Bitcoin and the price will gradually rise. Just for the sake of comparison, gold ETFs were introduced in the mid 2000s and after that the spot price for gold tripled within 5 years.

However, if the SEC rejects the ETF this may cause panic in the market and have a lot of people selling their coins bringing the price of Bitcoin down.

To conclude, it seems like this is going to be a very interesting week…

Etf bitcoin

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