New Bitcoin ETF

Note from the Publisher:  Our friend Bill Uliveri attended a Bitcoin conference in Miami last week, and reported back over the weekend.  There were some kooky folks there, and some legitimate folks, too.  Such is the plight of Bitcoin – it still remains an enigma and it does attract a “diverse” crowd of folks. Still it is gaining traction and one of the leaders pushing the digital currency forward is Barry Silbert, a bit of a rock start in the Bitcoin community, and founder of Digital Currency Group which has dozens of holdings in Bitcoin- and digital currency-focused tech firms. 

Silbert’s Grayscale Investments division has just listed with the SEC to list its Bitcoin Investment Trust ETF on the NYSE.  Turns out it is already trading on the OTCQX.  Silbert joins the Winklevoss twins (who recently partnered with State Street) and SolidX Partners on seeking to be the first to get a Bitcoin-based ETF listed on a major US exchange.  We say it’s about time.  The CME has further legitimized Bitcoin with their two new indexes (which our CEO Bill Taylor covers M-F), and the digital currency is here to stay.  So come on, SEC, let’s get into 2017 and get this approved. 

“Two Wall Street firms, KCG Holdings Inc. and Wedbush Securities Inc., are in discussions to serve as authorized participants, according to the filing. Additionally, the fund’s trustee will be Delaware Trust Co., and the transfer agent will be Bank of New York Mellon Corp., based on the filing.  Grayscale Investments declined to comment.

The benefits of being first on a major exchange could be big, assuming that bitcoin does manage to establish itself as a viable asset class. The SPDR Gold Shares ETF launched Nov. 18, 2004, has $31 billion in assets. The iShares Gold Trust ETF launched Jan. 21, 2005, has $7.7 billion in assets. Gold, a commodity not backed by any particular government, appeals to investors for some of the same reasons as bitcoin.

In addition to Grayscale, two other groups are seeking SEC approval for their bitcoin ETFs. Winklevoss Capital Management LLC, operated by twins Cameron and Tyler Winklevoss, has been trying since 2013 to get approval for their bitcoin ETF, Winklevoss Investment Trust. The SEC is expected to make a decision on it by March. Another group, SolidX Partners Inc., is seeking SEC approval for its bitcoin ETF, which also would be listed on the NYSE.”

Read Full Article at
(may require subscription)