A Bitcoin ETF on the Horizon
The Winklevoss Bitcoin ETF, named after brothers Cameron and Tyler who are known for filing a lawsuit against Facebook founder Mark Zuckerberg, is currently under review by the SEC and may be available by the end of 2014.
It would basically legitimize bitcoin investing and make it as simple and straightforward as commodity-based ETFs are for gold and silver. The Trust buys the bitcoins to back the ETF shares, and daily transactions would go through a regulated trading desk.
Is it worth monitoring the Bitcoin ETF’s potential approval?
Yes, says Gordon of Pacific Park Financial. “In the same way that a wildly popular IPO comes to market, the ability for everyday Joes and Joans to invest in the virtual currency may send prices soaring. By the same token, it may give hedge funds — “the big money” — an opportunity to short the heck out of it, sending the price plummeting.”
Whatever you choose to do, be safe out there.
Written by Karen Riccio