Bře 14

Any Bitcoin ETF Gaining Approval in 2017? Don’t Bet On It. Here’s Why

· March 14, 2017 · 4:00 am

The defeat of the COIN Bitcoin ETF turned out to be the story that wasn’t. Yes, it caused a sharp dip in the market, but this was filled within hours on Friday evening. Some say this is not a big deal because other ETF proposals wait in the wings. But the evidence says they will suffer a similar fate.


‘Significant Markets for Bitcoin are Unregulated’

Let’s take you back to Friday afternoon. The decision on the Bitcoin ETF was set to come down by Saturday, March 11th, so the SEC held up their end of the bargain. They did not delay the decision again, but said they will not approve the proposal. The deeper issue is why it was not approved.

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“Based on the record before it, the (SEC) Commission believes that the significant markets for bitcoin are unregulated,” the SEC said in a statement. “The Commission notes that bitcoin is still in the relatively early stages of its development and that, over time, regulated bitcoin-related markets of significant size may develop.”

Bitcoin ETF a ‘Cause for a Pause’

This does not sound like a problem based on The Winklevoss Twins actual proposal, or a technicality. The problem the SEC seems to have is with the Bitcoin market overall. They specifically mentioned multiple global markets, plus a long time view of their progression towards regulation, which really isn’t in the offing.

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“The SEC made a strong statement and it listed its concerns, and I thought it did a very good job of explaining its rationale,” Phil Bak, the former head of ETF listings at the New York Stock Exchange told MarketWatch.

Bitcoin will mature as an investment over the coming years, but I don’t think we’ll see a change in how the SEC views it over that time. For the other firms trying to bring one to market, I’m trying to think of a nice way to say, ‘no chance in hell’ for their approval.

The Winklevoss Twins have been on this mission for almost four years and they have decided not to give up on the process. However, the reasons for denial have virtually nothing to do with the proposal, so where do they go from here?

Winklevoss Twins

“They can obviously try again, and SEC membership continually changes, but getting rejected is usually a stop, or at least cause for a pause. I don’t know what the next steps would be,” said Todd Rosenbluth, director of ETF and mutual fund research at CFRA.

“The SEC highlighted the unregulated market for bitcoin, and I don’t think the filers could do anything to change that,” Rosenbluth said.

Therefore, it appears that similar filings such as Barry Silbert’s Bitcoin Investment Trust will share a similar fate as COIN or at least until regulators get better oversight of Bitcoin and its related markets.


Images courtesy of Shutterstock, LinkedIn

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Barry Silbert’s Bitcoin Investment Fund Files $500m Share Offering

· January 21, 2017 · 7:00 am

Barry Silbert’s Bitcoin Investment Trust has filed form S-1 with the US Securities And Exchange Commission (SEC) for up to $500 million USD worth of shares.


Private Placement Shares End

The documentation, submitted Friday, will take the Trust a step closer to listing on the New York Stock Exchange should the SEC approve it.

Bitcoinist_Digital Currency Group Barry Silbert

Grayscale Investments, LLC announced today that it has filed a registration statement on Form S-1 relating to the proposed registration of the Bitcoin Investment Trust’s shares (the “registered Shares”) with the Securities and Exchange Commission,” an accompanying press release confirmed.

The investment objective of the Bitcoin Investment Trust is for the registered Shares to reflect the performance of the value of a bitcoin, before liabilities and expenses of the Trust, as represented by the TradeBlock XBX Index.

The move also means that the Trust’s holding company, Grayscale Investments, has ceased offering shares in the Trust through its private placement.

“As of the close of business on January 19, 2017, Grayscale Investments, LLC has ceased its ongoing private placement and will no longer issue shares of the Bitcoin Investment Trust through its previous 506(c) private placement,” an additional announcement stated Friday.

Shares of the Bitcoin Investment Trust will continue to be quoted in the secondary market on OTCQX®, the top marketplace operated by OTC Markets, under the symbol: GBTC.

Grayscale has also announced a new Ethereum Classic Trust, with more details to be announced in the near future.

Analysts: SEC ‘Worried About FUD’

The SEC is also currently considering the Winklevoss twins’ Bitcoin ETF, which has faced a long process to ratification and has still not received the regulatory blessing.

Bitcoinist_Bitcoin Devleopment Funding

Earlier this month, analysts suggested the SEC was unlikely to grant the Fund approval due to various factors causing unease – including, somewhat unusually, “fear, uncertainty, and doubt.”

Nonetheless, the instrument has already proven its viability, for example in a surge last January as uncertainty gripped global stock markets.

A decision from the SEC is expected by March, and if successful, the same analysts note, the Bitcoin ETF could see $300 million flow into the Bitcoin ecosystem from new Wall Street investors.

The Winklevoss twins have been vocal in their support for Bitcoin as an asset, stating is “better than gold” and calling Bitcoin “the greatest social network of all.”

The BTI meanwhile, launched back in 2013, began trading on the OTCQX in May 2015. 

What do you think about the chances for the Bitcoin Investment Trust compared to the Bitcoin ETF? Let us know in the comments below!


Images courtesy of Shutterstock, Twitter

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Led 12

Bitcoin Investment Trust Surges Amid Stock Volatility

Source: bitcoin

Bitcoin Investment Trust

Amid the stock market turbulence experienced throughout last week, the Winklevoss Bitcoin Exchange has fared very well.

Also read: Coinprism Releases OpenChain 0.5 With Various Improvements

The Bitcoin Investment Trust Sees Smooth Sailing

The Bitcoin Investment Trust offers the first publicly quoted securities which derive value from the Bitcoin price. BIT is publicly quoted on the OTCQX®.

GBTC is sponsored by Grayscale Investments, which believes “digital currencies are poised to radically transform our financial system.” The firm wishes to offer investors “an established, trusted and accountable partner that can help them navigate the gray areas of digital currency investing.” The firm also refers to Bitcoin as “the Internet of money.”

BIT allowed people with online brokerage accounts to accumulate digital currency. Articles from the Wall Street Journal warned investors:

Bitcoin is a highly speculative investment—the kind most financial advisers say investors should only buy into with money they can afford to lose. But some analysts think the new fund could bring the digital currency a step closer to broader acceptance by investors. For that to happen, the fund will have to overcome some early difficulties.

While this is all true, the Bitcoin Investment Trust has proven to be a source of stability amid market chaos in the first week of the New Year. The Trust began trading on OTCQX on May 4, 2015 under the ticker symbol GBTC. The fund isn’t an exchange-traded fund, and remains small, but people believe it could prompt speculative interest in Bitcoin, and the recent volatility across stock markets could abet the process.

“The OTCQX listing is also a very big step forward,” Gil Luria, an analyst with brokerage firm Wedbush Securities, told WSJ. “It has made at least a proxy ownership stake in bitcoin available to practically every institutional and retail investor.”

Leading into the end of 2015, the Bitcoin Investment Trust received much popular press, as its price increased leading into the stock market volatility. It appears investors are open to the idea of Bitcoin.

BIT offers a tax-advantaged investment account complete with designated beneficiaries. Currently, GBTC enables investors to gain Bitcoin exposure in a traditional security. Each share of GBTC equals one-tenth of a Bitcoin invalue, and every day the price is set according to the Bitcoin market price.

GBTC can be held in IRA, Roth IRA, 401(k), and other brokerage and investment accounts. Accredited investors are able to buy shares directly from the issuer, though they will entail resale and transfer limits.

As panic remains, it could be that investors with accounts move their investment accounts towards Bitcoin. Bitcoin could be seen as a tool of diversification.

Investors fear that China’s volatility could spread to global markets, causing major selloffs worldwide. China’s stock market has twice closed this week. European markets declined and in the US stocks fell 2 percent.

The Dow Jones Industrial average and Standard & Poor’s 500 both fell approximately 2.3 percent, having lost about 5 percent of their value this week. Nasdaq declined the most – 3 percent on Thursday.

Apple and Amazon were both down 4 percent and 3.7 percent each. JP Morgan Chase fell 4 percent and Nordstrom fell 5.5 percent.

Many investors blamed Chinese authorities drastic measures on the decline, such as ceasing trading and instituting trading regulations.

What do you think about Bitcoin’s performance in this turbulent global economy? Let us know in the comments below!

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Bitcoin Investment Trust Surges Amid Stock Volatility

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