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Are the Winklevoss Twins Bringing the Bitcoin Price Back Up?

Source: bitcoin


The bitcoin price is back up! Following a scary and wavering period of political turmoil and financial devaluation, bitcoin has returned to $670 USD and beyond at press time.

Also read: Bitcoin Price Down, But Gaining Popularity in UK Following Brexit

Bitcoin is getting people excited again, and the reasons for the rise are likely due to several factors.

For one thing, the Brexit vote has come to an end. Britain is leaving the EU, and while anti-Brexit petitions are in the mix, no move has been made on those yet.

In that time, bitcoin encountered its heaviest drop in recent days, but trading among British investors and cryptocurrency hounds was at an all-time high, according to  Jesse Powell of San Francisco-based bitcoin exchange Kraken.

Trading was at its highest point within 24 hours of the Brexit vote, and many UK residents seemed eager to switch their savings to something they thought was a little more “trustworthy” (the British pound had fallen 10 percent against the U.S. dollar in that time).

Now that the vote is over, bitcoin looks to be rebounding, but another reason may have to do with those ever-popular Winklevoss twins, made famous in the Oscar-winning production, The Social Network.

Winklevoss Bros Bringing the Bitcoin Price Rally?

Cameron and Tyler are now making headlines with their new Winklevoss Bitcoin Trust, which has recently switched to BATS Global Markets.

Still headed for a listing on the Nasdaq, the Securities and Exchange Commission confirmed last Wednesday that the organization will now be a choice among popular ETFs, as the exchange executed nearly 25 percent of US ETF trading last May.

If the Winklevoss twins get their way, the exchange will be the first SEC-approved and regulated bitcoin platform, and will trade under the ticker symbol COIN. Naturally, the Twins’ primary exchange Gemini (based in New York), will serve as the trust’s custodian.

“We are excited to add the Winklevoss Bitcoin Trust,” explains Laura Morrison, present head of BATS.

A little publicity Winklevoss-style always seems to get bitcoin ahead in the record books, and this scenario is no exception. Whether bitcoin will rise beyond $700 remains to be seen, but the digital currency does appear to be attempting its long trek up the financial mountain yet again, and we can only wait and see where things lead in the coming months.

How fast will the bitcoin price rise again? Post your thoughts and comments below!

Images courtesy of Brian Snyder via Forbes, CNBC.

The post Are the Winklevoss Twins Bringing the Bitcoin Price Back Up? appeared first on Bitcoinist.net.

Are the Winklevoss Twins Bringing the Bitcoin Price Back Up?

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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!

The post Bitcoin Investment Trust Surges Amid Stock Volatility appeared first on Bitcoinist.net.

Bitcoin Investment Trust Surges Amid Stock Volatility