BloombergWinklevoss Twins Create Fund to Invest in Bitcoin MarketBloombergThe Winklevoss Bitcoin Trust is offering 1 million shares with the objective of tracking the performance of the average price of Bitcoins, according to a filing yesterday with th…
Bloomberg |
Winklevoss Twins Create Fund to Invest in Bitcoin MarketBloombergThe Winklevoss Bitcoin Trust is offering 1 million shares with the objective of tracking the performance of the average price of Bitcoins, according to a filing yesterday with the U.S. Securities and Exchange Commission. Math-Based Asset Services LLC ... |
Bringing Bitcoin to the MainstreamNew York TimesTwo backers of the alternative crypto-currency bitcoin, Cameron and Tyler Winklevoss, the twins best known for their part in the history of Facebook, are trying to bring bitcoin to a broader investing pub…
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Bringing Bitcoin to the MainstreamNew York TimesTwo backers of the alternative crypto-currency bitcoin, Cameron and Tyler Winklevoss, the twins best known for their part in the history of Facebook, are trying to bring bitcoin to a broader investing public, pending approval of the United States ... |
Makeshift Magazine – Hawala, Moving Billions:
Writer Philippa Young (@_philippayoung_)’s article Thin Wire in the quarterly magazine Makeshift (@MkShftMag) describes Hawala. Excerpts:
“Hawala, hundi, chiti, chop, and dozens of other names describe a system that moves billions of dollars across grey and black markets, faster and cheaper than your local bank.”
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“Before insurance and high-speed travel, moving large amounts of bullion by sea or camel-led caravan was not only slow but also incredibly risky. The answer? Never move the money.”
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“In its infancy, hawala created a safe and smooth journey for long-distance merchants, facilitating the first movements of globalized trade. Fast-forward a few hundred years, and hawala has a less celebrated reputation.”
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“For families in developing countries supported by diaspora relatives, hawala is a lifeline.”
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“Hawala is recordless. With just a name and telephone number, you can transfer thousands of dollars across continents.”
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“Just one month from now, First Somali Bank will launch a system to allow diaspora communities of Minnesota and London to send remittances from their mobile phones directly to a recipient’s debit card in Somalia— signs of attempts to formalize hawala’s informal success.”
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“The system differs from neighboring Kenya’s M-PESA system in that the money goes directly into the recipient’s bank account. Each person becomes his or her own hawaladar.”
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“If money makes the world go round, then hawala is the undervalued engine coughing out a cloak of grey-black smoke.”
– http://mkshft.org/2013/07/thin-wire
– http://bitcointalk.org/index.php?topic=248744.0 (Further discussion of the article)
All News – Daily E-mail Subscription – Twitter: @BitcoinNews
Makeshift Magazine – Hawala, Moving Billions:
Writer Philippa Young (@_philippayoung_)’s article Thin Wire in the quarterly magazine Makeshift (@MkShftMag) describes Hawala. Excerpts:
“Hawala, hundi, chiti, chop, and dozens of other names describe a system that moves billions of dollars across grey and black markets, faster and cheaper than your local bank.”
–
“Before insurance and high-speed travel, moving large amounts of bullion by sea or camel-led caravan was not only slow but also incredibly risky. The answer? Never move the money.”
–
“In its infancy, hawala created a safe and smooth journey for long-distance merchants, facilitating the first movements of globalized trade. Fast-forward a few hundred years, and hawala has a less celebrated reputation.”
–
“For families in developing countries supported by diaspora relatives, hawala is a lifeline.”
–
“Hawala is recordless. With just a name and telephone number, you can transfer thousands of dollars across continents.”
–
“Just one month from now, First Somali Bank will launch a system to allow diaspora communities of Minnesota and London to send remittances from their mobile phones directly to a recipient’s debit card in Somalia— signs of attempts to formalize hawala’s informal success.”
–
“The system differs from neighboring Kenya’s M-PESA system in that the money goes directly into the recipient’s bank account. Each person becomes his or her own hawaladar.”
–
“If money makes the world go round, then hawala is the undervalued engine coughing out a cloak of grey-black smoke.”
– http://mkshft.org/2013/07/thin-wire
– http://bitcointalk.org/index.php?topic=248744.0 (Further discussion of the article)
All News – Daily E-mail Subscription – Twitter: @BitcoinNews
Wall Street JournalThe Biggest Problem With The Bitcoin ETFFox Business (press release)It might only be slight hyperbole to say that anyone that has visited a financial news television station, web site or blog today is well-aware that the Winklevoss t…
Coinsetter CEO, Jaron Lukasiewicz, took a break from Bitcoin London to discuss Bitcoin ETFs and other trading vehicles with Trish Regan, Adam Johnson and a panel of experts today on Bloomberg Television. Watch the recap below.
The post Coinsetter Disc…
Coinsetter CEO, Jaron Lukasiewicz, took a break from Bitcoin London to discuss Bitcoin ETFs and other trading vehicles with Trish Regan, Adam Johnson and a panel of experts today on Bloomberg Television. Watch the recap below.
The post Coinsetter Discusses Bitcoin ETFs and Trading on Bloomberg appeared first on Coinsetter Blog.
Bitcoin Foundation – Response To State Of California’s Warning:
Bitcoin Foundation (@BTCFoundation)’s attorneys respond to the May 2013 warning letter sent by California’s Department of Financial Institutions. Excerpts:
“The Bitcoin Foundation does not engage in any of these regulated activities. Furthermore, even if it did engage in these activities, it does not have any business operations in California that would subject it to the Department of Financial Institution’s (“DFI”) jurisdiction.”
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“The Bitcoin Foundation does not have business operations in California that would subject it to the DFI’s jurisdiction. […] The Bitcoin Foundation provides no direct money services to any California consumers.”
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“The Bitcoin Foundation is not in the business of selling bitcoin to consumers and does not otherwise operate a bitcoin exchange.”
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“Bitcoins are not written or signed notes or drafts, and therefore, are not payment instruments regulated by the California Money Transmitter Act.”
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“There is no issuer of bitcoin that would be subject to licensure as a money transmitter under California law.”
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“The fact that bitcoin does not fit within the definition of payment instruments or stored value does not mean it is automatically regulated by the money transmission prong.”
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“The same rationale that applied to the sale of a peso should prevail under the California statute with regard to the sale of a bitcoin.”
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“The Bitcoin Foundation requests that your office issue an opinion that […] the sale of a bitcoin is not regulated under the California Money Transmitter Act.”
– http://bit.ly/12CZMRf
– http://bitcointalk.org/index.php?topic=241314.0 (Further discussion)
– http://bitcointalk.org/index.php?topic=248620.0 (Specifically for this response)
All News – Daily E-mail Subscription – Twitter: @BitcoinNews
Bitcoin Foundation – Response To State Of California’s Warning:
Bitcoin Foundation (@BTCFoundation)’s attorneys respond to the May 2013 warning letter sent by California’s Department of Financial Institutions. Excerpts:
“The Bitcoin Foundation does not engage in any of these regulated activities. Furthermore, even if it did engage in these activities, it does not have any business operations in California that would subject it to the Department of Financial Institution’s (“DFI”) jurisdiction.”
–
“The Bitcoin Foundation does not have business operations in California that would subject it to the DFI’s jurisdiction. […] The Bitcoin Foundation provides no direct money services to any California consumers.”
–
“The Bitcoin Foundation is not in the business of selling bitcoin to consumers and does not otherwise operate a bitcoin exchange.”
–
“Bitcoins are not written or signed notes or drafts, and therefore, are not payment instruments regulated by the California Money Transmitter Act.”
–
“There is no issuer of bitcoin that would be subject to licensure as a money transmitter under California law.”
–
“The fact that bitcoin does not fit within the definition of payment instruments or stored value does not mean it is automatically regulated by the money transmission prong.”
–
“The same rationale that applied to the sale of a peso should prevail under the California statute with regard to the sale of a bitcoin.”
–
“The Bitcoin Foundation requests that your office issue an opinion that […] the sale of a bitcoin is not regulated under the California Money Transmitter Act.”
– http://bit.ly/12CZMRf
– http://bitcointalk.org/index.php?topic=241314.0 (Further discussion)
– http://bitcointalk.org/index.php?topic=248620.0 (Specifically for this response)
All News – Daily E-mail Subscription – Twitter: @BitcoinNews
Winklevoss twins launch Bitcoin fundThe GuardianThe Winklevoss twins, the former Olympic rowers who famously alleged that Facebook founder Mark Zuckerberg stole their website idea, have revealed plans to float a fund based on the digital currency Bitco…
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Winklevoss twins launch Bitcoin fundThe GuardianThe Winklevoss twins, the former Olympic rowers who famously alleged that Facebook founder Mark Zuckerberg stole their website idea, have revealed plans to float a fund based on the digital currency Bitcoins. Winklevoss Bitcoin Trust would initially ... |
The Winklevoss Brothers have filed a Form S-1 with the SEC for a fund named the “Winklevoss Bitcoin Trust.” The registration statement lists the trust as a 33 Act Fund and more importantly establishes guidelines for open-ended creations and redemptions. It’s a Bitcoin ETF in all but name. Bonus points if you read the whole registration document. Creations and redemptions in the fund are in-kind transactions with a creation unit size of 50,000 shares representing 10,000 BTC. The document describes in detail the risks associated with the Bitcoin market as well as all the steps involved in fund’s creation/redemption process.
There are still a number of hurdles before you can have your Grandpa buy some shares in WBT US during his next asset rebalancing:
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SEC Approval – many registration documents get lost in limbo here as the SEC continues to punt on their formation. This step could take as short as three months but has been known to exceed two years. There are no guarantees that the SEC approves this registration.
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Finding an Index Provider for the Blended Bitcoin Price – The registration document defines the Blended Bitcoin Price as “a weighted average market price utilizing trading data from the largest Bitcoin Exchanges by volume on a list of Sponsor-approve Bitcoin Exchanges.” At this point it looks like they are using Mt. Gox, BitStamp, and BTC-e. No word yet on who the calculation agent is going to be, although it seems like a trivial task to find an index provider if the Trust gains steam.
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Approving Authorized Participants (APs) – APs are the lifeblood of Exchange Traded Fund liquidity. They are the bulge-bracket sell-side shops and high frequency funds who facilitate large customer flow and arbitrage small discrepancies in price between the fund and its underlying value. I believe that finding broker dealers who can register as APs to be the most difficult step in the Winklevoss Bitcoin Trust’s adoption. APs will need to work with their compliance teams to approve the new product type in addition to setting up trading and custodial services to execute and store their Bitcoin risk.
Workable solutions exist for all these issues, but that does not mean they won’t take time. For all the flak that these brothers get for their outsized hand in Bitcoin, they are doing a remarkable job of laying the legal groundwork for institutional investment and adoption. These are the deep pockets that will shape Bitcoin as a commodity. While the Bitcoin community still needs to focus on the central ledger’s usefulness, I believe that integration into historical financial structures to assist speculative demand is a necessary step in the nascent currency’s integration.
The Winklevoss Brothers have filed a Form S-1 with the SEC for a fund named the “Winklevoss Bitcoin Trust.” The registration statement lists the trust as a 33 Act Fund and more importantly establishes guidelines for open-ended creations and redemptions. It’s a Bitcoin ETF in all but name. Bonus points if you read the whole registration document. Creations and redemptions in the fund are in-kind transactions with a creation unit size of 50,000 shares representing 10,000 BTC. The document describes in detail the risks associated with the Bitcoin market as well as all the steps involved in fund’s creation/redemption process.
There are still a number of hurdles before you can have your Grandpa buy some shares in WBT US during his next asset rebalancing:
-
SEC Approval – many registration documents get lost in limbo here as the SEC continues to punt on their formation. This step could take as short as three months but has been known to exceed two years. There are no guarantees that the SEC approves this registration.
-
Finding an Index Provider for the Blended Bitcoin Price – The registration document defines the Blended Bitcoin Price as “a weighted average market price utilizing trading data from the largest Bitcoin Exchanges by volume on a list of Sponsor-approve Bitcoin Exchanges.” At this point it looks like they are using Mt. Gox, BitStamp, and BTC-e. No word yet on who the calculation agent is going to be, although it seems like a trivial task to find an index provider if the Trust gains steam.
-
Approving Authorized Participants (APs) – APs are the lifeblood of Exchange Traded Fund liquidity. They are the bulge-bracket sell-side shops and high frequency funds who facilitate large customer flow and arbitrage small discrepancies in price between the fund and its underlying value. I believe that finding broker dealers who can register as APs to be the most difficult step in the Winklevoss Bitcoin Trust’s adoption. APs will need to work with their compliance teams to approve the new product type in addition to setting up trading and custodial services to execute and store their Bitcoin risk.
Workable solutions exist for all these issues, but that does not mean they won’t take time. For all the flak that these brothers get for their outsized hand in Bitcoin, they are doing a remarkable job of laying the legal groundwork for institutional investment and adoption. These are the deep pockets that will shape Bitcoin as a commodity. While the Bitcoin community still needs to focus on the central ledger’s usefulness, I believe that integration into historical financial structures to assist speculative demand is a necessary step in the nascent currency’s integration.
Here is a link to the Bitcoin Foundation’s official response to the cease and desist letter sent by the California Department of Financial Institutions.
Here is a link to the Bitcoin Foundation’s official response to the cease and desist letter sent by the California Department of Financial Institutions.
Want To Get Bitcoins? This ATM Will Turn Your Banknotes Into BitcoinsTechCrunchConverting the cash in your wallet to Bitcoin is one of the biggest hurdles to getting some skin in the digital crypto currency game. Time was when you had to meet a scruffi…
BloombergWinklevoss Twins Make Best Case Against Bitcoin FundBloombergCameron and Tyler Winklevoss, known for their claim to have co-founded Facebook Inc., own 1 percent of all outstanding Bitcoins, worth about $10 million. Their plan to make Bitcoin m…
Bloomberg |
Winklevoss Twins Make Best Case Against Bitcoin FundBloombergCameron and Tyler Winklevoss, known for their claim to have co-founded Facebook Inc., own 1 percent of all outstanding Bitcoins, worth about $10 million. Their plan to make Bitcoin more mainstream has generated some skepticism about potential risk. |
Beware of Bitcoin ETF: Winklevoss Plan Raises Big QuestionsYahoo! Finance (blog)Cameron and Tyler Winklevoss are going deeper into the Bitcoin business. Still best known for their alleged role in the creation of Facebook (FB), late yesterday the twins …
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Beware of Bitcoin ETF: Winklevoss Plan Raises Big QuestionsYahoo! Finance (blog)Cameron and Tyler Winklevoss are going deeper into the Bitcoin business. Still best known for their alleged role in the creation of Facebook (FB), late yesterday the twins filed a proposal with the Securities and Exchange Commission that would allow ... |