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Winklevoss Twins File with SEC to Launch $20M Bitcoin Fund

July 3, 2013 at 0:03 by BitcoinNews

Hitting the Wall Street Journal today is news of the Winklevoss twins’ SEC filing for a new Bitcoin ETF. The Bitcoin price struggled nonetheless in the high $80s before finally climbing back above psychologically-important support level of $90 by the end of the day. Perhaps also because the move was already widely expected, it didn’t seem to cause much of a speculative stir in the market.

The story has attracted some derision from Bitcoin aficionados and Wall Street-focused trading blogs alike. Bitcoiners expressed concerns about creating a paper Bitcoin market, the potential for manipulation, or the potential to ease investment into Bitcoin before understanding it. Zero Hedge merely derided it as the “idiot idea du jour” and wondered what movies and lawsuits might lie down the road.

Reading through the risks enumerated in the prospectus, one is again reminded of the risky and speculative nature of investment in an innovative digital currency, and the Winklevoss Bitcoin Trust may yet add a few more risks. However, for a fee, it does open up the door to the Bitcoin market to a much wider audience, which has so far largely watched from the sidelines.





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