It’s official! The Winklevoss twins are creating their own Bitcoin exchange-traded fund

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The most famous twins from the technology world, know for their legal battle against Facebook, just filed some important documents with the SEC this Monday night (July 1). It looks like the Winklevoss twins are taking a Bitcoin exchange-traded fund (ETF) public. However, this plan might come with some risks: 18 pages full of risk factors, to be more precise.

It’s no longer new to our readers that the Harvard twins have a huge crush on cryptocurrency. They started dealing with digital coins in the last summer and are, reportedly, owners of 1 percent of all the Bitcoins mined to date. They even took, very recently, a stake in the Bitcoin payment processor BitInstant. So, we all suspected they had big plans for the future, but it looks like the future has already arrived.

Cameron and Tyler already filed their plan and they are dividing opinions out there. On one hand, they present some new features that might elevate their ETF to higher grounds, but the 18 pages of risks aren’t helping the success of the plan.

Without any surprise, one of the major risk factors noted in the document delivered to the SEC is security, as the Winklevoss Bitcoin Trust admits its security system might not be safe enough against new and exponentially more dangerous technological threats. “The loss or destruction of a private key required to access a Bitcoin may be irreversible”, says the report.

Another risk is whether more retailers will start accepting Bitcoins as a form of payment. And, besides the pressure made by the regulators, there’s still the question of how to tax cryptocurrency.

The same document says that the twins’ ETF is prepared to offer an index that tracks the blended price of Bitcoins across multiple exchanges. So, it looks like (some of) the cards are on the table! What is your forecast?

Via money.cnn.com

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Maria Santos

Maria is an experienced journalist currently living in the UK. She has been writing about Bitcoin and the altcoin universe since 2013. She is also a member of the Lifeboat Foundation's New Money Systems Board and a big cryptocurrency supporter.

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