Twin brothers Tyler and Cameron Winklevoss are known for their legal battle with Facebook founder Mark Zuckerberg. The two are also now well known as being the biggest advocates of Bitcoin. The two are now starting their own Bitcoin exchange-traded fund called the Winkdex. The name of the index is a portmanteau of Winklevoss and index.
Winkdex was released publicly today and provides an updated figure for the price of Bitcoin, which is the virtual currency that gained popularity in the past couple years. Tyler and Cameron Winklevoss announced Winkdex in a regulatory filing to the Securities and Exchange Commission.
The Winklevoss Bitcoin Trust is getting closer to regulatory approval despite criticism. The fund is expected to start later this year, which would be the first Bitcoin ETF.
?We?ve been very encouraged with how responsive and deferential the S.E.C. has been to the application,? stated Cameron Winklevoss in an interview with The NYT. They are working with lawyers at Katten Muchin Rosenman. This law firm has overseen some of the most popular ETFs through regulatory processes.
The Winklevoss Bitcoin Trust will be traded on public stock exchanges. It will work with other financial companies to buy and sell Bitcoin every day so that it stays in line with the number of outstanding shares of the ETF. The net asset value of the fund will be adjusted at the close of each trading day based on the Winkdex value. Winkdex will evaluate data from 7 exchanges and weight the price based on the volumes of trading on each exchange.
The Winklevoss twins filed for the trust this past July after disclosing a significant ownership in Bitcoin holdings. The company also invested in several Bitcoin startups. Unfortunately, one of the companies that they invested was hit with a major scandal. BitInstant’s founder was arrested and charged with money laundering. The Winklevoss twins said that they were passive investors in the company.