A Bitcoin ETF May Become a Reality

Bitcoins, the highly encrypted digital currency that rose to prominence earlier this year as investors sought non-dollar assets, could finally get an ETF to call home. On Monday, the Winklevoss twins of Facebook (NasdaqGM: FB) fame, or notoriety in the eyes of some, filed plans with the Securities and Exchange Commission for the Winklevoss Bitcoin Trust.

The trust’s sponsor is Math-Based Asset Services LLC, which was formed less than two months ago, according to the filing. Math-Based Asset Services believes it will unveil the first-ever bitcoins ETF although the bitcoin system was introduced in 2009. The Bitcoin is a type of decentralized digital currency based on a peer-to-peer network and can be exchanged through computers internationally without a financial intermediary.

Earlier this year when bitcoins were soaring and more traditional currencies were faltering amid ongoing central bank easing, the idea of a bitcoin was floated, but was met with skepticism because the sponsoring bank would have to be willing to back the appreciation or depreciation of the currency. [Is a Bitcoin ETF Next?]

Bitcoin would later be stung by a rising dollar. Over the past six months, USD/BTC has traded as high as 266, but resides below 90 as of this writing, according to bitcoinity.org.