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. The system was first introduced by developer Satoshi Nakamoto in 2009.

Complex computers act as “miners” that would confirm transactions between two parties using Bitcoins, and they would receive Bitcoins as compensation. This helps serve to expand the supply of Bitcoins, which can not exceed 21 million. [As Bitcoin Inches Toward Legitimacy, ETF may Soon Follow]

As the digital currency gains momentum, some have floated the idea of an ETF backed by Bitcoins. Earlier this year, the Winklevoss twins of Facebook (NasdaqGM: FB) fame, filed plans with the Securities and Exchange Commission for the Winklevoss Bitcoin Trust. At the time, the filing did not include a ticker, expense ratio or possible release date, indicating that a launch date was not imminent. [Winklevoss Bitcoin ETF: Crazy, or Crazy Like a Fox?]

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