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.
The SEC acknowledged Bitcoins can be considered currencies and therefore would fall under that agency’s regulatory purview. In May, a regulatory filing revealed the Winklevoss Bitcoin Trust will trade on the Nasdaq. An updated filing showed the ETF will trade on the Nasdaq under the ticker “COIN.” [Ticker Announced for Bitcoin ETF]
Although the Winkelvoss Bitcoin Trust has yet to debut, SecondMarket’s Bitcoin Investment Trust (BIT) has been available to accredited investors. Barry Silbert, founder and chairman of SecondMarket Holdings Inc., aims to convert BIT into a publicly traded Bitcoin fund in the fourth quarter of this year.
ETF Trends editorial team contributed to this post.