ETF Trends
ETF Trends

Cameron and Tyler Winklevoss are set to launch a bitcoin exchange that could help stimulate demand for the cryptocurrency among institutional investors ahead of a potential bitcoin exchange traded fund.

The New York State Department of Financial Services granted a charter to the Gemini, which will allow the charter to operate as a trust bank and as a regulated financial services institution, reports Phillip Stafford for the Financial Times.

The exchange will act as a way for investors who want to trade bitcoins and have it linked with a normal bank account. The Winklevoss twins see this as an opportunity to court institutional investors.

“Even though this path was more costly and time-consuming, it was necessary to fulfill our goal of serving institutional customers,” Cameron Winklevoss, president of Gemini, told the Financial Times.

“Our plan for it is to be a like a Nasdaq for bitcoin,” Tyler Winklevoss previously told ETF Trends. “People can go to it and buy and sell bitcoin like they go to Nasdaq to buy and sell a security.”

The new Gemini Trust Co. would create a stable and reliable way to trade bitcoins, which could attract institutional investors.

“Bringing them (investors) into the fold is going to be a large catalyst for bitcoin,” Cameron Winklevoss told the Wall Street Journal.

Gemini is the third bitcoin-related institution to acquire regulatory approval and the second to be granted a charter by the DFS to a bitcoin-related business. Circle Internet Financial received the first BitLicense earlier this month and ItBit received a charter in spring.

Gemini is also the second bitcoin-related product that the Winklevoss twins have launched. Back in February 2014, Winklevoss Capital launched the Winkdex, a bitcoin index that will eventually be used for a planned bitcoin ETF, “COIN,” which was first proposed in 2013 but is still waiting on regulatory approval. [Winklevoss Bitcoin ETF Takes One More Step Forward]

For more information on bitcoins, visit our bitcoin category.

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.