In an attempt to expedite the launch of the first Bitcoin exchange traded fund, Cameron and Tyler Winklevoss have named State Street as the administrator of the proposed fund.
According to an amended filing with the SEC, State Street will provide the fund administration and accounting services for the proposed Winklevoss Bitcoin Trust ETF (BATS: COIN), including calculating the bitcoin trust’s net asset value.
The ETF custodian, Gemini Trust Company, will also perform monthly “proof of control” exercises and publish the reports on the ETF’s website. An independent audit firm will verify that the custodian can demonstrate proof of control of the private keys that control the Trust’s on a monthly basis.
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Gemini has been slowly accumulating bitcoins in anticipation of the launch. Gemini’s daily auction and its ongoing expansion have increased the company’s bitcoin market share to about 9% of all U.S. dollar-denominated exchange-traded bitcoin volume, Fortune reports.
Bitcoin has come under fire in recent years as a number of high profile hacks on the cryptocurrency caused millions of dollars worth of stolen bitcoins. The proof of control may be a way for the the Trust to help safeguard against cyber attacks that could result in loss of assets.
COIN’s verification changes may be in response to the Securities and Exchange Commission postponing a ruling on a bid to launch the highly anticipated bitcoin ETF as regulators turned to additional public feedback on the proposal before making a final decision.
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Partnering with State Street may help the Winklevoss twins better navigate the regulatory hurdles and bring the bitcoin ETF to market. State Street Global Advisors has successfully launched a number of ETFs through outside partnerships. For instance, the SPDR DoubleLine Total Return Tactical ETF (NYSEArca: TOTL) has been a popular active bond play for ETF investors. TOTL is an actively managed ETF backed by bond guru Jeff Gundlach and is also seen as an ETF adaptation of the flagship DoubleLine Total Return Fund (DLTNX).
For more information on the cryptocurrency, visit our bitcoin category.
Correction: State Street Global Services will be acting as administrator and transfer agent for the trust.