In July, the SEC again rejected plans by Winklevoss Capital Management founders Cameron and Tyler Winklevoss to launch the Winklevoss Bitcoin Trust, but some market observers believe the regulator will eventually approve exchange traded funds linked to bitcoin.

Related: Bitcoin ETN Makes its U.S. Debut

“But it is going to happen anyway… because there’s enormous market appetite and very little technical knowledge, so institutional investors simply can’t at the moment hold Bitcoin directly,” said Antonopolous.

He believes “using an intermediary for Bitcoin exposure, rather than holding one’s own private keys, would always make an investor ‘second tier,’” reports Bitcoinist.

For more information on the cryptocurrency market, visit the Bitcoin category.