Cameron and Tyler Winklevoss, the brothers that pushed to introduce the first U.S. bitcoin ETF, the Winklevoss Bitcoin Trust, could be closer to getting a bitcoin ETF to market.

Last week, the U.S. Patent Office granted the Winklevoss brothers’ Winklevoss IP a patent for a system to operate exchange traded products based on cryptocurrencies.

“Records show that Winklevoss IP applied for a patent on December 19, 2017, to facilitate a system for operating exchange-traded products holding digital currencies,” reports BTCManager.com. “The product explained in the patent application as ETP is similar to an ETF. An Exchange Traded Fund is a tradable security that tracks the price movement of a particular index or industry. ETFs are commonly used by investors to reduce risk and improve probable returns. The ETP as described by the patent will track the price movements of constituent cryptocurrencies.”

Winklevoss Bitcoin Trust History

The Winklevoss Bitcoin Trust has been in the works for several years, but the Securities and Exchange Commission (SEC) has yet to approve any ETF tied to bitcoin or any digital currency.

The proposed COIN ETF is designed to track a basket of shares tied to the digital currency, which has experienced volatile pricing. The Winklevoss Bitcoin Trust would have issued Winklevoss Bitcoin Shares. This is similar to how physically backed commodity ETFs are structured or structured as a grantor trust. Consequently, the COIN ETF would have held the underlying commodity to cover a portion of assets If bitcoin ETF sees huge inflows, the trust would be required to purchases bitcoins to meet creations.

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