Bitcoin, to Become the First Digital Currency-Based Exchange Traded Fund; ETF Will Likely Pass Federal Scrutiny The United States Consumer Financial Protection Bureau – the Daily Herald
ETF analysts predict that The Winklevoss Bitcoin Trust will hold federal critics and became the first digital currency based on the exchange traded fund, maybe by the end of the year, though no one knows for sure.
Chief investment officer of ETF.com, Dave Nadig said: “I don’t see very much in the way of impediments to it at this point. Everything I see in the Bitcoin filing is by the book so it would be a surprise if they officially deny it. If they pocket veto it and kind of ignore it for a while … that’s a possibility.”
The digital currency, which functions as an independent payment peer-to-peer system, without central government, banks or authority support, Bitcoin was established in 2009. Internet entrepreneurs and Harvard friends founder of Facebook, Mark Zuckerberg and Twins Cameron and Tyler Vinklevoss, said last year they had almost 1 percent of all Bitcoin in existence at the time.
It is expected that Bitcoin ETF will appeal to investors who are interested in the currency, but what they see as directly Bitcoin have too much trouble. These potential investors will also be watching to see whether SEC standard set by the IRS and classifies Bitcoin ownership or goods similar to gold, or as currency.
ETFtrends’ Web editor, Todd Shriber said: “If the Bitcoin ETF is classified as a commodity ETF, the rate of tax they’ll be paying will much higher than if they bought a currency ETF.”
In February, the Winklevoss brothers started their own version of the price tracker Bitcoin, titled “Winkdex”, and earlier this week they showed in an updated SEC filing that ETF ticker will be Nasdaq: COIN.
The president of Global Trends Investments and editor of ETFtrends.com, Tom Lydon said: “I would feel strongly it’s going to happen, but it may not be as soon as people would hope. I wouldn’t imagine they would continue talking about it and making progress if in fact it would not come to fruition.”
After negotiations with the Winklevoss twins Lydon says their biggest problem if they bring the ETF to market will study possible investors about Bitcoin, but he said: ” they’re pretty good at explaining what Bitcoin is.”
July 13, 2014 at 06:00AM
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