Bitcoin ETF: An Inside Look at the Proposal to Make Bitcoin Mainstream
Bitcoin has been the focus of much attention lately. From debates over its legality to Mashable features on who accepts Bitcoin, the online currency has captured America's attention. Next up for Bitcoin? A Bitcoin Exchange-traded fund.
The Winklevoss twins, also known for their role in Facebook's development, have recently filed a proposal with the SEC to allow investors to trade Bitcoins through an ETF, in a way the brothers claim to be similar to how gold shares are traded today. The infamous twins plan to sell $20 million worth of shares to investors at "minimal risk."
What does this mean for Bitcoin? One professor claims that it will be harmful to the currency's long term survival. Professor Jon Rushman of the UK's Warwick Business School said, "The less people think of Bitcoin as a ‘get rich quick’ investment, the better its chances of survival."
Also worth noting is that while the Winklevoss twins may claim similarities between gold shares and the proposed Bitcoin shares, there are many noteworthy differences, the most obvious being that Bitcoin is an online currency and gold is a precious metal.
Is a Bitcoin ETF soon to come? Will it be a good thing for Bitcoin? Sound off in the comments below.