Bitcoin Investment Trust Has Over 100,000 BTC, Barry Silbert Reveals
According to Barry Silbert, the CEO of bitcoin exchange SecondMarket, the Bitcoin Investment Trust now holds more than 100,000 bitcoins. The estimated value of the bitcoins are worth over $40 million by today’s exchange rates.
Barry Silbert & the Bitcoin Investment Trust
Silbert took to twitter to announce the news, stating:
Big milestone today for Bitcoin Investment Trust — now holds over 100,000 bitcoin http://t.co/nBzlaGupy4 cc @BitcoinTrust
— Barry Silbert (@barrysilbert) April 10, 2014
At one point back in December 2013, the Bitcoin Investment Trust was worth $60 million. So why is it that after reaching its milestone of 100,000th bitcoin, the company’s collection has less value? Well back in December, a bitcoin was worth around the $1,000 mark. Though the Trust has more bitcoins today, each individual coin is currently only worth about $425, less than half December value.
The initial purpose of the Trust was to gather bitcoin involved investors. Just a few weeks ago, the organization announced it plan to open its doors to all types of investors, thanks in part by Silbert. That plan is set to go public in the fourth quarter of 2014.
Silbert’s Trust falls in competition with the Winklevoss Twin’s bitcoin ETF. The Winklevoss Bitcoin ETF will soon be traded on the stock exchange, and coincide with other finance firms to buy and sell the digital currency ETF daily.
As SecondMarket’s expansion will allow for individual investors to get in on the action, it is known that the bitcoin investment trust will buy and sell bitcoins, as well as allow investors to place bets on digital currencies without having to own them.
SecondMarket was founded in 2004, and bases itself off of how the Intercontinental Exchange was originally structured. SecondMarket backers such as FirstMark Capitol and Social+Capitol Partnership are only a small handful of the names supporting Silbert’s new stand-alone New York City based exchange.
Investment trusts are a perfect way to get new people into bitcoin. No matter how little or how much attention these funds get, the trusts can’t loose.
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The future of BTC, after IRS classified it as an asset, is unclear. The trust might be better off liquidating a part of its holdings.
The USGov must acknowledge Btc as a currency. They have no choice law enforcement will demand it.