Trading marketplace SecondMarket is looking to open a private bitcoin investment fund for ordinary and casual investors. The new investment trust will compete with the bitcoin trust sorted out by the Winklevoss twins.
This is big news for SecondMarket, as the new investment fund will allow for all types of investors to join. SecondMarket launched a bitcoin investment trust in September 2013, but only well known, wealthy investors were allowed to join. SecondMarket has begun working with lawyers and banks to start the process of their expansion.
The marketplace’s bitcoin investment trust will buy and sell bitcoins, as well as allow investors to place bets on digital currencies without having to own them.
The new trust will compete with the Winklevoss brothers, who applied to create an exchange-traded fund that works primarily with bitcoin.
SecondMarket BTC Exchange
SecondMarket, founded by Barry Silbert, is a marketplace that allows for share trading between private companies. Now the company wants to change gears and make it available to ordinary investors. The marketplace plans on listing its fund electronically on the OTC Marketplaces.
The company is awaiting approval from OTC Markets and the Financial Industry Regulatory Authority, in order to attract new investors. In addition, they are seeking legal advice in order to secure their new operation.
SecondMarket is wisely getting into the bitcoin exchange industry. “The marketplace for liquid assets” looks to start a new stand-alone digital currency exchange in New York.
The new exchange will be based off of how the Intercontinental Exchange used to operate, says Silbert.
It was once thought that individuals and firms who are not members of SecondMarket’s bitcoin trust would not be allowed to trade. However, now with the establishment of the new bitcoin investment fund, it looks as if more people will get a chance to hop in.
SecondMarket is expected to invest about $20 million in cash and bitcoin assets to start up the new exchange.
For more bitcoin news, stay tuned to Coinreport.net.