Winklevoss Bitcoin ETF Analysis

Cameron and Tyler Winklevoss owns 1% of all bitcoins. According to this article by ZeroHedge.

Maths: 1% X 15 000 000 (approximate number of bitcoins in circulation minus some lost coins) = 150 000 bitcoins

150 000 bitcoins X current price 1000 USD = 150 million USD

Even it if not true, say it was a mistake and it is half, it is still a huge sum: 75 million USD

Let’s say it was misreported and it was 0.1% instead of 1%. That is still 15 million USD. Ethereum raised 10 million USD. As a comparison.


Another leading bitcoin news site – Cointelegraph, reports that the price will go up if their ETF is approved.

Several other research plus stock market traders predicts the same, in relation to historical behaviour from for example, when the first gold ETF was approved. In a simple sentence, the ETF (exchange traded fund) will be required to hold the physical gold for their investors and future investors to buy their financial instrument, the fund (ETF). With that, it means the the Winklevoss ETF would then be required to go out and purchase new bitcoins to be placed inside their regulated fund, hence prices will rise.

Most data and research out there agrees. Most punters agree too it may go down if not approved, perhaps buy half too. Then most agree that it is already factored into the current price rise.

Here is another take in this ETF episode. Putting together these keywords: going mainstream, regulation, holding huge 1% of bitcoin pool, regulated fund, cashing out, managers, managing fees, financial instruments, exchange, investors, reducing risk, managing risk.

The ETF that they created, Winklevoss Bitcoin Fund – will instead not buy from the open, buy instead the fund will buy the coins from Tyler and Cameron directly.

– the twins would have cashed out on directly (some) of their holdings
– they would have gone legit, regulated, funded (phew!)
– they will now earn management fees (!)
– basically exiting from holding these will save them from future issues – such as when they had to appear in court during the New York Bitlicense hearing
– governments are breathing down the throat and seeking some gains or taxes, so one of it is capital gains tax and when it becomes regulated or semi-regulated, these taxes would then be the cheese
– hence, exiting now, in a good way of cashing it out, converting them to the “legal” financial instrument that bankers, governments, investment funds would love and easier to process

What is your own opinion and research on the topic of ETF? Would Satoshi Nakamoto see this as a positive or negative? Wouldn’t this eventually lead to banks getting their hands into Bitcoin?


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