Winklevoss twins launch $20 million Bitcoin IPO
The Winklevoss twins, who became famous after accusing Facebook founder Mark Zuckerberg of stealing their website idea, have revealed plans for an IPO that will give investors exposure to the value of digital currency Bitcoins.
In a 74-page document filed Monday with the US Securities and Exchange Commission, the brothers say they will protect the virtual currency like gold bars —in vaults.
The so-called Winklevoss Bitcoin Trust will operate as an exchange-traded fund, selling an initial $20 million worth of shares, with each share worth a fraction of a Bitcoin, shows the filing.
The brothers plan to lure investors “seeking a cost-effective and convenient means to gain exposure to Bitcoins with minimal credit risk,” the document reads.
The filing, however, doesn’t stipulate the IPO date or the exchange where the trust wants to be listed.
SEE ALSO: Understanding a Bitcoin transaction
Bitcoins are a form of virtual currency created in 2009 by Satoshi Nakamoto.
No central authority issues new money or manages transactions. Instead, money is generated collectively by a network, also known as miners, who realease them in a tightly controlled manner, mimicking a central banking system’s control over the minting of money.
A bitcoin is currently worth around US$95.
Image: Screen shot from TMZ, via YouTube