December 15, 2013
A hot new startup? Not quite. It is Barry Silbert’s new Bitcoin Investment Trust (BIT). The trust is open only to accredited investors, and the minimum investment is $25,000. The value of the BIT derives entirely from the price of Bitcoin.
Barry’s name may sound familiar he started Second Market in 2004. SecondMarket is the world’s biggest broker of venture-backed private-company stock by the value of shares traded.
Barry has established that there is millions of dollars that would like to invest in the future of Bitcoin but for a number of reasons can not buy and hold Bitcoin directly. Since establishing the Trust it has already surpassed $70 million dollars in assets.
The shear force of intuitional investors buying into the Bitcoin economy will have a huge impact of the price of Bitcoin. It will certainly raise but it will certainly fall, just not as far as it raises over time. He stated:
Once Wall Street starts putting money into Bitcoin -- we're talking about hundreds of millions, billions of dollars moving in -- it's going to have a pretty dramatic effect ...