Investors Can Own Bitcoins Indirectly by Investment Trust

Investors Can Own Bitcoins Indirectly by Investment Trust

Investing in bitcoins might be something to think about because you get a chance of owning it now indirectly.

The reason why you can own it indirectly is because of the Bitcoin Investment Trust or either BIT. This is the first type of funding available that is US Based and private and allows investors to invest in it but they do not have to purchase it. A registered broker dealer is SecondMarket and they work on dealing with private company stocks and they handle raising of the capital plus they manage the trust.

BIT is very similar to SPDR Gold Trust EFT because it is private, open ended and at the same time you can invest in bitcoins exclusively.  You can buy the shares at BIT from the SecondMarket and then SecondMarket will buy the bitcoins.

CEO Barry Silbert and SecondMarket Founder says that we can incubate the BIT and alleviate the problems of the direct bitcoin ownership and that includes having to wire the money to the newly established and potential entities which could be unregulated from around the world.

A lot of people enjoy buying the bitcoins and then putting the seed capitals into the startup. The chance is risky and you could end up losing the principal but there is also the chance you could make a lot of money from it.

Due to the risk, the ones who can own the BIT is right now limited by the SEC to the qualified investors and institutional. People can make over $200,000 per year for around two years if the net worth they have exceeds around $1 million or more. When you buy BIT you can keep the money in there until the year is finished. SecondMarket is putting in around $2 million of their own capital into BIT.

 

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