Nasdaq Exec: Winklevoss Bitcoin Trust Could Be Significant for ETF Industry
A senior Nasdaq executive is speaking out about the potential impact of the Winklevoss bitcoin ETF on the ETF industry.
Aug 6, 2014 at 9:54 p.m. UTC
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In a new interview, Nasdaq Vice President of Transaction Services and Head of ETF business David LaValle has called the Winklevoss Bitcoin Trust a "significant" development for the exchange-traded fund (ETF) industry.
The ETF, first proposed by noted bitcoin investors Cameron and Tyler Winklevoss in July 2013, has been in a state of regulatory flux as the potential offering moves through the approval process. According to recent filings with the Securities and Exchange Commission (SEC), the ETF would trade under the name ‘COIN’.
During the interview, LaValle touched on the nature of ETF investment and how bitcoin may fit within the bitcoin industry.
Notably, the Winklevoss twins also recently launched a bitcoin price index, Winklevoss Index, known commonly as the WinkDex, that will provide market information to the ETF should it be listed.
Boosting bitcoin availability
For LaValle, the advantage of having a bitcoin ETF lies in the fact that, from an investor standpoint, it’s simply an easier way to gain market access than buying bitcoin directly. This, he explained, makes the digital currency more attractive – and trustworthy – for investors.
He told ETF.com:
Beyond that, however, LaValle sees bitcoin as being “quite dynamic” and, as a result, a draw to investors with the right risk appetite.
He added that the ETF might be serve as both a trading and investing tool for those who get involved, but that it’s tough to say until the ETF – if at all – receives regulatory approval.
New type of investment
When asked if the bitcoin ETF represents an innovation in the market, LaValle was cautiously optimistic.
The Nasdaq executive said that the ETF, if listed, will present investors with a potentially game-changing option. He added that, from the product generation standpoint, the bitcoin ETF is certainly a step in an interesting direction and that bitcoin represents a new avenue for investors.
However, he stopped short of endorsing the Winklevoss Bitcoin Trust, concluding:
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