Five years ago in crypto
In July 2013, the Winklevoss twins filed their Winklevoss Bitcoin Trust, an exchange traded fund (ETF), with the US Securities Exchange Commission. According to the Winklevii, the ETF was ‘designed for investors seeking a cost-effective and convenient means to gain exposure to Bitcoins with minimal credit risk’. In practical terms, investors would be able to trade bitcoins as if they were stocks. The ETF was also a means of further legitimizing bitcoin, an idea that had not escaped Mt. Gox. Still headquartered in Japan, it filed with the US Treasure Department to register as an MSB and comply with money-laundering laws. In September 2013, SecondMarket created the Bitcoin Investment Trust, a bitcoin-only investment fund. SecondMarket’s CEO was Barry Silbert, who had lost to the Winklevoss twins in the earlier fight to partner with Charlie Shrem and invest in BitInstant.
Bitcoin’s credibility as ‘real money’ continued to rise. Federal Judge Amos Mazzant ruled in Texas that bitcoins were a currency while judging the case of a suspected Ponzi scheme involving bitcoin investments. Financial market data provider Bloomberg added a bitcoin ‘XBT’ ticker to its terminal on the 9th of August to help people track bitcoin’s price.
Lawmakers in Europe began to pick up the pace too. The German Federal Ministry of Finance recognized bitcoin as ‘private money’, sanctioning its use in sales, and exempting bitcoins from tax when held for more than one year. Meanwhile, the New York State Department of Financial Services (NYSDFS) subpoenaed 22 companies and investors to investigate possible use of bitcoin for illicit activities and to follow up on consumer complaints.
This is an excerpt of Robert Küfner’s forthcoming book, “The Crypto Decade” a comprehensive review of the ten year since the release of Satoshi Nakamoto’s white paper. If you happen to be in Berlin, join us for the launch party on Thursday, September 20, 2018.
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