The First Bitcoin Investment Trust

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Sept. 26 (Bloomberg) -- SecondMarket CEO Barry Silbert discusses the company's launch of a Bitcoin investment trust. He speaks with Jon Erlichman on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

That helps companies raise money for their shareholders.

I haven't been a bitcoin believer for a few years.

We decided to enable investors institutional and accredited to invest in bitcoin in an easy way.

What kind of investors are we talking about?

If you want to purchase large amounts of bitcoin you have to open up accounts on exchanges around the world who are not regulated.

You have to wire money that may never get there.

The idea is to create a vehicle that is traded on second market, which is regulated, to enable investors and offices and traders and the people who can write checks to get involved in this.

Fast and exciting but there is a certain mystery and curiosity everyone has.

Worries about risks and all that stuff.

What kind of risk are you taking on as you do this?

Second market is a business.

We are not taking on extra risk.

We are regulated.

We know how to raise money.

When investors getting involved, they need to understand the outcome is binary.

Just like an early-stage startup where you can either lose all of your money or it is enormous for what bitcoin could become if it has success in becoming a global value like gold or the remittance market, which is a $400 billion market.

Were taking on square, paypal.

We did mention the twins, and you take us through your thinking on when you are going to make this announcement based on what they are doing and what is different with what you guys are pushing ahead with?

The concept of an etf, which is what this is, it is not novel.

The idea of investing in a liquid currency and creating a vehicle is not novel.

He started this process six or seven months ago.

We are live today raising money for the vehicle.

Distinction between what second market is doing and what the winklevoss are attempting to do is number one, our vehicle is open to sophisticated investors.

I do not believe this is ready for prime time given the risk profile.

Number two, from a practical perspective, etf's can take years to get into the public market.

It is questionable as to when the sec will allow this to go public.

How big is it going going to be?

If you look at paypal, and it is a $25 billion company.

It going is one point $5 billion.

Could it be as big as paypal?

-- bitcoin is $1.5 billion.

We are talking about enormous upside and significant risk.

As for your business, some people have written this is a way for them to diversify the business.

From a business that got started based on private share trading activity.

What do you say to that?

How big of a part of your business could this be?

Second market was around four years e4 we got involved in private company stock.

-- before we got involved in private company stock.

We have been making those assets available.

That is exactly what we are doing again here.

We are in no way getting away from our fast-growing business for private companies and private funds.

I appreciate the time, barry silbert ceo of second market

This text has been automatically generated. It may not be 100% accurate.


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