- Latest patent is for providing an exchange-traded product holding digital math-based assets.
- Patent includes mainstream coins like Bitcoin, Ethereum, and Monero, as well as altcoins such as BBQCoin and BillionCoins.
The Winklevoss twins are well known in the crypto world for creating Gemini – one of the first regulated crypto exchanges – and betting big on Bitcoin when it was valued around $10. Since then, the Winklevoss Twins have become two of the first Bitcoin billionaires. While the brothers have also been hard at work trying to create a Bitcoin exchange traded fund (ETF).
One Step Closer
In a patent request that was filed back on November 27th 2017, the Winklevoss twins outlined plans for an automated computer system that would enable them to administer a Bitcoin ETF. On June 19th 2018, the patent was awarded to Winklevoss IP LLP. The patent details a method “for providing an exchange-traded product (ETP) holding digital math-based assets” as well as shares tied to the ETP.
What’s The Next Step?
This isn’t the first crypto related patent the twins have been awarded, in fact it’s the seventh. Last month they secured a patent for a system that settles transactions for ETPs specifically related to crypto. This looks like great news for crypto investors who are cautious of using an exchange, and who can blame people for being cautious given the number of recent hacks. This new patent could pave the way for a whole new way to invest in crypto, but without the added risks that often come as part of the package.
How Will Their ETP Work?
The Winklevoss brothers are remaining very tight-lipped around their patent acquisitions, but given their history, this is to be expected. Generally, ETPs – such as ETFs – allow people and companies to invest in a portfolio of other investments at a lower cost than holding those stocks, shares, or bonds individually.
The ETP will have a set of guidelines, such as what it will invest in or which market it will track. Investors pool in their money and the company running the ETP – in this case Winklevoss IP LLP – will invest it into the instruments they see fit within the guidelines. However, for now this is pure speculation, as they have not outlined any plans for their ETP, or said what they are planning to do with these patent acquisitions.
One thing we can expect is that it will include a basket of cryptocurrencies. The brothers two most recent patents include big mainstream coins – such as Bitcoin, Ether, and Monero – as well as some rather obscure altcoins – like BBQCoin and BillionCoins.
Where Will It Be Listed?
Once the twins have figured out exactly how it will work and acquire the necessary regulatory approval, it will most probably be listed on their exchange, Gemini. That being said, back in March 2017 they tried to list Bitcoin ETFs on the exchange and were rejected by the Securities and Exchange Commission (SEC).
Given the tough stance the SEC has taken towards regulatory requirements for cryptocurrency ETFs, it could be quite some time before they finally get regulatory approval to go ahead and list their product.