Winklevoss twins to float $20 million bitcoin fund

Tyler and Cameron Winklevoss, most famous for their legal tangles with Facebook founder Mark Zuckerberg, have revealed plans to float a bitcoin trust.

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Winklevoss twins to float $20 million bitcoin fund

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According to an SEC filing, the trust will initially offer one million 'Winklevoss Bitcoin Shares', worth a total of around $20 million, to investors. It will then act like an exchange-traded fund, tracking bitcoin's price, which currently sits at around $90, having hit a high of more than $200 earlier this year.

To manage the trust, the twins - who in April claimed to have around $11 million in bitcoins - have set up Math-Based Asset Services, which lists Cameron Winklevoss as CEO and Tyler Winklevoss as CFO.

The pair are pitching the trust at investors "seeking a cost-effective and convenient means to gain exposure to bitcoins with minimal credit risk".

Separately, bitcoin exchange Mt. Gox has registered with the US Treasury's Financial Crimes Enforcement Network (FinCEN) as it bids to keep on side with regulators.

FinCEN warned in a guidance notice in March that those "engaged in the business of exchange of virtual currency for real currency, funds, or other virtual currency" are classified as money service businesses and need to follow the associated rules on issues such as money laundering.

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