Get All Access for $5/mo

Winklevoss Twins Move to Launch a Bitcoin Fund The brothers, famous for their feud over Facebook, have filed papers with the SEC to establish an exchange-traded fund for the online currency.

By Catherine Clifford

Opinions expressed by Entrepreneur contributors are their own.

The Telegraph/Coleman-Rayner
Winklevoss Twins

The Winklevoss twins, known for battling Mark Zuckerberg in court over who owned the idea behind Facebook, are leading the charge in bringing digital currency bitcoin to the mainstream.

Cameron and Tyler Winklevoss filed a registration statement with the Securities and Exchange Commission to establish the Winklevoss Bitcoin Trust, which will work like an exchange-traded fund. If approved by regulators, the fund would allow the brothers, key players in the popular 2010 movie The Social Network, to be able to sell their bitcoin holdings for an initial value of $20 million.

The Winklevoss twins, who themselves have amassed a large collection of bitcoin, would sell shares in their trust, each share representing one-fifth of a bitcoin, according to the SEC filing. The goal is to make bitcoin more accessible to a broader audience. "For many investors, the shares will represent a cost-effective and convenient means to access exposure to bitcoins," the prospectus filing says.

Related: Angel Investors Form Group to Fund Bitcoin Startups

Bitcoin is an unregulated, digital currency, which was established in 2008. It has been getting more attention in the last year, due to its volatile price and a few high-profile early adopters. Companies including OkCupid, Reddit and WordPress are already accepting it as a form of payment. Bitcoins can be purchased online through bitcoin exchanges and private sellers.

Because the price of bitcoin currency can fluctuate dramatically from day to day, the prospectus filed with the SEC details the high degree of risk associated with investing in the online currency.

Related: Accepting Bitcoin Payments: The Risks and Benefits

Catherine Clifford

Frequently covers crowdfunding, the sharing economy and social entrepreneurship.

Catherine Clifford is a senior writer at Entrepreneur.com. Previously, she was the small business reporter at CNNMoney and an assistant in the New York bureau for CNN. Catherine attended Columbia University where she earned a bachelor's degree. She lives in Brooklyn, N.Y. Email her at CClifford@entrepreneur.com. You can follow her on Twitter at @CatClifford.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Growing a Business

The Top 5 AI Tools That Can Revolutionize Your Workflow and Boost Productivity

Discover the top 5 AI tools for marketing and content creation that every marketer needs to know.

Science & Technology

No More ChatGPT? Here's Why Small Language Models Are Stealing the AI Spotlight

Entrepreneurs can leverage this growing tech to create innovative, efficient and targeted AI solutions.

Starting a Business

How to Find the Right Programmers: A Brief Guideline for Startup Founders

For startup founders under a plethora of challenges like timing, investors and changing market demand, it is extremely hard to hire programmers who can deliver.

Business News

How to Build a Successful Startup, According to an Investor Who Made Early Bets on Twitter, Lyft, and Twitch

He's found a few patterns after nearly two decades of investing in startups.