Bitcoin Investment Trust Launched by Major Crowdfunding Company Secondmarket!!

[Rob768]

This may just take bitcoin to the mainstream.  Secondmarket has announced a Bitcoin investment trust to invest in Bitcoin:

http://crowdfundingforum.com/showthread.php/7790-%28Bitcointrust%29-Bitcoin-Investment-Trust

[1714923993]

1714923993

[cypherdoc]

come one, come all.

at least those over $200K.

[gweedo]

Does anyone know how they purchase the bitcoins, do they have a ton of bitcoins and they are selling parts of that? or are they going to take the money and directly buy bitcoins? Cause if it is the latter than that could send prices down, depending on how much they raise.

[dhenson]

Does anyone know how they purchase the bitcoins, do they have a ton of bitcoins and they are selling parts of that? or are they going to take the money and directly buy bitcoins? Cause if it is the latter than that could send prices down, depending on how much they raise.

How would buying btc on the market lower the price?

[shadallion]

This seems like a seminal moment for bitcoin.  If just a few large institutional investors pick up blocks of shares (looks like $25K minimum?) then this could quickly and drastically increase the value, price, exposure and future of bitcoin.

[totaleclipseofthebank]

This is huge. First time you can actually put large amounts of money without having to trust some shady/new/foreign company. They have real law firms, real regulatory compliance, real auditors, etc., which are things you worry about with big investments.

[Phinnaeus Gage]

I'm not verse in such matters, but it seems to be that this will somehow increase the price of bitcoins, with later keeping it stable. There's no way deep-pocket investors are going to let the price slip.

[bbit]

I'm not verse in such matters, but it seems to be that this will somehow increase the price of bitcoins, with later keeping it stable. There's no way deep-pocket investors are going to let the price slip.

Most likely this will be the case ^^ agreed.

[WikileaksDude]

This will indeed raise bitcoin price.

[franky1]

put simply it will eat the orders on the sell wall..

so if the price was $135 to sell

$135 - 100BTC
$136 - 100BTC
$137 - 100BTC
$138 - 100BTC
$139 - 100BTC

a order of 300BTC would make the price $138

now for some investigation (due to the ever over shadowing of the trendon shavers history.

this company is set up this year, but never claimed to be 'owned' by some bi financial and legally responsible group... only 'sponsored'.

imagine it like a football game.. if a team went into debt, you cannot take the sponsors to court as they are legally 'donators' in exchange for advertising.

now to translate more of their wording..

Through established relationships our Authorized Participant has with the major bitcoin exchanges and large private pools of bitcoins,

notice the lack of plural in participant (sounds like a one-man-band)
translates to:
we have ONE guy that has registered his bank details with the exchanges, and has friends on bitcoin-otc to buy coins from aswell

Investors can buy shares in the BIT at a set price and without having to transact in a fragmented and highly illiquid market with unregulated and newly established entities.

translates to:
you do not buy bitcoins but a percentage of ownership of the company (shares). and because the organisers claim to only be sponsors, you the owner become legally accountable for any debt/legal issues.

INVESTMENT DETAILS
Investment Minimum:
$25,000
Investor Qualification:
Accredited investor

translates to:
we dont have qualified staff, but we want legally accredited investors so that when $h!t hits the fan, they can only blame themselves.

there are more holes in every paragraph. but the main ones to look at are the who-is search on their domain............
oh look their in hiding...

well goodluck but this is not a proper institutional business, this is a one man band that throws big names into the air, pretending they own the company, when infact they can scarper with the funds leaving ownership and legal matters with the victims..

this is pirate 2.0

[Serge]

...this company is set up this year, but never claimed to be 'owned' by some bi financial and legally responsible group... only 'sponsored'...

...there are more holes in every paragraph. but the main ones to look at are the who-is search on their domain............
oh look their in hiding...

not sure where you were getting your info from

whois secondmarket.com

Domain Name: SECONDMARKET.COM
Registrar URL: http://www.godaddy.com
Updated Date: 2011-03-10 11:10:45
Creation Date: 2003-04-12 13:07:44
Registrar Expiration Date: 2020-04-12 13:07:44
Registrar: GoDaddy.com, LLC
Registrant Name: SecondMarket Holdings Inc
Registrant Organization: SecondMarket Holdings, Inc.
Registrant Street: 636 Avenue of the Americas
Registrant City: New York
Registrant State/Province: New York
Registrant Postal Code: 10011
Registrant Country: United States
Admin Name: SecondMarket Holdings Inc
Admin Organization: SecondMarket Holdings, Inc.
Admin Street: 636 Avenue of the Americas
Admin City: New York
Admin State/Province: New York
Admin Postal Code: 10011
Admin Country: United States
Admin Phone: +1.2126685920
Admin Fax:
Admin Email: billing@secondmarket.com
Tech Name: SecondMarket Holdings Inc
Tech Organization: SecondMarket Holdings, Inc.
Tech Street: 636 Avenue of the Americas
Tech City: New York
Tech State/Province: New York
Tech Postal Code: 10011
Tech Country: United States
Tech Phone: +1.2126685920
Tech Fax:
Tech Email: systems@secondmarket.com
Name Server: NS-309.AWSDNS-38.COM
Name Server: NS-1199.AWSDNS-21.ORG
Name Server: NS-554.AWSDNS-05.NET
Name Server: NS-1926.AWSDNS-48.CO.UK

from their site:

Member FINRA | MSRB | SIPC

Registered with the SEC as an alternative trading system for trading in private company shares.

[FNG]

....

this is pirate 2.0

Facebook and Twitter have sold shares pre-IPO on second market

[18RATTT]

This seems like a seminal moment for bitcoin.  If just a few large institutional investors pick up blocks of shares (looks like $25K minimum?) then this could quickly and drastically increase the value, price, exposure and future of bitcoin.

agreed! cant wait how this is going to play out.

[QuestionAuthority]

Barry Silbert has made a career and personal fortune selling things that have questionable value.

Food for thought:

http://www.glassdoor.com/Reviews/SecondMarket-Reviews-E432167.htm

http://techcrunch.com/2013/04/25/secondmarket-confirms-layoffs-to-have-leaner-cost-structure-become-break-even/

http://www.inc.com/eric-markowitz/second-market-second-act-sec-ruling.html

http://betabeat.com/2013/04/layoffs-at-secondmarket-barry-silbert/

http://finance.fortune.cnn.com/

http://www.bizjournals.com/sanjose/print-edition/2012/05/11/private-stock-markets-hope-theres.html?page=2

http://www.bloomberg.com/news/2011-04-27/facebook-drives-secondmarket-broking-1-billion-private-shares.html

http://dealbook.nytimes.com/2013/09/25/fund-to-let-investors-bet-on-price-of-bitcoins/

[odolvlobo]

INVESTMENT DETAILS
Investment Minimum:
$25,000
Investor Qualification:
Accredited investor

translates to:
we dont have qualified staff, but we want legally accredited investors so that when $h!t hits the fan, they can only blame themselves.

You are misinterpreting this. The reason they limit it to "accredited" investors is because that is the law. The dirty little secret about the crowdfunding law is that it only benefits "accredited investors" (aka "the rich") .



Anyway, it doesn't matter to anyone here since there is not much of a reason to own shares of a fund when you can own the bitcoins directly.

[franky1]

Serge.

secondmarket is CROWDFUNDING which means its an affiliate thing with many members across the world.

so who-ising second market does not tell you much about the 'one man band' guy that is the AFFILIATE of secondmarket, and the SPONSOR ofthe trust.

LEARN TO RESEARCH

INVESTMENT DETAILS
Investment Minimum:
$25,000
Investor Qualification:
Accredited investor

translates to:
we dont have qualified staff, but we want legally accredited investors so that when $h!t hits the fan, they can only blame themselves.

You are misinterpreting this. The reason they limit it to "accredited" investors is because that is the law. The dirty little secret about the crowdfunding law is that it only benefits "accredited investors" (aka "the rich") .

you are half right.. but when playing with bitcoins is still an unregulated market.. there is no 'law' governing it.

Anyway, it doesn't matter to anyone here since there is not much of a reason to own shares of a fund when you can own the bitcoins directly.

totally agree. why own shares of a fake company that has a single guy hiding behind it with all the private keys.. anyone with any understanding of bitcoin would be stupid to invest in a share deal of such risk.

buy bitcoins direct.

[smoothie]

Was this the "Big" announcement?

[Herp]

Does anyone know how they purchase the bitcoins, do they have a ton of bitcoins and they are selling parts of that? or are they going to take the money and directly buy bitcoins? Cause if it is the latter than that could send prices down, depending on how much they raise.

How would buying btc on the market lower the price?

Big whales like this can buy huge amounts of bitcoins on exchanges and cause panic sells. So it would be best if they brought coins at low amounts over time.

Bitcoin market is way too small($1.5bil) and way too illiquid for big players to afford the luxury of buying every now and then.

When this big money enters the market, price will explode. Those who want in at a good price will have to buy before other big boys do. They won't mind paying 200-300/coin now instead of paying 500-600 months later.

[Herp]

franky1 should stop posting out of shame for quite some time now. Can't believe people can be this ignorant.

The Bitcoin Investment Trust(BIT) is owned by a subsidiary of Secondmarket, Alternative Currency Asset Management. Same platform that allowed investors to purchase Twitter and Facebook pre-IPO, Groupon pre-IPO. It's widely recognized and respected platform with potential to easily triple or quadruple Bitcoin price.

http://finance.yahoo.com/blogs/daniel-gross/facebook-ipo-already-happened-several-months-ago-secondmarket-134457488.html

[Endgame]

This is great news and brings bitcoin one step closer to the financial mainstream.