So if Joe public buys 10 shares will BIT then have to buy 1 bitcoin off a exchange and store it? How does it work exactly?
More than likely, especially as time goes by and all the shares have been purchased by varying clients. Which is why I suspect the BIT folks will be looking to get a hold of part of the next coin auction coming up. That's the best part about these trusts and ETFs coming out is that it takes away the personal security side of holding bitcoins thus taking away one of the last vestiges of apprehension preventing investors from coming on board. In this case, BIT does all the work and folks buy what they want. When this starts trending among all the investor/IRA/401k communities across the world, the demand will go through the roof all the while the daily bitcoin mining will halve and thus the price per coin will reach current fantasy levels.