's Chuck Gaffe asked if fund-industry insiders were too quick to laugh off the Winklevii ETF. He notes that industry watchers thought the Internet fund launched in the 1990s was ridiculous as well but they got on board once the funds became successful and laughed at gold ETFs, which were written off as a gimmick 10 years ago.
Both funds were seen as unique, Jaffe argues, but the internet funds were simpler than they were perceived to be, and the Bitcoin ETF is in some ways, just another currency fund. The Bitcoin ETF doesn't have hard assets like gold ETFs but the twins have a method for storing the holdings that should make it a more liquid investment than gold.
Jaffe doesn't let the ETF off the hook, however. He isn't sure the ETF qualifies as currency but rather a form of scrip, temporary money that could become worthless at the drop of a hat. He holds out hope, however, that the ETF will be hugely successful:
Ultimately, if the Bitcoin Trust helps people interested in the currency to access and trade it, itís a plus even if itís not a commercial success. If bitcoin proves durable and lives up to the potential its supporters say it has, then the Winklevoss boys will cash in big time and be heavily imitatedÖAs an investor, however, you probably donít want to bet on that.
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