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No, The Winklevoss Twins Are Not ‘Bitcoin Billionaires’
Ok, so maybe I'm just an idiot who is missing something. And I am 100% sure that if that turns out to be the case, my inbox will let me know within minutes.
With that as the upfront disclaimer and with the follow-on disclaimer that if I am indeed missing something about this story it would hardly be the first time I've inadvertently glossed over some important nuance or another, allow me to go out on a limb and say that the following headlines don't seem to make any sense:
The Winklevoss twin
These two have been trying to get a product on the market for a long time, backed by their BTC holdings. They are smart enough to realize they can’t simple dump their holdings, which is a material % of the BTCs trading on the secondary, on the open market. Most (if not all) of the BTC exchanges can’t support that type of volume. Instead, these two have elected to start an ETF & simply sell shares into a brain-dead retail market, diluting their notional exposure to BTC. It is brilliant because they could probably tank the market with their open-market sell orders to capture unrealized gains, but still sell out at a good price (and probably above NAV if it gets approved soon). If Bloomberg, Reuters and all the other media outlets did a little thinking before giving these guys free publicity, they’d probably realize the cynical side of the product. But they want their clicks, so here we are…