Tyler Winklevoss and his brother Cameron Winklevoss have acquired a patent for creating a Bitcoin exchange-traded fund (ETF). The well-known crypto entrepreneurs have long sort the creation of an ETF without much success.
However, they can now breathe a sigh of relief since a firm referred to as Winklevoss IP LLP has now been awarded the patent. The firm comprises the Winklevoss brothers as investors, along with Evans Louis Greebel, Kathleen Hill Moriarty as well as Gregory Elias Xethalis.
What to offer
Winklevoss IP LLP was awarded the patent for providing an exchange-traded product holding digital assets which were math-based. This is according to the United States Patent and Trademark Office (USPTO). Along with the patent is also, the ability to issue shares tied to the financial product that the brothers are hoping to release.
Even though further details were not divulged of how or when the concepts will be executed to the real-world products, the patent which was awarded on June 19, is an addition to the list of intellectual property the brothers have sort to obtain.
This patent follows a time when the crypto entrepreneurs have already attempted to bring Bitcoin exchange-traded fund to the markets. In March 2017, the twins’ application to create a Bitcoin ETF was rejected by the U.S Securities Exchange Commission (SEC). The Commission stated that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest.
An ETF is a security that tracks any type of index, commodity or combination of assets and it is traded similar to a common stock. Although an ETF’s price changes throughout the day as traders and investors buy and sell them, the underlying value of the ETF is found in the underlying assets. ETF shares are representative of indirect ownership of a portion of all the assets in the ETF, hence, almost similar to mutual funds.
Available data reveal that this latest patent will bring to seven the total number of crypto-related patents that the brothers have received. They received their first patent in December 2017.
As recent as last month, the Winklevoss brothers won a patent for a system that settles transactions for ETPs tied to cryptos.