Winklevoss brothers name State Street as bitcoin ETF administrator

Wed Oct 19, 2016 1:21pm EDT
 
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By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) - Investors Cameron and Tyler Winklevoss on Tuesday filed amendments to their proposed bitcoin exchange-traded fund, naming State Street as administrator, according to a filing with the Securities and Exchange Commission.

The Winklevoss brothers, identical twins, had filed their first application for a bitcoin ETF called Winklevoss Bitcoin Trust three years ago.

Investors have shown keen interest in the Winklevoss ETF. If approved by the SEC, this would be the first bitcoin ETF issued by a U.S. entity.

According to the amended filing, State Street will provide the fund administration and accounting services, including calculating the bitcoin trust's net asset value (NAV).

Another major change involved the ETF's custodian, Gemini Trust Company, doing monthly "proof of control" exercises and publishing the reports on the ETF's website.

"Custodian's cold storage system was purpose-built to demonstrate 'proof of control' of the private keys associated with its public bitcoin addresses," the filing said.

"The sponsor and the custodian have engaged an independent audit firm to verify that the custodian can demonstrate 'proof of control' of the private keys that control the Trust's bitcoin on a monthly basis."

Burr Pilger Mayer, based in San Francisco and known for working with venture-backed digital currency companies, has been named the ETF's auditor, the filing said.   Continued...

 
Entrepeneurs Tyler and Cameron Winklevoss arrive at the Metropolitan Museum of Art Costume Institute Gala (Met Gala) to celebrate the opening of "Manus x Machina: Fashion in an Age of Technology" in the Manhattan borough of New York, May 2, 2016. REUTERS/Lucas Jackson