Bitcoin Investment Trust

What is Bitcoin Investment Trust?

Launched in 2013, Bitcoin Investment Trust (BIT) is a private, open-ended trust that is invested exclusively in bitcoin and derives its value solely from the price of bitcoin. This allows investors to gain exposure to the price movement of bitcoin without the challenges of buying, storing, and safekeeping bitcoins. BIT was sponsored by Alternative Currency Asset Management (ACAM), a wholly-owned subsidiary of SecondMarket Holdings, Inc., and an affiliate of SecondMarket, Inc.

They handle custody, marketing, and distribution in partnership with ACAM. They have enlisted reputable service providers to ensure a robust and secure investment framework. This includes Ernst & Young as auditors, Sidley Austin LLP as legal counsel, Continental Stock Transfer & Trust as transfer and administrative agents, and Corporation Service Company as trustee.

The trust's shares are the first securities solely invested in and deriving value from the price of bitcoin. BIT provides a possible solution for investors seeking a more familiar way to gain exposure to the digital currency, as it operates like a traditional investment vehicle. With a minimum investment of $6,100,000, they aim to provide a secure structure that standardizes investments in bitcoin.

The goal of the fund is to reflect the performance of the value of a bitcoin, as determined by the TradeBlock XBX Index, minus the Trust's expenses. BIT represents a significant step for the asset category, providing a pathway for more regulated financial products that are concerned with digital currencies.