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SecondMarket accepts bitcoin only for new investment fund

(Credit: Wikimedia Commons) SecondMarket launched its latest investment fund on Thursday that would only accept investment commitments in bitcoins, a virtual form of money.Virtual Coins
September 26
10:12 AM 2013
by Rizza Sta. Ana

Stock exchange SecondMarket would be venturing to the somewhat controversial world of virtual money. The company announced on Thursday that it would only accept one type of currency in its new investment fund - bitcoins.

The Bitcoin Investment Trust would be the first of its kind in the United States. It would only allow investors who had met criteria set by US Securities and Exchange Commission to experience virtual currency via the investment fund. Investors must have at least a USD1 million net worth exempting value of primary residence, or a year-per-year income of over USD200,000 for the past two years.

SecondMarket chief executive Barry Silbert said, "If you speak with people who have tried to purchase bitcoin in the past - you'll hear, 'it's a difficult process,' 'it's a confusing process,' 'it's a scary process.' We want to make it an accessible asset class."

The New York-based firm formerly known as Restricted Stock Partners had been dealing with all kinds of illiquid assets like auction‐rate securities, limited partnership interests, whole loans and bankruptcy claims, to name a few. The creators of the bitcoin remain unfounded, but it had slowly gained acceptance in a select few. Existing only in digital form, it can be bought with physical money and can be generated by programmers who could solve complex mathematical problems. Total market value of all bitcoins outstanding is more than USD1.5 billion. 

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Rizza Sta. Ana

Reporter at VCPOST.

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