Winklevoss Brothers Acquire A Cryptocurrency Exchange-Traded-Fund Patent
Crypto ecosystem’s favorite twins, Tyler and Cameron Winklevoss have marked another milestone on the crypto financing market as they acquired a patent for the creation of a long-awaited Bitcoin exchange-traded-fund (ETF).
The patent which was awarded on June 19, details a method “for providing an exchange-traded product holding digital math-based assets” as well as the issuance of shares tied to that ETP. It adds to the body of intellectual property the Winklevosses have sought to obtain, though it's not entirely clear when or how the concepts will be applied to real-world products.
Exchange-traded products (ETP) are a type of security that is derivatively priced and trades intra-day on a national securities exchange. ETPs are priced so the value is derived from other investment instruments, such as a commodity, a currency, a share price or an interest rate.
Generally, ETPs are benchmarked to stocks, commodities or indices. They can also be actively managed funds. ETPs include exchange-traded funds (ETFs), exchange-traded vehicles (ETVs), exchange-traded notes (ETNs) and certificates.
Although the patent was awarded to the Winklevoss-backed company, its inventors are the brothers themselves, along with Evan Louis Greebel, Kathleen Hill Moriarty, and Gregory Elias Xethalis.
Notably, the Winklevoss brothers won a patent last month for a system that settles transactions for ETPs tied to cryptocurrencies. Like the other patent, this week's award names a variety of cryptocurrencies, from major ones like bitcoin and monero to more obscure ones like BBQcoin. Last week’s patent marks the seventh crypto-related patent the Winklevoss brothers have received, all in a matter of fewer than 7 months.
However, despite the advancements, it is not clear when these instruments will hit the market, given the Securities and Exchange Commission’s (SEC) harsh requirements. Earlier in March 2017, the Winklevoss brothers already tried to list Bitcoin ETFs on exchanges, but the SEC rejected their proposal.