The Bitcoin Investment Trust (BIT) was started by Barry Silbert of Second Market, to give wealthy investors a traditional way to gain exposure to Bitcoin, without having to hold Bitcoin themselves. Barry Silbert has been very bullish on Bitcoin, and has invested in a number of different Bitcoin and cryptocurrency startups in the United States and even across the world.
With BIT opening to the public, anyone can invest in BIT through their brokerage irrespective of their income levels and net worth. One of the big wins for investors would be ability to invest in BIT and thus gain exposure to Bitcoin’s price through a 401(k) or IRA, both of which are tax-deferred retirement accounts. This opens up a huge market for Bitcoin to reach everyday investors, who want to diversify away from stocks and bonds and gain exposure to a relatively newer asset class, for a small percentage of their retirement portfolio. Considering Americans hold over $6 trillion in their IRAs alone, this is a huge market for Bitcoin.
Barry Silbert’s Bitcoin Investment Trust has obtained FINRA’s (Financial Industry Regulatory Authority) approval, and is set to become the first publicly traded Bitcoin Fund, according to the Wall Street Journal.