ABOUT THE BIT
The Bitcoin Investment Trust is designed for sophisticated investors looking for exposure to bitcoin in a simple investment vehicle. The BIT addresses the confusing and cumbersome experience of buying, storing and safekeeping large quantities of bitcoins as an investment.
Launched in 2013, the BIT is sponsored by Alternative Currency Asset Management (ACAM), a wholly-owned subsidiary of SecondMarket Holdings, Inc. (custodian and administrator) and an affiliate of SecondMarket, Inc. (marketing and distribution partner and authorized participant). ACAM has engaged leading service providers Ernst & Young (auditor), Sidley Austin LLP (legal counsel), Continental Stock Transfer & Trust (transfer and administrative agent), and Corporation Service Company (trustee).
WHY INVEST IN THE BIT?
The BIT is designed to solve many of the issues associated with directly owning bitcoin, including:
Through established relationships our Authorized Participant has with the major bitcoin exchanges and large private pools of bitcoins, the BIT is able to offer a weighted price that reflects a more accurate market view. Investors can buy shares in the BIT at a set price and without having to transact in a fragmented and highly illiquid market with unregulated and newly established entities.
Storage and Safekeeping of Bitcoin
Safely storing large quantities of bitcoin can be technically challenging and puts the owner at risk of being hacked. The BIT utilizes state of the art security protocols to store bitcoin on behalf of BIT shareholders.
Auditing and classification standards for bitcoin have not yet been broadly adopted. However, the BIT, which will be audited by an independent public accounting firm, enables investors to invest in bitcoin via a security, making it eligible for investment for institutions, certain IRAs and other types of brokerage accounts.
Investing through a Retirement Account
Investing in bitcoin through a retirement account is now possible with the Bitcoin Investment Trust as several self-directed account providers now enable accredited investors to invest in the BIT through their IRAs or 401ks. Account providers include Millennium Trust Company, The Entrust Group, among others. For more information, please contact email@example.com.
Front End Fee:
Annual Administrative and Safekeeping Fee:
|Redemption offered on a limited basis with plans for being publicly traded on OTCQX®*|
*Redemption of shares will be allowed on a limited basis as of April 2014 with expectation of qualifying for public trading of the shares via the OTCQX® under the Alternative Reporting Standards. Please note that an early redemption fee of 1.5% will apply if shares are redeemed within a year of purchase.
HISTORICAL BIT PERFORMANCE*
Most Recent NAV/Share:
Last 30 Days:
- The BIT represents a speculative investment and involves a high degree of risk. An investor could lose all or a substantial portion of his/her investment. Investors must have the financial ability, sophistication/experience and willingness to bear the risks of an investment in the BIT.
- An investment in the BIT should be discretionary capital set aside strictly for speculative purposes.
- An investment in the BIT is not suitable or desirable for all investors. Only qualified accredited investors may invest in the BIT.
- The BIT’s offering documents have not been reviewed or approved by federal or state regulators.
- An investment in the BIT will be illiquid and there may be significant restrictions on transferring interests in the BIT. There is no secondary market for an investor’s investment in the BIT and none may develop.
- The BIT has limited operating history or performance.
- The BIT’s sponsor has total authority over the BIT.
- The BIT and its managers or advisors may rely on the trading expertise and experience of third-party managers or advisors, the identity of which may not be fully disclosed to investors.
- The BIT may involve a complex tax structure, which should be reviewed carefully, and may involve structures or strategies that may cause delays in important tax information being sent to investors.
- The BIT’s fees and expenses−which may be substantial regardless of any positive return− will offset the BIT’s trading profits.
- The BIT and its managers/advisors may be subject to various conflicts of interest.