Bitcoin Investment Trust - Bitcoin 2014


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Bitcoin Investment Trust - Bitcoin 2014

  1. 1. T h e D i s r u p t i v e Te c h n o l o g y Speaker Series February 4, 2014 Barry E. Silbert, Founder & CEO SecondMarket / Bitcoin Investment Trust
  2. 2. What is Bitcoin? Digital Currency & Transaction Network • Introduced in 2008 by the pseudonymous developer Satoshi Nakamoto • First decentralized digital currency designed to facilitate transactions between two parties over a peer-to-peer network and without the use of a third-party intermediary • Generated at fixed intervals according to a mathematical algorithm with the total number of bitcoin capping at 21 million by the year 2140 Page 1 © BITCOIN INVESTMENT TRUST 2014
  3. 3. Why is Bitcoin Transformative? STORE OF VALUE GLOBAL CURRENCY GLOBAL TRANSACTION NETWORK Gold $7 Trillion1 E-Commerce $1.2 Trillion2 American Express, Visa, Mastercard PayPal, Square Remittance $410 Billion3 Western Union, Moneygram, SWIFT, ACH 1 Estimate based on mining data from World Gold Council; as of February 3, 2014. 2 eMarketer, February 3, 2014. 3 World Bank; as of October 2, 2013. Page 2 © BITCOIN INVESTMENT TRUST 2014
  4. 4. Bitcoin Adoption REACHED 1 $11.7 BILLION+ MARKET CAPITALIZATION # OF TRANSACTIONS Number of bitcoin transactions per day1 110,000 100,000 80,000 60,000 40,000 20,000 1 31 MILLION+ BITCOIN TRANSACTIONS SINCE 2009 2 VENDORS NOW ACCEPT BITCOIN MONETARY BASE (USD IN BILLIONS) 50,000+ Total value of bitcoin in circulation1 $16.0 $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 1; as of February 3, 2014. 2 BitPay, Coinbase Page 3 © BITCOIN INVESTMENT TRUST 2014
  5. 5. Bitcoin Ecosystem INVESTING * pending Page 4 © BITCOIN INVESTMENT TRUST 2014
  6. 6. Silicon Valley Moves into Bitcoin Amount raised: $2.7 million Amount raised: $6.5 million Amount raised: $9 million Amount raised: $31.7 million Major Investors: Major Investors: Major Investors: Major Investors: Page 5 © BITCOIN INVESTMENT TRUST 2014
  7. 7. Wall Street Discovers Bitcoin Company Target Price / Bitcoin Date of Report $1,300 December 5, 2013 N/A December 5, 2013 N/A December 12, 2013 $1 million November 1, 2013 $10,000$100,000 December 1, 2013 Page 6 © BITCOIN INVESTMENT TRUST 2014
  8. 8. W h a t i s t h e B i t c o i n I n v e s t m e n t Tr u s t ? Launched on September 25, 2013, the BIT is a private, open-ended trust invested exclusively in bitcoin Enables sophisticated investors to gain exposure to the price movement of bitcoin without the challenges of buying, storing, and safekeeping bitcoins Quality Sponsor and Partners • Sponsored by Alternative Currency Asset Management (ACAM), a wholly-owned subsidiary of SecondMarket Holdings, Inc. • Leading service providers including: Ernst & Young (auditor), Sidley Austin (legal counsel) and Continental Stock Transfer & Trust (transfer agent) • Approved on various self-directed IRA platforms, such as PENSCO, Entrust, Millennium Trust and Equity Institutional, among others Gaining Traction and Growing Rapidly (data as of 2/1) • Seeded by SecondMarket with an initial $2.25 million investment • Since launch, onboarded 100+ investors, comprised primarily entrepreneurs, principals at Wall Street firms and family offices of technology • Investment ranges: $25,000 (low), $5 million (high), $32,500 (median) and $213,330 (avg) • Over 70,000 bitcoin under management (~$62 million) Page 7 © BITCOIN INVESTMENT TRUST 2014
  9. 9. To learn more about the BIT, please visit Page 8 © BITCOIN INVESTMENT TRUST 2014
  10. 10. DISCLAIMER This document is intended for those with an in-depth understanding of the high risk nature of alternative investments and these investments may not be suitable for you. This document may not be distributed in either excerpts or in its entirety beyond its intended audience and SecondMarket will not be held responsible if this document is used or is distributed beyond its initial recipient or if it is used for any unintended purpose. This document is not a solicitation for an order, and there is not enough information contained in this message in which to make an investment decision and any information contained herein should not be used as a basis for this purpose. This document and relevant pages are subject to change without notice; directed solely at eligible institutional buyside and/or sellside clients, qualified purchasers, qualified institutional brokers and other professional clients; and not directed at, may not be suitable for, and should not be relied on by, general retail clients, and to the best of our knowledge current as of the date of distribution. SecondMarket does not: produce in-house research; make recommendations to purchase or sell specific securities; provide investment advisory services; conduct a general retail business. Neither SecondMarket, its affiliates, nor any of its directors, officers, employees or agents shall have any liability, howsoever arising, for any error or incompleteness of fact or opinion in it or lack of care in its preparation or publication, provided that this shall not exclude liability to the extent that this is impermissible under securities laws. The SecondMarket logos, graphics, icons, trademarks, service marks and headers appearing herein are service marks, trademarks (whether registered or not) and/or trade dress of SecondMarket Holdings, Inc. (the “Marks”). All other trademarks, company names, logos, service marks and/or trade dress mentioned, displayed, cited or otherwise indicated herein (“Third Party Marks”) are the sole property of their respective owners. The Marks or the Third Party Marks may not be copied, downloaded, displayed, used as metatags, misused, or otherwise exploited in any manner without the prior express written permission of SecondMarket or the owner of such Third Party Mark. The BIT is a private, unregistered investment vehicle and not subject to the same regulatory requirements as exchange traded funds or mutual funds, including the requirement to provide certain periodic and standardized pricing and valuation information to investors. There are substantial risks in investing in the BIT. Investors must have the financial ability, sophistication/experience and willingness to bear the risks of an investment. Any offering or solicitation will be made only to qualified accredited investors pursuant to a formal offering with additional documentation, all of which should be read in their entirety. Any offer or solicitation of an investment in the BIT may be made only by delivery of the BIT’s confidential offering documents to qualified accredited investors. You should rely solely on such offering documents in making any investment decision. An investment in the BIT is not suitable for all investors. Page 9 © BITCOIN INVESTMENT TRUST 2014