Winklevoss Twins Win Yet Another Crypto Trading Patent

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Famous cryptocurrency duo Tyler and Cameron Winklevoss have successfully registered yet another patent related to crypto investment with the US Patent and Trademark Office.

The new patent, which was announced on the USPTO website on June 21, 2018, is related to the creation of exchange-traded products linked to digital assets. BTCManager earlier reported that the Winklevoss twins have racked up a slew of patents related to the Gemini Exchange which they own. It is also in line with their stated ambition to create a Bitcoin exchange-traded fund (ETF).



Winklevoss Brothers
(Source:  The Verge)

Route Toward ETF

While the broader goal of creating an ETF has not quite materialized for the duo, the patents they have been granted recently make up a crucial part of the strategy toward building the framework for the ETF.

Officially awarded on June 19, 2018, to a firm called Winklevoss IP LLP, the patent describes a framework for “providing an exchange-traded product holding digital math-based assets.” Both Winklevoss brothers are listed as inventors on the patent alongside Evan Louis Greebel, Kathleen Hill Moriarty, and Gregory Elias Xethalis.

In addition to detailing the operational framework of the proposed ETF, the patent lays out the issuance process for shares linked to the ETF.  It remains unclear exactly how or when it stands to attain any real-life application for investment purposes.

The description of the patent in the notice published by the USPTO reads in full:

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“Systems, methods, and program products for providing an exchange traded product holding digital math-based assets are disclosed. Shares based on digital math-based assets may be created using one or more computers by determining share price information based upon quantities of digital math-based assets held by a trust, electronically receiving a request from an authorized participant user device to purchase a quantity of shares, electronically transmitting a quantity of digital math-based assets to one or more destination digital asset accounts for receipt of digital math-based assets from the authorized participant based on the determined share price information and the requested quantity of shares, and electronically issuing shares to the authorized participant.”

Winklevoss Investment Strategy

After achieving fame as the first ‘bitcoin billionaires‘ when their $11 million investment in bitcoin multiplied in value more than a hundredfold, the flamboyant crypto investment evangelists have continued to make bold predictions of the crypto market, and they also continue to bet heavily on selected crypto assets.

Recently, their strategy has morphed into more of a “49er” approach, building and trading in solutions surrounding the trade of cryptocurrencies. The latest patent names a long list of cryptocurrencies it is designed to work with, indicating that they intend to continue with this ‘picks and shovels’ mass market approach, rather than making hefty narrow bets on individual cryptocurrencies. It is also the seventh intellectual property patent related to blockchain and cryptocurrency trading that the brothers have taken out between December 2017 and June 2018.

Interestingly, in March 2017, the SEC vetoed an effort by the Winklevoss twins to list an ETF tied to Bitcoin, stating that in the interest of protecting investors and the general public, it could not prove sufficiently that the ETF would not facilitate “fraudulent and manipulative practices.”