The brothers, known for their legal battle with Facebook (FB, Tech30) founder Mark Zuckerberg, believe the controversial cryptocurrency is the payments network of the future.That's despite Bitcoin's 60% plunge in 2014.They predict Bitcoin's market capitalization could easily skyrocket to at least $400 billion, or roughly the combined size of modern day payments companies like American Express (AXP), Visa (V), MasterCard (MA) and Western Union (WU).But the Internet entrepreneurs are taking it one step further.They believe Bitcoin could one day morph into a gold-like asset class -- or even surpass it."If Bitcoin is a better gold or seen as a type of gold-like asset, then it could be in the trillions on a market cap," Tyler Winklevoss told CNNMoney."We do feel those are very real possibilities."Reaching over $1 trillion in market cap is hard to fathom, especially because Bitcoin's current market cap is less than $4 billion.Many skeptics remain convinced Bitcoin was a bubble that will soon die out.

Jeffrey Gundlach, the new so-called "bond king," recently said Bitcoin is "on its way to being relegated to the ash heap of digital currencies."Don't tell that to the Winklevii, as they are sometimes called.The twins are huge backers of Bitcoin and stand to profit handsomely if their vision comes true.They're not worried by the currency's recent glitches or its price decline.One Bitcoin is currently worth about $265 -- a big drop-off from its peak of more than $1,200 back in late 2013."It's a buying opportunity.We've never sold a Bitcoin.'s Inside ETFs Conference.But the WInklevoss twins realize Bitcoin needs help.The 2014 bankruptcy of Mt.Gox, a Tokyo-based Bitcoin exchange, has raised questions about the currency's security.Price declines and volatility also spook some potential investors."People get fixated on the cost," Cameron Winklevoss said."It's going to have lots of gyrations, but it's new and you have to bare with it."Improving the system: To help Bitcoin get through its growing pains, the twins are building infrastructure aimed at legitimizing and securing the currency.

Last week they unveiled Gemini, a Bitcoin exchange for U.S.They hope it will become the "Nasdaq of Bitcoin."They may have been beaten to the punch by Coinbase, a U.S.-based Bitcoin exchange that opened on Monday with backing from the likes of the New York Stock Exchange.Second, the Winklevoss twins are awaiting regulatory approval for the first exchange-traded fund holding Bitcoins.Just like GLD (GLD), the popular gold ETF, the fund would trade securities based off of Bitcoin.At least one ETF veteran believes the idea of a Bitcoin ETF may have some merit."The ETF structure is allowing more and more asset classes to become investable -- and Bitcoin is one of those," Dodd Kittsley, head of ETF strategy at Deutsche Bank, told CNNMoney."This could be a great potential solution.We've seen it in less liquid markets like fixed income."The twins believe such an ETF would appeal to gold bugs because Bitcoin, just like gold, can be used as a hedge against inflation.They say Bitcoin is more durable, divisible and affordable than the yellow metal.

"If you like gold, there are many reasons you should like Bitcoin," said Cameron Winklevoss.Of course, gold has been around as an asset class for thousands of years.safest bitcoin mining poolBy comparison, Bitcoin is still just a baby.bitcoin üye ol"Wars have been fought over gold.bitcoin dead in singaporeI don't know if the same is going to be said about Bitcoin," said David Mazza, head of research at SPDR ETFs at State Street Global Advisors.litecoin get startedWinklevoss Bitcoin Fund: Dumb Money or Good Idea?bitcoin exchange rate tickerTyler and Cameron Winklevoss will know within days whether they’ve won approval to begin offering their bitcoin-based exchange traded fund, with the digital currency’s record rally hanging in the balance.Officials from the U.S.bitcoin sofort nutzen

Securities and Exchange Commission met with the twins on Feb.14 to discuss their proposal for an ETF based on the digital currency, according to a short notice of the meeting published on Feb.bitcoin usd rate graphA decision is due by March 11.bitcoin euro historicalThe 35-year-old twins want to trade the security on the Bats BZX Exchange Inc.An approved ETF would make bitcoin investing simple for small traders and institutions, while potentially boosting the digital currency just as it’s hitting new highs almost daily.bitcoin shellshockSome $300 million could pour into a bitcoin ETF in its first week, Spencer Bogart, head of research at venture-capital investor Blockchain Capital, said in an interview.“I’d be very surprised if it did anything but double from whatever levels it is at beforehand,” Bogart said.Bitcoin rose as high as $1,263.49 on Thursday, an intraday record, passing the price of an ounce of gold.

It has gained 28 percent this year, as investors worried about global uncertainties and speculated on a more relaxed regulatory environment for the currency under President Trump.Hopes for the ETF have been a factor as well.The Winklevoss Bitcoin Trust is one of three such vehicles seeking regulatory approval -- and the advantages that come with being first.The others are Bitcoin Investment Trust, a creation of Barry Silbert, who had previously built a market for selling shares in private companies, and SolidX Bitcoin Trust.Digital Asset Services, the sponsor of the Winklevoss ETF, declined to comment.Silbert and Ivan Brightly, chief operating officer of SolidX, also wouldn’t comment.The Winklevoss twins may be best known for accusing Facebook founder Mark Zuckerberg of stealing their idea for a social-media network, a case they ultimately settled.SEC approval could give enormous power and riches to the winner for years to come.Just look at gold: SPDR Gold Shares ETF, started in 2004, has more than four times higher the market value of iShares Gold Trust ETF, started in 2005.

“This is the first-to-market race,” Chris Burniske, an analyst at Ark Investment Management LLC, said in an interview.Cameron Winklevoss, left, and Tyler Winklevoss Trading bitcoin now is no easy thing.Investors have to open bitcoin wallet accounts, then purchase bitcoins via online exchanges.Or they can invest in Bitcoin Investment Trust, which trades over the counter, often at a hefty premium to the cryptocurrency.A last possibility is Ark, which operates an ETF with 5 percent exposure to blockchain -- the database technology underlying bitcoin -- and peer-to-peer computing.With a publicly traded ETF, small investors could just call their brokers or buy shares online.Approval is by no means certain.On BitMEX, a contract betting on approval of the Winklevoss Bitcoin Trust spiked to an all-time high of 70 percent on Feb.28, before crashing to 53 percent on March 1.Neena Mishra, director of ETF Research at Zacks Investment Research, pegs the chances at 40 percent.The biggest unknown is whether the regulators will conclude that bitcoin, a digital currency created on and managed by computers, lends itself to being a part of an ETF at all.

Whether it’s secure enough, for example.Gox had many of its bitcoins stolen several years ago.Last summer, a project running on a blockchain technology similar to bitcoin’s got hacked and lost millions of dollars of investors’ funds.Read more: You Can Bet On Whether the SEC Approves the First Bitcoin ETFBitcoin has similarities to currencies, as well as commodities like gold -- since there’s a limited number, it could be considered a scarce resource.What ultimately matters is how the SEC sees it.“Bitcoin is not a stock, it’s not a bond, it’s not a hard asset like precious metal, it’s not a commodity future,” Ben Johnson, director of global ETF and passive strategies research at Morningstar Inc., said in an interview.“It’s a technology that’s very much in its infancy, and it’s not something that in my mind lends itself to being packaged as an ETF.”An SEC rejection of the Winklevoss proposal could help one of the other bitcoin ETFs seeking regulatory approval.“If the Winklevoss (ETF) gets rejected, they’ll get a brief explanation, which will help the other guys figure out how to get theirs through,” said Adam Wyatt, chief operating officer at BullBear Analytics, a researcher focused on bitcoin and other digital currencies.

“If it’s approved, all the other guys copy that and do whatever needs to be done to get approved.”Bitcoin Investment Trust, which filed in January to list on the NYSE Arca, already trades over the counter.Bank of New York Mellon is the trust’s transfer agent.And SolidX has a big differentiator: It promises to insure its bitcoins from loss -- something that could boost its chances of approval, Zacks’ Mishra said.The Winklevoss’s ETF, which first filed with the SEC in July of 2013, has amended its S-1 filing multiple times over the years to address regulators’ concerns.It’s represented by the law firm of Ropes & Gray.The twins have also secured State Street Bank & Trust Co.as the administrator of the trust.They already operate the Gemini cryptocurrency exchange, catering to institutional and retail investors.“All that adds up,” Eric Balchunas, an ETF analyst at Bloomberg Intelligence, said in an interview.“If they are going approve one, it’s going to be Winklevoss first.