bitcoin investment trust - bitcoin 2014

The Disruptive Technology Speaker Series

February 4, 2014

Barry E. Silbert, Founder & CEOSecondMarket / Bitcoin Investment Trust

© BITCOIN INVESTMENT TRUST 2014Page 1

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

© BITCOIN INVESTMENT TRUST 2014

Why is Bitcoin Transformative?

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.

STORE OF VALUE

Gold $7 Trillion1

GLOBAL CURRENCY

E-Commerce $1.2 Trillion2

American Express, Visa, MastercardPayPal, Square

GLOBAL TRANSACTION

NETWORK

Remittance $410 Billion3

Western Union, Moneygram, SWIFT, ACH

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Bitcoin Adoption

1 Blockchain.info; as of February 3, 2014.2 BitPay, Coinbase

REACHED

$11.7 BILLION+1

MARKET CAPITALIZATION

31 MILLION+1

BITCOIN TRANSACTIONSSINCE 2009

50,000+2

VENDORS NOWACCEPT BITCOIN

Number of bitcoin transactions per day1

Total value of bitcoin in circulation1

110,000100,000

80,000

60,000

40,000

20,000

Jan ‘09

May ‘09

Sep ‘13May

‘13Jan

‘13Sep ‘12

May ‘12

Jan ‘12

Sep ‘11May

‘11Jan

‘11Sep ‘10

May ‘10

Jan ‘10

Sep ‘09

$16.0$14.0$12.0$10.0$8.0$6.0

Dec ‘12

Jan ‘13Dec

‘13Nov

‘13

Oct ‘13

Sep ‘13Aug ‘13

Jul ‘13

Jun ‘13May ‘1

3Apr ‘1

3Mar

‘13Feb

‘13

$2.0$4.0

# O

F TR

ANSA

CTIO

NS

MO

NET

ARY

BASE

(USD

IN B

ILLI

ON

S)Jan

‘14

Jan ‘14

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© BITCOIN INVESTMENT TRUST 2014Page 4

Bitcoin Ecosystem

* pending

INVESTING


Silicon Valley Moves into Bitcoin

Amount raised:$2.7 million


Amount raised:$9 million


Major Investors: Major Investors: Major Investors: Major Investors:

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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

Wall Street Discovers Bitcoin

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What is the Bitcoin Investment Trust?

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Launched on September 25, 2013, the BIT is a private, open-ended trust invested exclusively in bitcoinEnables sophisticated investors to gain exposure to the price movement of bitcoin without the challenges of buying, storing, and safekeeping bitcoins

• 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

Quality Sponsor and Partners

• Seeded by SecondMarket with an initial $2.25 million investment • Since launch, onboarded 100+ investors, comprised primarily of technology

entrepreneurs, principals at Wall Street firms and family offices• Investment ranges: $25,000 (low), $5 million (high), $32,500 (median) and

$213,330 (avg)• Over 70,000 bitcoin under management (~$62 million)

Gaining Traction and Growing Rapidly (data as of 2/1)


To learn more about the BIT, please visitwww.bitcointrust.co

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http://www.bitcointrust.co/


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.

DISCLAIMER

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bitcoin investment trust - bitcoin 2014

Economy & Finance