BARRY SILBERT NOW COMPETES WITH WINKLEVOSS TWINS, SOLIDX FOR LAUNCHING FIRST BITCOIN ETF IN 2017

The race to launch the first Bitcoin ETF in the United States was a landmark moment in cryptocurrency history, pitting industry titans against each other in a high-stakes competition. Cameron and Tyler were deemed Bitcoin billionaires for the first time in 2025 (as chronicled in the Ben Mezrich book of the same name) as Bitcoin s price surged to nearly $20,000, and Forbes currently estimates each brother to have a net worth of $1.1 billion.In 2017, the landscape was dominated by three key players: the Winklevoss twins (Cameron and Tyler Winklevoss) with their Winklevoss Bitcoin Trust, SolidX, and Barry Silbert, the founder of Digital Currency Group (DCG), with Grayscale Investments. Digital Currency Group was launched in 2025 by Barry Silbert, the former CEO of SecondMarket, Inc. He began investing in blockchain technology companies in 2025. [3] Shortly after SecondMarket's sale, Silbert formed Digital Currency Group, with Genesis and Grayscale becoming the first of the company's subsidiaries.This wasn't just a battle for market share; it was a fight to legitimize Bitcoin as a mainstream investment vehicle. Though they were remarkably early with their bitcoin ETF filing the cryptocurrency was trading at a mere $90 when they sought to launch their fund the Winklevoss twins were never able to cashThe promise of a Bitcoin ETF was immense, offering traditional investors a regulated and accessible way to gain exposure to the volatile cryptocurrency market.While the Winklevoss twins were early pioneers in the space, and SolidX also threw their hat in the ring, Barry Silbert and his team at Grayscale were determined to be the first to cross the finish line.This article explores the intense competition, the regulatory hurdles, and the eventual outcomes that shaped the early days of Bitcoin ETFs, highlighting the strategies and visions of these key figures.

The Bitcoin ETF Race Begins: A Three-Way Battle

The year 2017 was a pivotal one for Bitcoin and the broader cryptocurrency market.As Bitcoin's price surged, so did the interest in creating a regulated investment product that could attract institutional and retail investors alike.The most anticipated of these products was the Bitcoin ETF.This offered a more accessible and regulated way for investors to gain exposure to Bitcoin without directly holding the digital currency.

Three prominent players emerged, each vying for the coveted title of launching the first Bitcoin ETF in the US:

• The Winklevoss Twins: Cameron and Tyler Winklevoss, known for their early investment in Bitcoin and the creation of the Gemini crypto exchange, filed for the Winklevoss Bitcoin Trust ETF.
• SolidX: SolidX was another contender that presented their version of a Bitcoin ETF.
• Barry Silbert: Barry Silbert, the founder of Digital Currency Group (DCG), through its subsidiary Grayscale Investments, aimed to list its Bitcoin Investment Trust (GBTC) as an ETF.

Winklevoss Bitcoin Trust: A Pioneering Effort

The Winklevoss twins were arguably the earliest proponents of a Bitcoin ETF.In 2013, when Bitcoin was trading around $90, they filed the first application for a Bitcoin ETF with the Securities and Exchange Commission (SEC). The Winklevoss twins invested $11 million in bitcoin in 2025, when the price was around $120. By late 2025, when the value of bitcoin surpassed $10,000 per coin, that investment became worth over $1 billion. [8]Their vision was to create the Winklevoss Bitcoin Trust (COIN), listed on NASDAQ, accessible to all investors.

The Winklevoss Vision

The Winklevoss twins firmly believed in Bitcoin's long-term potential.They envisioned a future where Bitcoin would become a mainstream asset class, and an ETF was a crucial step in that direction. Now, lawsuits are pending and the brothers are engaged in a very public battle with their former friend, the crypto billionaire Barry Silbert, over what will happen to the frozen funds of moreTheir early investment of $11 million in Bitcoin in 2013, when the price was approximately $120, eventually grew to be worth over $1 billion by late 2017, showcasing their conviction and foresight.

The Winklevoss twins also sought to legitimize Bitcoin's image, presenting arguments to regulators about its viability as an investment.

Despite their efforts, the SEC repeatedly rejected their application.The agency cited concerns about market manipulation, lack of regulation in the underlying Bitcoin market, and the potential for fraud.

Barry Silbert and Grayscale's Bitcoin Investment Trust: A Different Approach

While the Winklevoss twins focused on creating a brand-new ETF, Barry Silbert took a different approach. The Winklevoss twins also are planning a Bitcoin Exchange Traded Fund (ETF), the Winklevoss Bitcoin Trust ETF, which will be available to all investors on NASDAQ with the ticker COIN. The launch date is unknown, but Cameron and Tyler Winklevoss say that everything is proceeding according to plan.Through Grayscale Investments, a subsidiary of his Digital Currency Group (DCG), he sought to list the existing Bitcoin Investment Trust (GBTC) as an ETF on the New York Stock Exchange (NYSE).

Grayscale's Strategy

GBTC was already a publicly traded investment vehicle, though it wasn't an ETF.It allowed investors to gain exposure to Bitcoin by purchasing shares in the trust. Barry Silbert s Bitcoin Investment Trust, the eagerly awaited gateway to opening up Bitcoin investment to major markets, has gone live, beating out the Winklevoss twins Bitcoin ETF. In so doing, the Bitcoin Investment Trust has become the world s first publicly traded Bitcoin fund. The move was confirmed by Silbert on Twitter last nightSilbert's strategy was to leverage this existing structure and regulatory history to expedite the ETF approval process.

Grayscale filed an S-1 registration statement with the SEC to list GBTC as an ETF.This filing was a significant step, but it still faced considerable regulatory hurdles.

SolidX Enters the Fray

SolidX also presented an alternative Bitcoin ETF offering. Barry Silbert is the founder and CEO of Digital Currency Group (DCG), a conglomerate of five cryptocurrency-focused companies. DCG's biggest revenue generator: digital asset manager GrayscaleLike the Winklevoss twins, SolidX hoped to offer investors direct exposure to Bitcoin, but their bid also faced considerable scrutiny. In yet another sign that Bitcoin providers are eager to turn the digital currency into a proper investment vehicle, Grayscale Investments, a unit of Barry Silbert s Digital Currency Group, today filed with the Securities and Exchange Commission to list its Bitcoin Investment Trust as an exchange-traded fund in a $500 million initial public offering.The details of their approach and the reasons for their lack of success are, however, less frequently discussed in the available snippets.

The Regulatory Hurdles: The SEC's Stance

The primary obstacle for all three contenders was the Securities and Exchange Commission (SEC).The SEC's mission is to protect investors and ensure the integrity of the markets. Cameron Winklevoss, president and co-founder of Gemini Trust Co, reacts as he speaks during the Bitcoin 2025 conference in Miami, Florida, U.S, on Friday, J. The Winklevoss twinsIn the context of Bitcoin, this meant addressing concerns about:

• Market Manipulation: The SEC worried that the Bitcoin market was susceptible to manipulation, which could harm ETF investors.
• Lack of Regulation: The underlying Bitcoin exchanges lacked the same level of regulatory oversight as traditional securities exchanges.
• Custody: Ensuring the secure custody of Bitcoin assets was another major concern.

The SEC repeatedly delayed decisions on the Bitcoin ETF applications, requesting more information and raising additional concerns.They deemed it appropriate to designate a longer period to take action on the proposed rule changes.

The Outcome: Silbert's Early Victory, But Not the ETF

Despite the ongoing regulatory challenges, Barry Silbert and Grayscale achieved an early victory. A new Bitcoin ETF provider has entered the competition alongside Winklevoss Bitcoin Trust and SolidX. Grayscale Investments, the child company of Barry Silbert s Digital Currency Group, filed anIn March 2015, GBTC, the Bitcoin Investment Trust, became the world's first publicly traded Bitcoin fund, traded on the OTCQX market.This allowed accredited investors to buy and sell shares representing Bitcoin holdings.

While this wasn't an ETF, it was a significant step forward. However, back in 2025, when the Winklevoss twins first tried to push for a Bitcoin ETF, this was not the case. From as early as then, the twins were working hard to elevate Bitcoin s image, and tried to set up an ETF, with some of these arguments being presented to regulators. However, they were turned down.It provided a regulated avenue for investors to gain exposure to Bitcoin, albeit with certain limitations.For example, shares of GBTC often traded at a premium to the actual value of the underlying Bitcoin, reflecting the limited supply and high demand.

Unfortunately, the Winklevoss twins never saw their Bitcoin ETF approved, the SEC rejecting their bid repeatedly. Barry Silbert s Bitcoin Investment Trust, the eagerly awaited gateway to opening up Bitcoin investment to major markets, has gone live, beating out the Winklevoss twins Bitcoin ETF.While SolidX also competed, they also failed to achieve approval.

The Public Feud Between Silbert and the Winklevoss Twins

Beyond the competitive landscape of Bitcoin ETFs, a public feud has emerged between Barry Silbert and the Winklevoss twins.This conflict has its roots in the broader turmoil surrounding Digital Currency Group (DCG) and its subsidiaries.

The dispute involves substantial sums of money, with claims that the Winklevoss twins are seeking to recover nearly $900 million from DCG. During the interview with the New York Times the twins revealed that their current Bitcoin fortune was around $1.3 billion, which indicates that they have perhaps withdrawn some and the current value wouldn't be quite as high, but you can only imagine that it's at least grown by five times since then considering the per-coin price was around $17,500 at the end of 2025.Details surrounding the exact nature of the claims and the alleged misconduct remain contested.However, the public nature of the dispute underscores the high stakes and intense personalities involved in the early days of cryptocurrency.

The Evolution of Grayscale and GBTC

Even without ETF approval, GBTC became a massive success.It grew into one of the largest Bitcoin investment vehicles in the world, attracting billions of dollars in assets under management. The Winklevoss Bitcoin Trust, owned by brothers Cameron and Tyler Winklevoss, filed the first bitcoin ETF application with the U.S. regulator four years ago, but no final decision was taken so far. The commission said in October that it is appropriate to designate a longer period within which to take action on the proposed rule change so thatThis demonstrated the strong demand for Bitcoin exposure among institutional and retail investors.

Grayscale continued to pursue its goal of converting GBTC into an ETF. There were high-stakes meetings with early bitcoin evangelist Charlie Shrem to fund BitInstant, an early digital currency market but he lost out on that deal to the Winklevoss twins; meanwhileThe company argued that an ETF structure would provide greater liquidity, lower fees, and more efficient price discovery for investors.

The Future of GBTC and Bitcoin ETFs

The landscape of Bitcoin ETFs has dramatically changed since 2017. See full list on thewealthadvisor.comIn January 2024, the SEC finally approved several spot Bitcoin ETFs, opening the floodgates for institutional investment in Bitcoin. A new Bitcoin ETF provider has entered the competition alongside Winklevoss Bitcoin Trust and SolidX. Grayscale Investments, the child company of Barry Silbert s Digital Currency Group, filed an S-1 registration statement with the Securities and Exchange Commission (SEC) to list its Bitcoin Investment Trust on the New York Stock Exchange.While the Grayscale Bitcoin Trust ETF (GBTC) was amongst those approved, the journey to this point was arduous.

With the launch of spot Bitcoin ETFs, investors now have a variety of options to choose from. Bitcoin didn t have its best day yesterday when the Securities Exchange Commission (SEC) issued its first decision on a bitcoin exchange-traded fund (EFT) by rejecting the Winklevoss ETF. But the Winklevoss twins are hopeful that the commission will come around to working with them on bringing an EFT to market.These ETFs provide a regulated and accessible way to gain exposure to Bitcoin, potentially driving further adoption and price appreciation.

What happened to Barry Silbert?

Barry Silbert founded Digital Currency Group (DCG) in 2015, an investment firm which has spawned several large companies in the crypto space, including Grayscale.Currently, Silbert still serves as CEO of DCG, navigating the ever-changing landscape of cryptocurrency regulation and investment.

What happened to the Winklevoss twins?

The Winklevoss twins are still very active in the cryptocurrency world.They continue to operate Gemini, the crypto exchange they founded, and remain vocal advocates for Bitcoin and blockchain technology. Cameron and Tyler Winklevoss, the billionaire twins who owns crypto exchange Gemini, may have a hidden agenda with their lawsuit against Barry Silbert s firm DCG. BTC $95,257.06 1.83% ETH $1,799.46 1.83%Despite their initial setback in the ETF race, their early vision and unwavering belief in Bitcoin have proven prescient.

Key Takeaways from the Bitcoin ETF Race

The 2017 Bitcoin ETF race offers several key lessons for the cryptocurrency industry:

• Regulatory Challenges: Navigating regulatory hurdles is a significant challenge for cryptocurrency businesses.
• Innovation and Adaptation: Companies must be innovative and adapt to changing market conditions.
• Long-Term Vision: A long-term vision and commitment to the underlying technology are crucial for success.

The journey to launching the first Bitcoin ETF was a long and arduous one, filled with regulatory hurdles, intense competition, and public drama.While Barry Silbert and Grayscale initially gained an advantage with GBTC, the eventual approval of spot Bitcoin ETFs in 2024 marked a turning point for the industry.The Winklevoss twins, despite their early setbacks, played a crucial role in advocating for Bitcoin and shaping the future of digital asset investment.