Winklevoss twins launch Winkdex, Price Index for Bitcoin
Tyler and Cameron Winklevoss are creating their very own Bitcoin Price Index. The twins are huge advocates of Bitcoin, have launched a blended Bitcoin price index, the Winklevoss Index, otherwise known as the Winkdex which they say reflects the true price of the digital currency. The index will also serve as the official index used to value the Bitcoins in the brothers’ forthcoming Bitcoin trust.
The Winkdex uses real-time trading prices in U.S. dollars for the top three qualified Bitcoin exchanges by volume across a two hour period window, and set its price using volume-weighted moving average basis. Given the volatile nature of digital currency, and the variance of price between different exchanges, price indices are becoming increasingly important. Winkdex has disqualified MtGox from its index as it is no longer a qualified exchange attributed to the recent freeze on all Bitcoin withdrawals.
This is one of the Winklevoss brothers first steps before getting approval to open up their Bitcoin fund that is planned to be opened to the public. Comparing this to the Bitcoin Investment Trust which is only available to high-networh clients with a minimum deposit of $25,000, it is expected to target a larger segment of investors, therefore, insuring a large volume of investments.