Web Statistics March 2017

Thursday, 30 March 2017

Top 9 Rules of Investing


Top 9 Rules of Investing

"Top 9 Rules of Investing" 

in the news Top 9 Rules of Investing? What this all about..... See below. 

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As a trader, its always a good idea to focus on fundamentals on a particular stock. But to become a master trader, you need to lay down a solid foundation and a very solid trading plan, to ensure you become a very assertive and profitable trader. Because in the end, that is what matters most. 
Here are the top ten rules of becoming a master stock trader.  

Rule 1: Don’t Own Too Many Stocks

Its much better to focus on a few stocks rather than many stocks because it gives peace of mind.

Rule 2: Cash The Gainers

If you like the market, invest your money now, and make money from it. Then you can cash part of the gainers, and leave money in the market to reinvest. Some of the wealthiest investors have done this, like warren buffett and made off like bandits. 

Rule 3: You Must Control Your Emotion

When you  control your emotions you avoid wrong decisions. How many times have you tried to do a revenge trade right after you have lost money on an investment. Normally 90% of the time, all that happens is you end up becoming flustered and this in turn makes you end up losing even more money. We have all experienced this. So you must learn to meditate each day, and control your emotions, and then in turn, it will give you clear thought throughout the day and make better decisions. 

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Rule 4:  Expect mistakes. 

Sometimes will experience good mistakes and bad mistakes mistakes, expect it and learn from your mistake, and try to correct it. Bad mistakes happen if we keep repeating the same mistake over and over again. This means you learnt nothing and can throw you into a tail spin. This is something you do not want. So instead make sure you make you mistake, write it down, and learn how to correct it so It never happens again. 

Rule 5: Dont Forget Bonds.

Stocks are a great way to invest, but do not forget to invest in bonds too. Many investors think they have to be tied to one vehicle, but there are fast moves in bonds as well, and sometimes depending on geopolitical events, they are even better than stocks anyway. So in the end, the market is not just about stocks, its about bonds, treasuries, commodities, sectors. When you open yourself up to other vehicles and sectors there is no looking back. Don’t forget bonds when it comes to diversifying your account. This minimizes your risk, and maximizes your gains. 

Rule 6: Don’t back The Losers With Winners

Never sell the good stock in order to buy a bad stocks. This is how desperate traders ruin their accounts. You might hear about it, or read about it, but this strategy is long gone, and never works. So never sit in your chair thinking you can pick the next big stock. That is a magic bean that will not work. Its been tried and tested before and its where dumb traders who think they are smart will luck out. 

Rule 7: Leave Hope At Your Door

Your emotion of Hope is just an emotion. Remember that.  Trading is not a game of emotion. If you feel yourself down, or emotional or have a tragic situation in your life. Its best to leave trading alone for a few days, until you feel better, or you are in a place where you are more emotionally stable. Traders who are in a good emotive state normally make better decisions and in turn make really nice profits each month. 

Rule 8: Be like a piece of Bamboo - Flexible

Be prepared for bigger shits in the market. Sometimes the market goes will go up or down. It's dynamic. The market is an eating breathing sleeping dragon. Always remember that! It can do what ever it wants, and you will never be able to beat it. If the market moves, try to move in sync with it. If there is clear and defined trend, remember that age old saying. “The trend is your friend” and roll with that. 


Rule 9: It’s a Sin to give up on Value


Always be patient when you invest in the stock market. Price is what you pay and that means value is what you get. There are so many things that can go wrong, but price is what pays you. When you realise this, you can make more informed decisions. If a stock is low, its low for a reason. You are not buying a quality stock if its trading at 3 cents per share. And if you are looking a blue chip stock and its $300 per share, its up there for a reason, and they move relative to their share price. Always remember that. 




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Tuesday, 28 March 2017

vix warning - vix warning


vix warning - vix warning

"vix warning - vix warning" 

in the news vix warning - vix warning? What this all about..... See below. 

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Sentiment Trader  analysis of the recent VIX action is clearly warning of a potentially massive price volatility increase in the US and global markets.  Many traders use and trade the VIX as a measurement of volatility.  The VIX is a measurement of the expected market volatility over the next 30 days.  As the VIX rises, traders expect larger and more volatile price swings.  As the VIX declines, traders expect smaller and more narrow price swings.

Currently, the VIX is near historical low levels and has recently past a critical cycle midpoint.

the thing about this is investors think the market will keep rallying and the vix will stay low, but when you look back in history this almost never happens, so we think there is a bigger sell off coming, that you need to look out for. This is quite interesting. 


vix warning




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Sunday, 26 March 2017

3 Tips On How To Be An Expert Investor


3 Tips On How To Be An Expert Investor

"3 Tips On How To Be An Expert Investor" 

in the news 3 Tips On How To Be An Expert Investor! ? What this all about..... See below. 

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3 Tips On How To Be An Expert Investor! 


It may seem that on some days you are not informed enough to make your own investment decisions. But this is not that case. There is lots to learn about the complexity of the stockmarket, to ensure you make the most from your experience as an investor. But sometimes its might be better to seek the help of the services of a financial adviser first. 

Can an expert financial adviser really help you? Well, yes and no. However you have to remember there are people in the know who have certain knowledge and in the end, would you learn from someone who has been trading for 6 months, or someone who has been  in and around the industry for their entire adult life. 
There is no fast track way to wealth in the stock market. However if your purpose is to be a really good investor. You must spend hours each day, watching, studying and putting your mind to the test. You can get really good with the flows, and the rhythm of the stock market if you just spend 1 hour per day just watching. Do this for long enough and you could become an adviser yourself. 

The main aim as a novice investor is just to survive your first year. As the failure rate of newbies sits around 90% they usually think a few button presses is going to make them instantly wealthy on the stock market. But, you will soon find out this is not the case. You need to be realistic, set goal, and most of all set out to have your own clear defined trading plan, that you stick to like glue as you start to navigate your way around the markets.

Being a good investor is not buying the first stock you see, walking away from the screen only to return a day or so later, and seeing yourself become a millionaire. Some of the smartest millionaire traders spend weeks, maybe months investigating a stock, or bond and then making sure they have their due diligence right. Then they will go through a strict set of guidelines to ensure they have it right. It is said the average smart investor, or someone who has become rich by means of the stock market personally. They usually sit down, and do not come up with reasons on why they should be in a stock. They will sit down with themselves each week and come up with reasons why they should not be in a stock. 

You have to remember the risks are huge in any market. Anything can happen and any given point. IF you think the stock market is going to skyrocket each weeks, without sell offs and draw downs and horrific news driven events think again. 


In the end you have to remember, you are the one out there monitoring how the stocks are performing and making strategies on how to make the values of yours increase. You do not need an "expert" to tell you that, you yourself can be the expert, though it may seem strange to you at first, but you will definitely get a hand on it with time. 

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Thursday, 23 March 2017

Bitcoin holds above $1,000 as traders fret about the cryptocurrency’s potential ‘fork’


Bitcoin holds above $1,000 as traders fret about the cryptocurrency’s potential ‘fork’

"Bitcoin holds above $1,000 as traders fret about the cryptocurrency’s potential ‘fork’" 

in the news Bitcoin holds above $1,000 as traders fret about the cryptocurrency’s potential ‘fork’? What this all about..... See below. 

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Sentiment Trader can see Bitcoin has had a rough ride in the past few days after hitting record highs, then dipping below $1,000 and now just holding steady, as traders ponder the future of the underlying technology behind the cyrptocurrency.

On March 10, bitcoin hit a high of $1,325.81, but dipped to around $944 on Saturday. The price has recovered somewhat and was trading at around $1,049.20 at the time of publication. The recent volatility is due to a number of factors:

The rejection by the U.S. Securities and Exchange Commission (SEC) of an exchange-traded fund (ETF) proposed by Cameron and Tyler Winklevoss
Chinese authorities forcing bitcoin exchanges to halt withdrawals of the virtual currency

Concern of the future of the underlying technology of bitcoin

This last point refers to a potential bitcoin "fork" which would result in the emergence of two cryptocurrencies – one known as Bitcoin and one known as Bitcoin Unlimited. For a full explanation of this debate,

The bitcoin chart might be going to the high hundreds soon, see the chart This is quite interesting. 


Bitcoin holds above $1,000 as traders fret about the cryptocurrency’s potential ‘fork’


In the last seven days, 54.7 percent of trades on one major exchange called Bitfinex have been to sell bitcoin. The other 45.3 percent have been to buy. At the same time, from bitcoin's all-time high on March 10 to midday on March 23, the number of short positions on the Bitfinex exchange were up 18.9 percent, hitting levels not seen since February 17. Short positions refer to people betting against a price rise in bitcoin.

Jason Hamilton, a bitcoin trader in the U.S., told reporters that the long-term supporting trend line for bitcoin is around $735, and that bitcoin is in a bubble right now. He said that a potential upcoming fork, as well as the rejection of the ETF and tighter regulation in China, is the reason he is shorting the digital currency.

"All these reasons are the catalysts it needs for the bubble to burst and the long term trend line to be revisited," 

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Tuesday, 21 March 2017

why is the stock market selling off today - why is the stock market selling off today



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why is the stock market selling off today ?






why is the stock market selling off today ?

Well it finally happened, just as we have been telling our members..... the Dow and S&P post first 1% fall in 5 months as banks tumble, health care reform worries remain

U.S. equities posted their worst day of the year Tuesday as banks faced pressure from falling yields, while investors turned their eyes to a key House vote.

The Dow Jones industrial average fell around 240 points, with Goldman Sachs contributing the lion's share of the losses. The S&P 500 dropped 1.2 percent, with financials falling more than 2.5 percent to lead decliners. The indexes were also posted their first decline of at least 1 percent since October.

The SPDR S&P Bank ETF (KBE) and the Regional Banking ETF (KRE) both fell more than 4.5 percent.

The small-cap Russell 2000 underperfomed, falling around 2 percent.

Retail stocks also took a hit Tuesday, as the SPDR S&P Retail ETF (XRT) dropped nearly 2 percent after Rep. Kevin Brady, the Republicans' chief tax writer in the House, warned  border adjustment tax will probably appear in the final tax reform plan.

I keep having people write to me and emailing me saying WE ARE NEVER GOING DOWN AGAIN!....I wonder what these investors are thinking today, they might go to bed a little worried tonight.

Since President Donald Trump's victory last November, expectations for tax reform, deregulation and more government spending have increased dramatically. That said, the Trump administration indicated that health care reform would take place ahead of tax reform.

"If those become bigger fights and everything gets watered down, that could be a disappointment," said Alpine's Spellman.

House Republicans are expected to vote on repealing and replacing the Affordable Care Acton Thursday.

"If we can't get health care reform soon, that doesn't mean we won't get tax reform. It just means it will come later, but the market is not priced in for that. But things are a little tense now it seems.

The Freedom Caucus, a key group of House Republicans, threatened to issue a formal statement of opposition to the Obamacare replacement bill, which would delay the vote, unless the language in the bill changes dramatically.

TIME TO PANIC??? 

Well, not really, but we must say, the S&P sold off quite hard today! It has investors PANICING, and this is the first DAY down more than 1% in 2017. Brace yourself!!! This is quite interesting, have a look at the chart below. 



 Stocks were flying high after Trump took office.

Wall Street also focused on the oil market as crude prices briefly rebounded on the possibility of an OPEC supply cut extension.

"If that comes to fruition, that would be a huge plus," said Peter Cardillo, chief market economist at First Standard Financial. "I think the rebalancing in the market is going to take place in the next few months."

Energy is the worst-performing sector this year, falling around 8 percent.

On the data front, fourth-quarter current account figures showed the deficit fell, hitting its lowest level in more than a year, as an increase in the primary income surplus offset a soybean-driven drop in exports.

Will this be the start of something bigger, or is this just a DIP that needs to be bought!?  -    Source : Cnbc.


 I cover more and more technical analysis ==> HERE in our VIP members section.



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Sunday, 19 March 2017

how to make money with virtual reality - how to make money with virtual reality this year


how to make money with virtual reality

"how to make money with virtual reality" 

in the news how to make money with virtual reality? What this all about..... See below. 

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Sentiment Trader has started to notice a rapid growth in virtual reality and virtual reality stocks. 

Investors are starting look for benefits from this in 2017 need to know which businesses or stocks are going to help them. How can you utilize AI without being part of the company? There is a lot of data needed to drive this technology and a lot of investors have not even started to jump on the bandwagon here. 

Amazon is one company that is starting to benefit from Artificial intelligence and big data. They tend to be ahead of all the other companies, when it comes to trends, and how using robotics and virtual reality to make their business work even better. They are telling analysts that they do have a few secrets up their sleeve but count the success to test things small scale, and if they work, then upscale and outsource this. It seems to be working, as amazon profits are doing quite nicely in 2016 and likely to grow in 2017. 

Amazon are still looking for providers or AI software. But they will be focusing on making their tech suppliers even better in the coming years, which will help get products to their customers quicker, and make things more efficient. There are hardly any other companies like amazon doing what they are doing, and in this tech space is sure to make them a giant in the coming years. 

One of the managers are Amazon was quoted as saying “bots are 
also good, and a paradigm shift from the average person calling up a real person on a phone. But until their customers really adopt these new bot  and AI intelligence, they will continue to adapt and work it in slowly! ”

Will the next social network be virtual?

There is evidence, that instead of interacting with Facebook on a screen, yes, you could be in a machine and talking to people. Just like virtual reality is just taking off with games there will be a great use for this technology in business as well. 
So there is a real possibility that Virtual reality will be a social platform in the future. But there a several stocks you might want to look at, if this growth turns into a rapid explosion, like we think it will be. 

 This is quite interesting. 


how to make money with virtual reality


Virtual reality and augmented reality could be the most social platform in the future.


But right now, there are bigger funds who can see the potential for companies like Amazon and Facebook to grow by utilizing the technology available right now or at their finger tips, so investors who are wanting to get ahead of the curve and capitalize on such trends would be better off to buy stocks such as facebook and Amazon outright. They seem to have a big bubbly bright future ahead of them. 

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Wednesday, 15 March 2017

Fed raises rates at March meeting - Federal Reserve raises US interest rates for the first time this year


Fed raises rates at March meeting - Federal Reserve raises US interest rates for the first time this year

"Fed raises rates at March meeting - Federal Reserve raises US interest rates for the first time this year" 

in the news Fed raises rates at March meeting - Federal Reserve raises US interest rates for the first time this year? What this all about..... See below. 

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Sentiment Trader sees For the second time in three months, the Federal Reserve increased its benchmark interest rate a quarter point amid rising confidence that the economy is poised for more robust growth.

The move, widely anticipated by financial markets, takes the overnight funds rate to a target range of 0.75 percent to 1 percent and sets the Fed on a likely path of regular hikes ahead. Minneapolis Fed President Neel Kashkari was the sole "no" vote.

Despite a well-telegraphed move, news of the rate hike pushed government bond yields lower while major averages in the stock market moved higher.

"The market was bracing for a much more hawkish tone from the Fed. The early reaction looks to be one of relief, that the market's worst fears were averted," said Michael Arone, chief investment strategist at State Street Global Advisors.

Some market participants had feared that the statement and accompanying economic projections Wednesday would point to a more hawkish Fed, with a faster pace of rate hikes ahead. However, the closely watched "dot plot" that shows each member's expectations for where rates will be in coming years changed little from the last meeting.

With a higher rate already baked into the market, investors were looking for clues about just how aggressive the central bank will be down the road. The market currently expects the Fed to hike two more times this year, which was in line with the bank's projections from December 2016.



"They met expectations perfectly," said J.J. Kinahan, chief market strategist at TD Ameritrade. "They stayed to the script that Wall Street wanted to hear."

The Fed on Wednesday indicated that it still expects three moves. In its statement, the central bank noted that business investment has "firmed somewhat," a slight upgrade from the characterization of "soft" after the Jan. 31-Feb. 1 meeting.

The market expects the next hike to come in June and another in December. Those probabilities increased a bit following Wednesday's decision.

More broadly, though, officials left expectations for economic growth little changed. The forecast for GDP gains in 2017 remains 2.1 percent, while 2018 was pushed up one-tenth to 2.1 percent. Longer-run growth estimates remained at 1.8 percent.

Inflation expectations remained in check as well, as the Federal Open Market Committee — the central bank's policy-setting group — sees a slight uptick in 2017 from 1.8 percent to 1.9 percent but the longer-run tending toward 2 percent.

"It is important for the public to understand that we're getting closer to reaching our objectives," Fed Chair Janet Yellen said during a post-meeting news conference.

During her session with reporters, Yellen walked a balance between bracing the market for additional hikes but stressing that the Fed remains data-dependent and not interested in aggressive tightening.

"It was pretty balanced. There was something in this press conference for everyone," said Scott Clemons, chief investment strategist at Brown Brothers Harriman. "Hawks will welcome the acknowledgement ... that waiting too long to scale back the accommodation would require the Fed to raise rates more rapidly than it wanted to. At the same time, I think doves were welcoming that the fed funds rate doesn't have to rise too much to get to a neutral policy stance."

The statement also reaffirmed the previous meeting's language stating that risks to the FOMC forecasts are "roughly balanced."

The FOMC took the target rate to near-zero during the financial crisis and left it there until beginning a path toward a more normalized level in December 2015.

This week's hike comes amid hopes that more aggressive fiscal policy under President Donald Trump will allow the Fed to cede its economic stimulus role to Congress and the White House.

While hard economic data have been mixed, sentiment surveys are running high that the economy is poised to grow more than the lackluster post-crisis level. Businesses, consumers and professional investors all have indicated they believe better times are ahead.

According to reports released just before the Fed decision, home builder confidence is at a 10-year high, and manufacturing in New York is surging due to a multi-year high in orders and a decade-high in unfilled orders.

However, the confidence has been slow to transfer to actual growth.

The Atlanta Fed on Wednesday cut its view for first-quarter GDP to a 0.9 gain – coincidentally, the same level of fourth-quarter growth when the FOMC approved the December 2015 rate hike.

Yellen said Wednesday that GDP is a "noisy" indicator from quarter to quarter and believes the economy over the long run is running at about a 2 percent pace.


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Monday, 13 March 2017

Engineering a Financial Bloodbath - Engineering a Financial Bloodbath


Engineering a Financial Bloodbath

"Engineering a Financial Bloodbath" 

in the news Engineering a Financial Bloodbath? What this all about..... See below. 

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Sentiment Trader starting to get a bit worried, because in all our experience of writing, trading and blogging, we have not seen a huge rally like this. 3

It could ultimately be setting up for devastation, and they could be Engineering a Financial Bloodbath......

The more we look at this situation, the more we think its starting to stink like the 2007 lead up to the 2008 crash. Time will tell.  This is quite interesting. 

This is the nasdaq bottom finder chart. As you can see its starting to get overbought. We are not saying that the market cannot keep going up, but you can see that we are not only getting overbought, but we are at ultimate extremes. 

Save this chart in your watchlists......



Engineering a Financial Bloodbath



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Sunday, 12 March 2017

10 Golden Rules of Investing - The 10 Golden Rules of Investing


10 Golden Rules of Investing

"10 Golden Rules of Investing" 

in the news 10 Golden Rules of Investing? What this all about..... See below. 

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10 Golden Rules of Investing

As a trader you it might take you years to become a master, but to be a good trader fast you must know and experience some of the most secret rules in the game. These are only shared by the top traders in the world, and they would rather have you kept away from them. But today only we will share some of them so you can save them, study them and use them to become a master trader much faster.

Rule 1: Bulls, Bears Make Money, Pigs Get Slaughtered

You must know that as a trader you must not become greed. Profit is profit. Investors and traders need to know when to buy and sell and make money from the stock market. Failure to do this, could result in a massive losses or consistent mistakes which would be catastrophic to your account. 

Rule 2: It Is Good To Pay Taxes

Never be afraid from paying your taxes and start fearing the loss. You need to take care of business, each month, and as you become more successful and bring in more profits what is your next set of plans. 

Rule 3: Don't Buy All At Once

Legendary investors such as Warren Buffet said that "Do not put all eggs in one basket". This is probably some of the smartest advice we have ever seen. 

Rule 4: Buy Broken Stocks, Never buy Broken Companies

When you are trading, realise you are never ever going to get a refund, or hand-me-backs, so be sure to make your own research count and buy undervalued stocks, not the broken companies.

Rule 5: Ensure you Diversify Your Portfolio & Manage Risk

Of all the our golden rules this is the most important. When you are investing for the long haul, and want to become successful. You are going to have to assess your trading account, and diversification of your stock portfolio so that you can control the risk and manage your profits each month.

Rule 6: Be sure to do Your Stock Homework

Make sure, that Before you purchase any  stock, be sure that you already have done your due diligence, and researched that particular stock. Investors who are just jumping into stocks blindfolded are begging to lose money left, and right. This is called, crybaby investing. Which means, they invest today, without any research today, and cry tomorrow, when they witness huge losses. You have no one to blame but yourself. Spend a few hours investing a company, or ask your stock broker to do it for you. It can pay you more than dividends if you do this. People that put $100 on Bitcoin a few years ago, have been made into millionaires. 

Rule 7: Never panic!

Be sure  to control your emotion when your are trading. Never panic, or get emotional. Those sorts of traders always end up on the scrap heap. So be sure to meditate each day, make informed decisions and not only will you have sound mind, but you will enjoy your trading much more. 

Rule 8: Blue-Chip Companies are great. Stick with the leaders. 

Warren buffett once said, “smart investors always go with the leaders and not the laggards” All this means, is that you should, Buy the giant companies because it gives you a peace of mind when you do investing. Buying penny stocks or new stocks on the market, thinking you will become a millionaire in a week, is very bad thinking. Larger companies are less prone to drops, crashes, and everything in between. Sometimes small companies will be halted for months or years before you can get access to you money again. 

Rule 9: Defend some of your Stocks.

When you are trading a stock, pick your best and favorite stock and focus on that stock. Once you become familiar with how a stock trades in the morning or afternoon, or a certain time of the month, this is like having an ATM Machine in your pocket. Some of the smartest traders in the world will use this strategy and know it works. It’s a great way to bring in guaranteed income 24 hours a day. 

Rule 10:  Never Trade for the sake of making a Trade. 


The last rule is simple. Never make a trade just because you have no positions on the market. That could be dangerous and put your account at risk. Some of the smartest investors say that sometimes you have to sit on your hands, and wait for that perfect opportunity. This is so true. It might sound silly, but sometimes the best trade you make is sitting on the sidelines not investing. You will always see that sad, and upset trader who feels they have to be in the market every day. That is the sad reality and the mentality of traders who always lose. To be a good trader you have to learn patience and self-control. 


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Saturday, 11 March 2017

Bitcoin briefly plunges below $1,000 after SEC rejects application to list ETF


Bitcoin briefly plunges below $1,000 after SEC rejects application to list ETF

"Bitcoin briefly plunges below $1,000 after SEC rejects application to list ETF" 

in the news Bitcoin briefly plunges below $1,000 after SEC rejects application to list ETF? What this all about..... See below. 

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Sentiment Trader sees The U.S. Securities and Exchange Commission on Friday denied a request to list what would have been the first U.S. exchange-traded fund built to track bitcoin, the digital currency.

Investors Cameron and Tyler Winklevoss have been trying for more than three years to convince the SEC to let it bring the Bitcoin ETF to market. CBOE Holdings Inc's Bats exchange had applied to list the ETF.

The digital currency's price plunged, losing some 18 percent in trading immediately after the decision. It later recovered from the lows.

See what happened today...after the news. This is quite interesting. 




Bitcoin had scaled to a record of nearly $1,300 this month, higher than the price of an ounce of gold, as investors speculated that an ETF holding the digital currency could woo more people into buying the asset.

Bitcoin is a virtual currency that can be used to move money around the world quickly and with relative anonymity, without the need for a central authority, such as a bank or government.

Yet bitcoin presents a new set of risks to investors given its limited adoption, a number of massive cybersecurity breaches affecting bitcoin owners and the lack of consistent treatment of the assets by governments.

"Based on the record before it, the Commission believes that the significant markets for bitcoin are unregulated," the SEC said in a statement posted online. "The Commission notes that bitcoin is still in the relatively early stages of its development and that, over time, regulated bitcoin-related markets of significant size may develop."

The regulators have questions and concerns about how the funds would work and whether they could be priced and trade effectively, according to a financial industry source familiar with the SEC's thinking.

 Bitcoin is a on a good run, but don't compare it to gold just yet Bitcoin is a on a good run, but don't compare it to gold just yet  

"We remain optimistic and committed to bringing COIN to market, and look forward to continuing to work with the SEC staff," said Tyler Winklevoss, CFO of Digital Asset Services.

"We began this journey almost four years ago, and are determined to see it through. We agree with the SEC that regulation and oversight are important to the health of any marketplace and the safety of all investors."

The Winklevoss twins are best known for their feud with Facebook founder Mark Zuckerberg over whether he stole the idea for what became the world's most popular social networking website from them. The former Olympic rowers ultimately settled their legal dispute, which was dramatized in the 2010 film "The Social Network."

Since then they have become major investors in the digital currency, which relies on "mining" computers that validate blocks of transactions by competing to solve mathematical puzzles. The first to solve the puzzle and clear the transaction is rewarded with new bitcoins. Solutions to the puzzle come roughly every 10 minutes.

There are two other bitcoin ETF applications awaiting a verdict from the SEC. Grayscale Investments LLC's Bitcoin Investment Trust, backed by early bitcoin advocate Barry Silbert and his Digital Currency Group, filed an application last year.

SolidX Partners Inc, a U.S. technology company that provides blockchain services, also filed its ETF application last year.

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