Barry E. Silbert: Going Out on a Limb, Reinventing Capital Markets

SecondMarket was set up in 2004 and has since expanded into multibillion dollar trading platform with well over 53,000 registered participants. The exchange offers a bewildering array of securities ranging from public debt instruments to bankruptcy claims and credit derivatives.

More recently, Mr Silbert moved his company – conservatively valued at about $200m and generating an annual revenue of about $35m – headlong into the growing Bitcoin craze with the launch of its Bitcoin Investment Trust (BIT). Mr Silbert does not mince words and calls the digital currency “the ultimate winner”. Also, he expects Wall Street investors to pour hundreds of millions – “if not billions” – into Bitcoin within the next three to six months.

The optimism is not misplaced. Only six weeks into its existence, the trust has already received $70m in deposits whereas success had initially been defined as capturing $10m by year’s end. The value of shares in BIT fluctuates according to the highly volatile Bitcoin exchange rate. Investors are in for a rocky ride: In the first week of February Bitcoin slumped from a high of about $1,200 to a low of barely $650 after Apple decided to pull a popular Bitcoin wallet app from its on-line store, apparently over legal concerns.

Mining exotic financial opportunities such as Bitcoin is precisely what Mr Silbert thrives on. Nothing seems too bizarre or risky not to take a shot at. This should come as no surprise since Mr Silbert got his first taste of trading at the tender age of 13 with that quintessential of American investments – the baseball card. The dollars thus accumulated, plus his bar mitzvah money, got him started trading stocks.

A financial innovator par excellence, Mr Silbert has gathered an impressive number of accolades: Ernst & Young named him Entrepreneur of the Year (2009) as did Crain’s New York Business. In 2011, the World Economic Forum awarded SecondMarket its coveted Technology Pioneer of the Year prize. Barry Silbert’s name also features on Fortune Magazine’s prestigious 40 Under 40 list of most successful young entrepreneurs.

CFI

Recent Posts

From Oil Barrels to Algorithms: Why the Gulf’s Digital Future Needs Chief AI Officers

With oil prices projected to plateau or decline in the coming years, Gulf states are…

5 days ago

Corporación Zona Franca Santiago: Forging the Next 50 Years of Sustainable Innovation and Growth

As Corporación Zona Franca Santiago (CZFS) marks its 50th anniversary, the organisation stands at the…

7 days ago

Central Reserve Bank of El Salvador: Driving Innovation and Financial Inclusion for National Development

The Central Reserve Bank of El Salvador (BCR) continues to set the standard for leadership,…

1 week ago

Fortress Europe? Navigating the Perils of a Global Trade War

As global trade tensions escalate, Europe finds itself in a precarious position. Caught between competing…

2 weeks ago

Kathrein Privatbank: Innovating Private Banking with Digitalisation, Sustainable Investing, and Regional Expansion

For over a century, Kathrein Privatbank has remained a benchmark for private banking excellence in…

3 weeks ago

La Trobe Financial: Unpacking the Rise of Private Markets and Private Credit

Private markets—particularly private credit—have experienced a marked surge in investor interest in recent years. Though…

3 weeks ago