A long awaited decision regarding the passing of a potential Bitcoin Exchange Traded Fund (ETF), established by the Winklevoss twins has been made by the United States Securities and Exchange Commission (SEC). The decision to reject the ETF has been made by the SEC, causing a shockwave through the markets.
This is the second time the Winklevoss twins have had a Bitcoin ETF rejected by the SEC, calling into question their justifications for this second attempt. Within this, the twins wanted to receive permission to list the world’s first Bitcoin ETF on their cryptocurrency exchange, Gemini.
According to CNBC:
“Last year, the SEC disapproved an application for the “Winklevoss Bitcoin Trust” but in June, the group submitted a proposed rule change. Among other arguments, the agency said in a release Thursday that it did not support the Winklevoss’s argument that bitcoin markets, including the Gemini Exchange, are ‘uniquely resistant to manipulation.’ It also highlighted issues of fraud and investor protection.”
See the full article for yourself, here.
Since the news of the decision, Bitcoin has fallen below $8,000.00, a value that it has worked incredibly hard to achieve through this week. At the time of writing, Bitcoin is valued at $7,948.67, down 3.70%. It’s clear that this news has had an impact, and impact that is now sure to have an effect through the rest of today and possibly even the weekend too.
The SEC won’t approve a Bitcoin ETF until a method is developed that can ensure the protection of investors. It’s a story we hear daily, but security and the threat of fraud is something that is stopping these sorts of projects from coming to fruition. Regardless of this though, there are still active ETF requests still awaiting a decision by the SEC, according to CNBC:
“There is another bitcoin ETF application that is still active — the VanEck SolidX Bitcoin Trust. The SEC had no comment about that application. VanEck and SolidX filed a joint application for a bitcoin ETF, which was published for comment on July 2. According to Dodd Frank rules, the agency needs to take action within 45 days of the publication of that proposal, which falls on August 16.”
We can guess that once more, this is likely to be rejected and moreover, that Bitcoin will be massively affected as a result of it. We could be wrong, but we’re not optimistic about this. The SEC have an awful lot of power, this is something they seemingly love to exercise.