SEC Rejects the Bitcoin ETF Presented by the Winklevoss Twins
The U.S. Securities and Exchange Commission (SEC) has rejected the proposal of the first-ever cryptocurrency-related ETF made by Cameron and Tyler Winklevoss.
This is not the first time that the SEC rejects a Bitcoin ETF. In the past, the SEC disapproved another application made by the twins known as ‘Winklevoss Bitcoin Trust.’ Later in June, the group decided to submit a rule change.
According to the official document released by the SEC, the Bats BZX Exchange, Inc. (BZX) asserted that the Gemini Auction price is ‘uniquely resistant to manipulation,’ but the regulatory agency does not support that argument.
Until now, no crypto ETF has been approved. But the financial watchdog has yet to take the decision on the VanEck SolidX Bitcoin Trust ETF. Which has been created in order to comply with the rules published by the agency in January. About this application, there has been no comment.
The SEC said that there are ‘significant protection issues that need to be examined’ if funds want to offer the services to retail investors.
The main intention behind this decision is to prevent fraudulent acts in a market that is still very unregulated. The crypto space has been plagued of fraudulent activities, hacks, scams and companies, and retail investors were always the most vulnerable to these situations.
Additionally, the SEC pointed that more than three-fourths of the volume in Bitcoin takes place outside the US and over 95 percent of the trading volume has been registered in non-US exchanges.
On July the 17th, Bitcoin registered an important spike in price that helped the famous virtual currency reach levels not seen in months. After it, and since that moment, the market has been steadily growing.
At the moment of writing this article, Bitcoin is being traded around $8,000 dollars after being traded close to $8,300. Since the information about the ETF reached the headlines, Bitcoin lost 2,62% of its price. Most of the other virtual currencies are also operating in red, and Stellar (XLM) is the bigger loser in the top 10.
The VanEck SolidX Bitcoin Trust ETF is very important for the market and it can help Bitcoin reach new highs in a short period of time. In August the 10th, the SEC will have to give an answer about it and whether it decides to approve it or wait for it a longer period of time.