According to the news, the bitcoin price dropped below $8000 on Thursday while the SEC rejected Winklevoss twins’ second attempt in creating bitcoin ETF.
The news comes in response to a request by Bats BZX Exchange Inc. filed a proposed rule change with the SEC to allow to list and trade shares of the Winklevoss Bitcoin Trust. Earlier, in February 2017, for the first time the SEC had rejected twins’ bitcoin ETF due to anonymous nature of BTC markets.
However, the change in proposed rule would allow listing and trading of shares on Bitcoin Trust. According to SEC reports, BZX filed a petition for assessments of the disapproval order.
Brent Fields, SEC Secretary stated;
“As addressed in detail above, the commission is disapproving the proposed rule change because BZX has not met its burden to demonstrate that its proposal is consistent with Exchange Act Section 6(b)(5). BZX has neither entered into surveillance-sharing agreements with regulated, bitcoin-related markets of significant size nor demonstrated that alternative means of compliance with Exchange Act Section 6(b)(5) would be sufficient. Because BZX has failed to carry its burden, the proposed rule change must be disapproved”.
As earlier, the SEC was potentially approving such product in coming days, noting ‘over time, the markets may continue to grow and develop’. However, till date the SEC haven’t approved any crypto exchange-traded fund due to the unregulated market, security and investor protection.
With the same concern, the co-founder and Gemini, Cameron Winklevoss said;
“Despite today’s ruling, we look forward to continuing to work with the SEC and remain deeply committed to bringing a regulated bitcoin ETF to market and building the future of money”.
Meanwhile, according to the study that say SEC has be more towards ETFs and the chances are still on for this particular bitcoin ETF. Thus, within the 45 days of period the SEC to respond the proposal. Recently, SEC postponed approving five Direxion bitcoin ETFs until September. Remarkably, several believed that the recent increase in bitcoin price was due increase in bitcoin ETF approvals. At last, it remains that whether again hits over $800 mark or incline below.