SEC rejects Winklevoss’s Bitcoin ETF, BTC Bull Loses Momentum
The US Securities and Exchange Commision (SEC) rejected the application for bitcoin-related exchange-traded-fund submitted by Cameron and Tyler Winklevoss. That was their second attempt to create the first ETF tied to the digital coin; however, the regulator expressed concerns related to liquidity and custody issues. Two more proposals for Bitcoin ETFs, submitted by VanEck and SolidX are still to be reviewed by the SEC.
In a nutshell, the SEC is rejecting this proposal again based on the fact that there is still too much risk to investors, the market is still too small, and there is way too much room for manipulation. The official statement reads:
“…BZX has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Exchange Act Section 6(b)(5), in particular, the requirement that its rules be designed to prevent fraudulent and manipulative acts and practices.”
The news pushed the biggest cryptocurrency below $8,000 handle, signaling deeper correction after the recent rally. Currently, BTC/USD is changing hands at $7,887, which is 3.7% lower on a daily basis. From the short-term point of view, Bitcoin moved to the oversold territory, but the trend still remains bearish.