SEC rejects the ETF from the Winklevoss brothers, but this is not the end

SEC rejects the ETF from the Winklevoss brothers, but this is not the end

SEC again rejects ETF project based on Bitcoin from Cameron and Tyler Winklevoss.

Everyone was waiting for ETF contracts on Bitcoin, initially the date of their introduction was to be on the beginning of August, then the end of September, but it will be good if they appear this year. Some analysts say that this may be postponed until 2019.

Within a few hours, when the US Financial Supervision SEC announced that it rejected the proposed Bitcoin ETF presented by the Winklevoss brothers, the price of Bitcoin fell below the level of 8,000 USD and is currently balancing on this psychologically level. American financial supervision has not approved the ETF based on cryptocurrencies yet. In January, a letter was published that identified "significant investor" protection issues that should be analyzed before funders could offer these funds to investors.

According to the SEC, bitcoin does not provide security against manipulation as an asset class and technology does not provide adequate tools to prevent fraud and money laundering. The complexity of blockchain technology required the modification of the rule in the Act on the stock exchange. The burden of proving the necessity to change the regulations falls on the applicants. Winkelvoss brothers also claimed that the SEC relied too much on the supervisory arrangements of other ETFs approved in the past.

This is not the end of Bitcoin ETFs

The announcement states that the SEC is open to future proposals that are adapted to support the supervision agreement. The CBOE Stock Exchange filed its application earlier this month and is still under review. Because CBOE is an important participant in futures contracts and has close ties to supervisory authorities, their application may be considered more positively. This week, the SEC agency delayed deliberations on the five other bitcoin ETFs submitted by NYSE Arca, Inc.