Last week the SEC rejected the proposal of twins Tyler and Cameron Winklevoss related to exchange-traded fund (ETF). The news coincided with the Facebook’s report on unprecedented stock loss and while crypto enthusiasts were spreading humiliation around the odious social media the price of BTC has plummeted from $8270 to $7940.
Bitcoin ETF proposed by Winklevoss were rejected for the second time but it is not the end of the story as there are VanEck firm and SolidX company with serious ETF ambitions. The news about the SEC latest rejection activated a heated debate on the subject how different each of the three ETFs could be.
In June VanEck and SolidX informed that they have submitted an appropriate set of documents to the Securities and Exchange Commission in order to get the official permission to run the first exchange-traded fund based on Bitcoin – another try after a couple of failures. Since then, the commission asked for comments and pretty soon it was replied on more than hundred questions. The SEC announced that the resolution might be taken in August. This position of the cruelest regulatory institution triggered a new wave of optimism amongst the crypto community. As the result, the price of the first cryptocurrency reached the highest since late spring.
And then the news about Winklevoss brothers broke down that immediately crashed the price. Though, just for a while. So far, the price index hesitates around $8200.
Coming back to the rejection of the Winklevoss’s proposal, the SEC explains it via non-compliance of requirements referred to anti-money laundering policy, in particular, the commission worries about potential manipulations and fraudulent activities across the cryptocurrency market. By the way, back in 2017 the SEC had the same concerns.
Nevertheless, the Securities and Exchange Commision in its 92-page reply emphasizes that “over time, regulated bitcoin-related markets may continue to grow and develop” – the words that definitely encourage and give a new hope for official support of ETFs in future.