Thursday, July 26, the Commission on securities and exchange Commission (SEC) for the second time rejected the request of the brothers Cameron and Tyler Winklevoss on the creation linked to bitcoin exchange-traded Fund. On the background of this news the price of the first cryptocurrency fell more than 3.5%, again having fallen below $8000.
We will remind, brothers Winklevoss for a long time seeking to open the Winklevoss Bitcoin Trust, in June 2016 by sending from the application of changes in rules of stock exchange BATS Global Exchange, which will trade shares of the Fund.
The first waiver was submitted in March 2017, and then explained to the SEC, changes in the rules of exchanges can not be accepted because the majority of the bitcoin unregulated markets. In addition, said the Commission, BATS Global Exchange (BZX) has not concluded and may not, in the moment, to enter into a monitoring agreement similar to those concluded in respect of all previously approved the exchange’s products to prevent manipulation and fraud.
Soon after receiving the denial BZX has filed an appeal against this decision and provided the Commission with additional comments. All this time, continued discussion about the readiness of the regulator to approve the product of the exchange to trade bitcoins.
However, as evidenced by a new document, the risks to which the Commission pointed out earlier, remains a concern of the regulator.
Simultaneously, it is noted that this decision can not be considered a rating of the cryptocurrency and the blockchain in General, and relates specifically to the structure of the Winklevoss Bitcoin Trust.
“Although the Commission does not approve the proposed rule change, she stressed that her disapproval is not based on the valuation of bitcoin or blockchain technology in a broader sense or of their value as innovation or investment. The Commission does not approve the proposed rule change, as BZX was unable to confirm that its proposal is consistent with section 6(b)(5) of the exchange Act, which, in particular, says that the rules should be drafted in such a way as to thwart acts of fraud and manipulation and relevant practices”, — the document says.
While the SEC again claims that does not exclude the possibility of approval of such product in the future, and that time regulated bitcoin markets “can continue to grow and develop.”
“For example, new and existing bitcoin futures can be significant, and the exchange involved in the listing of similar products, will be able to demonstrate in the proposed rule change its ability to resolve the risk of fraud and manipulation through the provision of monitoring information to the regulated market of considerable size related to bitcoin, and where appropriate, spot markets associated with bitcoin derivatives”, the Bank said.
If this happens, “the Commission will have the opportunity to decide whether the exchange of the bitcoin product requirements of the exchange Act”.
We will remind, earlier this week, another candidate to launch a bitcoin ETF investment company VanEck Associates sent the SEC a letter in which he expressed the belief that the industry is ready to support such a financial instrument.
At the same time, address the SEC received another application for registration of the ETF, while based directly on the ten most liquid cryptocurrency. Application was sent on behalf of the company asset management Asset Management Bitwise.
Earlier in July an application for the opening of another exchange traded bitcoin Fund, which intends to trade stocks SolidX, has written to the Chicago Board options exchange (CBOE Global Markets). Her review is expected on August 10.