Winklevoss Twins Get Second Rejection: Where the Cryptomarket is concerned, talk about establishing an ETF[1] is a big deal right now.
Only on Wednesday, BitWise applied to the SEC to establish an ETF and bull’s and bears across the spectrum have weighed in on the necessity of an ETF[2] for the digital coins.
However today, the SEC rejected the Winklevoss twins[3] second Bitcoin ETF application, citing fraud and manipulation concerns.
The market is taking a tumble, as a result, with Bitcoin (BTC) currently down 3.85%. It is trading around the $7,897 mark at present.
After hitting as high as $8,431 only two days ago, the coin has tumbled over $400 in only 3 hours today.
The Securities and Exchange Commission[4] rejected a second attempt by Gemini exchange[5] founders Cameron and Tyler Winklevoss, to list shares of what would be the first-ever Bitcoin ETF.
It voted the proposal down, 3-1 yesterday.
This is the second time the SEC rejected an application from the twins for the “Winklevoss Bitcoin Trust”. In June, the twins submitted a revised edition of their last year’s inital proposal but it still didn’t cut-the-mustard for the SEC.
The SEC cited that it did not agree with the Winklevoss’s argument that Bitcoin markets are “uniquely resistant to manipulation.”[6]
It also highlighted issues of fraud and investor protection; suggesting that the SEC is on a mission to prevent fraudulent or manipulative acts and practices, and it’s primary concern is to protect investors.
As Bitcoin is traded in an unregulated offshore market, it represents a great concern for the SEC.
>>An ETF for Bitcoin Is Unlikely This Year According to Brian Kelly[7]
“Despite today’s ruling,
