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The Securities and Exchange Commission (SEC) has cracked down on the efforts of entrepreneurs and the Twin Millionaires, Cameron and Tyler Winklevoss to create a stock market trading fund ( ETF) based on Bitcoin
The ETF had the advantage of allowing enthusiasts of Bitcoin to invest in cryptocurrency without having to acquire and directly own the badet digital.
The SEC issued an order stating that the Bats Exchange BZX (a company they had strived to enumerate) had not been able to provide satisfactory evidence of a satisfactory level of resistance to fraud and manipulation. [19659005] The Bats of Exchange have tried to defend themselves on the basis of the high security level of Bitcoin and Blockchain and as it has been sufficient up to now for the provision of the service to be secure, but the SEC expressed He expressed dissatisfaction and said:
"The registration before the Commission does not support such a conclusion."
After the efforts made over the years to attract investors to cryptocurrencies, the decision It seems to have been a blow to the Winklevoss brothers.
According to badysts, the establishment of a Bitcoin ETF offers investors the opportunity to accumulate much needed exposure in the cryptocurrency space. This decision on the second failure of a Bitcoin ETF could have been the cause of a negative impact on Bitcoin prices a few hours later. After the SEC's decision, badysts witnessed a 2% drop in the price of Bitcoin.
Although there is an apparent decline, various opportunities still exist, the SEC has been open to reviewing the rules if certain conditions are resolved. These rules will be reviewed if measures are presented to facilitate the identification of falsification and fraud.
In addition, the SEC stated that the decision does not necessarily constitute a judgment on Bitcoin and the technology that drives it.
] "The Commission emphasizes that its disapproval is not based on an badessment to determine whether bitcoin, or blockchain technology in general, has any utility or value as an innovation or investment."
The decision to reject Bitcoin L & # 39; ETF was obtained after a 3 to 1 vote by the sitting board. Hester Pierce was the commissioner who voted against the decision and then expressed confidence in the ETF saying:
"More institutional involvement would improve many of the Commission's concerns about the bitcoin market that are at the base of his disapproving order., the decision sends a strong signal that innovation is not welcome on our markets. "
SEC's decision sends a dark cloud around any hope of having a Bitcoin Fund approved. Apart from the Winklevoss brothers, other entities tried to obtain approval from other structures. These include VanEck, SolidX and a California badet manager known as Bitwise who filed a petition to obtain an ETF tied to ten cryptocurrencies.
The Winklevoss brothers were at the center of the fight with Mark Zuckerberg. he had stolen the idea that fueled the emergence of the social network now valued in billions of dollars.
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