Bitcoin has fallen below $8000 again after SEC rejected Winklevoss ETF
On Thursday, July 26, United States Securities and Exchange Commission (SEC) for the second time rejected the application of the twins Cameron and Tyler Winklevoss to create the Bitcoin Exchange-Traded Fund (ETF) . Against the backdrop of this news, Bitcoin price fell by more than 3.5%, again falling below $8000.
We remind, Winklevoss twins have long been seeking the opening of the Winklevoss Bitcoin Trust. Back in June 2016 they sent an application for changes in the rules of the BATS Global Exchange. The shares of the fund should be traded at this exchange. Shortly after receiving the refusal, BATS filed a petition to review the decision, followed by another wave of comments and expectations about the willingness of the regulator to approve the exchange for trading bitcoin.
As the SEC stated at the time, BATS Global Exchange (BZX) did not and can not at the moment enter into a monitoring agreement similar to those concluded with all previously approved exchange products in order to prevent manipulation and fraud.
Nevertheless, as the new document has shown, the risks that the SEC pointed out earlier still concern the regulator.
At the same time, regulator noted that this decision can not be considered as an assessment of the сryptocurrency and the blockchain. The decision relates exclusively to the structure of the Winklevoss Bitcoin Trust.
SEC Rejected Winklevoss ETF
“Although the Commission is disapproving this proposed rule change, the Commission emphasizes that its disapproval does not rest on an evaluation of whether Bitcoin, or blockchain technology more generally, has utility or value as an innovation or an investment,” the regulator stated.
At the same time, the SEC reiterates that it does not exclude the possibility of approval of such a product in the future. The regulator added that with time regulated bitcoin markets can continue to grow and develop.
SEC Commissioner Hester Peirce did not agree with the situation when SEC Rejected Winklevoss ETF. She said that such an approach could damage the protection of users, because it disrupts development of the market. Greater participation of institutional investors would make the industry more transparent and secure.
On July 27, Bitcoin rate dropped $400, to $ 7,899. Almost all of the 100 largest digital currencies in terms of market cap are in the red zone. Stellar price has fallen by 10% per day, Cardano has fallen in price by 6.5%, XRP price lost almost 4%.