On the account of second disapproval of the Winklevoss brothers by an agency, US SEC that Securities and Exchange Commissioner has published a public statement stating his disagreement on this decision of the industry. Winklevoss Brothers have been applying for the approval of its application designed for Bitcoin Exchange traded fund. Unluckily again on 26th July, the agency disapproved of this.
Winklevoss Brothers’ Application for BTC Exchange Traded Fund rejection by Agency
In June 2016 the Winklevoss’ Bats BZX Exchnage, Inc. (BZX) filed a proposal to change the rules with US SEC calling in to allow it to list and trade shares of Bitcoin ETF. This however never got to approval and was finally rejected by the agency in March 2017. Dissatisfied with this decision the group filed a petition seeking “review of the disapproval by the delegated authority” on July 26.
This petition also got rejected. On account of this rejection, the SEC Commissioner Peirce argued that this must be a mistake. She elaborated that this decision of SEC has fundamentally erred with this decision. She also said that this rejection demonstrates the skeptical view of the agency towards innovation regardless of the product.
In response to this rejection, the Cryptocurrency markets tumbled down witnessing a dizzying $12 billion wipe down from the total capitalization.
This is not it, On July 24, the SEC also delayed the decision on a separate Bitcoin ETF application from an investment firm named “Direxion”. This happened on the same day when Digital Asset manager Bitwise filed its own application for an ETF to track the index of 10 cryptocurrencies.
This is actually quite concerning for the cryptocurrency industry. SEC declining the petition of the Winklevoss Bitcoin ETF has led to the adverse effects on the entire industry. The US SEC commissioner, however, disagrees on this decision and has published a statement depicting her concerns.