Winklevoss Twins Get Second Rejection: Where the Cryptomarket is concerned, talk about establishing an ETF 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 for the digital coins.
However today, the SEC rejected the Winklevoss twins 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.
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.”
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.
“Despite today’s ruling, we look forward to continuing to work with the SEC and remain deeply committed to bringing a regulated bitcoin ETF to market and building the future of money,” Cameron Winklevoss, said regarding the matter.
Third times the charm perhaps?
Featured Image: Deposit Photos/garagestock
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