The Winklevoss twins’ second attempt at setting up a Bitcoin Exchange Traded Fund has been denied by the SEC, with a vote of 3-1 against. The announcement caused an immediate dip in Bitcoin’s price by around 3%. The news will come as a blow to the Winklevoss twins, who had invested considerable resources in refining their proposal, based around the notion that crypto’s infrastructure is resistant to illegal manipulation and fraud.
Meanwhile, the race to gain approval for the world’s first Bitcoin ETF is still on, as the VanEck SolidX Bitcoin Trust proposal is still pending with the SEC. However, the outlook isn’t particularly good, as the regulator has indicated that there are concerns over Bitcoin’s security and its vulnerability offshore.
The SEC have also delayed a judgement on Arca Inc.’s request to trade five Direxion bitcoin ETFs – dating back to January this year. The US Government Publishing Office explained:
The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change.
Do you think that there is any chance of an ETF being approved this year? Let us know your thoughts in the comments section.