{"id":335571,"date":"2017-03-11T08:22:06","date_gmt":"2017-03-11T00:22:06","guid":{"rendered":"http:\/\/techcrunch.com\/?p=1463596"},"modified":"2017-03-11T08:22:06","modified_gmt":"2017-03-11T00:22:06","slug":"bitcoin-drops-15-after-the-sec-rejects-the-winklevoss-etf","status":"publish","type":"post","link":"https:\/\/people.utm.my\/asmawisham\/bitcoin-drops-15-after-the-sec-rejects-the-winklevoss-etf\/","title":{"rendered":"Bitcoin drops 15% after the SEC rejects the Winklevoss ETF"},"content":{"rendered":"

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The SEC just issued their ruling<\/a> on the Winkelevoss bitcoin ETF, and\u00a0it wasn\u2019t good news for enthusiasts of the digital currency. Regulators rejected the proposed application, mainly because\u00a0of the lack of regulation currently surrounding bitcoin.<\/p>\n

An approval would have meant that the public could invest in bitcoin simply by purchasing shares in the ETF, which would trade on a U.S-based stock exchange.<\/p>\n

The assumption was that an approved ETF would open the floodgates to both Wall Street and regular investors who want a stake in the digital currency but didn\u2019t feel comfortable purchasing it on their own. This influx of new investors would then drive up the price of bitcoin.<\/p>\n

Instead, the price dropped about 22 percent, from about $1,295.00 to as low as $1,000 as soon as the news broke. It\u2019s since stabilized to about $1,120.00, which is still a drop of about 14 percent.<\/p>\n

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In its decision, the SEC explained<\/a>\u00a0that a Bitcoin ETF would not be consistent with current rules requiring securities exchanges to regulate and monitor the markets where underlying products are traded. Essentially, the underlying\u00a0markets that currently exist for trading bitcoin aren\u2019t regulated enough to responsibly support an ETF that would rely on those markets for liquidity.<\/p>\n

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As discussed further below, the Commission is disapproving this proposed rule change because it does not find the proposal to be consistent with Section 6(b)(5) of the Exchange Act, which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest.<\/p>\n

The Commission believes that, in order to meet this standard, an exchange that lists and trades shares of commodity-trust exchange-traded products (\u201cETPs\u201d) must, in addition to other applicable requirements, satisfy two requirements that are dispositive in this matter. First, the exchange must have surveillance-sharing agreements with significant markets for trading the underlying commodity or derivatives on that commodity. And second, those markets must be regulated. \u2013 the SEC<\/p>\n<\/div>\n<\/blockquote>\n

Tyler Winklevoss released a statement via email to Forbes<\/a>:\u00a0\u201cWe remain optimistic and committed to bringing COIN [the ETF\u2019s proposed\u00a0ticker] to market, and look forward to continuing to work with the SEC staff. We began this journey almost four years ago, and are determined to see it through. We agree with the SEC that regulation and oversight are important to the health of any marketplace and the safety of all investors.\u201d<\/p>\n

While there are two more bitcoin ETF applications still in a review period, the outlook isn\u2019t good. This is because it seems that the regulators didn\u2019t take\u00a0issue with the Winklevoss application, they were just concerned with the lack of regulation surrounding bitcoin in general . This lack of regulation is an issue that will stay around either until bitcoin markets mature enough to implement regulations consistent with existing markets that trade other commodities or derivatives,\u00a0or until the Exchange Act\u2019s laws are\u00a0changed or altered to provide an exception for bitcoin.<\/p>\n","protected":false},"excerpt":{"rendered":"

\"\" The SEC just issued their ruling on the Winkelevoss bitcoin ETF, and it wasn’t good news for enthusiasts of the digital currency. Regulators rejected the proposed application, mainly because of the lack of regulation currently surrounding bitcoin. Read More<\/a><\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n

\"\"\/ <\/p>\n","protected":false},"author":5817,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[25],"tags":[59,66,26],"class_list":["post-335571","post","type-post","status-publish","format-standard","hentry","category-technology","tag-media","tag-techcrunch","tag-technology"],"_links":{"self":[{"href":"https:\/\/people.utm.my\/asmawisham\/wp-json\/wp\/v2\/posts\/335571","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/people.utm.my\/asmawisham\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/people.utm.my\/asmawisham\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/people.utm.my\/asmawisham\/wp-json\/wp\/v2\/users\/5817"}],"replies":[{"embeddable":true,"href":"https:\/\/people.utm.my\/asmawisham\/wp-json\/wp\/v2\/comments?post=335571"}],"version-history":[{"count":0,"href":"https:\/\/people.utm.my\/asmawisham\/wp-json\/wp\/v2\/posts\/335571\/revisions"}],"wp:attachment":[{"href":"https:\/\/people.utm.my\/asmawisham\/wp-json\/wp\/v2\/media?parent=335571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/people.utm.my\/asmawisham\/wp-json\/wp\/v2\/categories?post=335571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/people.utm.my\/asmawisham\/wp-json\/wp\/v2\/tags?post=335571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}