Details about the SEC Rejection of Winklevoss Bitcoin Trust ETF

The Latest Bitcoin ETF Rejection

The SEC rejected the latest bitcoin ETF proposal, which was filed by Tyler and Cameron Winklevoss. The Winklevoss twins, who are best known for their legal battle with Facebook CEO Mark Zuckerberg, have been trying to convince the SEC to allow them to list a bitcoin ETF for years now.

This is not the first time that the SEC has rejected a bitcoin ETF proposal. In 2017, they rejected nine proposals in all. The agency has been wary of approving any product that trades securities derived from digital assets because it’s not sure how much regulation should be applied and what kind of risks these products pose to investors.

What Has Happened So Far

The SEC has rejected a bitcoin ETF in the past. The latest rejection came in March 2017 when the Winklevoss Bitcoin Trust filed for a bitcoin ETF. The Winklevoss Bitcoin Trust is an exchange-traded fund that would have been tied to the price of bitcoin.

In the past, the SEC has rejected a bitcoin ETF because it was not able to find an appropriate regulation framework for such a product. In March 2017, when the Winklevoss Bitcoin Trust filed for a bitcoin ETF, they were not able to propose appropriate regulation framework either so their application was rejected.

What Was the Decision Reached?

The latest revision was rejected because it did not meet the expectations of the client. The decision reached was to go back to the drawing board and come up with a new strategy for this project.

The decision reached was to go back to the drawing board and come up with a new strategy for this project.