A couple of hours after the U.S Securities and Exchange Commission announced that it has turned down the proposed BTC ETF application by the Winklevoss Twins, the value of Bitcoin (BTC) has declined below the $8k level.
Bitcoin (BTC) Price Today – BTC / USD
At the time of writing, Bitcoin (BTC) has declined to the $7,920 mark after a decrease of more than 3 percent since the announcement was made. The market cap of the digital currency has also reduced to $136.19 billion and its trading volume over the past twenty-four hours is $4.9 billion.
Bitcoin Exchange-Traded Fund
This is the second time a Bitcoin ETF application had been submitted to the SEC by the Winklevoss brothers. The announcement of the rejection came after the U.S SEC reviewed the application for the second time, after an appeal from Tyler and Cameron Winklevoss – the co-founder of Gemini.
The first application was rejected on the 10th of March last year. After the rejection, the Winklevoss brothers some aspects of the application that were highlighted by the SEC as problematic. The SEC treated the second application like a brand new one but they still rejected it after reviewing it.
The Reason for the Rejection
An investigation was launched in May by regulators on whether the price trend of Bitcoin was manipulated. According to the SEC, the contention points was that BTC didn’t provide the safety against manipulation as a digital asset class and that the tech didn’t provide enough tools for preventing money laundering and fraudulent acts.
But the Winklevoss brothers combat the comments of the SEC on the first rejection in the new application. They said that the BTC market is less vulnerable to manipulation than the fixed income, equity, and commodity futures markets due to the nature of the digital currency.
They also argued that the SEC is relying too much on surveillance agreements on other exchange-traded funds they’ve approved in the past. The SEC, however, concluded by saying that they are open to future applications with sufficient modifications.