[2017-03-10]SEC rejects Winklevoss twins’ plan to trade Bitcoin as stock

[Kemarit]

SEC rejects Winklevoss twins’ plan to trade Bitcoin as stock

A plan from the Winklevoss twins that would have allowed stock traders to buy and sell Bitcoin without setting up a personal Bitcoin wallet has been denied by the US Securities and Exchange Commission. In an order handed down on Friday, the commission declared that the unregulated nature of Bitcoin markets would have made the proposed fund too difficult to monitor, and therefore ripe for fraudulent activity.


Full Read Here: https://www.engadget.com/2017/03/10/sec-rejects-winklevoss-plan-trade-bitcoin-stock/

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[just_Alice]

It's funny that just yesterday I was rewatching The Social Network (2010) where a big part of the film is about Winklevoss twins. Looks like the twins are smart guys. They have not only invented Facebook in a way, but they also are trying to help Bitcoin big time (not forgetting about themselves of course). I personally wish good luck to the guys.

Quote from the article:

... experts speculated that the price of Bitcoin would double if the Winklevoss ETF was approved ...

[1Referee]

If they don't know how to monitor it properly due to Bitcoin's unregulated nature, it basically means that none of the following ETF's will be approved. It's funny how they talk about monitoring as there are plenty of ETF's that have gone down and resulted in investors to lose millions. Where was the SEC in these cases? If they really were monitoring the markets as they claim, it would have been avoided. It's pure nonsense. They just don't want to see Bitcoin become even bigger.

[Technicality]

If they don't know how to monitor it properly due to Bitcoin's unregulated nature, it basically means that none of the following ETF's will be approved. It's funny how they talk about monitoring as there are plenty of ETF's that have gone down and resulted in investors to lose millions. Where was the SEC in these cases? If they really were monitoring the markets as they claim, it would have been avoided. It's pure nonsense. They just don't want to see Bitcoin become even bigger.

True.  Unfortunately I think this makes it quite unlikely that there will be a Bitcoin ETF in the foreseeable future since the reasons they cited were mostly about the fundamental nature of Bitcoin rather than its current situation or its volatility (which could change).

[aso118]

If they don't know how to monitor it properly due to Bitcoin's unregulated nature, it basically means that none of the following ETF's will be approved. It's funny how they talk about monitoring as there are plenty of ETF's that have gone down and resulted in investors to lose millions. Where was the SEC in these cases? If they really were monitoring the markets as they claim, it would have been avoided. It's pure nonsense. They just don't want to see Bitcoin become even bigger.

That is correct. Although there are 2 other ETFs waiting approval, we can safely say that they will be rejected. It will take some more time before the regulators come around to realizing that Bitcoin is a unique asset class and all market participants must have access to it.