Concerned about market manipulation, the Securities and Exchange Commission (SEC) has again denied the ETF proposed by twins Cameron and Tyler Winklevoss that would have tracked the underlying bitcoin market.
The SEC had initially blocked the Winklevoss’ ETF in March 2017 but re-evaluated the product when Cboe Global Markets appealed with the intent to list the ETF on their Bats Exchange.
On July 26, the SEC reinforced their decision to reject the Winklevoss ETF saying that the twins’ argument was “unpersuasive” in proving sufficient protection from market manipulation.
Reuters reported that the SEC’s decision to block the ETF was not unanimous, Commissioners voted 3-1 with Commissioner Hester Pierce voting against the decision.
“More institutional participation would ameliorate many of the Commission’s concerns with the bitcoin market that underlie its disapproval order,” she said. She also believes that this “sends a strong signal that innovation is unwelcome in our markets.”
It seems Cboe is discouraged but not defeated.
Cboe’s Chief Operating Officer, Chris Concannon said, “Investors are better served by products traded on a regulated securities market and protected by robust securities laws and we will continue to work with the SEC and ETF issuers to construct a fully regulated product.”