Winklevoss Twins Once Again Fails To Secure SEC Approval For Bitcoin Fund

America’s technology entrepreneurs and cryptocurrency enthusiasts, the Winklevoss Twins have once again failed to secure an upfront approval to run they’re proposed Bitcoin-based exchange-traded fund. In a detailed decision, the United States security exchange commission (SEC) explained reasons for the decline, while mentioning that the duo also failed to satisfactorily meet up with the SEC votes required to permit them.
It should be noted that the twins had also been denied this request when they applied to the commission, last year.
Bitcoin volatility over the past months has become an issue of great concern, and financial regulating bodies including the SEC has continually shown reservations on granting approvals to individuals and corporate bodies that have indicated interest in running these funds. The hopes of the Winklevoss twins on securing the ETF approval may have risen, considering the price movements experienced on the crypto market within the week.
Also, the SEC is said to be currently carrying out careful considerations as regards other bitcoin-based exchange-traded funds requests that have been brought before its table.
For the BZX equity market-owned and operated by CBOE global markets, the limiting issues as it stands, is the fact that the equity firm has not been able to give proof beyond reasonable doubt, that its intents of shifting operation methods to market rules, were not predisposing factors to allowing fraud and other manipulative acts, the SEC has said.
The SEC went further to explain that BZX should have entered into some surveillance-sharing agreement with other regulated Bitcoin firms so that this could allow it come out fine with the needed requirements. Alternatively, the firm could have looked for other ways of proving beyond reasonable doubts, that it would comply with the security laws.
Consequently, these are the reasons why the BZX equity market has been disallowed an opportunity to carry on with its proposed rule change.
Bloomberg™ reports that the announcements of these decisions caused a decline in Bitcoin price by 2.2%, and has continued to maintain a dwindling position.
But officials at the SEC has mentioned that its meted out decisions did not stem out of any reservation for Bitcoin’s operational intrinsic values, neither did it have anything to do with the general functioning methods of the decentralized currency network.
The commission also presented statistics that gave an idea of Bitcoin exchange with fiat currencies. An estimated 75 percent were said to originate and occur in various locations outside the United States. Also, volatility rate for the digital asset rose to about 94 percent in 2017, which is a massive difference when compared with gold’s 11% increase in the same year.
The SEC did not fail to show its disapproval for the cryptocurrency initial coin offerings that are increasingly being hijacked by fraudulent activities, and insincere disposition of project developers. It has consequently launched a sensitization program that aims at making people get less interested and more inquisitive of the fundraising method.

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