Tag: Bitcoin Investment Trust (NASDAQ:GBTC)

Winklevoss Bitcoin ETF Rejected Again

Posted on by Matt Thalman

In March of 2017 the Winklevoss twins had their first Bitcoin ETF proposal rejected and now the second Winklevoss Bitcoin ETF proposal was dismissed in July of 2018 by the Securities and Exchange Commission. The reason all of this matter is because the Winklevoss twins where the first to have the SEC rule on a Bitcoin ETF back in 2017, and now that their proposal has been rejected for a second time things are starting to look a little bleak for investors who want a Bitcoin ETF.

First and foremost, the Securities and Exchange Commission that made the ruling expressed concern about Bitcoin’s trading reliability and security; two significant issues which don’t appear to be easy fixes anytime soon. The commission went on to say “The record before the commission indicates that a substantial majority of bitcoin trading occurs on unregulated venues overseas that are relatively new and that, generally, appear to trade only digital assets.” The commission stated that more then 75% of Bitcoin trading happens on unregulated foreign exchanges.

But, the commission did note that regulated Bitcoin markets are in their early stages of development and that if they further grow, the commission would then review the idea of allowing a Bitcoin ETF based on SEC requirements. Continue reading "Winklevoss Bitcoin ETF Rejected Again" →

Bitcoin Bonanza Rolls On

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


As the Bitcoin phenomenon rolls on, we continue to see new prospectuses for possible Bitcoin funds despite the Securities Exchange Commission denying the creation of one Bitcoin Exchange Traded Fund due to the lack of market surveillance and regulation. Oddly enough, the currency was started to give its user autonomy from governments and other regulatory agencies.

So the main reason why the currency grew in popularity is the reason why investors are finding it difficult to invest in the asset. Thus far two different proposed Exchange Traded Funds have been denied in the US, but it would appear the once denied Winklevoss Bitcoin ETF might have a chance of being approved the second time around. What is interesting is that the Winklevoss Twins were not the ones who filed the petition for reconsideration of their ETF, it was the Bats exchange, which the proposed ETF would trade on if approved. Continue reading "Bitcoin Bonanza Rolls On" →

Bitcoin ETF Rejected

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


Late Friday afternoon the Securities and Exchange Commission released their ruling on the proposed Winklevoss Bitcoin Trust, what would have been the first Bitcoin ETF. Bitcoin's had traded as high as $1,300 per coin on Friday prior to the announcement from the SEC, but following the ruling, the price had fallen more than 20% at one point, leveling off down 10%.

What Happened?

The Security and Exchange Commission released their ruling denying the proposed Bitcoin ETF and within the ruling, the SEC's reasoning for denying the application follows below.

"As discussed further below, the Commission is disapproving this proposed rule change because it does not find the proposal to be consistent with Section 6(b)(5) of the Exchange Act, which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest. The Commission believes that, in order to meet this standard, an exchange that lists and trades shares of commodity-trust exchange-traded products (“ETPs”) must, in addition to other applicable requirements, satisfy two requirements that are dispositive in this matter. First, the exchange must have surveillance-sharing agreements with significant markets for trading the underlying commodity or derivatives on that commodity. And second, those markets must be regulated."

In plain English the SEC is saying the Bitcoin ETF was rejected because the underlying commodity, in this case Bitcoin, needs to be regulated, which that’s the whole purpose of Bitcoin, it's not regulated. Bitcoin was designed to be unregulated, with no ties to banking institutions or governments. With relationships with either of those entities, the currency therefore is an unregulated form of investment. The reason this matters is because at the end of the day, the SEC is required to do its best at protecting the general investing public from fraudulent and easily manipulated investments. And because Bitcoin is unregulated in some terms, the SEC can't allow the ETF. Continue reading "Bitcoin ETF Rejected" →

If The Bitcoin ETF Is Approved, Should You Buy It?

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


On March 11th, the Securities and Exchange Commission will release its ruling on whether or not a Bitcoin ETF will be approved. Back in 2013 the Winklevoss twins, you may remember them from the story on how Facebook Inc. (NASDAQ:FB) was started, filed for their Bitcoin Trust ETF to be approved. Others have been submitted since then, but that ETF will be the first to be approved or denied by the SEC.

Some experts believe the Bitcoin ecosystem could attract as much as $300 million within the first week of the ETF being approved. That sort of cash flow would certainly help the currency move higher from its current $950 per coin value. But, with all the secrecy surrounding the cryptocurrency is this something you want to be involved in from either owning Bitcoins outright or from the convenience of an ETF? Continue reading "If The Bitcoin ETF Is Approved, Should You Buy It?" →