ZCZC
BCN-09
US-CRYPTO-MARKETS-FOREX-BITCOIN
SEC again rejects Winkelvoss twins Bitcoin fund
WASHINGTON, July 27, 2018 (BSS/AFP) – US market regulators on Thursday
again rejected a proposal to allow trading in the first Bitcoin-based
exchange-traded fund created by noted tech entrepreneurs Cameron and Tyler
Winklevoss.
The Securities and Exchange Commission denied the request in a 3-1 vote,
upholding the rejection handed down last year.
The value of Bitcoin, a digital currency not overseen or guaranteed by any
central bank, has fluctuated wildly in recent months, with some price
movements this week driven by hopes the SEC could approve an ETF tied to the
currency.
The SEC reportedly is considering applications for a handful of other
bitcoin-based exchange-traded funds.
But the SEC said BZX, an equities market operated by CBOE Global Markets,
failed to demonstrate that its proposed change to market rules would not
create the risk of fraud and “manipulative acts.”
BZX had not entered into “surveillance-sharing agreements” with other
regulated Bitcoin markets or shown it could find other ways of complying with
securities laws, the SEC said in its decision.
“Because BZX has failed to carry its burden, the proposed rule change must
be disapproved,” it said.
Following the announcement, exchange rates for bitcoin fell from 2.2
percent $8,086, according to figures compiled by Bloomberg.
SEC officials told reporters the denial did not reflect any judgment on
the intrinsic value of Bitcoin or the blockchain technology used for
cryptocurrencies.
But they said market data showed more than 75 percent of all trades
between Bitcoin and traditional currencies occur outside the United States,
with annualized volatility in 2017 of 94 percent — compared to about 11
percent for gold.
The agency has taken an aggressive stance on Bitcoin investment vehicles
such as initial coin offerings as they have seen cases of outright fraud
explode in recent years, and has launched a public education campaign to
encourage investors to be skeptical.
BSS/AFP/HR/0940