The U.S. Securities and Exchange Commission has recently denied to list the Bitcoin ETF to the U.S. market. It should be recalled that investors Cameron and Tyler Winklevoss have been trying for more than three years to convince the SEC to let it bring the Bitcoin ETF to market. The digital currency’s price plunged BTC=BTSP, falling as much as 18 percent in trading immediately after the decision before rebounding slightly. It last traded down 7.8 percent to $1,098.
Bitcoin had scaled to a record of nearly $1,300 this month, higher than the price of an ounce of gold, as investors speculated that an ETF holding the digital currency could woo more people into buying the asset, Rueters.com report says.
In a statement signed by the U.S. SEC, it said “based on the record before it, the Commission believes that the significant markets for bitcoin are unregulated. The commission notes that bitcoin is still in the relatively early stages of its development and that, over time, regulated bitcoin-related markets of significant size may develop.”
The SEC has some questions and concerns as regards how the funds would work and whether they could be traded and priced effectively in the market.