Bitcoin Price Falls as SEC Denies Winklevoss ETF
Bitcoin’s price fell below $8,000 Friday after the U.S. Securities and Exchange Commission (SEC) rejected another attempt by Cameron and Tyler Winklevoss to list the first-ever cryptocurrency ETF.
Bitcoin Price Update
The bitcoin price was down 4.5% at $7,852, its lowest since Tuesday. Bitcoin’s market value declined by more than $6 billion in the process.
Bitcoin’s first move below $8,000 occurred on Thursday at 18:30 UTC. The cryptocurrency hastened its decline around 08:00 UTC on Friday.
Trade volumes have held relatively steady near $5 billion over the past 24 hours.
Other cryptocurrencies followed bitcoin lower on Thursday, with the total market shedding $15 billion to $287 billion, according to CoinMarketCap. With the exception of Tether, all major currencies situated in the top-ten reported losses of between 3% and 8%. At the time of writing, only bitcoin and Stellar were on track for weekly gains.
As Hacked recently speculated, bitcoin’s late-week reversal may be partially attributed to expiring futures contracts, an event thst typically generates market volatility. CME Group’s July bitcoin futures contract expires today.
Winklevoss ETF Rejected
U.S. securities regulators have rejected a June proposal from the BATS BZE Exchange to list and trade shares associated with the Winklevoss Bitcoin Trust. It was the second time since 2017 that the SEC has rejected a Winklevoss proposal for a bitcoin exchange-traded fund. The most recent attempt included a proposed rule change that would allow the first-ever bitcoin ETF to be listed.
“Despite today’s ruling, we look forward to continuing to work with the SEC and remain deeply committed to bringing a regulated bitcoin ETF to market and building the future of money,” Cameron Winklevoss, co-founder of the Gemini exchange, said in a statement.
Among the issues highlighted by regulators were fraud and investor protection. In a 92-page document, the SEC also explained why it does not support the argument that the bitcoin market is “uniquely resistant to manipulation.” Namely, the agency “finds that the record before the Commission does not support such a conclusion.”
Despite the SEC’s latest decision, optimism that a bitcoin ETF will soon be approved has not wavered. Another proposal submitted jointly by VanEck and SolidX has a better chance of getting approved. The SEC has not commented on the VanEck SolidX Bitcoin Trust but analysts say a decision could come as early as next month.
Earlier this week, the securities regulator delayed its decision on five other bitcoin ETFs issued by Direxion Investments.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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