On July 26th, the U.S Securities and Exchange Commission ‘SEC’ in a press release stated that it rejected the Bitcoin ETF proposal application filed by Tyler and Cameron Winklevoss also known by the name of Winklevoss brothers. The SEC made its decision to deny Bitcoin trade shares as an ETF due to various security issues involved with the cryptocurrency.. This decision by SEC was important to the investors and traders waiting impatiently for a long time to get more regulatory clarity about its global acceptance.
There are still two other ETF proposals awaiting a decision from the SEC for approval – the VanEck-SolidX bitcoin ETF and a Cboe ETF. Needless to say, both companies have far more experience in setting up exchange-traded funds than the Winklevoss brothers, in particular, VanEck is an investment management firm that specializes in funds.
Truth Behind SEC Officials Disagreed To ETF
Recently in an official announcement made on Friday, by one the SEC Commissioner named ‘Hester M. Peirce’ said:
“Bitcoin is a new phenomenon, and its long-term viability is uncertain. It may succeed; it may fail. The Commission, however, is not well positioned to assess the likelihood of either outcome, for bitcoin or any other asset. Many investors have expressed an interest in gaining exposure to bitcoin, and a subset of these investors would prefer to gain exposure without owning bitcoin directly.”
Impact Of BTC Futures Smart Contracts
After the SEC’s announcement on the ETF proposal , the Chicago Mercantile Exchange ‘CME’, which launched the first bitcoin futures contracts, last week disagreed to any existing speculation in the market that it would launch any altcoins futures or other products in mere future. CME is the World’s largest exchange operator.
As per CME chief Executive, Terry Duffy in an interview stated:
”I will not just put products up there to see where they’re going to go. I will take a wait and see approach.”
There’s at least one of many Bitcoin-based ETF proposals awaiting a decision from the SEC. Despite receiving requests for a Bitcoin ETF approvals, the SEC has still not accepted any of them until this time. The proposed change would have allowed bitcoin tethered investment products accepted by a global community.