Bitcoin bulls ignore the rejection of the Winklevoss Bitcoin ETF

After the US regulatory authorities rejected the Winklevoss Twin’s application for a Bitcoin Exchange Traded Fund (ETF), the crypto currency once again demonstrates its robustness and resilience, staying above USD 8,000.

Bitcoin code only shrugs briefly

Previously, on 10 March 2017, the Securities Exchange Commission (SEC) had rejected the Winklevoss Bitcoin code Trust’s petition to trade the first Bitcoin code. The SEC then approved a petition calling for a review of the disapproval. In this second review, on 26 July 2018, the SEC again rejected the listing of the Winklevoss Bitcoin ETF. The ETF would have been traded on the Bats BZX, Inc. if admitted.

As an immediate reaction to the SEC’s rejection, Bitcoin’s share price fell to close the trading day at USD 7,951, but on the following day the crypto currency quickly reduced its losses to a high of USD 8,262. Certainly, the SEC’s rejection represents a significant setback for Bitcoin’s enthusiasts and investors. Many believed that SEC approval of a Bitcoin ETF could trigger a big bull run. In fact, crypto currency expert and trader Tom Alford conducted a study in which he concluded that Bitcoin’s price could have increased by 500 percent if the ETF had been approved. However, one should be aware that there is a difference between the Winklevoss and Vaneck’s important Bitcoin ETF proposal. Bitcoin can grow 500 percent with ETF approval – Tom Alford study KLICK UM ZU TWEETEN

Ethereum code Commissioner Pierce

However, the SEC’s rejection was not unanimous (3-1). And for the first time, Ethereum code commissioner publicly supported Ethereum code rejection based on Section 6(b)(5) of the Act, which requires that the rules of a national stock exchange be designed “to prevent fraudulent and manipulative acts and practices” and “to protect investors and the public interest”.

Hester Peirce, who disagrees with the rejection of the ETF, claims that Winklevoss’ motion is in compliance with Act Section 6:

I am concerned that the Commission’s approach undermines investor protection by excluding greater institutionalisation of the Bitcoin market. In general, the Commission’s interpretation and application of the legal standard is a strong signal that innovation in our markets is undesirable, a signal that can go far beyond the fate of Bitcoin ETPs.

Chris Concannon, President and COO of Cboe, responded to Peirce’s statement: “We are examining with interest the Commission’s Communication and Commissioner Peirce’s dissent”.