The Securities and Exchange Commission again denied the listing of the Winklevoss Twins’ Exchange Traded Fund in Bitcoin.
In its denial order, the SEC took pains to say that ” its disapproval does not rest on an evaluation of whether bitcoin, or blockchain technology more generally, has utility or value as an innovation or an investment.”
Rather, the denial was because the exchange on which the ETF was to trade could not convince the SEC that it had in place procedures to prevent fraudulent and manipulative practices.
In other words, the Bitcoin market is just to young and unformed to provide the SEC with assurance that the exchange could adequately protect investors against fraudulent practices.
Here’s the order: https://www.sec.gov/rules/other/2018/34-83723.pdf