Almost four years in the making, in a highly anticipated verdict published earlier today, the U.S. Securities and Exchange Commission has rejected the the Winklevoss Bitcoin Trust exchange traded fund (ETF).
An ETF is an investment fund that holds assets like stocks, commodities or bonds, and trades on stock exchanges. This ETF, the Winklevoss Bitcoin Trust intended to have been listed as COIN, would have let institutional investors invest in bitcoin, without actually needing to buy or hold the digital currency themselves; these would be held by a custodian, Gemini.
In its decision, the SEC singled out two major concerns regarding the application. First, the exchange must have surveillance-sharing agreements with significant markets for trading the underlying commodity or derivatives on that commodity. And second, those markets must be regulated.
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