Recently, the Securities and Exchange Commission (SEC) again rejected plans by Winklevoss Capital Management founders Cameron and Tyler Winklevoss to launch the Winklevoss Bitcoin Trust, but some market observers believe the regulator will eventually approve exchange traded funds linked to bitcoin.
The SEC rejected an application for the “Winklevoss Bitcoin Trust” last year, but the application was resubmitted in June, which included a proposed rule change. According to a release issued late last month by the SEC, the agency said that it did not agree with the Winklevoss’ premise that cryptocurrency markets are “uniquely resistant to manipulation.”
“The market is rapidly approaching the point of acceptance for a bitcoin ETF, and the Securities and Exchange Commission (SEC) will eventually approve an ETF in the near future. This is the opinion of Fatfish Internet Group CEO, Kin-Wai Lau,” reports CCN.com.
In addition, the SEC rejected the Winklevoss Bitcoin Trust due to concerns regarding fraud and investor protection, citing that “it has not met its burden under the Exchange Act.”
What’s In Store for Bitcoin Next?
“I think it’s a matter of time before we see the SEC approve an ETF. It’s just a matter of which organisation will be able to come out with comprehensive tools in terms of monitoring, surveillance, and ability to liquidity. there is a range of tools that need to be equipped, but it’s also readiness of the market. We’re not far away, maybe a couple of months away from the market accepting an ETF product. I think that’s what the SEC will be looking at,” said Lau in an interview with CNBC.
Related: 4 Challenges Plaguing the Cryptocurrency Market
A cryptocurrency-based ETF has not yet been received approval from the SEC. VanEck and SolidX filed a joint application for a bitcoin ETF, which was published for comment on July 2 has until August 16 for the SEC to take action on the proposal.
Bitcoin prices rallied amid speculation the SEC could soon approve a bitcoin ETF, but the cryptocurrency has subsequently tumbled, sliding below the technically critical $7,400 range. At this writing Monday, the largest digital currency traded slightly below $7,000.
“In Lau’s opinion, boosted bitcoin demand is being driven primarily by organic demand from everyday people around the world – a pattern that he says will not change in the run-up to the end of the year,” according to CCN.
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