However, not all the officials are against the Bitcoin ETF as SEC Commissioner officially releases "Dissent of Commissioner Hester M. Peirce to BatsBZX". The Winklevoss twins have been taking it upon themselves for years to prove otherwise.
The SEC's continued skepticism of bitcoin ETFs bodes poorly for other applications for bitcoin ETFs from providers like Van Eck and Proshares, but it doesn't mean those applications will also be rejected.
"Contrary to the Commission's determination, I believe that the proposed rule change satisfies the statutory standard and that we should permit BZX to list and trade this bitcoin-based exchange-traded product ("ETP")."
"Because adequate surveillance-sharing agreements are not in place-and any current surveillance-sharing agreements are with bitcoin-related markets that are either not significant, not regulated, or both-the Commission concludes that the proposal is inconsistent with Exchange Act Section 6 (b)(5)", the agency wrote.
"As long as these investors decline to enter the bitcoin market because there is no efficient vehicle that would reduce the costs of entry, the features of the bitcoin market that cause the Commission concern are likely to persist".
The agency stressed that its assessment was not about the digital currency but that its decision was made out of concern to prevent fraud and protect investors.
The Securities Exchange Act was implemented by the SEC in 1934 in an effort to ensure financial transparency and reduce the likelihood of fraud and manipulation.
However, not everyone at the SEC was on board with the recent decision to deny bitcoin exchange traded funds. For example, the order points to the price disparities across the bitcoin markets. While much of the market and industry news has been in a stir over the looming-as some would put it "almost guaranteed"-creation of Bitcoin ETFs, the news came as a harsh ruling by the SEC on the potential for other funds". This fact is an illustration of the influence of the SEC's decision. I reject the role of gatekeeper of innovation-a role very different from (and, indeed, inconsistent with) our mission of protecting investors, fostering capital formation, and facilitating fair, orderly, and efficient markets. She draws attention to the important issues and provides strong arguments in favor of her position. Cryptocurrency traders and exchanges have hoped that an exchange-traded product would make the virtual currency.
The adjustment to the rule, the agency said they would have given Bitcoin the chance to tether investment products. The Winklevoss twins may take their time to convince more members of the Commission on the reliability of Bitcoin ETF. Unfortunately, the case could drag on for half a year: legal expert Jake Chervinsky posted on Twitter that "the SEC can, and probably will, delay its decision on the VanEck/SolidX commodity-backed Bitcoin ETF until ~March 4th, 2019".