S.E.C. Rejects Winklevoss Brothers Bid to Create Bitcoin E.T.F.
'The Securities and Exchange Commission said on Friday it had rejected an application to create an exchange-traded fund tied to the price of Bitcoin.
Within a few minutes of S.E.C.’s announcement, the price of a single Bitcoin tumbled more than 15 percent, to around $1,060. The price soon recovered some of the lost ground, however.
The decision was a significant setback for Tyler and Cameron Winklevoss, twin brothers who began working on a proposed Bitcoin exchange-traded fund, or E.T.F., four years ago. An exchange-traded fund tracks an index, or basket, of assets but trades like a stock.
The commission said it was rejecting the Winklevoss Bitcoin Trust because the markets where Bitcoin are currently traded are largely unregulated.
The lack of such regulation, the commission said, raised “concerns about the potential for fraudulent or manipulative acts and practices in this market.”'>>>
https://www.nytimes.com/2017/03/10/business/dealbook/winkelvoss-brothers-bid-to-create-a-bitcoin-etf-is-rejected.html?