Setback for Bitcoin?
To underline the point made in the previous article, this week the SEC rejected an application to create the first bitcoin-backed exchanged trade fund or ETF. The application came from the sometimes controversial Winklevoss twins, which may or may not have had anything to do with the result.
Based on the SEC’s decision, it seems unlikely that there will be a bitcoin ETF in the near future. Although there are two other companies (Grayscale and SolidX) who are vying to become the first bitcoin fund, the future is not clear. The main reasons for rejecting the application appeared to be the lack of regulation in a market that is largely based outside of the U.S., and the potential for market manipulation. As we have said before, the changes that blockchain, Bitcoin and distributed ledgers are introducing are probably inevitable. Just not very fast! Find out more here.