As predicted by many analysts, the decision by the US Securities and Exchange Commission (SEC) to not approve the ETF for bitcoin came through late on Friday afternoon (US time).
For more than three years, investors Cameron and Tyler Winklevoss had been trying to bring Bitcoin EFT to the share market, but it is said that the SEC rejected the bid with concerns over how the funds would work and how effectively it could be traded on the stock market.
The initial impact on bitcoin’s value saw the digital currency’s price drop some 18 per cent, but a quick recovery brought it back up to the US$1,240 mark we see today.
Speaking soon after the decision, Tyler Winklevoss had this to say “We remain optimistic and committed to bringing COIN (sic) to market, and look forward to continuing to work with the SEC staff,"
"We began this journey almost four years ago, and are determined to see it through. We agree with the SEC that regulation and oversight are important to the health of any marketplace and the safety of all investors."
Best known for their feud with Mark Zuckerberg over the original idea for Facebook, The Winklevoss twins are now expected to refine their bid and continue to see their ETF through to fruition.
There are two other bitcoin ETF applications awaiting a decision from the SEC – one by Grayscale Investments LLC's Bitcoin Investment Trust, (backed by early bitcoin advocate Barry Silbert and his Digital Currency Group) and the other by SolidX Partners Inc, (a US technology company that provides blockchain services). Decisions on these are expected later this year, but the SEC may have the same concerns they had for the Winklevoss proposal.
For now, at least, the bitcoin ETF is on hold and we are excited to see what this media attention has sparked amongst investors, especially with bitcoin now being more mainstream in its uses. With Australians now being able to purchase gift cards for Bunnings Warehouse, Myer Group and Event Cinemas through rewardspay
, the future for bitcoin looks very bright.