The Gemini Exchange founders, Cameron and Tyler Winklevoss, sought to trade bitcoin as a security on the Bats BZX Exchange Inc. and were awaiting a decision from the SEC by no later than March 11, 2017. Although mentioned in the media recently, the Winklevoss twins have been fighting an uphill battle to get their bitcoin ETF proposal approved since July 2013.
According to a publicly distributed notice detailing the decision, the SEC said:
“As discussed further below, the Commission is disapproving this proposed rule change because it does not find the proposal to be consistent with Section 6(b)(5) of the Exchange Act, which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest.”
The news has prompted a significant selloff of bitcoin, with the price falling from near all-time highs of $1,300 to under $1,100 at the time of this article’s writing. Meanwhile, the price of Ether (ETH) has increased by almost 5 percent within the last hour alone.
It is unknown how low the price of bitcoin will reach until the cryptocurrency stabilizes. ETHNews will also be following the results of the SEC’s decision as to the other bitcoin ETF proposals from SolidX and Grayscale.