Bitcoin price (BTC/USD) drops below $8,000 as Winklevoss twins BTC ETF gets rejected

The SEC notes that the rejection is not against blockchain and crypto in general

Bitcoin price (BTC/USD) drops below $8,000 as Winklevoss twins BTC ETF gets rejected

The Bitcoin price (BTC/USD) has seen a significant decline following news that the US Securities and Exchange Commission (SEC) has rejected a second attempt by Cameron and Tyler Winklevoss to list shares of a Bitcoin exchange-traded fund (ETF).

Last year, the watchdog rejected a proposal from BATS BZX Exchange to list and trade Winklevoss Bitcoin Trust commodity-based shares. The exchange promptly filed a petition to review the March 10 decision, but it has now received another rejection, with the SEC voting the proposal down on Thursday. However, the commission noted that the rejection was not based on “an evaluation of whether bitcoin, or blockchain technology more generally, has utility or value as an innovation or an investment”.

“Rather, the Commission is disapproving this proposed rule change because, as discussed in detail below, BZX has not met its burden under the Exchange Act and the Commission's Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Exchange Act Section 6(b)(5), in particular the requirement that its rules be designed to prevent fraudulent and manipulative acts and practices,” the regulator wrote in its ruling.

Notably, the SEC is also looking into a number of other ETF applications, including a joint application from VanEck and SolidX. Recent media reports have suggested that the regulator may approve an ETF application next month.

Having held above $8,200 for most of yesterday’s trading, the Bitcoin price dropped below the $8,000 mark in the final hours of the session. The coin finished the day at $7,951.58, down from its opening level of $8,176.85.

In today’s trading, the Bitcoin price stood at $7,955.23, as of 09:34 BST. The digital coin has lost 3.6% of its value in the past 24 hours, according to data from cryptocurrency tracker Coinmarketcap. Its market capitalisation currently stands at $136.6 billion.

For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.

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