02:29:57 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Globe/wire say SEC rejects bitcoin ETF application

2017-03-13 08:06 ET - In the News

The Globe and Mail reports in its Saturday edition that the Securities and Exchange Commission has denied a request to list what would have been the first U.S. exchange-traded fund built to track bitcoin. A Reuters dispatch to The Globe says that investors Cameron and Tyler Winklevoss have been trying for more than three years to convince the SEC to let it bring the bitcoin ETF to market. CBOE Holdings' Bats exchange had applied to list the ETF. The digital currency's price plunged, falling as much as 18 per cent in trading immediately after the decision before rebounding slightly. Bitcoin is a virtual currency that can be used to move money around the world quickly and with relative anonymity, without the need for a central authority, such as a bank or government. Yet bitcoin presents a new set of risks to investors given its limited adoption, a number of massive cybersecurity breaches affecting bitcoin owners and the lack of consistent treatment of the assets by governments. Regulators are concerned about how the funds would work and whether they could be priced and trade effectively. Advocates of the currency and the technology it relies on to document transactions, blockchain, were dismayed by the ruling.

© 2024 Canjex Publishing Ltd. All rights reserved.