CNBC broke the news today that the SEC has once again rejected the Winklevoss' proposed bitcoin ETF. As the story quickly spread on twitter the price of bitcoin began to fall, and has dipped nearly $300 at the time of this writing, down from $8300 earlier.
JUST IN: Winklevoss twins bitcoin ETF rejected by SEC https://t.co/I0NA9UX3Jm— CNBC Now (@CNBCnow) July 26, 2018
Almost immediately, twitter blew up calling the report old news and admonishing CNBC. Admittedly, in the early minutes their story had almost no details filled in, so many users seemed to think this was a recycling of the news from last year.
Now it seems that this is in fact true, with other sites picking up the story and a release of the SEC's official statement.
In a nutshell, the SEC is rejecting this proposal again based on the fact that there is still too much risk to investors, the market is still too small, and there is way too much room for manipulation. From the statement:
"...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."
Immediately upon release of this news, the market took a downturn. Bitcoin is at $7951.80 at the time this is written, but fluctuating fast. Stay tuned for any further developments.