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Peirce rejects SEC’s rationale for denying bitcoin ETF plan

Joe Mont | July 27, 2018

The identical twins who Facebook founder Mark Zuckerberg, in a debate over who created and owned Facebook, derisively called “the Winklevi,” have refashioned themselves in recent years as bitcoin pioneers. Their efforts to launch a financial instrument for virtual currency, the first-ever bitcoin Exchange Traded Fund, however, is not gaining traction with the Securities and Exchange Commission.

For the second time, the Commission has rejected the plan.

An SEC decision released on July 26 expressed skepticism that the venture, the Winklevoss Bitcoin Trust, could adequately protect investors from fraud. Shares of the Winklevoss Bitcoin Trust would be listed and traded on the Bats BZX Exchange.

The SEC, through its Division of Trading and Markets, argues against disapproving BZX’s proposed rule change to allow these transactions because, in its assessment, the proposed rule is inconsistent with...

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