The Securities and Exchange Commission did not approve the first physical bitcoin ETF, the Winklevoss Bitcoin Trust (COIN), after more than three years since the filing first entered the regulatory pipeline. In a 38-page statement released Friday, regulators cited concerns over bitcoin’s unregulated status, and the difficulty of preventing manipulation and providing oversight in this type of market. For those reasons, they were saying no to the first proposed physical bitcoin ETF.
Mike Venuto: The ruling showed that our regulators have a deep understanding of the markets, of the benefits of ETFs, and they took the time to learn a great deal about bitcoin. I believe this is a positive for the ETF industry. Just the fact that a traditional mutual fund couldn’t even contemplate having a bitcoin mandate shows the innovation of the ETF structure.
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