Bitcoin Soars Despite SEC’s Denial of Groundbreaking Bitcoin ETF

Bitcoin ended the last full week of July 2018 on a high note following an earlier dip on Friday after reports emerged that the Winklevoss twins’ application for a bitcoin Exchange-Traded Fund (ETF) was turned down by US regulators.

According to coininsider.com, an ETF is “is a marketable security that tracks an index of funds, a commodity, or a basket of assets.” The site also explained that “ETFs trade similarly to a common stock on a stock exchange next to other listed companies or assets – think Microsoft (MSFT), Apple (AAPL), or Gold.”

According to analysts, Bitcoin’s brief dip below $8,000 on Friday was as a result of a decision by the US Securities and Exchange Commission (SEC) to deny the bitcoin ETF application by the Winklevoss twins Cameron and Tyler. This is the second time that the regulator is turning down the duo’s application.

The twins came into prominence in 2004 when they sued Mark Zuckerberg, the founder of Facebook, claiming that he stole the idea of Facebook from them. Over the years, the twins have reportedly turned their $65 million compensation from that lawsuit into a $1 billion bitcoin investment.

By Friday afternoon, the crypto was said to have recovered and settled around $8,211.87 for some time. Analysis of the dip indicates that the cryptocurrency lost 6% of its value before it turned around to close at a high note. Bitcoin prices had seen up to two month increases throughout much of the week in anticipation of the ETF.

The SEC quoted investor protection issues, the possible manipulation of the market as well as general security as the reasons for turning down the Winklevoss twins’ application for a Bitcoin ETF. This is the second time that twins are being rejected by the SEC.