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SEC’s Custody & Manipulation Concerns Still Plague Bitcoin ETF

When Tyler and Cameron Winklevoss, the twin-brother founders of the Gemini cryptocurrency exchange were preparing to hear the SEC’s decision on their Bitcoin ETF application just over one year ago, the excitement was palpable.

In the days running up to the United States’ Securities and Exchange Commission’s (SEC) decision on the matter, the price of Bitcoin swole–BTC rallied from roughly $6300 in mid-July of 2018 to around $8200 by July 25, where it stayed for several days before the SEC’s eventual decision to deny the application on July 27.

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A month later, the SEC denied 9 other Bitcoin ETF applications.

What ensued was a bear market that drove Bitcoin down to $3200 (its lowest price in over a year), in addition to an almost comically-long list of delays and denials from the SEC around Bitcoin ETF applications. A number of new companies, including Van Eck, SolidX, Bitwise Asset Management, and many others tried (and tried again, in some instances).

In any case, the industry will move forward, with or without the approval of the Bitcoin ETF; and while the lack of a Bitcoin ETF may slow the entry of institutional capital into the space, it certainly won’t stop it.

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