The commission wrote in its decision that Bitcoin was “still in the relatively early stages of its development
and that, over time, regulated Bitcoin-related markets of significant size may develop.”
The commission added that it could reconsider a Bitcoin exchange-traded fund if more mature markets developed.
The lack of such regulation, the commission said, raised “concerns about the
potential for fraudulent or manipulative acts and practices in this market.”
The price of Bitcoin has climbed sharply in recent weeks in anticipation of the commission approving the
Winklevoss brothers’ fund, with the price of a single Bitcoin surging to a record high above $1,300.
By NATHANIEL POPPERMARCH 10, 2017
The Securities and Exchange Commission said on Friday it had rejected an application to create an exchange-traded fund tied to the price of Bitcoin.
“How do we develop well-capitalized and regulated markets in the U. S. and Europe if financial innovators aren’t allowed to bring products to market
that grow domestic demand for digital currencies like Bitcoin?” Mr. Brito said in a statement on Friday.