The
Bitcoin (BTC) price dropped by nearly 4% almost immediately after the
US Securities and Exchange Commission (SEC) denied the
Winklevoss Bitcoin ETF yesterday.
A sudden drop in the price of BTC from US$8,300 to US$7,900 led other major digital currencies and small market cap tokens to fall substantially in both value and volume. Consequently, the crypto market lost US$11 billion in valuation overnight, primarily due to the short-term decline of BTC.
At press time, as per
Einstein Exchange, Bitcoin was trading at US$ $7,874.58, down about 4% in the past 24-hour trading cycle.
Ethereum (ETH) was down about 3.4%, whereas
Ripple (XRP),
B Cash (BCH), and
EOS had slid anywhere from 3 to 5% in market value.
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The SEC rejected another attempt by Cameron and Tyler Winklevoss, founders of the
Gemini cryptocurrency exchange and noted Bitcoin billionaires, to list shares of what would have been the world’s first Bitcoin Exchange-Traded Fund (ETF).
If passed, the Winklevoss’ proposal would have had commodity-based shares from the Winklevoss Bitcoin Trust traded on the
BATS BZX Exchange. The SEC voted down the proposal three to one.
The SEC originally rejected an application for the “Winklevoss Bitcoin Trust” last year. However, a new proposal with a few changes in rules was submitted in June.
In a release published yesterday explaining the reasons for the second disapproval, the SEC stressed its position that the decision has nothing to do with whether or not Bitcoin and blockchain technology have inherent value as investments. Rather, the Commission explained that it was mainly concerned with protecting investors from market manipulation.