On March 10, 2017, the U.S. Securities Exchange Commission
("SEC") issued an order
disapproving BATS BZX Exchange's proposal to list and trade
shares of the Winklevoss Bitcoin Trust. The proposal, if granted,
would have established a bitcoin exchange-traded fund
("ETF") that market
participants could invest in through the BATS BZX Exchange
platform.
The SEC rejected the Winklevoss Bitcoin Trust due to the lack of
regulation in the bitcoin market. It explained that "the
significant markets for bitcoin are unregulated and that,
therefore, the Exchange has not entered into, and would currently
be unable to enter into, the type of surveillance-sharing agreement
that helps address concerns about the potential for fraudulent or
manipulative acts and practices in the market for the Shares."
The SEC concluded that the bitcoin market is largely unregulated,
unlike the markets for other commodities such as gold and silver,
and therefore the Winklevoss Bitcoin Trust is
