10.14.2016

SEC Kicks the Bitcoin ETF Approval Decision Down the Road

(this article originally appeared on MarketWatch)

The decision is the latest delay for Tyler and Cameron Winklevoss, whose proposed ETF is designed to trade baskets of shares tied to the digital commodity. The twin brothers have been among the most public advocates for a bitcoin ETF, having first announced plans for one in 2013. The pair also run both WinkDex, a bitcoin price index, and Gemini, a bitcoin custodian and exchange.

The SEC’s request for additional feedback follows earlier public comments that debated the stability of bitcoin, which has been notoriously volatile in price, as well as any potential conflict of interest between the proposed ETF and Gemini.

“The Commission requests that interested persons provide written submissions of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they may have with the proposal,” the SEC wrote in a filing.

According to SEC rules, those who want to provide feedback have 21 days from the Oct. 12 publication of the document to do so. Responses to the feedback can be filed 35 days after that.

The Bitcoin Investment Trust GBTC, -5.14% was volatile on Thursday, moving between a drop of 1% and a gain of 1%. The trust trades on the over-the-counter market and operates as a private, open-ended trust that invests solely in bitcoin. The value of the trust’s shares are entirely derived from price moves in bitcoin.

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