[Translation] Although the U.S. Securities and Exchange Commission rejected the ETF, the BTC price immediately rebounded and recovered

I translated into English the article about the Bitcoin ETF being rejected by the SEC, which was a topic recently.

It was said to be a three-year plan, and even I, a newcomer to this sphere, thought “maybe too early,” but it appears exactly that decisive choice has been made. Looking back at the lack of a disappointing sell-off in the BTC market, I feel many people likely thought the same…

Now, let’s read on.

Even as the U.S. Securities and Exchange Commission rejects the ETF, the Bitcoin price rebounds immediately

The U.S. Securities and Exchange Commission (SEC) on March 10 (Japan time March 11) issued a historic decision to deny the listing of the Winklevoss Bitcoin Trust shares on the Bats BZX Exchange.

Those shares were valued at 0.01 BTC and were to be linked to Bitcoin’s price on the Gemini Exchange. The Gemini Exchange, owned and operated by Gemini Trust Company, was expected to have the same stock price in Bitcoin terms.

The SEC classified those shares as an exchange-traded product (ETP). An ETP generally provides investors with exposure to assets such as securities or other commodities. BlackRock, the world’s largest asset manager, says the global ETP market amounts to about 35 billion dollars.

To classify more specifically, the Winklevoss Bitcoin Trust shares fall under commodity futures ETPs. The SEC notes that historically approved commodity futures ETPs have all operated on markets with well-established, large-scale, well-regulated underlying asset futures trading—markets dealing with gold, silver, platinum, palladium, copper, and so on.

The SEC cites two conditions for approval: “First, the exchange must have an agreement with major markets for the trading of the underlying assets or their derivatives, and second, those markets must be regulated.”“The Winklevoss Bitcoin Trust has not yet entered into such surveillance-sharing agreements as past approved commodity futures ETPs have done, and at present, it would be difficult to establish them.” — U.S. Securities and Exchange Commission