U.S. Regulators Reject Another Bitcoin ETF Proposal

The Securities and Exchange Commission on Tuesday rejected a proposal that would've allowed for the creation of the SolidX Bitcoin Trust, a bitcoin-focused exchange-traded fund that would've traded on the New York Stock Exchange. The agency cited concerns about possible market manipulation and regulation that echoed its March 10 rejection of the Winklevoss Bitcoin Trust, which would've traded on the BATS exchange. It's widely believed by bitcoin watchers that the creation of a bitcoin ETF would provoke an influx of new capital into the digital-currency ecosystem, likely triggering a significant increase in the bitcoin price. The agency is still considering a third ETF proposal from Grayscale Partners, whose Grayscale Bitcoin Trust is one of the few bitcoin-focused investment products available to institutional and retail investors. The price of a single bitcoin ticked lower after the ruling, retreating to $1,054 in recent trade from $1,064 earlier in the day.