Many people were unaware of a crucial milestone since it was lost in the growing frenzy around Bitcoin ETFs.
The Winklevoss Bitcoin Trust filed the first Bitcoin ETF application ten years ago on July 1.
The Winklevoss twins, well-known early Bitcoin investors and co-founders of the Gemini cryptocurrency exchange, suggested the trust, but the U.S. Securities and Exchange Commission (SEC) eventually rejected it. The regulatory agency raised worries about possible market manipulation and a lack of control.
The proposal, which sought to list and trade shares on the BATS BZX Exchange, was an innovative attempt to integrate Bitcoin into the established financial system and give conventional investors a chance to invest in the digital currency without having to purchase, store, or secure it directly.
The SEC’s denial did, however, establish a standard for subsequent applications for Bitcoin ETFs. There is currently no authorised spot Bitcoin ETF in the United States, despite the numerous proposals submitted over the years.
This background throws the present hoopla around Bitcoin ETFs into stark relief. The market has paid close attention to the recent influx of proposals from renowned financial firms like BlackRock and Fidelity.
However, a recent Wall Street Journal article notes that the SEC has voiced worry about the clarity and thoroughness of recent filings, which has caused a little decline in the value of Bitcoin.
Despite this, analysts contend that Bitcoin ETFs are not doomed as a result of the SEC’s request for further information. The majority of the SEC’s issues are procedural, and these roadblocks are often anticipated during the clearance process.
Even still, the future of Bitcoin ETFs in the US is uncertain, despite the optimism of many industry insiders. The Winklevoss Bitcoin Trust plan from ten years ago still looms large over the route to approval for a spot Bitcoin ETF.
