In a move that should have seen holders of Bitcoin rejoice rather than panic, the SEC on March 10 rejected the Winklevoss twins application to create a Bitcoin ETF, which would have seriously harmed the crypto-currency by financializing it under Wall Street control.
Yet because Bitcoin has become the primary crypto-currency of choice, easily winning out over other digital forms such as Etherium, Dash, and Monero, its volatility is extraordinary since it has already become partially financialized via Bitcoin exchanges.
And thus when the news broke we saw the price in USD fall nearly $300 down to $978.
After much anticipation (and a spike to record highs earlier today), The SEC has decided to reject the Winklevoss application for a Bitcoin ETF.
The SEC premise appears to be the unregulated natuire of the underlying:
Based on the record before it, the Commission believes that the significant markets for bitcoin are unregulated.
Therefore, as the Exchange has not entered into, and would currently be unable to enter into, the type of surveillance-sharing agreement that has been in place with respect to all previously approved commodity-trust ETPs—agreements that help address concerns about the potential for fraudulent or manipulative acts and practices in this market - the Commission does not find the proposed rule change to be consistent with the Exchange Act. - Zerohedge