Cameron Winklevoss fiercely criticized the Securities and Exchange Commission (SEC) on Saturday for what he referred to as their history of failure. It has been ten years since the first Bitcoin ETF was applied for and subsequently denied by the SEC.
The Winklevoss twins, cofounders of the cryptocurrency exchange Gemini, applied for the Bitcoin ETF in July 2013. They wanted to create an investment vehicle that would track the price of Bitcoin and trade it similarly to stocks on the Nasdaq. Despite a second attempt in 2018, the SEC still rejected the proposal. Other Bitcoin ETFs have been approved, but they are based on futures trading. The SEC claims that no spot ETF satisfies their standards to protect investors.
This is what prompted Winklevoss to call out the SEC for not approving any ETFs in the past decade. He claims that the SEC is a failed regulator for denying U.S. investors the opportunity to invest in the best investment of the decade. Denying these applications has pushed investors into the arms of the FTX, resulting in what Winklevoss believes is one of the largest financial frauds in modern history.
The SEC’s reluctance has also driven investors to Grayscale’s Bitcoin Trust, a product which Winklevoss calls “toxic”. Converting this trust into an ETF would likely resolve the current discount, but the SEC have already rejected Grayscale’s application to do just that.
Winklevoss concluded by applauding those fighting to bring the spot Bitcoin ETF to life. He also expressed hope that the SEC will reflect on its past and focus on its duties.
