As The Verge notes, the proposed Winklevoss Bitcoin Trust Exchange-Traded Fund (ETF) would have created a common stock fund tied to the price of Bitcoin. Traders who purchased shares of the Bitcoin Trust ETF would be investing in the cryptocurrency's value, without actually owning -- or being able to spend -- any Bitcoin themselves. Although experts speculated that the price of Bitcoin would double if the Winklevoss ETF was approved, the price of Bitcoin actually sank dramatically after the SEC's announcement.
While the SEC ruling is definitely a setback for the currency's official acceptance, it's unlikely to have a longterm effect on Bitcoin values overall and several hours after the SEC's announcement, Bitcoin values had started to bounce back. Meanwhile, two other ETFs that were awaiting an SEC ruling are also unlikely to win approval. "We remain optimistic and committed to bringing COIN to market, and look forward to continuing to work with the SEC staff," Tyler Winklevoss told CNBC. "We began this journey almost four years ago, and are determined to see it through. We agree with the SEC that regulation and oversight are important to the health of any marketplace and the safety of all investors."