US financial regulator denied the Winklevoss brothers' application to create the first bitcoin ETF. The bitcoin price fell below $8,000.

The US Securities and Exchange Commission (SEC) rejected application of Cameron and Tyler Winklevoss seeking to list and trade shares of the Winklevoss Bitcoin Trust. As Bloomberg notes, the refusal shows the skeptical attitude of the regulator to the cryptocurrency market, which is not sufficiently regulated.

As stated in the SEC statement, the Commission is not sure that trading operations with the world's largest cryptocurrency is under proper supervision. In addition, the SEC noted that the trading platform BATS, where the fund was supposed to be registered, could not prove that this market is "resistant to manipulation."

"The record before the commission indicates that a substantial majority of Bitcoin trading occurs on unregulated venues overseas that are relatively new and that, generally, appear to trade only digital assets," the SEC said in its filing. "Regulated Bitcoin-related markets are in the early stages of their development."

The first time SEC refused to approve Winklevoss bitcoin ETF in March 2017.

After SEC published its decision, the bitcoin price fell from $8,270 to $7,909. Earlier, it had grown significantly because of rumors that the US financial regulators are a step away from approving bitcoin ETFs. ZeroHedge portal with reference to two anonymous sources reported that discussions on cryptocurrency ETFs in the SEC and CFTC almost certainly will lead to a positive decision.

In September, the SEC should announce its decision on five more cryptocurrency ETFs.