The Winklevoss twins have filed a petition with the SEC that suggested the creation of an electronically traded Bitcoin fund. The twins had argued previously that such a fund would open up cryptocurrency trading to the mainstream population.

The SEC had previously denied the application on the grounds that the cryptocurrency market is largely unregulated and is very susceptible to market manipulation and fraud. The SEC said in July,

”When the spot market is unregulated–there must be significant, regulated derivatives markets related to the underlying asset with which the Exchange can enter into a surveillance-sharing agreement.”

After the initial rejection in February, another petition was filed by the Winklevoss twins to review the case for a Bitcoin ETF. Just yesterday, the SEC rejected the petition again, claiming that was not enough data to back the claim that crypto markets were ready for an ETF fund. The markets are still to unregulated and volatile to be considered. The statement released by the SEC said,

“Rather, the Commission is disapproving this proposed rule change because… BZX has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Exchange Act… in particular the requirement that its rules be designed to prevent fraudulent and manipulative acts and practices.”

The Batz BRX Exchange, Inc. had filed this petition to allow them to list and trade the shares of the Winklevoss Bitcoin Trust.

The Winklevoss twins are the founder and owners of Gemini, which is a digital asset exchange, which is regulated by the New York State Department of Financial Services. The idea behind Gemini is to create a platform to buy, sell and store digital assets in a safe and compliant manner.

After the SEC ruling, there has been no comment from either of the Winklevoss brothers as to what their next steps might be to continue to bring cryptocurrency trading into mainstream markets.