The Securities and Exchange Commission (SEC) has rejected a second bitcoin exchange-traded fund (ETF) proposal, following the rejection of Cameron and Tyler Winklevoss’ effort to list a bitcoin ETF on the Bats BZX Exchange earlier this month.

CoinDesk reported that the SEC has rejected SolidX bid to list a bitcoin ETF on the New York Stock Exchange. It cited reasons similar to those given during the Winklevoss ETF decision – lack of market surveillance and regulation relating to bitcoin in some jurisdictions.

"The Commission believes that, in order to meet this standard, an exchange that lists and trades shares of commodity-trust exchange-traded products ("ETPs") must, in addition to other applicable requirements, satisfy two requirements that are dispositive in this matter. First, the exchange must have surveillance-sharing agreements with significant markets for trading the underlying commodity or derivatives on that commodity. And second, those markets must be regulated”, the SEC wrote.

Blockchain tech company SolidX in July 2016 announced that it has filed a registration statement on Form S-1 with the SEC relating to the proposed launch of the SolidX Bitcoin Trust, which will seek to provide shareholders with exposure to the daily change in the U.S. dollar price of bitcoin, before expenses and liabilities of the Trust, as measured by the TradeBlock XBX Index.

“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”, the SEC said.