The SEC premise appears to be the unregulated natuire of the underlying:
Therefore, as 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.
What goes up (to $1327) comes down hard to $978!
Dropping to one-month lows…
For those who use Coinbase and are trying to trade out (or in), sorry: you just got the Bitcoin Screen of Death:
Full SEC Statement below: