The SEC has turned down an application to list and trade an exchange-traded fund tracking bitcoin on the NYSE Arca.

In its March 28 order denying a proposed bitcoin ETF backed by SolidX Management LLC, the securities regulator cited the absence of regulation in "significant markets" where the digital currency is traded. The regulator also said that "the exchange must have surveillance-sharing agreements with significant markets for trading the underlying commodity or derivatives on that commodity."

Earlier in March, the regulator cited similar concerns about a proposal to list a bitcoin ETF backed by investors Cameron Winklevoss and Tyler Winklevoss on BATS BZX Exchange Inc. Bats has since disclosed its plans to appeal the SEC's decision to reject the Winklevoss Bitcoin Trust.

The SEC has yet to deliver its verdict on one remaining bitcoin ETF proposal, The Wall Street Journal reported. That proposal is to have Grayscale Investments LLC's Bitcoin Investment Trust, which is currently traded over the counter, trade on NYSE Arca.