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Trader says he is optimistic about Bitcoin after SEC blocks ETF

The "Fast Money" traders weighed Bitcoin after the Securities and Exchange Commissionblocked the listing of the first exchange-traded fund for the digital currency on Friday.

Trader Brian Kelly said he still likes bitcoin because the currency has tremendous utility. He said the SEC rejected the ETF because the bitcoin exchange system could not handle the volume of trades that would be made. Kelly added that it would not be easy for the SEC to regulate bitcoin trades.

Trader Steve Grasso said gold may trade higher on the news as an alternative to bitcoin.

Trader Tim Seymour said he is not buying bitcoin and does not think it is the right time to buy gold either.

Disclosures:

Steve Grasso's firm is long CUBA, DIA, HES, ICE, KDUS, MAT, MFIN, MJNA, MSFT, NE, RIG, SPY, TITXF, WDR, WPX, WLL, ZNGA. Grasso is long: CHK, EEM, EVGN, GDX, KBH, MJNA, MON, MU, OLN, PFE, PHM, QCOM, SNAP, SPY, T, TWTR. Grasso's children own: EFA, EFG, EWJ, IJR, SPY. NO SHORTS.

Tim Seymour is long ABX, AAPL, APC, AVP, BAC, BBRY, C, CLF, CVX, DO, DVYE, EDC, EWN, EWZ, F, FB, FCX, FXI, GM, GOOGL, GE, INTC, LQD, MOS, MCD, MUR, OIH, PG, RACE, RAI, RH, RL, SINA, SQ,T, TWTR, VALE, VZ, XOM. short: EEM, SPY, XRT; Tim's firm is long ABX, BABA, BIDU, CBD, CLF, EEM, EWZ, F, KO, MCD, MPEL, NKE, PEP, PF, TCEHY, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, X, YHOO, short EWG, HYG, IWM

Brian Kelly is long Bitcoin, XBI, DXJ, TBT, DXY. Short: Yen, US Treasury Bonds

Karen Finerman is long AAL, BAC, BAC short calls, C, DAL, FB, FL, GLMP,, GOGO, GOOG, GOOGL, JPM, URI, LYV, KORS, KORS calls, KORS puts, MA, SEDG, SPY puts, TACO, WIFI long call spreads. Her firm is long ANTM, BAC, C, C calls, FB, GOOG, GOOGL, JPM, JPM calls, KORS, LYV, PLCE, SPY puts, WIFI, her firm is short IWM, MDY. Karen Finerman is on the board of GrafTech International.