SEC has denied One River’s proposal for a spot Bitcoin ETF

May 27, 2022

The SEC has denied One River's proposal for a spot Bitcoin ETF.

SEC has denied One River’s proposal for a spot Bitcoin ETF

Like many ETF proposals before it, the proposed environmentally aware spot ETF was determined to be insufficiently safeguarded against fraud and manipulation. The US Securities and Exchange Commission (SEC) maintained its perfect record of rejecting Bitcoin (BTC) spot exchange-traded fund (ETF) applications on Friday, rejecting a rule change that would have allowed cryptocurrency-focused hedge fund One River Digital to list the One River Carbon Neutral Bitcoin Trust on the New York Stock Exchange Arca.

The government had extended the initial deadline to June 2 to give extra time for review, so the decision is a little ahead of schedule. The commission utilized “the same criterion used in its rulings examining prior requests to list bitcoin-based commodities trusts” when considering One River’s proposed rule change, according to the EU. The proposed rule change, in particular, did not comply with the SEC’s fraud-prevention guidelines.

Eric Peters, the creator of One River Asset Management, founded One River Digital in 2020, and billionaire Alan Howard, the co-founder of Brevan Howard Asset Management, is said to be a backer. Fidelity Investments, New York Digital Investment Group (NYDIG), Global X, and Skybridge Capital are among the financial firms that have attempted and failed to get the SEC’s approval for digital asset-based ETFs this year.

Grayscale has stepped up its attempts to obtain regulatory clearance for a spot-traded Bitcoin ETF. The digital asset management has threatened to sue the SEC if its application is refused, and has lately begun a public awareness campaign in support of its application.

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