US SEC Rejects One River's BTC-Based ETF Proposal

A spot Bitcoin (BTC) exchange-traded fund (ETF) dubbed The One River Carbon Neutral Bitcoin Trust and introduced by One River Asset Management was rejected by the United States Securities and Exchange Commission (SEC). The ETF will not be listed in the New York Stock Exchange Arca (NYSE Arca).

According to the official statement, the proposal lacked proper investor protections, meaning that it did not fulfill the rules for exchanges that are established to prevent illegal and deceptive acts, as well as safeguard traders and the common interest. SEC also added:

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"The Commission emphasizes that its disapproval of this proposed rule change does not rest on an evaluation of whether bitcoin, or blockchain technology more generally, has utility or value as an innovation or an investment.”

Interestingly enough, the decision to reject the ETF was made slightly ahead of schedule, since the agency had extended the initial deadline to June 2 to allow for further review.

One River Digital, an investment adviser that specializes in providing innovative alternative investment products and services to institutional clients, was founded in 2020 by Eric Peters, the founder, CEO, and CIO of One River Digital Asset Management.

In other news, earlier this month, an American investment management company ARK Investment Management and Swiss investment product issuer 21Shares submitted a proposal to have their collaborative spot BTC ETF licensed in the United States once again.

On top of that, on May 17, a digital currency investing and crypto asset management business Grayscale announced that it would be making its debut in Europe while introducing a new crypto-based ETF dubbed Grayscale Future of Finance UCITS ETF. 

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