The United States Securities and Exchange Commission (SEC) has the spot Bitcoin Exchange Traded Fund (ETF) Application filed by One River Asset Management.
The decision by the regulator to reject the application for a rule change to list One River Carbon Neutral Bitcoin Trust on the New York Stock Exchange Arca came a few days earlier than the anticipated June 2nd.
According to the SEC, the application did not address the core concerns bordering on price manipulation noting that the company utilized "the same standard used in its orders considering previous proposals to list bitcoin-based commodity trusts."
Additionally, the SEC said it was not convinced about One River Asset Management’s fraud prevention measures and the decision was made irrespective of crypto valuation.
“...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.”
The rejection of One River’s application is a strong testament to the fact that the SEC is not ready at this time to approve a spot Bitcoin ETF. While it is unclear the measures the SEC hopes to make before it can approve a full-fledge spot ETF, Hedge Funds and managers looking to break this record are largely unrelenting in their push.
After its Bitcoin ETF was rejected back in early April, Ark Investments and 21Shares have their application in what is hoped will meet the SEC’s requirements. Grayscale Investments is also expecting replies from the SEC with respect to the conversion of its Grayscale Bitcoin Trust (GBTC) to a full-fledged crypto ETF.
Beyond his optimism, Grayscale’s CEO, Michael Sonnensheim has employed a series of targeted market advertisements and strategies to force the SEC’s hand in approving its products. Failure to do this might see the Michael-lead company take the SEC to court as threatened.
For One River, the rejection came despite the firm’s board to Jay Clayton, the former SEC Chairman.
Image source: Shutterstock
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments