The US Securities and Exchange Commission (SEC), despite progress in registering bitcoin futures ETFs, has rejected One River Asset Management’s application.
An application to launch One River Carbon Neutral Bitcoin ETF from One River Asset Management has been denied in accordance with NYSE Arca Rule 8.201-E. The main reason for the rejection of the application is that the offer to list on the NYSE Arca exchange lacks sufficient investor protection, which is not allowed under exchange law and SEC rules. The supervisor cited that the rules of the national securities exchange “are designed to prevent fraudulent and manipulative actions and practices”, “to protect investors and the public interest”. The SEC noted that it had previously rejected other bitcoin spot ETFs for the same reason:
“An exchange that hosts bitcoin-based products can meet its obligations under the exchange law by demonstrating an agreement with supervisory authorities to oversee bitcoin assets.”
One River filed paperwork with the ETF in May 2021, and the SEC announced in March that the decision was on hold. This particular spot ETF application differed from others in that One River committed to buying and selling carbon credits to account for bitcoin emissions in the fund.
Recently, Cathie Wood and 21Shares filed for a Bitcoin spot ETF. The deadline for accepting or not accepting an application is January 24, 2023.
