The U.S. Securities and Exchange Commission (SEC) maintained its perfect record for rejecting bitcoin (BTC) cash exchange traded fund (ETF) applications on Friday when it disallowed a rule change aimed at hedge fund targeting. on cryptocurrency allow One River Digital. to offer One River Carbon Neutral Bitcoin Trust on Arca New York Stock Exchange. The decision comes a little earlier than expected, as the agency extended the original deadline until June 2 to allow more time to consider the application.
The Commission, in reviewing the proposed changes to the One River rules, wrote that it had applied “the same standard used in its orders relating to previous proposals for listing bitcoin – based commodity trusts.”. Specifically, the proposed rule change did not comply with SEC fraud prevention rules. The SEC also clarified:
” […] The disapproval of this proposed rule change is not based on an assessment of the usability or value of bitcoin, or blockchain technology in general, as an innovation or investment. ”
Eric Peters, founder of One River Asset Management, founded One River Digital in 2020, and is reportedly backed by billionaire Alan Howard, co-founder of Brevan Howard Asset Management.
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Financial organizations that have failed to seek the SEC’s blessing on asset-based digital ETFs this year include Fidelity Investments, New York Digital Investment Group (NYDIG), and Global X, as well as Skybridge Capital.
Grayscale has had more opposition in its efforts to allow cash-traded Bitcoin ETFs. The digital asset manager has gone so far as to threaten the SEC if his application is rejected, and recently launched a campaign to gain public support for his application.