The USA Securities and Change Fee (SEC) maintained its excellent file for rejecting Bitcoin (BTC) spot exchange-traded fund (ETF) functions Friday when it disapproved a rule change to permit cryptocurrency-focused hedge fund One River Digital to supply the One River Carbon Impartial Bitcoin Belief on the New York Inventory Change Arca. The choice comes considerably forward of schedule, because the company had extended the original deadline to June 2 to permit extra time for consideration.
The fee wrote that, when contemplating One River’s proposed rule change, it utilized “the identical commonplace utilized in its orders contemplating earlier proposals to listing bitcoin-based commodity trusts.” Particularly, the proposed rule change didn’t meet the SEC’s guidelines round fraud prevention. The SEC additional clarified:
“[…] disapproval of this proposed rule change doesn’t relaxation on an analysis of whether or not bitcoin, or blockchain expertise extra usually, has utility or worth as an innovation or an funding.”
One River Digital was established in 2020 by Eric Peters, founding father of One River Asset Administration, and is reportedly backed by billionaire Alan Howard, co-founder of Brevan Howard Asset Administration.
Among the many monetary organizations which have tried and failed to receive the SEC’s blessings on digital asset-based ETFs this yr are Constancy Investments, New York Digital Investment Group (NYDIG) and World X, in addition to Skybridge Capital.
Grayscale has been more militant in its efforts to receive approval for a spot-traded Bitcoin ETF. The digital asset manager has gone so far as to threaten to file suit against the SEC if its utility is denied, and has not too long ago launched a campaign to drum up public assist for its utility.