The numbers of applications for a Bitcoin spot exchange-traded fund (ETF) by various firms continue to pile up for the United States Securities and Exchange Commission (SEC) as the application put forth by One River, an asset management firm with over eight years of experience, has been rejected by the financial authority. 

SEC rejects One River BTC ETF proposal

A number of firms have applied for being granted to launch a Bitcoin spot ETF, but in vain. The SEC has rejected each and every proposal for the same, and the newest one was One River Bitcoin spot ETF. The exchange-traded fund incorporated the purchase of carbon credits in an effort to make it carbon-neutral, but the efforts were shot down by the SEC.

In its May 27 statement, the SEC confirmed that the proposed Bitcoin spot ETF, which was supposed to begin training on the NYSE Arca exchange, an electronic communications network (ECN) used for matching orders, was rejected because it “has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section 6(b)(5), and in particular, the requirement that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices and ‘to protect investors and the public interest.’”

Same reasoning every time

The SEC has given the same reason every time whenever it has rejected a Bitcoin spot ETF. As noted in a previous report from Cryptonary, the monetary authority delayed its decision on the Bitcoin spot ETF application by One River, but the result hasn’t changed. 

Interestingly, Michael Sonnenshein, the CEO of the cryptocurrency asset management giant Grayscale Investments LLC, believes that the SEC’s approval of the conversion of their Bitcoin Trust to a Bitcoin spot ETF is coming soon. He hinted that if the SEC rejects the same, the firm might have to involve the court.