On May 27, The Securities and Exchange Commission (SEC) of the United States rejected One River Asset Management’s application for a spot Bitcoin Exchange Traded Fund (ETF).
The regulator’s decision to deny the application for a rule adjustment to list One River Carbon Neutral Bitcoin Trust on the New York Stock Exchange Arca was made a few days ahead of schedule, on June 2nd.
The application did not address the SEC’s main concerns about price manipulation, according to the SEC, which noted that the company employed “the same methodology used in its rulings assessing previous applications to list bitcoin-based commodities trust.”
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 SEC’s rejection of One River’s proposal demonstrates that it is not ready to authorise a spot Bitcoin ETF at this time. While it is unclear what steps the SEC plans to take before approving a full-fledged spot ETF, hedge funds and managers that want to beat this record are pushing hard.
Following the SEC’s rejection of its Bitcoin ETF application in early April, Ark Investments and 21Shares have resubmitted their application in the hopes of meeting the SEC’s requirements. The SEC has yet to respond to Grayscale Investments’ request to convert its Grayscale Bitcoin Trust (GBTC) into a full-fledged crypto ETF.
In addition to his confidence, Grayscale’s CEO, Michael Sonnensheim, has used a series of targeted market promotions and techniques to get the SEC to approve its products. If this is not done, the Michael-led corporation may be forced to sue the SEC, as has been promised.
Despite hosting former SEC Chairman Jay Clayton on the firm’s board of directors, One River was rejected.
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 of the United States rejected One River Asset Management's application for a spot Bitcoin Exchange Traded Fund (ETF).){kind=link}