One River’s One River Carbon Neutral Bitcoin Trust is now included in the list of spot ETFs rejected by US’s Securities and Exchange Commission. The regulator disapproved a rule change to allow One River Digital to offer the One River Carbon Neutral Bitcoin Trust on the New York Stock Exchange Arca. This came as a surprise as the SEC had extended the original deadline to June 2.
When going through One River’s proposal, the SEC applied the same standard used in its orders considering previous proposals to list Bitcoin-based commodity trusts. One River’s proposal did not meet the SEC’s rules in regard to fraud prevention. The regulator said the proposal does not rest on an evaluation of whether Bitcoin or blockchain technology has utility or value as an innovation or an investment.
As such, One River has found itself among the financial organizations that failed to receive the SEC’s nod on digital asset-based ETFs. It includes Fidelity Investments, Global X, New York Digital Investment Group, and Skybridge Capital. However, Grayscale has been very aggressive in getting its spot-traded Bitcoin ETF approved. It even threatened to sue the SEC if its application was denied. Grayscale launched a campaign to garner public support for its application.