- The US SEC has rejected another Bitcoin (BTC) spot exchange-traded fund (ETF) application.
- Apparently, the proposed rule change did not meet the SEC’s rules regarding fraud prevention.
- This is not the first time the SEC has denied digital assets-based ETFs as entities like Fidelity Investments, etc., have faced the same.
ETF Improperly Protected Against Attacks
The United States Securities And Exchange Commission (SEC) has yet again managed to carry on with its plans to reject Bitcoin (BTC) spot exchange-traded fund (ETF) applications recently on Friday.
It denied a rule change to facilitate digital assets-focused hedge fund One River Digital to provide the One River Carbon Neutral Bitcoin Trust on New York Stock Exchange Arca (NYSE Arca).
This decision was scheduled for a later date as the agency extended the initial deadline to June 2 to provide more time for consideration. And clearly, the decision came before the scheduled time.
The commission highlighted that, when considering the rule change that One River brought forward, it applied the same standard utilized in its orders considering earlier proposals to list bitcoin-based commodity trusts. Particularly, the proposed rule change did not meet the SEC’s rules regarding fraud prevention and manipulation.
Furthermore, the US Securities And Exchange Commission specified that disapproval of this proposed rule change does not rest on evolution if bitcoin or blockchain technology more generally has a utility or value as an investment or an innovation.
One River Digital was set up in 2020 by Eric Peters, the mind behind One River Asset Management. Apparently, it is backed by the co-founder of Brevan Howard Asset Management, billionaire Alan Howard.
The US SEC Shows No Mercy As A Regulating Legend
This is not the first time that the US SEC is showing scrutiny towards the entities inclined toward digital assets-based ETFs. Others on the list were Fidelity Investments, Skybridge Capital, GlobalX, and New York Digital Investments Group (NYDIG).
It is to look forward to when the regulatory body opens its doors of positivity for cryptocurrency-based Exchange-traded funds (ETFs).
Source: https://www.thecoinrepublic.com/2022/05/28/the-us-sec-denies-one-rivers-bitcoin-btc-etf-application/