One River’s Bitcoin ETF Application Got Rejected By The SEC

One River’s bitcoin ETF application got rejected by the SEC because it was not sufficiently protected against fraud and manipulation like most ETF proposals before it so let’s read more today in our latest Bitcoin news.

The United States Securities and Exchange Commission maintained the perfect record for rejecting BTC spot exchange traded funds when it disapproved a rule to change to allow crypto-focused hedge fund one River digital to offer the One River Carbon Neutral BTC trust on the New York Stock Exchange Arca. The decision came ahead of schedule as the agency extended the original deadline to June 2 and allow more time for consideration.

The commission wrote that when considering One River’s Bitcoin ETF proposed rule change it applied the same standards used in the orders considered in other proposals to list BTC-based commodity trusts and the proposed rule change didn’t meet the SEC rules around fraud prevention:

“[…] 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.”

One River Digital was established in 2020 by Eric Peters as the founder of One River Asset Management while being backed by billionaire Alan Howard as the co-founder of Brevan Howard Asset Management. Among the other organizations which tried and failed to receive the SEC blessings on digital asset ETF this year are Fidelity investments, New York Digital Investments Group, SkyBridge capital, and Global X. Grayscale was quite aggressive in its efforts to receive approval for a spot-traded BTC ETF and the digital asset manager went as far as to threaten to file suit against the SEC if the application is denied and recently even launched a campaign to dump up the public support for the application.

As recently reported, The leading US-based exchange Coinbase, partnered with One River Digital Asset Management on an SMA offering for wealth management firms. In a press release, One River unveils a new SMA offering for clients of Coinbase Prime. The new offering will enable users with a Coinbase Prime account to maintain ownership of the digital assets while accessing the institutional index and active strategies with One Digital SMA.