Despite the ETF being carbon-free, the U.S. SEC is not looking to approve any Bitcoin ETFs soon, as it as recently dismissed One River’s application of approval.
Carbon-Free Bitcoin ETF Not Approved
The United States Securities and Exchange Commission (SEC) is still standing firm on its opinion about Bitcoin exchange traded funds (ETFs) after dismissing the recent application submitted by the firm, One River Digital, who was seeking to get an approval for a carbon free Bitcoin Trust, operating on the New York Stock Exchange Arca.
As for the official response on why it rejected One River’s application, the SEC said that it sent the application through the implemented standard that is considered towards all applications regarding Bitcoin trusts, and the application submitted did not fall in line with the rules that are built around handling fraudulent activities.
The Securities and Exchange Commission clearly stated that rejected One River’s application is not going to bring change to the assessment about if Bitcoin and blockchain technology are to be counted having a sign of utility or value in terms of investments are any sufficient innovation in the financial industry.
One River Digital first came into existence around two years ago, founded by Eric Peters and is said to be supported Alan Howard, who is one of the founders of the Howard Asset Management firm. With its recent disapproval of application from the SEC, it is now part of the many companies who have worked hard to get in line with the SEC’s rules, but eventually failed in some way.
Rejections all Around
The SEC’s decision over One Rivers application isn’t much of a surprise at all, as the commission has been on an application rejecting spree, clearly showing that the SEC’s stance towards Bitcoin ETFs which is not entirely on a positive note. The main highlighted reason for each of the rejections mainly hovers around fraud handling. Many recognized companies such as, the New York Digital Investment Group, SkyBridge, Global X and a list of others have tried to get their applications accepted but have failed.
Grayscale has also been trying to convert its Bitcoin Trust into spot Bitcoin ETF, however the application submitted is still pending till this date. Grayscale stated that this would not only help to give its investors and the public interest more protection but would also allow its products to be efficiently tracked and give investors the chance to engage with Bitcoin in a secure way. As of now, the SEC will announce its decision on this on the 6th of July, as it has been receiving massive pressure from the public.