SEC rejects another spot-bitcoin ETF

NEW YORK (May 31)  U.S. financial regulators continue to drag their heels when it comes to accepting bitcoin and cryptocurrencies as mainstream financial assets.

After two months of deliberations, the Securities and Exchange Commission (SEC) rejected One River Asset Management’s One River Carbon Neutral Bitcoin Trust – a spot bitcoin exchange-traded fund.

One River submitted its ETF proposal a year ago and in March, the SEC said it would delay its decision until May.

One River’s proposed ETF was unique compared to other products as the investment firm pledged to buy and dispose of carbon credits to account for the emissions associated with bitcoins in the fund.

Bitcoin investors are currently watching Grayscale Investment LLC’s proposed bitcoin ETF, which the company is expected to file before a July 6 deadline. The Grayscale Bitcoin Trust holds $18.4 billion in cryptomaket assets.

According to Bloomberg, Michael Sonnenshein, CEO of Grayscale, said his company wouldn’t rule out legal action if the SEC rejected its application.

While the SEC has been reluctant to approve a spot-bitcoin ETF, it has approved future-based funds. However, bitcoin futures, traded on the CME, only track bitcoin prices. The contracts are traded and settled in cash.

Only two countries, Canada and Brazil, have approved spot-bitcoin ETFs.

KITCO