The One River Carbon Neutral Bitcoin Trust - a spot bitcoin ETF proposed by One River Asset Management - has been rejected by the U.S. Securities & Exchange Commission (SEC).
- The proposal to list on the NYSE Arca exchange does not provide sufficient investor protection, the SEC said. This is similar language used by the agency in rejecting other Bitcoin (BTC) ETFs.
- One River filed for the ETF in May 2021, and the SEC announced a delay in its decision in March. This particular spot ETF filing differed from others in that One River committed to buy and sell emission allowances to account for the emissions associated with bitcoin in the fund.
- While the SEC has approved a number of futures-based bitcoin ETFs, it has rejected (or otherwise delayed) all spot bitcoin ETFs submitted to it. To name just two, the agency rejected applications from NYDIG and GlobalX in March.
- The most recent futures-based bitcoin ETF to be approved by the SEC was that of Valkyrie. This asset manager had filed its application under the Securities Exchange Act of 1934. Other approved bitcoin futures ETFs fell under the Investment Company Act of 1940. Valkyrie's "34 Act" approval had given some hope to bitcoin ETF advocates.