Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. SEC rejects carbon-neutral bitcoin ETF by One River

Published 05/27/2022, 12:54 PM
Updated 05/27/2022, 01:22 PM
© Reuters. FILE PHOTO: The seal of the U.S. Securities and Exchange Commission hangs on the wall at SEC headquarters in Washington, June 24, 2011.   REUTERS/Jonathan Ernst

© Reuters. FILE PHOTO: The seal of the U.S. Securities and Exchange Commission hangs on the wall at SEC headquarters in Washington, June 24, 2011. REUTERS/Jonathan Ernst

By John McCrank

NEW YORK (Reuters) -The U.S. Securities and Exchange Commission on Friday rejected a proposal to list and trade a carbon-neutral spot bitcoin exchange-traded fund (ETF) by asset management firm One River on the NYSE Arca exchange, citing concerns over fraud-prevention measures.

The One River Carbon Neutral Bitcoin Trust proposal by NYSE Arca, which is owned by Intercontinental Exchange (NYSE:ICE) Inc, did not meet the standards for exchanges designed to prevent fraudulent and manipulative practices and protect investors and the public interest, the Wall Street regulator said.

"The Commission emphasizes that its 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," the SEC said.

Rather, the proposal was not approved because it did not meet the requirement that the rules of a national securities exchange be "designed to prevent fraudulent and manipulative acts and practices" and "to protect investors and the public interest," the SEC said.

To meet its obligations, an exchange would have to show that it has a comprehensive surveillance-sharing agreement with a regulated market of significant size related to the underlying bitcoin assets, the SEC said.

© Reuters. FILE PHOTO: The seal of the U.S. Securities and Exchange Commission hangs on the wall at SEC headquarters in Washington, June 24, 2011.   REUTERS/Jonathan Ernst

It was the latest in a series of rejections by the market regulator to approve an ETF that tracks the underlying digital asset, including those from Fidelity, NYDIG and SkyBridge earlier this year.

One River intended to offset the carbon footprint associated with the bitcoins in its fund by paying for the retirement of voluntary carbon credits equal to the daily estimated carbon emissions associated with the bitcoins held by the trust, according to the proposal.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.