The United States Securities and Exchange Commission continues to decline applications for bitcoin ETFs. The latest is a proposed rule change to list and trade shares of One River Carbon Neutral Bitcoin Trust.
- The SEC has declined another application to launch a bitcoin ETF. On May 27, the Commission issued a notice under NYSE Arca Rule 8.201-E dismissing a proposed rule change to One River Carbon Neutral Bitcoin Trust to list and trade shares.
- The notice details that the main reason for the rejection is that the proposed rule change fails to meet its burden under the Exchange Act and the Commission’s rules of exercise.
- More specifically, the watchdog outlined section 6(b)(5) and actually requires that the rules of a national securities exchange “to prevent fraudulent and manipulative acts and practices” and ” to protect the interests of investors and the public”.
- The SEC outlined that this is the reason why it is rejecting other spot bitcoin ETFs and also said that it is approving one for:
“… an exchange that lists bitcoin-based exchange-traded products may fulfill its obligations under the Exchange Act section 6(b)(5), indicating that the exchange has a comprehensive oversight— is a sharing agreement that pertains to a regulated market of significant size, the underlying or reference bitcoin asset.”
- As expected, the SEC’s decision hasn’t stopped other big names from filing for spot bitcoin ETFs.
- just recently, cryptopotato reported that Cathy Wood’s ARK Invest filed for another.
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