SEC Stands Firm Against Bitcoin ETF Applications: One River Trust Denied Again

SEC’s Unwavering Stance on Bitcoin ETFs

The United States Securities and Exchange Commission (SEC) has once again shown its penchant for saying “no” to Bitcoin spot exchange-traded fund (ETF) applications. The latest victim of this unwavering policy is One River Digital, which had sought approval for its One River Carbon Neutral Bitcoin Trust on the New York Stock Exchange Arca.

A Deeper Dive into the Denial

In a decision that came speeding to the finish line ahead of the extended deadline of June 2, the SEC explained that their rejection centered around the idea of protecting investors and maintaining the integrity of the market. The commission stated that One River’s proposal simply didn’t meet its rules concerning fraud prevention. No need for conspiracy theories—this was as straightforward as a referee’s call in a game of dodgeball.

Unpacking the SEC’s Logic

It’s important to note that the SEC clarified its stance: this latest disapproval wasn’t a judgment on the utility or value of Bitcoin itself. In layman’s terms, they aren’t saying Bitcoin is a bad egg—they just haven’t found the right incubator yet. The agency reiterated that it applies the same rigorous standards to all Bitcoin-based commodity trust proposals, like some kind of grill master holding the meat to a high standard.

Who Else Has Tried and Failed?

As the SEC continues its reign of rejection, the list of those who have suffered the same fate is growing. Notable organizations like Fidelity Investments, New York Digital Investment Group (NYDIG), and Global X, along with Skybridge Capital, have all attempted to gain the coveted stamp of approval for digital asset-based ETFs, but to no avail.

The Grayscale Play: Bellicose and Bold

Grayscale Investments is taking a different approach to this ongoing saga. No wallflowers here; they’ve threatened to sue the SEC if their latest ETF application is denied, showing the kind of fight you’d expect from a cat cornered by a dog. On top of that, Grayscale has rolled out a campaign aimed at drumming up public support for their application. Will their efforts pay off, or is it all just noise? Only time—oh, and the SEC—will tell.