The US regulator rejected the application of the creator of a carbon-neutral bitcoin ETF

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The US Securities and Exchange Commission (SEC), despite progress in registering Bitcoin futures ETFs, rejected One River Asset Management's application.

Application to launch One River Carbon NeutralOne River Asset Management's Bitcoin ETF was rejected under NYSE Arca Rule 8.201-E. Primary reason for rejection of the application: The proposal to list on the NYSE Arca exchange lacks sufficient investor protection, which is unacceptable under the Exchange Act and SEC rules. The watchdog cited that the national securities exchange's rules are "intended to prevent fraudulent and manipulative acts and practices" and "to protect investors and the public interest." The SEC noted that it had previously rejected other Bitcoin spot ETFs for the same reason:

"An exchange on which products are placed onbased on Bitcoin, can satisfy its obligations under the Exchange Act by demonstrating an agreement to cooperate with regulatory authorities in monitoring Bitcoin assets.”

One River filed for the ETF in May 2021year, and the SEC announced in March that the decision was delayed. This particular spot ETF application was different from others in that One River committed to buying and selling carbon credits to account for the emissions associated with Bitcoin in the fund.

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Cathie Wood and 21Shares recently filed for a Bitcoin spot ETF. The deadline for accepting or not accepting an application is January 24, 2023.