The United States watchdog, SEC, has declined the spot BTC ETF application of OneRiver. The company submitted a proposal to offer its Carbon Neutral BTC Trust on NYSE (New York Stock Exchange). After reviewing the application, the watchdog declined it.

The commission has guidelines for listing BTC commodity trusts. Unfortunately, OneRiver’s application did not meet the requirement for fraud prevention. SEC added that;

“The rejection was not based on whether blockchain tech or Bitcoin has utility as investment or not.”

Eric Peters created OneRiver Digital in 2020. The company has joined a long list of financial organizations with rejected ETF proposals.

The Regulatory Body And Rejected Applications 

The decision of the SEC to decline the proposal of OneRiver is not new. This is because the agency has declined several proposals in the past.

Some of the firms are Global X, Fidelity Investment, Skybridge, and NYDIG. The commission cited fraud and manipulation as reasons for declining the BTC ETF applications. 

Last month, the watchdogs rejected a joint application of Ark 21Shares. Ark 21Shares is a partnership between Ark Investment and 21Shares. 

It was filed for the Cboe BZX crypto exchange firm. Unfortunately, the commission noted that the company does not meet the conditions for investor protection. 

Grayscale Awaits The Verdict Of SEC On 6th Of July

In April, Grayscale met with the regulator to speed up the conversion of its GBTC to an ETF. It is worthy to note that the company first filed an ETF application in 2017. 

Since then, the application has been pending. Currently, the investment firm is making efforts to meet up with requirements of the SEC. A spokesperson for the asset manager stated that;

“The company is law-abiding and will always follow the laid down protocols. The firm will keep speaking with policymakers and regulators as it awaits the 6th of July.”

In the proposal to the watchdog, the firm noted that creating a spot BTC ETF has benefits. According to Grayscale, it will protect the interest of the public and investors. 

Investors will be able to have Bitcoin investments securely and safely. Also, the new product can help to keep track of net asset value. The SEC has until the 6th of July to reject or approve the ETF application from Grayscale. 

The regulatory body noted that campaigners sent over 200 letters as of February. This was after Grayscale created a public campaign for the agency to accept its ETF application.