The SEC has yet again rejected another spot Bitcoin ETF application. One River Digital had their request denied to turn their crypto-focused hedge fund, One River Carbon Neutral Bitcoin Trust into and ETF. The ruling from the SEC came ahead of schedule as One River Digital had extended the deadline to June 2, 2022 to allow for further consideration. The SEC stated that the proposed rule change from One River Digital did not meet their rules around fraud prevention with the SEC further stating, “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 has consistently declined proposals for spot Bitcoin ETFs and their decision to do so is based mainly on how untraceable cryptocurrency is at the moment.