Editor’s Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today’s must-read news and expert opinions. Sign up here!
(Kitco News) – U.S. financial regulators continue to drag their heels when it comes to accepting bitcoin and cryptocurrencies as mainstream financial assets.
After two months of deliberations, the Securities and Exchange Commission (SEC) rejected One River Asset Management’s One River Carbon Neutral Bitcoin Trust – a spot bitcoin exchange-traded fund.
One River submitted its ETF proposal a year ago and in March, the SEC said it would delay its decision until May.
One River’s proposed ETF was unique compared to other products as the investment firm pledged to buy and dispose of carbon credits to account for the emissions associated with bitcoins in the fund.
Bitcoin investors are currently watching Grayscale Investment LLC’s proposed bitcoin ETF, which the company is expected to file before a July 6 deadline. The Grayscale Bitcoin Trust holds $18.4 billion in cryptomaket assets.
According to Bloomberg, Michael Sonnenshein, CEO of Grayscale, said his company wouldn’t rule out legal action if the SEC rejected its application.
While the SEC has been reluctant to approve a spot-bitcoin ETF, it has approved future-based funds. However, bitcoin futures, traded on the CME, only track bitcoin prices. The contracts are traded and settled in cash.
Only two countries, Canada and Brazil, have approved spot-bitcoin ETFs.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
This news is republished from another source. You can check the original article here
Be the first to comment