Former SEC Chairman Will Advise One River On BTC ETF Issuing

The former SEC Chairman Jay Clayton will advise One River Asset Management on issuing a Bitcoin ETF while under his watch, the SEC rejected plenty of ETF applications so let’s read more in our latest cryptocurrency news today.

One River Asset Management is the latest company to file an application for a carbon-neutral Bitcoin ETF and the former SEC Chairman will advise the company on the issuance of a Bitcoin exchange-traded fund. It looks like Clayton who rejected ETF applications in his time at the SEC, will help One River get approved. The ex-chairman of the US Securities and Exchange Commission who said that the US market doesn’t need a crypto exchange-traded fund is now helping a company to own its ETF.

Only two poss takeaways here: Jay Clayton thinks a bitcoin ETF should be approved now or he'll do anything for money. https://t.co/iGJUy3tcby

— Eric Balchunas (@EricBalchunas) May 24, 2021

Clayton said that the BTC market was prone to market manipulation and shouldn’t have an ETF of the US stock exchange but he also resigned from the SEC a year ago to take a position as a crypto advisor to digital hedge fund One River Asset Management. One River filed an application to the SEC for a carbon-neutral BTC ETF and will be the latest high-profile company to do so while reviewing eight others and the market is hungry for a product like this.

ETFs are a popular investment product that allows people to buy stocks that represent one asset like real estate or gold. A Bitcoin ETF allows investors to invest in BTC or other cryptos like Ethereum without having to own the asset themselves so investors purchase shares in the fund like stocks and track the crypto’s price. The US market doesn’t have a Bitcoin ETF because the SEC under Clayton blocked each application to date citing market manipulation as a lack of transparency of crypto markets and potential lack of liquidity.

BTC BTC and ETH ETFs have been a major success in Canada with eight ones being launched in the country. One River’s application said it wants to launch a carbon-neutral BTC ETF with the goal here being that the ETF will incorporate the purchase of carbon credits to minimize the carbon footprint of the product. The filing says:

“The Trust intends to offset the carbon footprint associated with Bitcoin by purchasing and retiring carbon credits necessary to account for the estimated carbon emissions associated with the bitcoins held by the Trust.”