There is nothing like the cryptocurrency industry. Hilarious fad tokens may have found a place but not Bitcoin ETF. At least not in the United States.
Regulatory approval of a Bitcoin exchange-traded fund [ETF] in the US represents the holy grail. The Securities and Exchange Commission [SEC] under former Chairman Jay Clayton had rejected Bitcoin ETFs. However, he does not hold the position anymore. Currently, Clayton is serving as a crypto advisor for asset manager One River.
Interestingly, the hedge fund has now filed for a Bitcoin ETF with the regulatory watchdogs of the country.
Clayton had previously stated that the US should never have an ETF on any stock exchange of the country citing market manipulation concerns. However, he is now helping One River to get one.
One River’s Bitcoin ETF
According to the asset management platform’s S-1 filing, dubbed ‘One River Carbon Neutral Bitcoin Trust’ would be listed on the New York Stock Exchange [NYSE]. The ETF plans to offset the carbon footprint associated with the cryptocurrency by buying and disposing of carbon credits necessary to account for the estimated carbon emissions related to the bitcoins held by the Trust.
It further stated that the Trust has entered into an agreement with LIRDES S.A., an Uruguay-based firm, to purchase MCO2 tokens representing certified reductions in greenhouse gas emissions. It also said,
“The MCO2 tokens issued by Moss are assets encrypted and tokenized utilizing blockchain technology and are stored on a registry managed by Verra, an organization that establishes and manages standards and programs in connection with carbon credits [“Verra”].”
As per the filing, the trust will not sell and or buy the cryptocurrency directly. Rather, it plans on leveraging third parties to offer the crypto assets via something called, “in-kind” transactions which involve the selling and redeeming of shares. In addition, Coinbase Custody has joined hands as the custodian for the ETF’s bitcoin assets.