SkyBridge’s Bitcoin ETF Bid Declined By SEC, Citing Delayed Amendments

The investment landscape faced a significant turn of events as the Securities and Exchange Commission (SEC) directed SkyBridge Capital to retract its application for the First Trust SkyBridge Bitcoin ETF Trust. This directive comes after a prolonged inaction on the application, which remained unapproved for over nine months. The news came from a recent post on X.

SkyBridge Capital, under the leadership of Anthony Scaramucci, initially filed for the Bitcoin ETF in Mar 2021. The goal of the ETF was to mirror Bitcoin’s performance, accounting for liabilities and expenses. Despite this, the SEC rejected the application in Jan 2022, and no subsequent attempts were made by the firm to reapply.

Moreover, the SEC’s recent order, issued on March 12, 2024, emphasized the company’s failure to amend the registration statement as required. The official statement from the SEC read:

First Trust SkyBridge Bitcoin ETF Trust has failed to respond to notice under Rule 479 that the registration statement would be declared abandoned unless it was timely amended or withdrawn.

Bitcoin ETF Author Comments On SEC Decision

Eric Balchunas, a seasoned ETF researcher at Bloomberg, expressed his views on the matter, noting the lack of clarity surrounding the SEC’s decision. He speculated that had the SEC given the green light to the ETF, it could have led to a 15% increase in fund inflows.

However, this development is a setback for SkyBridge Capital and the broader crypto ETF market, which has seen numerous rejections from the regulatory body. Also, the SEC’s stringent stance on crypto-related ETFs continues to shape the financial industry’s approach to digital assets.

In the end, the SEC’s order for SkyBridge Capital to withdraw its Bitcoin ETF application marks another chapter in the ongoing saga of cryptocurrency’s integration into mainstream financial products. However, as the industry evolves, regulatory clarity will be paramount in determining the future of crypto ETFs and their role in investment portfolios.

Related Reading | Bitcoin ETF Battle: VanEck’s Zero-Fee HODL Gambit

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

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