SkyBridge Capital Joins Bitcoin ETF Race with SEC Filing

SkyBridge Capital Joins Bitcoin ETF Race with SEC Filing

SkyBridge Capital, a New York-based investment firm led by Anthony Scaramucci, has officially filed for a Bitcoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). The filing, submitted on March 19, represents a collaboration between SkyBridge and First Trust Advisors. First Trust will serve as the fund’s primary advisor, with SkyBridge acting as the sub-advisor. If approved, the ETF will be listed on the New York Stock Exchange (NYSE) Arca.

While the ETF’s ticker symbol remains undecided, its approval could mark a significant milestone for Bitcoin adoption in the U.S. financial market.

Details of SkyBridge’s Bitcoin ETF Filing

SkyBridge Capital’s proposed Bitcoin ETF seeks to offer investors a regulated and accessible way to gain exposure to Bitcoin without directly owning the cryptocurrency.

Key Features

• Partnership with First Trust Advisors: First Trust will oversee the fund’s operations, while SkyBridge will provide advisory services as a sub-advisor.
• Listing on NYSE Arca: If approved, the ETF will trade on the New York Stock Exchange, allowing broader investor access.
• Regulatory Approval Pending: The filing awaits the SEC’s green light, which could pave the way for other Bitcoin ETF applications.

SkyBridge’s venture into Bitcoin ETFs follows the launch of its Bitcoin Fund in December 2020, which raised $370 million within weeks.

SkyBridge: The Fifth Bitcoin ETF Applicant in the U.S.

SkyBridge is the latest in a growing list of U.S.-based firms vying for Bitcoin ETF approval from the SEC.

Other Recent Bitcoin ETF Filings

• WisdomTree: Filed on March 11, proposing a fund with 5% of its capital in Bitcoin futures and the remainder in commodities like energy, agriculture, and metals.
• Morgan Stanley & NYDIG: Submitted a February filing for a Bitcoin ETF accessible only to clients with $2 million or more in assets under management.
• VanEck and Valkyrie Digital Assets: Filed in January, continuing their pursuit of Bitcoin ETFs after years of lobbying.

The SEC has historically resisted approving Bitcoin ETFs, citing concerns about market manipulation and investor protection.

International Bitcoin ETF Successes

While the U.S. hesitates, other countries have embraced Bitcoin ETFs.

• Canada: Several Bitcoin ETFs have been approved, including the Purpose Bitcoin ETF and Evolve Bitcoin ETF.
• Brazil: The country’s CVM approved the Bitcoin ETF QBTC11, which will be listed on the Sao Paulo stock exchange.

These international approvals raise hopes that U.S. regulators may reconsider their opposition to Bitcoin ETFs, especially as institutional demand grows.

The Case for Bitcoin ETFs in the U.S.

Investor Benefits

Bitcoin ETFs provide a secure, regulated, and easy way for investors to gain exposure to Bitcoin without managing the complexities of owning and storing the cryptocurrency.

Increased Institutional Adoption

ETFs could attract more institutional investors, further legitimizing Bitcoin as a financial asset.

Broader Market Access

Listing Bitcoin ETFs on established exchanges like NYSE would make them accessible to traditional retail investors and expand Bitcoin’s market presence.

Challenges and Uncertainties

Despite optimism, the SEC’s stance on Bitcoin ETFs remains uncertain. Concerns about market volatility, manipulation, and the lack of comprehensive regulation in the crypto space have historically hindered approval.

Conclusion

SkyBridge Capital’s Bitcoin ETF filing adds momentum to the push for regulated Bitcoin investment products in the U.S. If approved, it could become a game-changer for cryptocurrency adoption, offering investors a safe and accessible avenue to participate in the Bitcoin market.

As international markets like Canada and Brazil move forward with Bitcoin ETFs, the pressure on U.S. regulators to adapt to the evolving financial landscape continues to grow.

To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news, where we delve into the most promising ventures and their potential to disrupt traditional industries.