March 27, 2024
SEC Directs First Trust-SkyBridge to Abandon Bitcoin ETF Application
Bitcoin ETF

SEC Directs First Trust-SkyBridge to Abandon Bitcoin ETF Application

SEC Directive Marks the End of First Trust SkyBridge Bitcoin ETF Application

First Trust Advisors and SkyBridge Capital, led by former Trump-era White House Communications Director Anthony Scaramucci, have received an order from the SEC to abandon their bitcoin (BTC) ETF application.

The SEC’s decision, published in a notice on Wednesday, follows the failure of the First Trust SkyBridge Bitcoin ETF to respond to prior communications from the Commission.

Initial Filing and Rejection

The application for the First Trust SkyBridge Bitcoin ETF was initially filed in March 2021. However, like many other similar applications, it faced rejection by the SEC in January 2022. Despite this setback, First Trust and SkyBridge did not re-apply for their bitcoin ETF following the approval of BlackRock’s bitcoin ETF application, which underwent revisions and became one of the first bitcoin ETFs to receive SEC approval.

Speculation Surrounding Non-Reapplication

In response to the lack of re-filing by First Trust and SkyBridge post-BlackRock’s successful application, Bloomberg ETF analyst Eric Balchunas expressed uncertainty. Balchunas questioned the rationale behind their decision, considering the ongoing interest and growth in the Bitcoin market. Bitcoin’s current trading value remains near $72,000, according to CoinDesk Indices data, while the broader CoinDesk 20 Index shows stability at 2,740.

This development underscores the evolving regulatory landscape surrounding cryptocurrency ETFs and highlights the strategic decisions made by industry players in response to regulatory actions and market dynamics.

Image by Arsheffield on Flickr

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