SkyBridge Capital and First Trust Advisors have filed a joint application with the SEC to launch an Exchange Traded Fund (ETF) for Bitcoin.
March 22, 2021 | AtoZ Markets – Anthony Scaramucci-led SkyBridge Capital and consulting firm First Trust Advisors have applied to launch a Bitcoin exchange-traded fund (ETF).
According to the S-1 document on the SEC website, the new product is called First Trust SkyBridge Bitcoin ETF Trust. It is assumed that First Trust Advisors will act as an advisor to the fund, and SkyBridge Capital will act as its co-manager.
“The investment objective of the trust is for the shares to reflect the value of the bitcoins, excluding the obligations and expenses of the trust itself,” the application says .
In addition to the filing from SkyBridge Capital and First Trust Advisors, the SEC is pending similar documents from VanEck, WisdomTree, NYDIG, Bitwise and Valkyrie Digital Assets.
Back in 2019, a wave of financial firms attempted to file for an ETF with the United States SEC. However, their requests were unilaterally rejected by the Commission.
Why are all of these firms trying for Bitcoin ETFs now? In late 2019, Jake Chervinsky, a general counsel lawyer at Compound Finance, said on Twitter that it was unlikely that the industry could have expected to see a Bitcoin ETF while Jay Clayton, the former chair of the SEC, was in office.
“At this point, it’s reasonable to assume that Jay Clayton’s SEC will never approve a bitcoin ETF,” he wrote. However, Clayton stepped down as the Chairman of the SEC in December 2020.
At this point, it's reasonable to assume that Jay Clayton's SEC will never approve a bitcoin ETF.— Jake Chervinsky (@jchervinsky) October 10, 2019
His term ends on June 5, 2021, but could go another 18 months longer.
Usually we'd see new ETF proposals filed immediately after rejection, but it might be time to take a year off.
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