
Breaking News: Major Regulator Orders Greater Transparency for Bitcoin ETF Application Withdrawal
The Securities and Exchange Commission (SEC) has recently ordered First Trust Advisors and SkyBridge Capital to mark their bitcoin ETF application as abandoned. This decision comes after the firms failed to respond to prior communications from the Commission.
The application was initially filed by First Trust and SkyBridge in March 2021, but was ultimately rejected in January 2022 along with many other unsuccessful applications. However, unlike other firms, they did not re-apply for the ETF post-BlackRock’s successful application.
BlackRock’s application, which was initially rejected but then approved after some revision, became one of the first bitcoin ETFs to be approved by the SEC. This approval has led to a surge in demand for bitcoin, with the cryptocurrency currently trading near $72,000 according to CoinDesk Indicies data.
Despite this success for bitcoin ETFs, First Trust and SkyBridge have not re-filed their application. Bloomberg ETF analyst Eric Balchunas expressed surprise at this decision, stating that he was unsure why they didn’t take advantage of the recent developments. In the meantime, the broader CoinDesk 20 Index remains flat at 2,740.
This news comes as a disappointment for many investors who were eagerly anticipating a bitcoin ETF. A bitcoin ETF would have made it much easier for institutional investors to invest in the cryptocurrency, potentially opening up a new market for bitcoin.
In March 2021, First Trust and SkyBridge had high hopes for their ETF application, citing the growing institutional demand for bitcoin. However, the SEC’s decision to mark their application as abandoned has effectively ended their chances of launching a bitcoin ETF in the near future.
The decision to mark the application as abandoned is seen as a major setback for both firms, especially considering the reputation and influence of the individuals involved. Anthony Scaramucci, the former White House Communications Director and digital assets investor, is the founder of SkyBridge Capital, while First Trust Advisors is a highly respected investment firm.
It is yet to be seen if First Trust and SkyBridge will re-apply for a bitcoin ETF in the future. However, for now, their initial attempt has been deemed unsuccessful and the SEC has ordered them to mark their application as abandoned. This news highlights the challenge and uncertainty facing the crypto industry when it comes to regulatory approvals.