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SkyBridge Capital, in collaboration with First Trust Advisors, has applied for a Bitcoin ETF.
SkyBridge Capital, a New York-based investment company, has applied with the US Securities and Exchange Commission for a Bitcoin (BTC) exchange-traded fund, or ETF.
SkyBridge filed the application on March 19 in collaboration with investment adviser First Trust Advisors. First Trust will serve as the fund’s advisor, with Skybridge as a sub-adviser.
According to the papers, the First Trust SkyBridge Bitcoin ETF would aim to list its shares on the Arca of the New York Stock Exchange. The fund’s ticker symbol is yet to be revealed.
The filing stresses that the trust would provide a controlled way for investors to obtain exposure to Bitcoin without having to keep the digital asset in possession, and that investors will be able to conduct transactions through their brokers.
The First Trust Company SkyBridge ETF Trust is now one of the Bitcoin ETF applications pending a decision from the SEC.
WisdomTree, a New York-based asset manager, submitted the latest proposal for a Bitcoin ETF on March 11, after an effort to get a fund funded that would invest up to 5% of its portfolio in Bitcoin futures after being oriented on oil and metals in mid-2020.
On February 16, leading US investment bank Morgan Stanley applied for a Bitcoin ETF in collaboration with crypto-focused financial services company NYDIG. The new fund would be open only to investors who have at least $2 million in funds in the company.
Separate applications for Bitcoin ETFs were also received by the SEC in January from major exchange-traded product issuer VanEck and Texas-based Valkyrie Digital properties.
The lack of controlled investment options offering exposure to the price of Bitcoin in the absence of an exchange-traded fund seems to be pushing U.S.-based investors to speculate on the securities of influential companies working in the digital asset market.
Leeor Shimron, Fundstrat’s vice president of digital asset management, disclosed on March 22 that investments of the four biggest publicly trading Bitcoin mining companies have outperformed Bitcoin by 455 percent on average throughout the previous year. Shimron said to CNBC in response to the data:
“Until a Bitcoin ETF is approved, investors may view public mining companies as one of the only ways to get exposure to Bitcoin.”