Summary
TLDR: SEC mandates First Trust Advisors and SkyBridge Capital to declare their Bitcoin ETF application defunct after failing to respond to communication. Analysts are puzzled by their reluctance to re-file, especially given Bitcoin’s bullish price and growing investor interest. SEC approved BlackRock’s Bitcoin ETF after required changes, creating a blueprint for future applicants.
Key Points
1. The US Securities and Exchange Commission (SEC) has mandated First Trust Advisors and SkyBridge Capital to declare their Bitcoin exchange-traded fund (ETF) application defunct.
2. The SEC’s directive comes after First Trust and SkyBridge failed to respond to the Commission’s communication in time. The agency’s order revealed that it informed the applicants that the applicant must be declared abandoned after nine months.
3. Bloomberg ETF analyst Eric Balchunas and Nate Geraci, the CEO of the ETF Store, expressed confusion over the firms’ decisions not to re-file. The reluctance is especially puzzling, given Bitcoin’s bullish price around $72,000. Record inflows into Bitcoin ETFs also demonstrate the growing investor interest in cryptocurrency as a legitimate asset class.