Key Points
- The SEC has declared the First Trust SkyBridge Bitcoin ETF “abandoned”.
- This decision adds a new layer of intrigue to the evolving landscape of cryptocurrency investment vehicles.
The United States Securities and Exchange Commission (SEC) has taken a surprising turn regarding the First Trust SkyBridge Bitcoin ETF, declaring it “abandoned”.
Unexpected Decision by SEC
This decision was revealed through a screenshot shared by senior Bloomberg ETF analyst Eric Balchunas on 12 March, marking a significant development in the realm of cryptocurrency ETFs.
The SEC had previously notified First Trust SkyBridge that their registration statement would be considered abandoned without action. After receiving no response, the SEC made its decision.
Setback for First Trust SkyBridge
This is a significant setback for First Trust SkyBridge, which had previously been rejected by the SEC in 2022. Their initial interest in listing an ETF on the NYSE in March 2021 was also unsuccessful.
The exact reasons behind the decision to halt the First Trust SkyBridge Bitcoin ETF application remain unclear.
Had the ETF been approved in January alongside other offerings, it could have potentially capitalized on the success of several spot Bitcoin ETF issuers, notably BlackRock.
BlackRock has maintained its position as the leader among all ten spot Bitcoin ETFs, boasting significant inflows and trading volume.
This attention on spot Bitcoin ETFs has translated into a surge in the price of Bitcoin, culminating in a new all-time high above $72,000.
As the cryptocurrency market constantly evolves, it will be intriguing to observe how ETFs continue to shape their trajectory.
