First Trust Advisors and SkyBridge Capital have expressed their desire to create an exchange-traded fund (ETF) based on bitcoin by submitting a corresponding application to the US Securities and Exchange Commission (SEC). SkyBridge Capital is run by former White House communications director and financier Anthony Scaramucci. Since the end of last year, he has been investing in bitcoin and opened a specialized fund for this.
The tool is proposed to be named “First Trust SkyBridge Bitcoin ETF Trust”. First Advisor will act as a consultant and SkyBridge will act as a co-manager. Applicants expect to list the fund’s shares on the NYSE Arca market of the New York Stock Exchange.
An ETF or Exchange Traded Fund is a special type of security that reflects the price of a particular asset or a basket of assets. ETFs are traded on traditional exchanges and allow a wide range of investors to access their underlying assets, in this case Bitcoin. The SkyBridge Fund is available to accredited investors, and the minimum investment amount in it is $ 50,000. Shares are redeemed on a quarterly basis. There will be no such restrictions in the ETF.
Previously, WisdomTree, NYDIG, Valkyrie and VanEck submitted applications for the creation of a Bitcoin ETF to the SEC. In addition, the world’s largest digital asset manager, Grayscale Investments, is hiring ETF specialists. The influx of applications is associated with expectations of the approval of the first bitcoin ETF in the United States after the change of the SEC administration. Until that time, the American regulator rejected all requests regarding the creation of such a tool.
“I think there will be ETF approvals in 2021,” Scaramucci said Friday.
SkyBridge COO Brett Messing admitted in January that ETF approval would render their existing Bitcoin fund irrelevant to the market. The fund will continue to exist, but will not be able to attract any capital, he said.
Meanwhile, in neighboring Canada, several bitcoin ETFs have already been admitted to trading. Also on Friday, it became known about the approval by the Brazilian regulator of the first Bitcoin ETF in Latin America. It is owned by QR Capital Group and will be traded on the B3 market.
“We will kill our private partnership business if we can get SEC approval. I think the success of the Canadian funds will make the decision-making process a bit easier for US regulators, ”added Scaramucci.