SEC Declares First Trust SkyBridge Bitcoin ETF Application “Abandoned”

The Securities and Exchange Commission (SEC) announced that the spot Bitcoin ETF application submitted by First Trust Advisors and SkyBridge Capital has been deemed “abandoned.” The decision was based on the failure of the applicants to respond to prior communications from the regulatory body. The joint registration statement, filed under the Securities Act of 1933, had been pending for nine months without becoming effective, prompting the SEC to issue a notification indicating potential abandonment if no action was taken. Despite warnings, no response was received from First Trust SkyBridge, leading to the abandonment of the ETF application.

Had the First Trust SkyBridge Bitcoin ETF been launched, it could have significantly impacted fund flows, potentially resulting in a 15% increase. However, the abandonment of the application reflects ongoing challenges faced by applicants seeking approval for Bitcoin ETFs in the US market. This development contrasts with the recent success of BlackRock’s Bitcoin ETF, which rapidly reached $10 billion in assets under management, setting a record for the fastest growth among US ETFs. The contrasting outcomes highlight the competitive landscape and regulatory hurdles surrounding cryptocurrency ETFs, underscoring the evolving dynamics within the ETF market and the broader cryptocurrency ecosystem.