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US SEC Instructs First Trust Advisors and SkyBridge Capital to Abandon Bitcoin ETF Application
The US Securities and Exchange Commission (SEC) has instructed First Trust Advisors and SkyBridge Capital to mark their Bitcoin exchange-traded fund (ETF) application as abandoned. The regulatory notice cited lack of response from the First Trust SkyBridge Bitcoin ETF to prior communications from the SEC.
Background on the Bitcoin ETF Application
- First Trust and SkyBridge filed for a Bitcoin ETF in March 2021.
- Their application was rejected in January 2022.
- Despite revisions to their application, the firms did not re-apply following the approval of BlackRock’s bitcoin ETF by the SEC.
Market Reactions and Speculations
Eric Balchunas, an ETF analyst at Bloomberg, expressed uncertainty about the decision of First Trust and SkyBridge not to re-file their application after the success of BlackRock’s ETF. Other ETF providers like Global X also faced challenges in launching spot Bitcoin ETFs.
Bitcoin Price and Market Outlook
Bitcoin’s price continues to rise, reaching around $72,000 and registering an all-time high of $72,953. The market eagerly awaits the introduction of Bitcoin ETF options, with the SEC delaying the decision to approve options trading on spot Bitcoin ETFs.
Implications of Bitcoin ETF Options
Analysts predict that the introduction of BTC ETF options will attract new players to the market, potentially leading to increased demand for Bitcoin. The SEC is also considering multiple leveraged Bitcoin ETFs, which could further impact the market dynamics.
Bitcoin ETF Success and Potential Challenges
Bitcoin ETFs have seen a successful launch, accumulating significant assets and attracting billions of dollars. This trend could potentially lead to a Bitcoin ETF liquidity crisis if demand continues to outpace supply.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
