SEC rebuffs First Trust, SkyBridge joint filing on spot Bitcoin ETF

Striking another spot Bitcoin ETF application off its list, the US Securities and Exchange Commission has now rejected a joint spot Bitcoin ETF application filed by investment advisory firm First Trust and Anthony Scaramucci-led hedge fund SkyBridge Capital.

Both the companies had filed a joint ETF application in March 2021 to offer direct exposure to cryptocurrency Bitcoin. The financial regulator had extended the decision deadline twice, in July and in November, before finalizing its ruling on the proposed ETF.

Rejecting the proposal on Thursday, the SEC cited similar reasons it gave after rejecting VanEck and WisdomTree’s application. It has also rebuffed applications filed by investment firms Kryptoin and Valkyrie. The SEC filing read:

“The Commission concludes that NYSE Arca has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section 6(b)(5), and in particular, the requirement that the rules of a national securities exchange be “designed to prevent fraudulent and manipulative acts and practices” and “to protect investors and the public interest.”

While suggesting its firm defiance on spot Bitcoin ETF applications, the financial regulator has been open about its preference towards Bitcoin futures ETFs. The SEC approved the ProShares Bitcoin Strategy ETF and the Valkyrie Bitcoin Strategy ETF in October last year.

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