Connect with us
Active Currencies 13836
Market Cap $2,404,037,618,313.98
Bitcoin Share 52.42%
24h Market Cap Change $-6.22

This Bitcoin ETF is now ‘abandoned’: Are your holdings safe?

2min Read

Is the SEC’s abandonment of First Trust SkyBridge Bitcoin ETF hiding deeper mysteries?

This Bitcoin ETF is now 'abandoned': Are your holdings safe?

Share this article

After months of anticipation, the fate of the First Trust SkyBridge Bitcoin [BTC] ETF has taken a surprising turn as the United States Securities and Exchange Commission (SEC) has declared it “abandoned.”

The SEC’s decision revealed through a screenshot shared by senior Bloomberg ETF analyst Eric Balchunas on 12 March marks a significant development in the realm of cryptocurrency ETFs. 

The screenshot stated, 

“In view of the foregoing, it is ORDERED that the registration statement be declared abandoned on March 12, 2024.”

This unexpected twist added a new layer of intrigue to the evolving landscape of cryptocurrency investment vehicles.

Lost opportunities 

However, before the recent announcement, the SEC notified First Trust SkyBridge that their registration statement would be considered abandoned without action.

After receiving no response, the SEC made its decision.

“First Trust SkyBridge Bitcoin ETF Trust has failed to respond to notice under Rule 479 that the registration statement would be declared abandoned unless it was timely amended or withdrawn.”

This marks a significant setback for First Trust SkyBridge, following a previous rejection by the SEC in 2022. Their initial interest in listing an ETF on the NYSE in March 2021 was also unsuccessful.

Remarking on the same, Balchunas added,

“FT was one of the filers who never jumped back into the post-BLK race, not sure why. Had they launched prob add 15% to the flows prob as First Trust is a sales MACHINE.”

The uncertain truth behind the rejection 

The exact reasons behind the decision to halt the First Trust SkyBridge Bitcoin ETF application remain unclear.

However, had the application been approved alongside other offerings in January, it could have potentially capitalized on the remarkable success witnessed by several spot Bitcoin ETF issuers, notably BlackRock. 

Among all ten spot Bitcoin ETFs, BlackRock has maintained its position as the leader, boasting significant inflows and trading volume.

This heightened attention on spot Bitcoin ETFs has translated into a surge in the price of Bitcoin itself, culminating in a new all-time high above $72,000.

Thus, with the cryptocurrency market constantly evolving, it will be intriguing to observe how ETFs continue to shape their trajectory, for better or for worse.

Share

Ishika is a graduate of Political Science from the University of Delhi. From writing content as a hobby to now pursuing it as a professional career, she has been living and breathing content all her life. Her interests lie in making sure articles are very digestible to a common reader, despite all its technicalities and jargons.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.