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First Trust Credit Union and SkyBridge Capital, had applied for a Bitcoin ETF in March 2021 but abandoned their applications, as per SEC’s orders.
The US Securities and Exchange Commission (SEC) has ordered First Trust Credit Union and SkyBridge Capital to declare their applications abandoned. Both firms applied for the ETF in March 2021 and faced rejection in January 2022.
First Trust Credit Union and SkyBridge Didn’t Refile for Bitcoin ETF
First Trust and SkyBridg, the two financial firms that took part in the Bitcoin ETF faced a rejection from the SEC in January 2022. Interestingly, both firms haven’t re-applied for approval even after several revisions to their applications. Consequently, the Commission on March 12 offered a regulatory notice to both companies to mark their Bitcoin ETF applications as dumped.
The applications had spent over nine months on the SEC’s table and were yet to become effective. If no actions were taken for withdrawal or amend the filing, the commission will declare them abandoned.
No response was received from the firms, as a result, the SEC ordered to mark the applications as abandoned. Keeping the scenario in mind, Eric Balchunas, an ETF analyst at Bloomberg expressed his point of view.
“FT was one of the filers who never jumped back into the post-BLK race, not sure why”, Tweeted Balchunas.
The exact reason behind First Trust and SkyBridge’s lack of interest in application re-filing is not clear.
Additionally, First Trust and SkyBridge Capital are not the only firms that pulled their applications for spot Bitcoin ETFs. Global X, an ETF provider also pulled its request for the ETF approval in late January.
It is possible that the application has joined the approved offerings in January or might benefit from the outstanding results of Spot Bitcoin ETFs.
The firm faced resistance from the commission in the initial attempt in 2021 and delays in refiling in August 2023. Additionally, inappropriate documentation is one of the major reasons behind Global X’s application rejection.
Furthermore, firms including Pando Asset Management and 7RCC are still waiting for approval for their Bitcoin ETFs approval.
Spot Bitcoin ETF’s Outstanding Performance
Spot Bitcoin ETF is hitting major milestones with more room to run. On March 12, BlockRock’s IBIT added Fidelity’s FBTC registered around $700 Million in inflows. Also, IBIT surpassed MicroStrategy’s Bitcoin holdings with a net inflow of $2.07 Billion in a week.
The involvement of BlackRock in the spot Bitcoin ETFs showcased it as the leader with a huge influx of $562.9 Million in its flows and trading volume. Similarly, Fidelity’s FBTC hit an inflow of $215.5 Million that strengthened institutional support for cryptocurrencies.
Bitcoin (BTC), on the other hand, is showcasing an outstanding performance, again breaking its all-time high record on March 13. According to CoinMarketCap, BTC is trading at $73,301.24, after a spike of 1.99% in one day. The coin holds a market cap of $1,440,670,510,710 and $63,936,064,086 in 24-hour volume.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
