Skybridge Capital, a major US investment fund, submitted an application for a new cryptocurrency-related ETF (Exchange Traded Fund) to the US SEC (Securities Trading Commission) on the 14th.
However, Instead of investing directly in cryptocurrencies, the ETF will invest in cryptocurrency companies.
Skybridge Capital offers several investment funds specializing in Bitcoin (BTC). If approved, the new ‘First Trust SkyBridge Crypto Industry and Digital Economy ETF’ would invest in stocks and ADRs (US deposit certificates) of companies who are established in the digital economy and the crypto industry ecosystem.
The firm noted that 80% or more of the fund’s net assets will be invested in the firms and investment in cryptocurrency companies will account for 50% under normal market conditions. It clarified that it would not seek direct exposure to Bitcoin or any other cryptocurrencies.
If the application is approved, the fund is expected to list on the New York Stock Exchange Arca.
Skybridge Capital is a leading US investment firm founded by Anthony Scaramucci. In January 2021, it launched a Bitcoin-specialized investment fund called ‘SkyBridge Bitcoin Fund LP’ and in May, it submitted an application for a Bitcoin ETF.
In a recent hearing with the senate, Gensler remarked that the cryptocurrency industry is “rife with fraud and abuse”. Scaramucci disagreed with Gensler’s remarks and told CNBC on Wednesday:
“He’s got a lot of people in Congress that don’t fully understand it. There’s a lot of negativity. I would implore people like Senator Elizabeth Warren to come to a conference like this and sit with people in the industry so she can understand what the protocols actually are […] I think we’ve got to get everybody up the curve in terms of education.”
There are still no cases of Bitcoin ETF approval in the United States. In neighboring Canada, though, trading of Bitcoin and Ethereum ETFs began in the spring of 2021.