The race for a United States Bitcoin exchange-traded fund intensified on March 19, 2021, as SkyBridge Capital — the hedge fund led by former White House communications director Anthony Scaramucci — partnered with investment advisory firm First Trust Advisors to file an application with the Securities and Exchange Commission.
TL;DR
- SkyBridge Capital and First Trust Advisors filed an S-1 registration for the “First Trust SkyBridge Bitcoin ETF Trust” with the SEC
- The fund plans to list on NYSE Arca, with First Trust as consultant and SkyBridge as sub-advisor
- SkyBridge already operates a $370 million Bitcoin Fund for accredited investors
- On the same day, Brazil approved QBTC11 — the first Bitcoin ETF in Latin America
- No Bitcoin ETF has been approved in the U.S. despite multiple applications from major asset managers
SkyBridge Doubles Down on Bitcoin Exposure
The filing, submitted to the SEC on March 19, represents a significant escalation in SkyBridge’s commitment to Bitcoin. The firm already manages a $370 million Bitcoin Fund available to accredited investors with a minimum contribution of $50,000. However, shares in that fund are only redeemable on a quarterly basis — a constraint that an ETF structure would eliminate entirely.
Under the proposed arrangement, First Trust Advisors would serve as the fund’s consultant while SkyBridge Capital would act as sub-advisor. The companies plan to list shares on the New York Stock Exchange’s Arca platform, one of the world’s largest electronic trading venues for exchange-traded products.
SkyBridge COO Brett Messing acknowledged in January that an ETF approval would essentially render their existing Bitcoin fund irrelevant to the market. While the fund would continue operating, it would struggle to attract new capital against the liquidity and accessibility of an ETF product.
A Growing Queue of Bitcoin ETF Applicants
SkyBridge and First Trust joined a crowded field of firms seeking SEC approval for a Bitcoin ETF. WisdomTree, NYDIG, Valkyrie, and VanEck had all submitted applications in prior years, only to face repeated rejections from the Commission. The renewed wave of filings was driven in part by Bitcoin’s dramatic price rally — the cryptocurrency was trading around $58,346 on March 19, according to CoinMarketCap data — and expectations that changes in the SEC’s leadership under the new administration could shift the regulatory stance.
Even Grayscale, the digital asset management giant behind the Grayscale Bitcoin Trust, was actively recruiting ETF specialists, signaling that the industry’s largest players were preparing for an eventual regulatory green light.
Brazil Approves Latin America’s First Bitcoin ETF
While U.S. investors waited for regulatory clarity, Brazil’s securities regulator — the Comissão de Valores Mobiliários (CVM) — approved the QBTC11 ETF on March 19, making it the first Bitcoin ETF in Latin America. The fund, created by QR Asset Management under the QR Capital holding company, was set to list on B3, Brazil’s primary stock exchange.
QR Capital noted that the approval made B3 only the second stock exchange in the world to offer a 100% Bitcoin-backed ETF. The company also expressed optimism that both Canadian and Brazilian approvals could help pave the way for a U.S. product, pointing out that both the CVM and the SEC are affiliated members of the International Organization of Securities Commissions.
Canada had already approved three Bitcoin ETFs, further intensifying pressure on U.S. regulators to act. The primary offering of QBTC11 was expected to raise approximately 500 million Brazilian reais, equivalent to roughly $94 million at the time.
Why This Matters
The dual developments of March 19, 2021 highlighted a growing global momentum toward regulated Bitcoin investment vehicles. With Canada and Brazil moving ahead with Bitcoin ETFs and major U.S. financial institutions lining up to offer similar products, the pressure on the SEC to reach a decision was mounting. An approved Bitcoin ETF would open the door for millions of retail and institutional investors to gain Bitcoin exposure through traditional brokerage accounts, potentially channeling significant new capital into the market. Bitcoin’s price at $58,346 — with a market capitalization exceeding $1.08 trillion — reflected the broader institutional acceptance that was rapidly reshaping the cryptocurrency landscape.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always conduct your own research before making investment decisions.
Scaramucci is a legend. an etf is basically a ticket to 100k btc.
The SEC has rejected every ETF proposal so far, why would SkyBridge be any different? Interesting to see Latin America leading the way with their first Bitcoin fund while the US lags.
Great to see First Trust getting involved alongside SkyBridge. Hopefully this makes it easier for me to add Bitcoin to my retirement account eventually.