SkyBridge Capital Files for New Crypto ETF, Would the SEC Approve it this Time?

Divya  |  Sep 20, 2021

The SEC has likely lost count of the ETF applications awaiting its approval. But that hasn’t stopped firms from their trying their luck with fresh applications. Earlier last week, Anthony Scaramucci’s SkyBridge Capital approached the regulator for a new crypto ETF, called the First Trust SkyBridge Crypto Industry and Digital Economy ETF.

SkyBridge Capital Seeks SEC Approval for New Crypto ETF

SkyBridge Capital has a new ETF card up its sleeve. The New York-based investment firm has filed for an exchange-traded fund to “offer investors with capital appreciation.”

Known as the First Trust SkyBridge Crypto Industry and Digital Economy ETF, the fund would allocate 80% of its assets to companies that operate in the crypto industry, and would not provide direct exposure to digital assets. 

Notably, SkyBridge has already applied for Bitcoin and Ethereum ETFs previously, none of which have received SEC approval.

Nonetheless, Scaramucci is bullish about crypto funds and the future of the digital assets market. In a recent interview with CNBC, the SkyBridge founder revealed that his firm now has $700 million worth of investments in cryptocurrencies. 

He also shared that the firm is planning to start an Algorand fund -- dubbed UNLOX -- capped at $250 million. The fund will be part of SkyBridge’s partnership with blockchain infrastructure provider NAX.

Scaramucci Urges Regulators to Act Swiftly on Crypto

SEC regulators are running out of time to act on cryptocurrencies, according to Anthony Scaramucci. The crypto bull told CNBC that regulators risk biting the dust if they don’t act fast on the nascent asset class:

“If they are going to regulate it they better do it quickly,” he said during an interview at last week’s SALT conference in New York.

Scaramucci’s latest comments come close on the heels of an interview featuring SEC chair Gary Gensler, who said that most cryptocurrencies should be treated as securities and should therefore fall under the agency’s regulatory oversight.

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