SEC rejects proposed spot Bitcoin ETF from First Trust and SkyBridge

The US Securities and Exchange Commission has shot down another spot bitcoin exchange-traded fund proposal, this time from First Trust and SkyBridge Capital.

As previously reported, First Advisors and the Anthony Scaramucci-led SkyBridge Capital joined the fray in seeking approval for a spot bitcoin ETF in March 2021. 

Yet as was the case with VanEck's bitcoin ETF rejection in November, the SEC, in its latest statement, honed in on fraud and manipulation prevention risks as well as investor protection. 

Indeed, this position has been the theme thus far across a series of rejections for the past crop of spot bitcoin ETF proposals. As explored in a 2021 wrap-up of the bitcoin ETF race, The Block's Aislinn Keely noted that the conversation around such products broadened in past months. As well, the SEC allowed the entry of bitcoin futures-tied ETFs for the first time.