SkyBridge Hedge Fund Files Crypto-Company ETF With SEC

Share Article
In Brief
  • SkyBridge hedge fund files for a crypto ETF with the U.S. SEC.

  • The fund will not directly invest in bitcoin or any other cryptocurrencies.

  • The firm has now joined the long list of entities sending in applications for crypto-based ETFs.

  • promo

    Stake your points and qualify for the 200,000 USDT prize pool. Start staking now!

The Trust Project is an international consortium of news organizations building standards of transparency.

The SkyBridge Capital hedge fund has filed an application for an exchange-traded fund (ETF) that invests in crypto companies.

Sponsored



Sponsored

United States hedge fund SkyBridge Capital has joined the long list of firms sending in applications for crypto-based ETFs. According to an SEC filing, the company has applied for a fund called the Crypto Industry and Digital Economy ETF.

However, like many other crypto ETFs that have been submitted in the past few months, the fund will not directly invest in bitcoin or any other cryptocurrencies. Instead, it will invest 80% of its net assets in the shares of companies that work in the crypto space. In other words, it does not offer direct exposure to bitcoin, which may be slightly more amenable from the SEC’s viewpoint.

Sponsored



Sponsored

It notes that while there is promise in the rapidly emerging cryptocurrency industry, there are also several risks associated with such a fledgling technology. It asks investors to be aware of this and to be prepared for regulatory challenges and volatility.

The SEC is hard at work preparing a regulatory framework for the industry, and it seems likely that this will be released by the end of the year. The regulatory body has several ETF applications on its plate, having delayed previous applications.

Many supporters of crypto ETFs feel that the protections that come with exchange-traded funds will do the market good. Furthermore, investors will have access to the market indirectly through a trusted investment vehicle rather than resorting to trading platforms.

SEC’s decision on ETFs likely to arrive this year

The delays in the SEC’s decision on crypto-based ETFs have irked the market somewhat, but it hasn’t stopped firms from sending in applications. They are all eager to become the first funds to launch a crypto-based ETF in the U.S. — something that could be extremely lucrative.

They may not have to wait much longer, as other reports indicate that U.S. authorities are forming a broader framework. The U.S. seems to be focusing on stablecoins for the moment, with a more general focus on investor protection as well. These developments hint at a decision from the SEC on ETFs.

It’s difficult to say whether the decision will be an approval without knowledge of the specific regulatory guidelines. But there is some hope yet for the market, as at worst, it means that an ETF will be delayed. There is nothing to suggest that the U.S. will impose draconian restrictions on the market.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Rahul's cryptocurrency journey first began in 2014. With a postgraduate degree in finance, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has guided a number of startups to navigate the complex digital marketing and media outreach landscapes. His work has even influenced distinguished cryptocurrency exchanges and DeFi platforms worth millions of dollars.

Follow Author

Limited offer! Learn to mine and trade crypto today for free

Join

Earn up to $10,000 USD every week in CoinFLEX AMM+ Arena!

Earn Now

Be our Supreme Scorer and qualify for a grand prize pool of 200,000 USDT!

Join