SkyBridge Capital, the firm run by former White House communications director Anthony Scaramucci, has filed for a Bitcoin ETF with the Securities and Exchange Commission (SEC).
The investment advisory firm has over $7 billion in assets under management. Its eponymously-named SkyBridge Capital Bitcoin Fund grew to a size of $370 million within weeks of its January open.
That fund, for accredited investors able to contribute at least $50,000, allows for shares to be redeemed on a quarterly basis. An ETF, or exchange-traded fund, on the other hand would be far more democratic.
ETFs are investment vehicles that can be traded like stocks. They track the price of an underlying asset or group of assets. A Bitcoin ETF would, therefore, track the price of Bitcoin. In exchange for a fee, investors would get exposure to Bitcoin prices without exposure to the risks of holding and storing Bitcoin and private keys themselves.
The SEC has never approved an ETF.
Ironically, SkyBridge COO Brett Messing told Decrypt after the Bitcoin Fund’s launch that a Bitcoin ETF “will put us out of business.”
“Our fund will continue on, but we won’t be able to raise any capital,” he said. He suggested clients would ask, “Why do I need private fund?”
This story is being updated.
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Source: https://decrypt.co/62148/scaramuccis-skybridge-applies-for-bitcoin-etf
