Why It Happened
The US Securities and Exchange Commission (SEC) has rejected SkyBridge Capital’s application for a Bitcoin Spot Exchange-Traded Fund (ETF). According to the SEC, SkyBridge failed to comply with a warning under Rule 479, which requires issuers to amend or withdraw incomplete applications within a certain time frame.
SkyBridge’s History with Bitcoin ETFs
SkyBridge was one of the first companies to file for a Bitcoin ETF, but its application was rejected by the SEC in January 2022. The company did not reapply after the rejection.
Grayscale’s ETF Outflows
Despite the launch of Bitcoin ETFs by major companies like Blackrock, Grayscale Bitcoin Trust ETF (GBTC) has experienced significant outflows. It currently has the second-highest cumulative outflows of any ETF in the past 15 years, with over $10 billion in redemptions.
