Bitcoin (BTC) ETF Race Heats Up With Skybridge Application, Bitcoin Becomes the World’s Third-Largest Currency
As the Bitcoin (BTC) price continues to consolidate strongly above $55,000 levels, the race for its derivative products like the exchange-traded-funds (ETFs) is catching up fast. In the latest development, Anthony Scaramucci’s Skybridge Capital has recently filed for an S1-registration form with the U.S. Securities and Exchange Commission (SEC) seeking approval for the Bitcoin ETF.
The application states that the shares of the “First Trust Skybridge Bitcoin ETF Trust” will be listed on NYSE Arca. Skybridge is quite bullish on Bitcoin (BTC) and the overall development around it.
Last month, the company launched its Skybridge Capital Bitcoin Fund with Scaramucci stating that he expects the BTC price to reach $100K by the end of this year.
The Bitcoin ETF filing from Skybridge warns its investors that the Trust is an ‘emerging growth company’. Besides, the trust is “newly organized” and there’s no prior history of it. Thus, the common shares of Skybridge Bitcoin Trust could possibly trade at a discount to its Net Asset Value (NAV).
Additionally, the registration also explains the risks involved stating that “There is no assurance that usage of bitcoin will continue to grow. A contraction in use of bitcoin may result in increased volatility or a reduction in the price of bitcoin, which could adversely impact the value of the common shares.”
Scaramucci is bullish on the future of Bitcoin and quotes famous personalities and business people like Elon Musk’s involvement with BTC. Skybridge Capital currently manages $600 million in Bitcoin while Scaramucci discussed the possibility of his company getting involved with Ethereum investment products in the future.
In another news, Deutsche Bank has published a report that states Bitcoin (BTC) has now emerged as the third-largest currency in terms of the total value in circulation. “This is mainly due to the vast increase in bitcoin’s value recently,” the report continues, adding that “In early 2019, bitcoin represented ‘only’ 3% of the US dollars in circulation, but in February 2021 it surged beyond 40% of the US dollars in circulation.”
The report further adds that “Bitcoin’s market cap of $1 trillion makes it too important to ignore. As long as asset managers and companies continue to enter the market, bitcoin prices could continue to rise”.
Deutsche Bank research analyst Marion Laboure, Ph.D. who has authored the report adds further that central banks and governments understand that cryptocurrencies are here to stay. Thus, they would start regulating digital assets later this year or early next year.