Scaramucci’s SkyBridge Picks NYDIG as Bitcoin Custodian in Updated Filing
- Bitcoin and the entire crypto market surges beyond the $2 trillion mark having seen renewed interests in institutional demand.
- Institutional investors continue to ramp up Bitcoin purchases as they await the introduction of a Bitcoin exchange-traded fund (ETF).
- The latest in the Bitcoin ETF race is Anthony Scaramucci’s SkyBridge Capital.
BNY Mellon Chosen As Service Provider
SkyBridge has tapped New York-based NYDIG as the custodian for its proposed Bitcoin ETF. This was made known in a revised filing sent to the US Securities and Exchange Commission (SEC) by First Trust SkyBridge Bitcoin ETF Trust.
The filing was jointly signed by investment advisory firm First Trust Advisors and alternative investment firm SkyBridge Capital. Both companies have also selected the Bank of New York (BNY) Mellon as the Fund’s service provider and cash custodian, while NYDIG would be burdened with the keys to the trust.
Aside from the issue of formulating regulatory clarity, many commentators have continued to discuss the constant refusal of the SEC to greenlight a Bitcoin ETF. The SEC has remained stalwart in its opposition to a Bitcoin ETF.
The agency had rejected many firms. Its reasons for doing so are many. They include market manipulation, difficulty in ascertaining the true value of the target virtual currency, and the lack of liquidity.
But a lot has changed since the first ETF rejection. Some of the positives have seen the SEC's Canadian counterpart, the Canadian Securities Administrators (CSA), approve several Bitcoin ETF filings, including Purpose Bitcoin ETF. Purpose now has $1 billion worth of assets under management (AUM). So far, the Canadian regulatory agency has approved four Bitcoin ETF filings.
Another positive for a potential ETF approval has been the recent appointment of a new SEC Chair. Former MIT crypto and blockchain instructor Gary Gensler has taken the reins, and many feel his experience could lead to more positive moves for the blockchain sector.
These subtle clues have seen investment firms renew their bids, with the regulatory body receiving as many as eight Bitcoin ETF applications in the first quarter of the year alone.
Even though the SEC has not made its position known, many of the players have already chosen custodians in the event their proposal goes through. Wise Origin chose Fidelity Investments, Valkyrie selected crypto exchange Coinbase, while Kryptoin would use fellow Bitcoin exchange Gemini.
NYDIG is also looking to run its own Bitcoin ETF alongside serving as a bitcoin custodian for SkyBridge and First Trust.
NYDIG Seeks To Empower US Banks
NYDIG is not resting in its resolve to make crypto assets gain mainstream adoption. The firm struck a partnership that could see millions of customers buy Bitcoin through U.S banks.
According to the crypto custody firm, this would see them buy, sell, and hold Bitcoin directly from their existing accounts.
Speaking on the move, the head of digital banking at FIS Rob Lee said that this could eventually force banking giants JP Morgan Chase and the Bank of America to offer crypto services to their retail customers, as hundreds of smaller banks sign-on.