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SkyBridge Capital has filed a Bitcoin ETF application with the SEC

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The Securities and Exchange Commission has yet to approve any Bitcoin ETF applications.

SkyBridge Capital, an investment advisory firm run by former White House communications director Anthony Scaramucci, has filed a Bitcoin ETF application with the SEC on March 20, according to Rally BlockBeats.

If successful, the SkyBridge Capital Bitcoin ETF could diminish the appeal of the SkyBridge Capital Bitcoin Fund. The SkyBridge Capital Bitcoin Fund grew to $370 million within weeks of opening in January 2021.

An ETF is an investment vehicle that can trade like a stock. They track the price of the underlying asset, or group of assets. As a result, a bitcoin ETF would be roughly in line with the price of bitcoin. To date, the Securities and Exchange Commission has never approved a bitcoin ETF. This year, though, Canadian regulators approved the country's first bitcoin ETFs, and some, including Scaramucci, believe the United States will follow suit.

For SkyBridge, though, a Bitcoin ETF may not be such a good deal. Brett Messing, the firm's chief operating officer, said a bitcoin ETF "would bankrupt us." "Our fund will continue to operate but we will not be able to raise any money," he said. Clients ask, "Why do I need private equity?"

But Brett Messing believes the key is to look at the playing field and adjust the game plan accordingly. "If we can get SEC approval, we will kill our private partnership business," he said. "I think the success of the Canadian funds will make [approval] easier for US regulators."