Bitcoin ETFs from Fidelity and Skybridge Capital are under review by the SEC

Anthony Scaramucci
Anthony Scaramucci’s SkyBridge Capital is waiting on SEC approval of a bitcoin ETF.

  • Bitcoin exchange-traded fund applications from Fidelity and SkyBridge Capital are under review by the Securities and Exchange Commission.
  • The SEC is currently looking at four other applications to launch bitcoin exchange-traded funds.
  • A decision on asset manager VanEck’s application is expected in June.
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The Securities and Exchange Commission is reviewing applications for bitcoin exchange-traded funds filed by Fidelity and SkyBridge Capital, the hedge fund founded by Anthony Scaramucci.

The SEC is examining a request from Fidelity Investments to launch the Wise Origin Bitcoin Trust, according to a filing dated May 25, and it is looking at SkyBridge’s petition to start the First Trust SkyBridge Bitcoin ETF Trust, according to paperwork dated May 21.

The moves expand on the regulatory agency’s review of other potential bitcoin ETFs. The US has yet to approve a cryptocurrency-based ETF. Money management firms are seeking to capture potential gains from exposure to bitcoin, which has been pulling in more interest and activity from institutional and retail investors and companies.

Scaramucci’s SkyBridge is working with investment firm First Trust Advisors on the ETF project and in March filed for regulatory approval. If greenlighted, the ETF would trade on the New York Stock Exchange Arca, which specializes in exchange-traded listings.

Fidelity also in March submitted paperwork to launch a bitcoin ETF to track the digital currency’s performance. If that wins SEC approval, shares of the Wise Origin Bitcoin Trust would trade on Cboe Global Markets.

Investors are waiting to hear from the SEC if it will grant clearance for bitcoin ETFs from Kryptoin, Valkyrie, WisdomTree, and VanEck. Applications for about 10 others ETFs are pending, according to CoinDesk.

The SEC in late April said it expected to release its ruling on VanEck’s application on June 17. The agency said it was delaying the decision to take an “appropriate” amount of time for the review. A review period can be extended for up to 240 days.

Read more: A crypto expert shares the top tips to pick worthwhile NFTs in a landscape littered with scams – including how to avoid getting caught up in Reddit-fueled hype that can cost you millions of dollars.

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Investment adviser launches the first ETF dedicated to professional sports teams and leagues

Knicks Fans
Knicks fans return to the Garden as the first-ever sports ETF goes live.

Roundhill Investments and Huddle Up newsletter founder Joe Pompliano launched the first-ever exchange-traded fund dedicated to professional sports teams and leagues on Wednesday.

The ETF consists of 36 sports-related holdings including sports teams, leagues, media companies, and even sports-related SPACs. The fund will trade under the ticker “MVP” on the New York Stock Exchange.

As of March 17, the MVP ETF consisted of 53.9% pro sports teams, 17.4% apparel companies, 14.1% pro sports leagues, 8.3% SPACs, and 6.2% media firms and others.

Sports teams in the ETF include the New York Knicks, New York Rangers, Atlanta Braves, Manchester United, Juventus, Borussia Dortmund, and AS Roma.

Professional sports league holdings include Formula One and WWE. Companies within the sports media and sports apparel sectors in the ETF include Nike, Puma, Adidas, and MSG Networks.

MVP’s largest holding is Madison Square Garden Sports Corp. at 9.39% of the total ETF value.

After the launch of MVP, Roundhill Investments will have five ETFs with combined assets under management of over $650 million. Roundhill also started ETFs like the BITKRAFT Esports & Digital Entertainment ETF and the Sports Betting & iGaming ETF.

In a substack letter to investors, MVP partner Joe Pompliano lauded the ETF’s promise given the professional sports industry, the consistent appreciation of sports teams and leagues, increased media rights, and an expanding sports betting market.

“Professional sports leagues and teams have a history of being premium, scarce assets with a strong history of value appreciation. With MVP, we have created a unique and efficient vehicle for you to adequately invest and diversify into the sector,” Pompliano wrote.

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A small innovation ETF inspired by Cathie Wood is returning 10 times Ark Invest’s flagship fund this year

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  • The Direxion Moonshot Innovators ETF (MOON) has returned 39% year-to-date, beating Cathie Wood’s flagship fund, the Ark Innovation ETF (ARKK), by roughly 10-fold.
  • ARKK has gained 3.5% over the same period.
  • The Direxion fund is much smaller than Ark, and is more heavily concentrated in biotechnology stocks.
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A small ETF that aims to give investors exposure to the most innovative companies in the US has outperformed the flagship fund of Cathie Wood’s Ark Invest by 10-fold this year.

The Direxion Moonshot Innovators ETF (MOON) tracks 50 US companies that pursue innovative technologies, similar to the stated goal of the Ark Innovation ETF (ARKK). But MOON has gained roughly 39% in 2021, far outpacing ARKK’s 3.5% rise. Bloomberg first reported on the fund’s outperformance.

After a stellar 2020, this year has been shaky for Wood’s ETF as investors take profits from highly valued technology stocks and bet on cyclical names against the backdrop of rising yields and an economic reopening.

Yet Direxion’s technology stocks have fared well so far. Moon’s top stock holding by percentage is Vuzix, a $1 billion market-cap company that supplies wearable display technology and virtual reality devices. That stock has returned nearly 140% year-to-date. Meanwhile ARKK’s top holding, Tesla, has remained relatively flat in 2021.

According to the Direxion website, the ETF’s top sub themes consist of genetic engineering (19.44%), cyber security (16.79%), and clean technology (9.74%).

As of Dec 31, 2020, the ARKK’s largest themes were e-commerce (12%), digital media (9.7%), and cloud computing (9.4%).

The Direxion ETF tracks the S&P Kensho Moonshots Index, an index of 50 US companies that pursue innovative technologies that have the potential to disrupt existing industries and have the highest “early-stage composite innovation scores.”

That innovation score is determined by “a natural language processing review,” of each company’s latest regulatory filing for the use of “words and phrases that are related to innovation,” according to the Direxion website.

The fund has gained 70% since its inception in November 2020, but has under $200 million in assets under management, compared to Ark’s $24 billion.

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JPMorgan rolls out a supercharged tech trade designed to amplify gains in stocks like Tesla, report says

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  • JPMorgan is selling investment products that allow clients to augment their bets on high-flying tech stocks.
  • The notes track three exchange-traded funds from Ark Investment Management leveraged 1.5 times over a six-year period, Bloomberg reported Monday.
  • The underlying ETFs have all rallied at least 150% in 2020. Two reaped the benefits of Tesla’s 660% year-to-date surge.
  • The product’s rollout comes as investors shift out of tech stocks and into cyclical sectors amid hopes for a vaccine-fueled recovery.
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Tech stocks have already led the stock market to several record highs in 2020. JPMorgan thinks investors want to double down on the sector.

The bank is letting investors in on a new trade that amplifies bets on three tech-focused exchange-traded funds, Bloomberg reported Monday. The product tracks three ETFs from Ark Investment Management leveraged 1.5 times over a six-year period. JPMorgan has already sold $589,000 of the notes.

The funds – Ark’s Innovation, Genomic Revolution, and Next Generation Internet ETFs – are among the year’s best performers. Large stakes in Tesla boosted the Innovation and Next Generation Internet funds in 2020, as the automaker’s shares have rallied more than 660% throughout the year.

The Genomic Revolution ETF is up 194% year-to-date. The Innovation and Next Generation Internet ETFs have rallied 154% and 153%, respectively.

Read more: JPMorgan unveils its 50 ‘most compelling’ stock picks to buy for 2021 – and details why each one will be a top performer

JPMorgan has debuted the product as investors begin to rotate out of tech stocks. The sector’s insulation from the virus fallout led them to outperform through much of the year, but hopes for a vaccine-fueled recovery in 2021 have prompted mass shifts into value stocks and previously neglected sectors. A prolonged rotation could drag tech stocks lower and weigh heavily on the new products’ gains.

The structured products also only track the worst-performing of the three ETFs, meaning one’s plunge would cancel out any gains across the other two funds. Still, those holding the notes are protected against the first 20% decline in any of the ETFs, Bloomberg reported.

Ark’s Innovation, Genomic Revolution, and Next Generation Internet ETFs trade under the tickers ARKK, ARKW, and ARKG, respectively. Though all three broadly track tech themes, the Genomic Revolution fund focuses on innovations in health care including CRISPR, gene editing, and agricultural biology.

Read more: ‘We are very confident that the stupid is currently alive and well in this market’: Jeremy Grantham’s heir apparent Ben Inker breaks down how GMO plans to profit from the growth bubble through a new long/short equity strategy

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