The launch of Bitcoin Spot Exchange-Traded Funds (ETFs) has been a significant event in the cryptocurrency industry, but some ETF providers have not met all necessary criteria, resulting in their applications being denied. SkyBridge has decided to withdraw its application for a Bitcoin ETF. As the popularity of Bitcoin spot ETFs continues to rise, investment management company SkyBridge Capital has been setback after the United States Securities and Exchange Commission (SEC) declared its First Trust-SkyBridge’s BTC ETF Trust abandoned. In related news, asset manager Patient Capital, with $1.8 billion in assets, is seeking to invest in Bitcoin ETFs and has submitted a filing for approval. Senior Bloomberg Intelligence ETF analyst and crypto supporter Eric Balchunas used the social media platform X (formerly Twitter) to inform the cryptocurrency community that the SEC has instructed the First Trust SkyBridge Bitcoin ETF to consider their filing as “abandoned.” The Bloomberg expert is unsure about the reason for the event because First Trust was one of the filers who chose not to participate in the post-BLK competition. He also mentioned that if the SEC had approved the launch of the First Trust SkyBridge Bitcoin ETF Trust, it could have seen a potential increase in fund inflows of 3473% because First Trust is known for its strong sales capabilities. According to the filing screenshot shared by Balchunas, the SEC mentioned that SkyBridge did not follow the notice under Rule 479, which requires the statement to be amended or withdrawn promptly, or it will be considered abandoned. It is important to mention that SkyBridge Capital was among the first companies to apply for a Bitcoin ETF. Yet, in January 2022, the regulatory body declined the request, leading the company to not seek reapplication for the ETF launch. According to section 6(a) of the Securities Act of 1933, First Trust SkyBridge BTC ETF complied with regulations by submitting a registration statement for their securities with the agency. Despite being filed nine months ago, the registration statement has yet to take effect. Therefore, the Division of Corporation Finance, on behalf of the Commission, ordered the registration statement to be declared abandoned on March 12. Grayscale now holds the second spot in terms of the largest ETF outflows.