First Trust SkyBridge Down 15% YTD with 19.7% Surge in Short Interest
First Trust SkyBridge fund fell 15% year-to-date while short interest surged 19.7% in January as Bitcoin plunged 22% since January 1. Top holdings include Coinbase at 4.5% and MicroStrategy at 4.3%, with MicroStrategy off 46% over the past year highlighting equity proxy risks.
1. Fund Performance and Short Interest
First Trust SkyBridge ETF has declined 15% year-to-date as Bitcoin tumbled 22% since January 1 and short interest climbed 19.7% in January, reflecting mounting bearish sentiment and heightened trading pressure on crypto equities.
2. High-Beta Equity Holdings
CRPT’s portfolio is concentrated in high-beta crypto equities, with Coinbase representing roughly 4.5% and MicroStrategy 4.3% of assets; the latter's 46% drop over the past year underscores the downside volatility of these holdings relative to Bitcoin.
3. Bitcoin Market Cycle Outlook
Bitcoin’s market cycle and institutional sentiment remain the primary catalysts for the fund, with a sustained move back above $80,000 expected to restore mining margins and exchange revenues, supported by rising hash rates and monthly trading volumes.