Bitcoin Market Cycle Affects First Trust SkyBridge Fund Performance

The First Trust SkyBridge fund has been a popular choice for investors seeking exposure to cryptocurrencies without directly holding Bitcoin. However, the fund's performance has declined 15% year-to-date, mirroring the broader crypto selloff.

One of the key drivers of CRPT's performance is the Bitcoin market cycle and institutional sentiment surrounding it. The fund's holdings in miners and exchanges are highly sensitive to Bitcoin's price movements, as their revenues and margins move with it.

A sustained move back above $80,000 would likely improve the earnings outlook for the fund's largest positions, including Coinbase Global and Strategy (formerly MicroStrategy). This could lead to a rebound in NAV pressure and potentially higher returns for investors.