For asset managers including Skybridge Capital, an entry into the world of Bitcoin and cryptocurrencies will serve as a wake-up call for existing clients to have a positive disposition towards BTC as well as the new cryptos that will be supported.
In the wake of the institutional embrace of Bitcoin (BTC) and digital assets, Anthony Scaramucci’s Investment Management Company Skybridge Capital has reportedly invested as much as $182 million in the first-ever cryptocurrency. According to a CoinDesk report, Skybridge Capital has filed an application to the Securities and Exchange Commission (SEC) for a hedge fund dubbed the Skybridge Bitcoin Fund LP which is set to launch in January 2021.
Cryptocurrency particularly Bitcoin Hedge fund activities and investment dealings surged in the year 2020 as more and more institutions find the appeal in the emerging asset class both as a hedge against inflation and as a better store of value compared to the fiat currencies which are constantly been devalued. The plans by Skybridge Capital to establish these hedge funds all but complements the now promising market niche.
According to the details of the filing as reported by Coindesk, Skybridge Capital with about $9.3 billion in Assets Under Management (AUM) has already invested $25 million into the bitcoin funds while investors with a minimal investment capital of $50,000 will be able to invest in the funds as from Monday, January 4th.
Skybridge appears to be deeply convinced about its latest investment move as it duly accorded Bitcoin the status of digital gold, and adding that Bitcoin “is better at being gold than gold.” Per the report, the Brochure from Skybridge describes BTC as an asset class that has notably become less risky in the past few years, with attractive supply-and-demand dynamics. According to the brochure, Bitcoin has had increasing retail and institutional adoption this year while attributing the current low-interest rates and “unprecedented money printing” as factors contributing to the premium being placed on “scarce assets like gold, real estate, art, and bitcoin.”
Skybridge Capital and the New Hedge Fund: Case for More Institutional Embrace
For asset managers including Skybridge Capital, an entry into the world of Bitcoin and cryptocurrencies, a move that has been preceded by the likes of Paul Tudor Jones’ Tudor Investment Corporation, will serve as a wake-up call for existing clients to have a positive disposition towards BTC as well as the new cryptocurrencies that will be supported.
While Grayscale’s profitability and improved crypto-based AUM up to the tune of $19 billion is a testament to the profitability of the hedge fund investments, the entry of Skybridge capital will even propound this possibility for better institutional embrace in 2021 and beyond.
Affirming the firm’s moves, Anthony Scaramucci, one of the founders of Skybridge Capital said in an interview with CNBC that “There are still skeptics out there and that’s why I think we’re in the first inning. But after the research we’ve done … and given the monetary supply and the global central banking coordination right now, this will be a very strong asset class over the next decade.”
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