Former White House Director of Communications Anthony Scaramucci’s global alternative investment firm SkyBridge Capital has launched the SkyBridge Bitcoin Fund. Scaramucci recently shared his thoughts about Bitcoin and his Bitcoin fund.
SkyBridge, which was founded in 2005 by Scaramucci, is “a global alternative investments firm specializing in multi-strategy commingled fund of hedge funds products, custom separate account portfolios and hedge fund advisory solutions to address the needs of a wide range of market participants ranging from individual accredited investors to large institutions.”
According to SkyBridge’s press release, its Bitcoin fund “provides mass-affluent investors with an institutional-grade vehicle to gain exposure to Bitcoin.”
It went on to say:
“Additionally, on behalf of its flagship funds, SkyBridge initiated a position, valued at approximately $310 million at the time of this release, in funds investing in Bitcoin during November and December 2020.“
SkyBridge says that Fidelity provide crypto custody services for the fund, and that Ernst & Young will be doing the auditing.
Scaramucci had this to say:
“We believe Bitcoin is in its early innings as an exciting new asset class. With the institutional quality custody solutions available today, we believe the time is right to allocate capital and provide our clients access to the digital assets space.“
Brett Messing, SkyBridge President and Chief Operating Officer, stated:
“Bitcoin is leading a digital monetary revolution around the world. We believe the onus has shifted from ‘why are you investing in Bitcoin?’ to ‘how are you not investing in Bitcoin?’“
And finally, Troy Gayeski, SkyBridge’s Co-Chief Investment Officer and Senior Portfolio Manager, added:
“Our investment team has grown enthusiastic about Bitcoin’s properties as a portfolio diversifier and return generator. Investors trust us to see around corners, and we believe it’s prudent now to allocate a small portion of your portfolio to digital assets.“
The SkyBridge Bitcoin Fund LP “will charge a 75-basis point management fee and no incentive fee.” There is a three-month lock-up period. It is only available to accredited investors, and requires a minimum investment of $50,000.
Below are a few highlights from his interview with McCormack.
On SkyBridge Capital
“Basically, we are a hedge fund manager for the mass affluent. So our idea in the beginning was to democratize the hedge fund space, so if you were a high net worth individual, you had 50 or 100 thousand dollars that you wanted to invest in a hedge fund, you could come to SkyBridge, and SkyBridge would give you the best and brightest portfolio.“
“I like the scarcity feature: no one knows who invented it. That was a smart by the inventors of it ,but they’ve only got 21 million coins out there, and so that scarcity provides people with this anti-dilutive quality, and it’s also, as you know, about human minds — when something is scarce, people want it...”
“It could glide to $280,000 a coin, have a $5 trillion dollar market value, and still only be half of all of the gold that’s been mined in our global society, and I and I think it’s got a long way to go here…“
“You have this historic opportunity now to get in before the institutions do. Institutions are coming. Could this be a $100,000 per coin at the end of 12-31 2021? I believe it could be….“
On SkyBridge Bitcoin Fund
“I hit the trigger about three months ago. We began our filing processes with the SEC. We opened the fund on December 22nd… put $25 million of the firm’s capital in the fund, and then we go live turnkey January 4th…“
“We have a three-month lock-up. Why is that? Well,I want to try to gear people towards long-term holding of the asset, and I also want to avoid the SSECCC regulatory issues around having a shorter term lock-up because you’re not allowed to trade LPs in the United States and you’re not allowed to have an ETF. So, you can’t synthetically create one through your LP. So, having a three-month lockup satisfies the SEC and it gets my clients an early access point into Bitcoin…“
“You’re buying it through us at 75 basis points, and so it’s a cheaper access point until we get to an ETF, which could be one, two, three years from now… that could be Bitcoin $300,000.“