Anthony Scaramucci, whose 2017 tenure as Donald Trump’s communications director lasted just 11 days, is the latest hedge fund manager to buy into bitcoin.
The bitcoin price broke through into uncharted territory last month, soaring past its 2017 high and ending 2020 up by over 300%.
Now, Scaramucci’s Skybridge Capital, a New York-based fund of hedge funds, has started the Skybridge Bitcoin Fund with $310 million in assets under management—calling bitcoin still “in its early innings.”
“We believe bitcoin is in its early innings as an exciting new asset class,” Scaramucci, Skybridge’s managing partner, said in a press release. “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.”
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The SkyBridge Bitcoin Fund LP is geared towards wealthy investors looking for exposure to bitcoin. The minimum investment is $50,000.
After a number of high-profile investors, led by the famed Paul Tudor Jones, named bitcoin as an emerging inflation hedge early last year, institutions around the world have begun to buy into bitcoin.
The bitcoin price was pushed above its 2017 high of $20,000 per bitcoin in December after London-based Ruffer Investment Management revealed a $745 million bitcoin bet. Massachusetts Mutual Life Insurance had announced it purchased $100 million in bitcoin for its general investment fund the week before.
The bitcoin price bull run was sparked in October by payments giant PayPal’s PYPL announcement that it would begin support bitcoin and a handful of smaller cryptocurrencies. Bitcoin’s price has tripled in value since then—with many in the cryptocurrency community predicting it will continue to climb.
“Bitcoin is leading a digital monetary revolution around the world,” Skybridge chief operating officer Brett Messing added. “We believe the onus has shifted from ‘why are you investing in bitcoin?’ to ‘how are you not investing in bitcoin?'”
Slides from a leaked investor deck reveal Skybridge “expects a tidal wave of institutional capital” into the bitcoin market. It predicts hedge funds, insurance companies and a long-awaited bitcoin exchange-traded fund are “coming.”
Bitcoin’s rally comes alongside its growing reputation as “digital gold,” with ethereum cofounder Vitalik Buterin recently calling it an “underrated” bull case for crypto.
Skybridge slides show the hedge fund found bitcoin to be “a vast improvement over gold,” and hints gold will eventually give way to bitcoin—”the history of money has been marked by a ‘winner take all’ dynamic.”
“With global money printing at an all-time high, bitcoin offers a strong alternative to gold as a store of value and hedge against future inflation,” Ray Nolte, Skybridge Co-chief investment officer, said as part of the announcement.
Last year, SkyBridge investors withdrew $1.7 billion after its main fund suffered a 23% loss in the March coronavirus crash. The fund had since recovered some of its losses, ending 2020 down 7.5%, and it raised another $300 million, Scaramucci told Reuters.