Anthony Scaramucci’s SkyBridge Capital Launches Institutional-Grade Fund to Directly Invest in Bitcoin; Offers GBTC Swap Too
Describing Bitcoins as a “monetary life raft” and better at being gold than gold, SkyBridge predicts a “tidal wave of institutional capital.”
Anthony Scaramucci, the founder of SkyBridge Capital has launched the Bitcoin Fund as shared by him during the last quarter of 2020 when he said Bitcoin is still in “very, very early innings.”
SkyBridge Bitcoin GP LLC. is the new institutional-grade weekly-subscription based product that invests directly in bitcoin with a minimum investment of $50,000. Compared to GBTC’s 2% fee, this fund charges a 0.75% management fee with redemptions to be made quarterly with 30 days notice.
The fund has selected Fidelity as its custodian and Silvergate Bank to custody the US dollars. While Ernst & Young is the fund auditor, it will be administered by M.G. Stover.
Besides offering this product, the official website lists the ‘GBTC Swap’ option noting that the premium on GBTC can be monetized by selling it and investing in the Skybridge Bitcoin Fund.
The world’s largest asset manager, Grayscale holds over 3% of Bitcoin’s circulating supply while its product GBTC trades at a premium of 17% to Bitcoins’ market price. SkyBridge Capital notes,
“The GBTC premium exists because there are a dearth of vehicles for traditional investors to obtain exposure to Bitcoin. However, the premium is likely to disappear when more investment products, particularly a Bitcoin ETF, become available.”
SkyBridge encourages GBTC holders to swap it into their Bitcoin fund because SkyBridge Bitcoin Fund trades at NAV, making the swapping potentially more beneficial as the price of BTC rises BTC -2.38% Bitcoin / USD BTCUSD $ 57,441.12
-$1,367.10-2.38% Volume 66 b Change -$1,367.10 Open $57,441.12 Circulating 18.7 m Market Cap 1.07 t 1 d VanEck Files for the First Ethereum ETF in the US 1 d Risk-on Sentiment Sending Bitcoin, Ether, & Gold Higher as President Biden Declares 'We Can’t Let Up' 2 d BoE Governor Andrew Bailey Says Crypto Investors Trading In A Bubble .
“Monetary life raft”
In its presentation, SkyBridge notes massive currency collapses that can be seen all over the world. Not to mention the system banking crisis and the ever-present risk of government confiscation of assets that make Bitcoin a “monetary life raft.”
The New York-based global investment firm further notes that the digital asset is a vast improvement over traditional safe-haven asset gold and is gold 2.0.
With BTC having a mere $500 million market cap compared to yellow metal’s $10 trillion, “if Bitcoin archives the same market capitalization of gold, the price per Bitcoin will be $535,000,” it states.
SkyBrige predicts a “tidal wave of institutional capital,” that involves hedge funds, public company treasurers, insurance companies, pension funds, RIAs, banks and brokerage firms, and a Bitcoin ETF.
Currently, BTC is trading around $30,500, down from Sunday’s $34,850 high, a level Scaramucci encouraged people to buy BTC saying that even now, “You’re still way early to Bitcoin.”