SkyBridge Capital Wants to Invest in Bitcoin & Digital Assets, Reveals SEC Filing
New York City-based global investment firm SkyBridge Capital founded by Anthony Scaramucci has filed Form 424B3 with the US Securities and Exchange Commission (SEC) on Nov. 13. As per this amendment, the $3.6 billion fund of the company will start investing in Bitcoin.
“The Company may seek exposure to digital assets (as defined herein) by investing in Investment Funds that provide exposure to digital assets,” and in companies that provide technologies related to digital assets or other emerging technologies.
The fund wishes to hold long and short positions in digital assets, known as “virtual currencies” and “cryptocurrencies” with no intrinsic value other than as a method of exchange, reads the amendment.
While having a limited history, these extremely volatile assets are typically “not issued or backed by any government, bank, or central organization.” These digital assets may trade on unregulated exchanges or are outside the US and can be shut down permanently.
It further says these assets shouldn’t be expected to be correlated or connected to traditional economic or market forces as they could decline rapidly, to even zero.
“Investment Funds may invest in digital assets without restriction as to market capitalization or technological features or attributes (including lesser-known or novel digital assets known as “altcoins”) and may invest in initial coin offerings, which have historically been subject to fraud.”
The investment may be in part or whole in digital assets or technologies that are “highly disruptive, and the future successes of such technologies are highly uncertain.”
Because of being a nascent space, the companies to be invested in maybe “rapidly eclipsed by newer and more disruptive technological advances that render current digital assets or technologies outdated or undesirable.”
Covering the regulatory aspect, the report says, it is “undefined and rapidly developing” and subject to “significant uncertainty.” This means the federal, state, or foreign governments may restrict the use and exchange of digital assets at any time, which could further limit investment funds' ability to pursue investment strategies in digital assets or cause digital assets to lose significantly, or all, of their value.