Anthony Scaramucci’s hedge fund, SkyBridge Capital has submitted an application to the SEC to launch a Bitcoin fund. Scaramucci is launching the fund to democratize cryptocurrency investment for the mass affluent with a small-fee product.
Scarammuci launching a BTC hedge fund
According to a Form D that appeared on the SEC website for an exempt offering, SkyBridge Bitcoin Fund L.P. has been listed as the issuer and related person of the “SkyBridge Bitcoin Fund GP LLC.” SkyBridge is a fund offering a conduit for investment in digital currencies for mass affluent as week as registered investment advisors to invest in hedge funds.
Scaramucci said that SkyBrdige Capital has committed $25 million in capital to open the fund on January 4, 2021. The company didn’t disclose its targeted investment size but any individual investor will have a minimum of $50,000 subscription. Scaramucci said that the fund is already compiling a “nice book” with initial orders. He said that among the things they have tried to do is democratizing the hedge fund sector and BTC is still challenging to buy. Like most investors, he pointed out that BTC-USD is in the “store of value” category thus drawing a comparison to bullion whose market cap is $10 trillion compared to Bitcoin’s $400 billion.
Hedge fund for select investors
The offering will take place under Reg. D exemption which means that the company’s proposed Bitcoin fund will be accessible by accredited investors only. SkyBridge filed the application six weeks after informing the SEC of its intention to launch a BTC-related hedge fund. The fund will levy 75 basis points against Grayscale Bitcoin Trust’s annual fee of 2%.
Corporate and institutional uptake of BTC has surged this year with big names such as Stanley Druckenmiller, Paul Tudor Jones, and Jim Camer showing support for BTC. Companies such as Ruffer Investment and MassMutual are also in the BTC market. Owing to the growing adoption Scaramucci believes that in the next five to ten years BTC will see a large move because it is a product investors want to have in their portfolios.
