SkyBridge Capital, the hedge fund of well-known investor Anthony Scaramucci, has high hopes for crypto. After it started buying bitcoin in 2020, the fund now has billions of dollars in the crypto sector. In a conversation with Bloomberg let Scaramucci know that the crypto market “represents massive growth.”
Why did SkyBridge start buying bitcoin?
In the conversation, Scaramucci, who briefly served as communications director during President Donald Trump’s term, speaks out about his crypto adventure. That adventure started during the pandemic:
“There’s a pre-pandemic world and a post-pandemic world, and a post-pandemic world has a lot more government deficits — there’s a lot more uncertainty about growth.”
Scaramucci hopes that allocating much of SkyBridge’s portfolio to crypto could eventually triple its investment. At the moment there is said to be about $3.5 billion in crypto, including bitcoin, but also projects such as Ethereum (ETH) and listed crypto companies.
However, the investor warns that crypto investments are not for everyone: “But admittedly, there has been enormous volatility. This is not for the faint of heart – this is a long-term strategic decision.”
Bitcoin spot exchange fund is coming
In addition, the investor also commented on the status of a Bitcoin exchange traded fund (ETF). Some Bitcoin ETFs have already been approved in the United States, but they are based on futures. A physical fund would be an interesting development because such a fund actually buys bitcoin as soon as an investor buys shares in the fund.
However, a physical stock fund is still not approved in the US. Scaramucci nevertheless seems confident that an approval will follow:
“They [de toezichthouder, red.] are concerned about price manipulation. But over time, because of the transparency of the markets, I think they will feel more comfortable there. […] eventually the SEC will reach the position where they allow a cash Bitcoin ETF.”