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SkyBridge Capital opens Bitcoin fund and invests US$25 million

Global investment firm SkyBridge Capital recently launched a Bitcoin fund and invested US$25 million of its own capital to jumpstart the project. The hedge fund is available to investors on January 4 with a minimum subscription size of US$50,000.

The firm founded by famous American financier Anthony Scaramucci filed a Form D or Notice of Exempt Offering of Securities with the Securities and Exchanges Commission on December 28, 2020, and officially registered SkyBridge Bitcoin Fund L.P.

Scaramucci claims in an interview with Yahoo! Finance that they are already putting together a ‘nice book’ of preliminary orders prior to the fund’s official launching on January 4.

Moreover, the SkyBridge Capital CEO states the firm’s vision of democratizing hedge funds including crypto assets to the affluent mass. ‘Bitcoin is still somewhat difficult to buy’ even though there are companies such as Grayscale that make crypto investments accessible to institutional investors.

Scaramucci plans to make huge crypto investments cheaper and more accessible for the mass affluent through SkyBridge Bitcoin Fund. It will only charge 0.75% compared to the 2% annual fee of Grayscale Bitcoin Fund. Moreover, SkyBridge will only trade at the net asset value of Bitcoin whereas Grayscale has a tendency to trade at a 20 to 30% premium.

Fidelity Digital Assets will provide the Bitcoin fund and be in the custody of the digital assets.

In an interview with American news channel CNBC, Scaramucci expressed strong optimism for Bitcoin. ‘We could be at the precursor of an avalanche of institutional investors heading in,’ he shared. He predicts a large number of investors, most notably those who were sceptical to buy in 2020 will add Bitcoin to their portfolio in the first quarter of 2021.

‘We think there’s a very large move for Bitcoin over the next five to ten years … we wanted to get out there with something that could be available to RIAs, the mass affluent and people who have an interest in owning some digital assets.’

Scaramucci’s move to open a Bitcoin fund will act as a conduit for registered investment advisors (RIAs) and the 1% investors in Wall Street.

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