SkyBridge Capital Founder: ‘Cryptocurrency Markets Represent Tremendous Growth’

Former White House Director of Communications Anthony Scaramucci, who is the founder and managing partner of global alternative investment firm SkyBridge Capital, talked about the crypto markets during a recent interview.

SkyBridge Capital is “an SEC-registered investment adviser and global alternative investment manager that invests in hedge funds, digital assets, private equity, and real estate.”

On 4 January 2021, Skybridge announced “the launch of the SkyBridge Bitcoin Fund LP, which provides mass-affluent investors with an institutional-grade vehicle to gain exposure to Bitcoin.”

The press release went on to say:

“Additionally, on behalf of its flagship funds, SkyBridge initiated a position, valued at approximately $310 million at the time of this release, in funds investing in Bitcoin during November and December 2020.“

According to a report by Cointelegraph published on April 25, SkyBridge Capital “also has money deployed in other hedge funds, late-stage private tech companies and real estate, with its total AUM reported being around $7.3 billion.” SkyBridge has also been trying to get a physical Bitcoin ETF approved by the U.S. SEC.

The report went on to say that Scaramucci told Bloomberg in a recent interview:

“We made a decision during the pandemic that we had to relitigate our entire portfolio. There’s a pre-pandemic world and a post-pandemic world, and a post-pandemic world has a lot more government deficits—it has a lot more uncertainty related to growth… For us, we think the cryptocurrency markets represent tremendous growth. It comes with volatility, certainly, but I think over the three to five years, we’d like that trajectory.“

And SkyBridge’s director of business development John Darsie said:

“What we decided to do was a portion of that capital that was previously allocated to credit managers was invested directly into crypto assets like Bitcoin and Ethereum—but then also rotate capital into crypto-asset managers like Multicoin, Polychain, Pantera, people of that nature.“

Scaramucci also told Bloomberg why the SEC has so far not approved any spot Bitcoin ETFs and why he remains cautiously optimistic that eventually this approval will come:

“I think the SEC is taking the position that because the cash trading of Bitcoin is happening all over the world, that they don’t have a one-market clearing for all buys and sells. So they’re worried about price manipulation… But over time, because of the transparency of the markets, I think they’re going to get more comfortable with it.“

On March 4, Scaramucci shared his thoughts on crypto and the Fed during an interview with Melissa Francis on Magnifi Media by TIFIN.

With regard to Bitcoin (and crypto in general), he said:

  • “We store our Bitcoin at Fidelity and NYDIG.“
  • “I have never said that it was an inflation hedge… I do not see in its current state as an inflation hedge. I see this as an early technological adoption story that is mirroring a lot of what happened in Web 1.“
  • Average investors with no exposure to crypto should buy some Bitcoin, but it is important that they average in (“The only way you can handle a technology like this is to dollar cost average in.“)
  • “Gary Gensler has made a decision that it’s important for him to be tough on crypto. He understands it as well as anybody… He taught cryptocurrency courses at MIT.”
  • “I think over time what will happen is [that] the cooler heads… will win out. I don’t think the United States wants to cede its leadership in financial services… If they make a decision to disallow or to overly regulate cryptocurrencies, you’re going to see capital and intellectual flight from the country… I think it ends up getting appropriately regulated.“
  • Bitcoin could get to $100,000 this year. He is “very confident” that it could reach that price within two years.

Late last month, during an interview with CNBC, Scaramucci said that the increase in new Bitcoin wallets was a bullish indicator that $BTC would make a move into the six-digit range within the next two years. 

Citing data from analytics platform Glassnode, Scaramucci estimated that there were close to 245 million individual Bitcoin wallets in the world. As reported by The Daily Hodl, he said:

“When I made or when SkyBridge made its first Bitcoin investment, we were talking about 85 million wallets and that was October-November of 2020, so just think of the spectacular growth of the Bitcoin network.“

Disclaimer

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

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