New York-based global investment firm SkyBridge Capital announced today that it had started its Bitcoin Fund with $310 million in assets under management (AUM).
The hedge fund manager founded by the former White House Communications Director, Anthony Scaramucci, is currently the newest fund management company to offer institutional investors exposure to bitcoin via a Bitcoin fund.
The SkyBridge Bitcoin Fund is being seeded with $310 million in assets reportedly gotten from the firm’s $3 billion flagship fund.
Commenting on the latest development, SkyBridge founder and managing partner Anthony Scaramucci told Reuters, “Imagine every model portfolio where gold has become an accepted asset class, every model portfolio has a 1% exposure to bitcoin, and you can see the magnitude of where bitcoin could be.”
SkyBridge’s embrace of bitcoin came off the recent bitcoin price surge alongside other crypto assets. The top cryptocurrency has been on an increasing upward trend and had even set a new all-time high for itself when it crossed the thresholds of $34,000 on Sunday.
Aside from the recent price increase, SkyBridge is also going into it for the profits. Data from Hedge Fund Research (HFR)- an industry tracking firm, reveals that in November alone, cryptocurrency-focused funds made 52% profits, which are about %156 in 2020.
According to HFR president Kenneth Heinz, profits made on hedge funds have attracted investors attention, he said: “After posting strong gains through the tumultuous 2020, investors are actively increasing exposure to hedge funds, including cryptocurrency strategies.”
SkyBridge will be hoping to grab a share of the market off Grayscale’s Bitcoin Trust, which currently holds $17.5 billion in assets under management.
Many people prefer a traditional fund offering with institutional grade custody and security, ala the Grayscale Bitcoin Trust, which has $20bb AUM
— Anthony Scaramucci (@Scaramucci) January 4, 2021
Coinfomania recently cited JP Morgan analysts as alleging that inflows into Grayscale are a potential indication of how long the Bitcoin rally will continue. Grayscale reportedly brought in on average $1 billion in assets every month of 2020. On one occasion, Grayscale acquired 12,319 BTC ($290 million) within a day.
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