Anthony Scaramucci and his $9.2 billion group of funds, SkyBridge, launch a Bitcoin fund.
Mr. Scaramucci wants to target high net worth individuals with a low commission Bitcoin offering.
SkyBridge’s Bitcoin fund will charge an annual fee of 0.75%, compared to 2% for Grayscale.
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Anthony Scaramucci, former White House communications director and founder of the $9 billion SkyBridge Capital fund, announced that he will launch a fund based on Bitcoin.
According to Mr. Scaramucci, the fund will target high net worth investors and give them the opportunity to gain exposure to Bitcoin with a low-cost product offering.
The low fees are a major differentiator between the SkyBridge fund and other funds such as Grayscale’s Bitcoin fund. SkyBridge will charge customers a 0.75% commission compared to Grayscale’s 2% annual fee, a reduction of more than 60%.
SkyBridge recently filed its Form D with the Securities and Exchange Commission (SEC) to create its new SkyBridge Bitcoin Fund L.P.
The company launched the fund with a $25 million capital injection and will open it to private investment in early January 2021. The minimum investment for the new fund will be $50,000.
Skybridge Capital doubles its stake in Bitcoin.
The company has just registered the Skybridge Bitcoin Fund with the SEC, one month after authorizing two of its other funds to invest in Bitcoin.
Mr. Scaramucci sees Bitcoin as a reserve and a transfer of digital value, as well as a parallel investment to physical gold. He explains:
We expect Bitcoin to experience very strong growth over the next five to ten years. We believe it’s a product that people will have in their portfolios, and we wanted to participate in the change with something that could be available to RIAs, the high capital market and people who have an interest in owning digital assets.
High net worth investors increasingly interested in Bitcoin
The price of Bitcoin has seen a massive increase this year. Part of the increased interest in it is probably due to wealthy and institutional investors. MicroStrategy CEO Michael Saylor, who has personally purchased hundreds of millions of dollars in BTC, is one example.
He has also purchased more than $1 billion in BTC for MicroStrategy’s cash reserve. Another high-profile name, Shaan Puri, the director of the Twitch streaming platform, boldly claimed that he had invested 25% of his fortune in alpha crypto-money.
Although curious people don’t know how much of that 25% is actually there, estimates suggest that it was not a small amount of money. It seems that many wealthy institutional investors see Bitcoin as a viable hedge against inflation.
With Bitcoin’s pre-determined issuance plan and circulation capped at 21 million pieces, some even believe that digital assets are a safer hedge against inflation than gold.
Will other market players follow this institutional example and delegate a small part of their portfolio to Bitcoin?