SkyBridge enters bitcoin market with new fund
Alternative investment firm SkyBridge Capital has launched of the SkyBridge Bitcoin Fund LP, which provides mass-affluent investors with an institutional-grade vehicle to gain exposure to Bitcoin.
Additionally, on behalf of its flagship funds, SkyBridge initiated a position, valued at approximately USD310 million in funds investing in bitcoin during November and December 2020.
To launch SkyBridge Bitcoin Fund LP, SkyBridge and its affiliates have invested USD25.3 million. Fidelity will serve as custodian, and Ernst & Young will audit the fund.
"We believe Bitcoin is in its early innings as an exciting new asset class," says SkyBridge founder and managing partner Anthony Scaramucci. "With the institutional quality custody solutions available today, we believe the time is right to allocate capital and provide our clients access to the digital assets space."
Despite growing retail demand for digital currency, Wall Street firms have largely avoided the market due to concerns around security. With the launch of the SkyBridge Bitcoin Fund LP, investors will have access to institutional-quality custody and operation, without forcing investors to directly hold bitcoin.
"Bitcoin is leading a digital monetary revolution around the world," says Brett Messing, SkyBridge President and Chief Operating Officer. "We believe the onus has shifted from 'why are you investing in Bitcoin?' to 'how are you not investing in Bitcoin?'"
In 2020, Bitcoin more than doubled in price and surpassed its 2017 market capitalisation for an all-time high of over USD500 billion. Today, one bitcoin is valued at approximately USD32,000.
"Our investment team has grown enthusiastic about Bitcoin's properties as a portfolio diversifier and return generator," says Troy Gayeski, SkyBridge Co-Chief Investment Officer and Senior Portfolio Manager. "Investors trust us to see around corners, and we believe it's prudent now to allocate a small portion of your portfolio to digital assets."
SkyBridge Bitcoin Fund LP builds on the firm's longtime commitment to making alternative investment accessible to wider audiences. Among its products, SkyBridge's flagship Series G fund offers modest minimum investment requirements for access to leading hedge fund managers.
"With global money printing at an all-time high, Bitcoin offers a strong alternative to gold as a store of value and hedge against future inflation," says Ray Nolte, SkyBridge Co-Chief Investment Officer and Senior Partner.
The SkyBridge Bitcoin Fund LP will charge a 75-basis point management fee and no incentive fee. Accredited investors can subscribe directly to the fund, which requires a minimum investment of USD50,000.