Bitcoin (BTC) Jumps 3% Above $23,700 As SkyBridge Capital Launches $25 Million Bitcoin Fund
Bitcoin (BTC) price is back above $23,500 as institutional funding into Bitcoin continues! The BTC price has jumped over 3.3% on news that SkyBridge Capital has announced the launch of its $25 million Bitcoin Fund.
As reported by Yahoo Finance, SkyBridge Capital’s new Bitcoin fund aims to “democratize” investing in the crypto space while offering a low-fee product for the “mass-affluent”. The Form D filing with the U.S. Securities and Exchange Commission (SEC) notes that the SkyBridge’s Bitcoin Fund L.P is a fund-of-fund for registered investment advisors (RIAs) to invest into the not-easily approachable asset classes and hedge funds.
Speaking to Yahoo Finance, SkyBridge Capital founder Anthony Scaramucci said:
“One of the things we tried to do is democratize the hedge fund industry and Bitcoin is still somewhat difficult to buy. “So, we think there’s a very large move for Bitcoin over the next five to ten years. We think it’s a product that people will have in their portfolios, and 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.”
“Bitcoin is still somewhat difficult to buy… I thought it was an important thing to try to create a product that was a little cheaper,” Skybridge Founder @scaramucci says on launching a Bitcoin fund. “We think it’s a product that people will have in their portfolios.” pic.twitter.com/KYrkXbhVYQ
— Yahoo Finance (@YahooFinance) December 22, 2020
As the Bitcoin Fund opens up on January 4, 2021, SkyBridge Capital has pledged a fund infusion of $25 million while the minimum subscription size is pegged at $50,000.
Comparing Bitcoin to Gold, Calling It As A ‘Store of Value’
Just like many other veteran investors, Scaramucci also belies that Bitcoin is a ‘store of value’. Interestingly, he also draws a comparison with gold while suggesting that Bitcoin’s market cap is only ~5% that of Gold and it has huge potential ahead.
Interestingly, Gemini founder Tyler Winklevoss also points out that the U.S. debt-to-GDP ratio has reached a staggering 135% with unemployment and low production. He suggests Bitcoin is the only solution to navigate through these tough times.
Staggering fact I can stop thinking about. Today, debt-to-GDP ratio is 135%. It was 121% during WWII. Back then we had record employment and record production. Today, we have record unemployment and low production. #Bitcoin is the only compass to navigate these uncharted waters.
— Tyler Winklevoss (@tyler) December 22, 2020
The SkyBridge Bitcoin Fund will compete with Grayscale’s Bitcoin Trust (GBTC) wherein the former will charge only 75 basis-points against GBTC’s 2% annual fee. “Grayscale fund has a tendency to trade at a 20 to 30% premium, so we wanted this to trade at the net asset value of Bitcoin,” Scaramucci added.
Fidelity Digital Assets will provide the SkyBridge Bitcoin Fund the back office and storage services while EY will do the audit.
- ASTER Token Rockets Over 10% in an Hour as Binance Announces Spot Listing
- Whale Dumps Massive $55 Million in XRP to Ripple as Coin Falls Below $3?
- Aster Token Crashes 10% On DEX Integrity Issues Ahead of Airdrop, What’s Happening?
- Spot Bitcoin ETFs Record 2nd Best Weekly Inflows Ever, Bloomberg Analysts Bullish
- Michael Saylor Says “No New Orange Dots” Pausing Bitcoin Buys as Holdings Hit Record $79B
- Bitcoin Price Prediction as Exchange Reserves Hit 6-Year Low—Is $150K Within Reach?
- Dogecoin Price Rebounds 15% From Buy Zone as Whales Add 30M DOGE – Can Bulls Push Beyond $0.30?
- FLOKI Price Prediction as ETP Listing Drives Adoption—Is a 160% Rally Ahead?
- BNB Coin Price Hits ATH as Derivatives Activity Soars—Is $1,520 the Next Stop?
- Aster Price Eyes $3 After Channel Breakout as Open Interest Surges to $1.37B
- Will XRP Price Hit $5 if the SEC Approves ETFs This Month?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
