Bitcoin (BTC) Jumps 3% Above $23,700 As SkyBridge Capital Launches $25 Million Bitcoin Fund

By Bhushan Akolkar
Published December 23, 2020 Updated December 23, 2020
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Bitcoin (BTC) Jumps 3% Above $23,700 As SkyBridge Capital Launches $25 Million Bitcoin Fund

By Bhushan Akolkar
Published December 23, 2020 Updated December 23, 2020

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.

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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.”

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.

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.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan Akolkar
723 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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