The year has just begun and Bitcoin is becoming one of the hottest investments around.
Prices surged almost 300% in 2020 followed by another 19% gain on Jan. 2, before giving back much of that gain in trading on Monday morning.
Hours later, Anthony Scaramucci’s SkyBridge Capital formally launched the SkyBridge Bitcoin Fund, a limited partnership that is available to accredited investors for a minimum $50,000 investment. Scaramucci says the fund will trade at net asset value, unlike the Grayscale Bitcoin Trust which often trades at a premium, and it carries a 0.75% fee. Fidelity Investments is the custodian.
“We believe Bitcoin is in its early innings as an exciting new asset class,” said Scaramucci in a statement. “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.”
He tells ThinkAdvisor that the fund, seeded with $25 million of the firm’s capital, is targeting $500 million and individuals who can buy and hold the cryptocurrency for a minimum three months. Despite its volatility, which is expected, Bitcoin will be considered a store of value over and has a place in individuals’ portfolios, Scaramucci said. “There’s a lot of institutional demand … and only 2 million coins left to be mined. They can’t be created.”
RIAs who can’t own coins outright due to regulatory issues can buy into the investment partnership to own the coin, Scaramucci said.