(Reuters) – Anthony Scaramucci’s SkyBridge Capital is the latest traditional asset manager to launch a bitcoin-based asset after rising interest in cryptocurrencies in 2020.
Scaramucci, former U.S. President Donald Trump’s communications director, will join Paul Tudor Jones here and the British Ruffer Investment Management in adopting the nascent fund.
Despite the institution’s acceptance of bitcoin, it remains highly volatile, subject to inconsistent regulation and seen by most major investors as a major risk.
SkyBridge, a hedge fund, announced Monday that it had started the Skybridge Bitcoin Fund with $ 310 million in managed assets invested from its $ 3 billion core asset.
“Think of all the model models where gold has become an accepted asset class, all model models have 1% bitcoin and you can see the size where bitcoin could be , ”SkyBridge founder and managing partner Scaramucci told Reuters.
Skybridge’s crypto move comes amid accumulation in the price of bitcoin and other digital currencies. Bitcoin almost quadrupled in 2020 and ended the year at a high level.
Bitcoin continued their rally rally breaking $ 30,000 for the first time on Saturday, surrendering above $ 34,000 on Sunday.
Hedge funds focused on cryptocurrency gained 52% gains in November, bringing a one-year yield to 156%, according to Hedge Research Fund (HFR) finder.
“After posting strong gains during the turbulent 2020, investors are actively increasing their exposure to hedge funds, including cryptocurrency strategies,” HFR President Kenneth Heinz said in the news Wednesday.
However, data from eVestment show searches for cryptocurrency hedge funds on their database make up just 0.14% of all hedge fund searches in 2020.
Earlier this year, SkyBridge investors demanded $ 1.7 billion back after its core asset suffered a 23% loss in March when investments made by its hedge fund managers recalled debt.
Scaramucci told Reuters that the fund had recovered some of its losses and was down 7.5% during the year and raised another $ 300 million.
Reporting by Maiya Keidan, additional reporting by Tom Wilson in London and Anna Irrera in New York; edited by Megan Davies, Nick Zieminski and Diane Craft