This week, Anthony Scaramucci’s SkyBridge Capital announced the launch of its investment thesis, presentation and full website for its new Bitcoin Fund LP. Unlike other investment firms, it went a step further in explaining why it is actively choosing bitcoin over gold.
SkyBridge Capital’s main fund, with $9.3 billion in assets under management (AUM), has invested a now-roughly $300 million position in bitcoin. In December 2020, it announced that it was raising a new, separate bitcoin-only fund and had already transferred about $25 million worth of bitcoin into it.
This week, it opened the fund to accredited investors with a minimum investment of at least $50,000. This bitcoin LP won’t trade, but you only pay a 0.75 percent annual fee and no premium. The portfolio is priced by Bloomberg’s fixed rate (XBT). This is in contrast to GBTC (a grantor trust) which trades OTC, has a 2 percent annual fee and includes a premium to bitcoin’s price.
SkyBridge’s website is a vast library of information. It has its offering memorandum, investment presentation and investment thesis. It also includes:
Toward the bottom of the website, it also takes a dig at GBTC’s premium and offers to walk through a “GBTC swap” to its fund. It understands the hurdles that many traditional investors face in investing into bitcoin and lean into them.
More enjoyable than reading the funny digs at GBTC, though, is reading the digs on gold. Because, as other large institutional investors have recently bought bitcoin, they have largely done so while also still holding gold.
An example is Ruffer’s ($27 billion AUM) recent $775 million bitcoin purchase through its multi-strategy fund, which was about 2.5 percent of the portfolio. This was a huge step, but still very small compared to its gold and inflation-linked bond holdings.
Another example was when the head of global equities at Jefferies recently cut the gold exposure in the…