SkyBridge Capital, a $9.2 billion investment firm founded by the former vice president of Goldman Sachs and President Donald Trump spokesman, Anthony Scaramucci, is looking to invest in cryptocurrency filings published by the Securities and Exchange Commission (SEC) on Friday and Monday show.
Exposure to Digital Assets
Specifically, they want to set up a hedge fund. Here, institutional-grade investors will get direct exposure to cryptocurrencies. The firm will invest in companies exposed to digital assets or those which directly support the crypto ecosystem.
Their prospectus read:
“The Company may seek to gain investment exposure to certain Investment Funds or Investment Managers which may enter into derivative transactions, such as total return swaps, options, and futures. Investments by the Company and/or Investment Funds may also be made in companies providing technologies related to digital assets or other emerging technologies.”
Additionally, the decade-old investment firm is looking to get exposed to all forms of digital assets, and not necessarily Bitcoin alone.
A section of their filling read:
“Investment Funds may invest in digital assets without restriction as to market capitalization or technological features or attributes (including lesser-known or novel digital assets known as ‘altcoins’) and may invest in initial coin offerings, which have historically been subject to fraud.”
Bitcoin as an Investment Strategy
Even so, Bitcoin is the most stable and liquid of all cryptocurrencies. It is part of several public firms’ investment strategy as BTCManager reports.
Despite their forays, the firm describes digital assets as securities without intrinsic value that’s prone to illiquidity during periods of depressed market conditions.
Other than their use as a medium of exchange, their history is short and not based on any tangible commodity, security, contractual right, or obligation. Besides, cryptocurrencies don’t have mainstream support from most governments.
SkyBridge’s proposals have been approved by the SEC or the Commodity Futures Trading Commission (CFTC), and therefore remains null.
Bitcoin is on a tear at the time of writing. Trading at over $17,000, the coin is at a three-year high, emerging as a store of value asset.
As BTCManager reports, Cynthia Lummis–the Senator-elect for the state of Wyoming, in an interview, said Bitcoin contends as a store of value and alternative financial investment.
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