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Wall Street Enters! SkyBridge Capital Submits Application to SEC, Allowing its $3.7 Billion Fund to Legally Invest in Bitcoin

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Wall Street Enters! SkyBridge Capital Submits Application to SEC, Allowing its $3.7 Billion Fund to Legally Invest in Bitcoin

The well-known hedge fund on Wall Street, Skybridge Capital, has revealed that the company is submitting an amendment to the U.S. Securities and Exchange Commission to allow its funds to legally invest in Bitcoin.

SkyBridge Capital Bullish on Bitcoin

SkyBridge Capital founder Anthony Scaramucci, who briefly served as White House Communications Director in 2017 for less than 10 days before being dismissed, is a controversial figure but also a prominent investor and entrepreneur. Scaramucci, a former executive at Goldman Sachs, founded SkyBridge Capital after leaving the company, managing hedge funds worth billions of dollars.

Analyst Kevin Rooke recently discovered two investment authorization amendment documents submitted by SkyBridge Capital to the SEC (Document 1 and Document 2), seeking regulatory approval for its funds, valued at $3.7 billion (Multi-Strategy Series G and SkyBridge G II Fund), to legally invest in Bitcoin.

According to the documents, SkyBridge Capital is seeking SEC approval for its funds to hold "long and short positions in digital assets," noting that these digital assets could be acquired through "unregulated exchanges located outside the U.S." Additionally, while Bitcoin is the only cryptocurrency mentioned in the documents, the company emphasizes that it will not be limited to Bitcoin in the future and will opt to invest in other cryptocurrencies if better opportunities arise.

SkyBridge Capital's decision is not unfounded, as founder Anthony Scaramucci has expressed optimism about Bitcoin's prospects in The Block and Anthony Pompliano's Podcast. Scaramucci stated in the podcast:

"With young people increasingly favoring cryptocurrencies and the decline of the U.S. dollar and traditional financial structures, the simple fact makes Bitcoin more and more viable."

Wall Street Investors Show Increased Interest in Bitcoin

The increased interest of Wall Street investors in Bitcoin this year seems to be an undeniable fact. The CEO of Strix Leviathan, an enterprise-grade cryptocurrency investment management platform based in Seattle, commented on SkyBridge Capital's decision:

"In this challenging global macroeconomic environment, Bitcoin is an attractive investment option for institutional investors. Until the second half of 2020, this trend was largely overlooked by mainstream media and the retail sector, but companies willing to take on the risk of emerging assets and outperforming other assets this year have recognized this trend. SkyBridge's interest is the latest example in the same category of news, indicating that early adopters will reap the greatest benefits from this trend."

In addition, the founder of Mechanical Capital, Andrew Kang, previously stated that Bitcoin's investment potential for institutional investors is better than ever before, citing reasons such as:

  • Impending inflation, which will devalue the U.S. dollar.
  • Low yields, meaning the opportunity cost of holding Bitcoin will decrease.
  • Overvaluation in stock markets and other markets like real estate.