Embracing the Future: SkyBridge’s Shift to Digital Assets

SkyBridge Capital, founded by the former politician Anthony Scaramucci in 2005, is pulling a fast one on the financial world by pivoting most of its assets toward digital assets—specifically, cryptocurrency. Scaramucci is like a kid in a candy store, realizing that this sector reflects a potentially booming future, with an estimated $7.3 billion in total assets under management (AUM).

From Bitcoin Explorations to NFT Innovations

The firm’s dalliance with Bitcoin started in late 2020, and since then, they’ve been throwing around change left and right—managing a $7 million Bitcoin Fund and eyeing a spot Bitcoin ETF with great enthusiasm. Scaramucci’s comments suggest they’re ready to surf the bullish waves of cryptocurrency, despite a few occasional wipeouts.

Recognizing a Post-Pandemic Landscape

In a recent chat with Bloomberg ahead of the annual SkyBridge Alternatives Conference (SALT), Scaramucci outlined the pandemic’s influence on their investment strategy. He views the world in two distinct lenses: pre-pandemic and post-pandemic, with the latter bringing a heavier cloud of government deficits and market uncertainty. “We think the cryptocurrency markets represent tremendous growth,” Scaramucci stated, while subtly reminding investors that volatility is the name of the game.

Strategizing Investments in a Shaky Environment

John Darsie, the director of business development at SkyBridge, pinpointed a significant drawdown in the credit segment of their hedge fund portfolio as a catalyst for this crypto push. The firm is on the lookout for growth-oriented managers, while also orchestrating shifts in funding towards crypto assets like Bitcoin and Ethereum—or as Darsie affectionately dubbed them, the “cool kids” of the digital world.

The SEC and the Cryptocurrency Conundrum

As excitement mounts over the potential for a Bitcoin ETF, Scaramucci remains optimistic about the SEC’s position. “They’re worried about price manipulation,” he explained, while also pointing out that Bitcoin trading is as global as a fast-food chain. He struck a hopeful note, predicting that with increased market transparency, the SEC will warm up to these digital assets—assuming they can take a few deep breaths first.