SkyBridge Capital, a global alternative investment firm, has launched the SkyBridge Bitcoin Fund LP, which intends to provide accredited investors with a vehicle to gain exposure to Bitcoin.
Additionally, on behalf of its flagship funds, SkyBridge initiated a position, valued at approximately $310 million, in funds investing in Bitcoin during November and December 2020.
According to a filing with the Securities and Exchange Commission, the Regulation D Rule 506(c) fund has an “indefinite” offering amount and a minimum investment of $50,000. The fund will charge a 75-basis point management fee and no incentive fee.
To launch to the fund, SkyBridge and its affiliates have invested $25.3 million.
“We believe Bitcoin is in its early innings as an exciting new asset class,” said SkyBridge founder and managing partner Anthony Scaramucci. “With the institutional quality custody solutions available today, we believe the time is right to allocate capital and provide our clients access to the digital assets space.”
Despite growing retail demand for digital currency, Wall Street firms have largely avoided the market due to concerns around security. In 2020, Bitcoin more than doubled in price and surpassed its 2017 market capitalization for an all-time high of more than $500 billion. Today, one Bitcoin is valued at approximately $32,000.
“Bitcoin is leading a digital monetary revolution around the world,” said Brett Messing, SkyBridge president and chief operating officer. “We believe the onus has shifted from ‘why are you investing in Bitcoin?’ to ‘how are you not investing in Bitcoin?'”
Fidelity will serve as custodian, and Ernst & Young will audit the fund.
SkyBridge is global alternative investment manager that provides a range of investment products to individuals and institutions. The firm’s investment offerings include commingled funds of hedge funds products, customized separate account portfolios, hedge fund advisory services, and an opportunity zone focused non-traded real estate investment trust.