The year started off with major news in the alternative investment and cryptocurrency industries. On January 4 SkyBridge LP announced the launch of SkyBridge Bitcoin Fund LP. The purpose of this fund is to provide mass-affluent investors with an institutional grade method of accessing Bitcoin.
SkyBridge released a whitepaper summarizing their bitcoin thesis in December 2020. Their reason for investing in Bitcoin is focused on macroeconomics, especially the impact of record money printing. Although these same macroeconomic reasons would typically lead one to invest in gold, Bitcoin does have several advantages compared to Gold.
From the Press Release:
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.
Analysts have argued that growing institutional acceptance of Bitcoin is likely to be a major driver of upward price movement in digital assets. How will this ultimately play out? Perhaps history is a useful guide. Commodities were at one time considered a risque asset class. Once Wall Street built structured products tracking them, however, they became mainstream. In fact commodities are now considered essential in many asset allocation frameworks. Its likely Bitcoin will follow a similar path.
In recent years, entrepreneurs have developed custody and execution services to serve funds investing in bitcoin. As a result its becoming easier to set up a bitcoin focused fund. Private placements are an easy way to reach accredited investors. To reach a broader audience, closed end interval funds are a great option.
SkyBridge Bitcoin Fund Structure
SkyBridge Bitcoin Fund LP will charge a 0.75% annual management fee, and no incentive fee. According to to the Form D available on the SEC website, the minimum investment is $50,000. Hastings Capital Group LLC, will be involved in the sale and distribution of the Fund. Accredited investors can subscribe directly to the fund. SkyBridge is starting off with skin in the game- they will seed the the fund with $25.3 upon launch.
Although the SkyBridge Bitcoin Fund LP is focused exclusively on Bitcoin, SkyBridge will also be adding Bitcoin exposure to other funds. According to the press release, SkyBridge purchased $310 million in Bitcoin across its various flagship funds, as of the end of 2020.
More about SkyBridge
SkyBridge is global alternative investment manager that provides a range of investment solutions to individuals and institutions. Addressing every type of market participant, SkyBridge’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 REIT. Tools and data for analyzing Skybridge’s fund of hedge funds products, visit www.tenderofferfunds.com. For data on Skybridge’s non-traded REIT, as well as other private real estate funds, visit our tools and data section. Additional information on SkyBridge including offering documents, are available at www.skybridge.com