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This week, Anthony Scaramucci’s SkyBridge Capital announced the launch of his investment thesis, presentation and full website for his new Bitcoin Fund LP. Unlike other investment firms, it went a step further in explaining why it actively chooses bitcoin over gold.

SkyBridge Capital’s main fund, with $ 9.3 billion in assets under management (AUM), has now invested approximately $ 300 million in bitcoin exposure. In December 2020, it announced that it was raising a new separate bitcoin-only fund and had already transferred about $ 25 million worth of bitcoin into it.

This week, it opened the fund to accredited investors with a minimum investment of at least $ 50,000. This bitcoin LP will not trade, but you will only pay a 0.75 percent annual fee and no premium. The portfolio is priced based on Bloomberg’s fixed rate (XBT). This is in contrast to GBTC (a grantor trust) which trades OTC, has an annual fee of 2 percent, and includes a premium over bitcoin’s price.

SkyBridge’s website is a huge library of information. It has its offer brief, investment presentation and investment thesis. It also includes:

The bottom of the website also looks at GBTC’s premium and offers to walk to its fund via a “GBTC swap”. It understands the hurdles many traditional investors face when investing in and leaning into bitcoin.

More fun than reading the funny digs at GBTC, however, is reading the digs for gold. Because, as other major institutional investors have recently bought bitcoin, they have largely done so while also still holding gold.

An example is Ruffer’s ($ 27 billion AUM) recent purchase of $ 775 million worth of bitcoin through his multi-strategy fund, which made up about 2.5 percent of the portfolio. This was a huge step, but still very small compared to his holdings of gold and inflation-linked bonds.

Another example was when the head of global equities at Jefferies recently cut exposure to gold in the long-only pension funds in favor of bitcoin. But even after that, bitcoin remains an allocation of 5 percent versus 65 percent gold and gold mining.

With a bitcoin only LP, there is no solution to the question “why bitcoin versus gold?” SkyBridge has to take it head-on, and it does. The investment thesis is 10 pages (excluding legal disclaimers) and about a third of it focuses on why gold is inferior to bitcoin and how bitcoin gold 2.0 will be.

It quickly establishes a need for deflationary assets – increasing debt, increasing money supply and low interest rates.

It then quickly asks, “Is gold to the rescue?”


The main points it offers for pro bitcoin vs gold are:

Also see

  • Fixed versus limited supply (the gold supply increases at approximately 1.25 percent supply per year)
  • The tech industry will be the main driver of marginal wealth creation – a digital asset goes with that
  • More wealth is being transferred to millennials – bitcoin portability and storage suits this target audience

The thesis also contains a summary image:

The SkyBridge presentation extends gold 2.0 even further, beyond the investment white paper, explains why bitcoin is superior and also uses gold as an example of potential growth.

In his opening page, it states that “Bitcoin is better at gold than gold” and cites the existing market capitalization of gold as an example of where the price of bitcoin could rise.

The presentation and thesis continue with Halvings, growing adoption and bitcoin as a portfolio diversification. But the most interesting aspect remains the fact that an institutional investor is immediately asked “why bitcoin over gold?” Answers.

All in all, the launch of the SkyBridge Bitcoin LP is another strong step in the adoption of Bitcoin by investors. It points to GBTC’s problematic premium for investors and discusses why an institutional investor would prefer bitcoin over gold.

This is a guest post from Ellie Frost. The views expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

Ellie Frost is a former investment banker turned Altcoin Minimalist

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