This week, Anthony Scaramucci’s SkyBridge Capital announced the launch of its investment thesis, presentation and full website for its new LP Bitcoin Fund. Unlike other investment firms, she took it a step further by explaining why she is actively choosing bitcoin over gold.
SkyBridge Capital’s main fund, with $ 9.3 billion in assets under management (AUM), has now invested a position of around $ 300 million in bitcoin. In December 2020, she announced that she was raising a new separate bitcoin-only fund and had already transferred about $ 25 million in bitcoin to him.
This week, he opened the fund to accredited investors with a minimum investment of at least $ 50,000. This LP bitcoin is not traded, but you only pay a 0.75% annual fee and no premium. The portfolio is priced at Bloomberg’s fixed rate (XBT). This is in contrast to the GBTC (a concession fund), which trades OTC, has an annual fee of 2% and includes a premium on the price of bitcoin.
The SkyBridge website is a vast library of information. It has an offer memorandum, presentation and investment thesis. It also includes:
At the end of the site, he also analyzes the GBTC prize and offers to make a “GBTC swap” for his fund. He understands the obstacles that many traditional investors face when investing in bitcoin and leans towards them.
More enjoyable than reading the funny digs at GBTC, however, is reading the gold digs. Because, like other large institutional investors recently bought bitcoin, they did so largely while still holding gold.
One example is Ruffer’s recent $ 775 million bitcoin purchase ($ 27 billion AUM) through its multi-strategy fund, which accounted for about 2.5% of the portfolio. It was a big step, but still very small compared to gold and inflation-linked bonds.
Another example was when the head of global equities at Jefferies recently cut exposure to gold in long-term pension funds in favor of bitcoin. But even after that, bitcoin remains an allocation of 5 percent against 65 percent of gold bars and gold mining stakes.
With a bitcoin-only LP, there’s no getting around the question of “why bitcoin vs. gold?” SkyBridge needs to deal with this head-on, and it does. His investment thesis is 10 pages (not including legal disclaimers) and about a third of them focus on why gold is inferior to bitcoin and how bitcoin will be 2.0 gold.
It quickly establishes the need for a deflationary asset – increasing debt, increasing money supply and low interest rates.
Then he asks quickly: “Is gold used for ransom?”
Do not.
The main points it provides for bitcoin pro x gold are:
- Fixed delivery vs. limited (gold supply increases by about 1.25 percent of supply per year)
- The technology industry will be the main driver of the creation of marginal wealth – a digital asset fits that
- More wealth is being transferred to generation Y – bitcoin transfer and storage capacity fits this demographic
Your thesis also includes a summary chart:
The SkyBridge presentation further expands 2.0 gold, in addition to white investment paper, explaining why bitcoin is superior and also using gold as an example of growth potential.
On his homepage, he claims that “Bitcoin is better at being 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 continues to cover Halvings, growing adoption and bitcoin as a portfolio diversifier. But the most interesting aspect remains the fact that an institutional investor directly addresses the question “why bitcoin on gold?”
In summary, the launch of SkyBridge Bitcoin LP is another important step in the adoption of Bitcoin by investors. He looks at the problematic GBTC prize for investors and tackles head-on why an institutional investor would choose bitcoin over gold.
This is a guest post by Ellie Frost. The views expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
